Harte-Hanks Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2012. For the quarter, operating Revenue was $199,137,000 against $213,047,000 a year ago. Operating loss was $152,665,000 against operating income of $16,546,000 a year ago. Loss before income taxes was $153,918,000 against income before income taxes of $15,514,000 a year ago. Net loss was $109,705,000 or $1.74 per basic share against net income of $9,425,000 or $0.15 per basic share a year ago. EBITDA was $18,619,000 against $21,909,000 a year ago. Capital expenditures were $2,582,000 against $7,036,000 a year ago. Free cash flow was $11,077,000 against $8,799,000 a year ago. Net debt balance was $82 million versus $92.7 million at December 31, 2011, a reduction of $9.3 million. For the six months, operating Revenue was $394,309,000 against $413,353,000 a year ago. Operating loss was $139,733,000 against operating income of $30,865,000 a year ago. Loss before income taxes was $142,631,000 against income before income taxes of $28,624,000 a year ago. Net loss was $102,912,000 or $1.63 per basic share against net income of $17,342,000 or $0.27 per basic share a year ago. EBITDA was $37,091,000 against $41,597,000 a year ago. Capital expenditures were $5,636,000 against $11,408,000 a year ago. Free cash flow was $20,954,000 against $18,371,000 a year ago. For the second quarter ended June 30, 2012, the company reported, impairment of goodwill and other intangibles was of $165,336,000. For 2012, the company expects effective tax rate, excluding impairment charges, to be approximately 38% to 40%.