Ladies and gentlemen, good day. And welcome to the Harte Hanks Third Quarter 2018 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Rob Fink of Hayden, IR. Please go ahead, sir.

Thank you, and good afternoon, everyone. Thanks for joining us. Hosting the call today is Harte Hanks' Chairman Al Tobia; and CFO, Jon Biro. Before beginning I would like to everyone that the information provided during this call may contain forward-looking statements, such as statements about the company strategy; adjustments to its cost structure; financial outlook and capital resources; competitive factors; business and industry expectations; anticipated performance and outcomes; future effects of acquisitions, dispositions, litigation and regulatory changes; economic forecast for the markets they serve; expectation related to cost saving measures and the availability of tax refund and other statements that are not historical facts. Actual results may differ materially from those projected or implied in these statements because of the various risks and uncertainties, including those described in the company's Form 10-K and 10 -Q and other filings with the SEC and in cautionary statement in today's earnings release. The call may also reference non-GAAP financial measures. Please refer to this morning's earnings release for the required reconciliations and other related disclosures. The company's earnings release is available on the Investors section of its website at hartehanks.com. With all that said, I'd like to now turn the call over to Al?

Thank you, Rob. Many of you know I was appointed as a Director of Harte Hanks in July of 2017. Earlier this year, we - elected Chairman. Since that time aggressive actions have been taken to address the core issue that is for far too long eroding Harte Hanks performance, our brand equity and our shareholder value. As part of this effort, we replaced the entire independent board with easing directors who bring relevant experience across all areas of our business. This includes experience in the traditional Harte Hanks service lines that have not received the organizational attention and support that they deserve. The new Board is aligned with the strategic objective to return Harte Hanks to profitable growth, create expanding opportunities for a great team of employees to deliver increasing value to our clients. We believe that capitalizing on these opportunities will in turn create value for our stockholder. As a first step towards accomplishing this goal, we replaced our CEO and CMO by establishing the office of the CEO during the third quarter. The Board and the office of the CEO are committed to return the company to positive results and to create a strategy that is clear and achievable, all while building some trust and confidence among our employees, our clients, our valued partners and our shareholders. The office of the CEO which leverages its executive leaders within the organization, along with the recently appointed directors who have served on experience was established to provide operational and strategic direction as we search to identify a candidate with the right experience and leadership skills to be the CEO of Harte Hanks. The office of the CEO is squarely focused on returning Harte Hanks to profitability and we expect to achieve this generating positive quarterly EBITDA during the second…

Thank you, Al. Good morning, everyone. As a reminder, I'll be comparing the quarter results for the three months ended September 30th, 2018 to the same quarter of 2017. Third quarter revenue was $63.6 million compared to $94.4 million last for a year-over-year decline of $30.8 million or 32.7%. I should note that last year's results included $9.4 million of revenue from 3Q digital, a business we sold at the end of February, 2018. Adjusting for the 3Q digital revenue, the revenue decline was $21.4 million or down 25%. Revenues were down in all of our verticals with the largest decline in consumer brands, which was down 43% largely due to customer and volume in our contact center service line, as well as the sale of 3Q digital. The other big decline was within our retail vertical which was down about 39% due to customer and volume losses. I should also note that the sales of 3Q digital had a largest impact on the B2B vertical reducing it $4.9 million year-over-year, as well as the consumer brands vertical reducing that vertical by $2.5 million year-over-year. As I'll mention in response to the revenue declines, we are refocusing attention on the traditional Harte Hanks service lines, which remain profitable while eliminating certain unprofitable ancillary functions with a particular focus on corporate marketing and certain marketing services functions, as well as certain international operations and underperforming partnerships. Adjusted operating loss was $8.5 million compared to adjusted operating income of $1.8 million a year ago. While revenues declined $30.8 million, we were able to reduce operating expenses by $19.5 million overcoming some of the revenue decline. Labor expenses were the most significant decline in operating expenses as we managed headcount down. Also note that selling 3Q digital during the first quarter negatively impacted…

[Operator Instructions]

Okay. Well with that any investors who would like to follow up with questions, please feel free to contact me or Rob Fink of Hayden, IR. We thank you for your time today. And look forward to speaking with you on our next quarterly conference call. Thank you.

Ladies and gentlemen, this concludes today's call. Thank you for your participation. You may now disconnect.