Good day, and welcome to the Harte Hanks Fourth Quarter and Full Year 2018 Earnings Conference Call. Today's conference is being recorded. As a reminder, there will be a question-and-answer session during today’s call. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Rob Fink of Hayden IR. Please go ahead, sir.

Thank you and good afternoon everyone. Thank you for joining us. Hosting the call today is Harte Hanks’ Chief Executive Officer, Bant Breen; and CFO, Mark Del Priore. Before we begin, I would like to tell everyone that the information provided during this call may contain forward-looking statements, such as statements about the company's 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, disposition, litigation and regulatory changes; economic forecast for the market they serve; expectation related to cost-saving measures and the availability of tax refunds 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 statements in today's earnings release. The call may also reference non-GAAP financial measures. Please refer to the earnings release that was issued after the close for the reconciliation and other related disclosures. The company's earnings release is available on the Investors section of Harte Hanks' website. With all that said, I'd like to turn the call over to Bant.

Thank you, Rob and thank you everyone for joining us for today's earnings call. I'm excited to be hosting my first earnings call as CEO of Harte Hanks. As many of you know, I joined Harte Hanks as an independent director in May of last year and took on the role of CEO on January 4, 2019. My appointment was accompanied by the promotion of Andrew Harrison to the role of COO and President, and was quickly followed by the announcement of Mark Del Priore as our new CFO. Earlier today, we announced the appointment of Evan Behrens as an independent director to our Board. Evan replaces Martin Reidy who after serving as an active member of the Office of the CEO shifted into an operational role within the organization to oversee our marketing services business unit. In his operational role, Martin no longer could maintain his independent status on the Board and as such he stepped down and shifted into the operations team. We are fortunate to have Evan join us and to have Martin continuing with us as a key member of our operational team. The new and experienced leadership team at Harte Hanks is highly focused on maintaining the best of the heritage of this company and blending it with present and future market opportunities. As a member of the Board of Directors, I gained an appreciation for the company's technology assets solutions and capabilities as well as the challenges that have impacted the company's operations. Based on this, I determined that, there was an untapped value at Harte Hanks, and more importantly that there was a clear fit between my experience at the nexus of media marketing and technology and the company's needs. The results we are reporting today, which Mark will discuss in detail later…

Thank you, Bant. I joined Harte Hanks back in October after the Office of the CEO hired me to work on various finance-related projects associated with the restructuring. This interim step provided me the unique opportunity to familiarize myself with the company's capital structure, its operating model, and gain and appreciation for the opportunities and challenges facing the company before being offered and accepting the CFO position. I was encouraged with what I saw during this time and believe that we have a significant opportunity to drive shareholder value going forward. Harte Hanks has made great progress and effort to cut costs as we rationalize expenses in light of a lower revenue base. Year-over-year expenses are down more than 35% and this has resulted in a significant narrowing of our operating and net losses. More importantly, I believe we are now in a better position to return Harte Hanks to profitability and achieving this will be one of my primary goals in 2019. Simultaneously, I'm focused on preserving and strengthening our balance sheet. Subsequent to the end of the year, we received a $4.6 million tax refund. We also maintained an income tax receivable of approximately $9 million for a tax refund that we expect to receive in the second half of 2019 as a result of the capital loss we generated on the sale of 3Q Digital. Together, these two items will significantly bolster our liquidity. I'm confident we have the sufficient liquidity to execute our near-term and intermediate term strategy. Turning to the specific financial results. Fourth quarter revenue was $70.2 million compared to $99.9 million last year for a year-over-year revenue decline of $29.7 million or 30%. I should note that last year's results included $9.7 million of revenue from 3Q Digital which we sold at the…

Thank you. [Operator Instructions] We'll now take our first question from Michael Kupinski from Noble Capital Markets. Please go ahead. Your line is open.

Thank you. Just kind of a little bit of a softball question before I have a couple of others. I know that the management team's new to the company and I was just wondering -- it's good to have fresh eyes I suppose if you want to look at it that way. Can you just tell me what you learned about the company that maybe you're excited about? Where do you see that maybe you're going to have to focus your efforts a little bit more intently? And just kind of give me your feeling about the -- just the general feeling about the company. Let's start there.

Yes. Great. And thank you for the question. This is Bant Breen. So it's really interesting. Harte Hanks, I've spent my whole career working in the marketing and advertising industry and Harte Hanks has always been a company that I've known, I've competed against, I've admired and has played a key role in really kind of that direct customer marketing relationship solutions area. When we look at Harte Hanks today, we see that as I stated up front, it's a company that has its core is kind of the thing that powers the company is customer data. And that's actually something that's not only powering maybe the marketing world that Harte Hanks came from, but it is actually at the center of where we are going in the marketing world. As we've seen with companies like Acxiom and others, this is a critical area for us. But we also see that some of the infrastructure pieces that the company has seem to be critically helpful for new economy companies as well. And so marrying that data knowledge with solutions that are appropriate for these new economy businesses is really where I get excited in and where we'll be focusing our efforts.

Got you. And when does the company cycle against the Consumer Brand customers that it lost? And adjusting for that client loss, has the base of customers stabilized now?

So I spent the first eight weeks traveling and meeting with a lot of our core customers. And we say -- we see really great work that we're doing with customers and we still have a very strong base of businesses that we work with across all major sectors. And as I stated up front, we see that we are now, I'd say, attracting new logos, going out and building bigger bases in some of these verticals as well.

And can you talk a little bit about the Wipro contract and whether there are opportunities there for a renewed relationship with them?

So we -- as you know, Wipro is a shareholder of the company and we continue to work with Wipro on several areas of the business, on the infrastructure of the business as well as on several client relationships and that continues on an ongoing basis.

Yes. I'll add to that. Wipro is obviously a key vendor of ours, and we continue to talk to them about ways that we can work better together as well as right-size the agreement to better reflect our current revenue stream, so…

Got you. That's all I have. Thank you.

Thank you.

Thanks Mike.

There are no further questions in the queue at this time.

All right. Thank you everyone for joining us today. Cheers.