Wednesday, April 23, 1997

Harte-Hanks earnings grow in first quarter

Harte-Hanks Communications Inc. reported Tuesday its first-quarter earnings grew 20 percent because of good performances by each of the company's business segments.

Harte-Hanks, parent of the Abilene Reporter-News, had first-quarter profits of $10 million, or 26 cents per share, on revenues of $174.8 million. That compares with net income of $8.3 million, or 22 cents per share, on revenues of $150.6 million for the same period in 1996.

"We are pleased with our performance for the quarter and the contributions of each of our core businesses," said Larry Franklin, president and chief executive officer of the San Antonio-based company.

Harte-Hanks - created 70 years ago from newspapers in San Angelo and Abilene - announced in March it would explore selling its newspapers and television station and concentrate on its growing direct marketing and shopper businesses.

"The first quarter was certainly an eventful one," Franklin said, noting that the newspaper and television employees will be missed if those operations are divested.

"We are pleased with the interest shown in our newspapers and television station by potential acquirers. However, we're disappointed that legislation has recently been proposed that would prevent tax-free transactions known as Morris Trusts because that form of transaction could be advantageous to us. Our current plan is to continue with the process and evaluate the proposals we receive in light of the best interests of our stockholders," he said.

"However, we are very excited about becoming a more targeted marketing services company that will grow both through internal expansion and acquisitions," he said.