Harte-Hanks Inc. announced unaudited consolidated financial results for the fourth quarter and year ended December 31, 2012. For the quarter, the company reported operating revenues of $204.835 million against $215.113 million a year ago. Operating income was $22.142 million against $24.622 million a year ago. Income from continuing operations before income taxes was $20.277 million against $25.728 million a year ago. Income from continuing operations was $14.343 million or $0.23 per diluted share against $15.310 million or $0.24 per diluted share a year ago. Net income was $10.696 million or $0.17 per diluted share against $14.728 million or $0.23 per diluted share a year ago. Capital expenditures were $5.435 million against $4.584 million a year ago. Total free cash flow was $13.282 million against $16.189 million a year ago. EBITDA from continuing operations was $27.017 million against $29.644 million a year ago. Net debt at the end of the quarter was $61 million against $93 million a year ago.

For the year, the company reported operating revenues of $767.709 million against $811.636 million a year ago. Operating loss was $89.940 million against operating income of $78.098 million a year ago. Loss from continuing operations before income taxes was $96.286 million against income from continuing operations before income taxes of $76.668 million a year ago. Loss from continuing operations was $73.104 million or $1.16 per diluted share against income from continuing operations of $45.877 million or $0.72 per diluted share a year ago. Net loss was $83.353 million or $1.33 per diluted share against net income of $44.198 million or $0.70 per diluted share a year ago. Capital expenditures were $13.856 million against $20.969 million a year ago. Total free cash flow was $45.537 million against $47.370 million a year ago. EBITDA from continuing operations was $87.417 million against $97.949 million a year ago.

The company expects shopper's revenue and operating income in 2013 compared to 2012 to be down slightly, which is the significant improvement and trend compared to the experience during the past few years. In 2013, the company expects effective tax rate to be approximately 40%.