Revenue and cash flow beat. The company reported full year 2021 revenue of $194.6 million, compared with our estimate of $191.3 million, a solid 10% increase from the year earlier. Full year adj. EBITDA of $18 million beat our $17.1 million forecast by 5%, over 460% above the year earlier.Customer Care still rolling. The Customer Care segment generated $19.2 million in revenue in Q4 compared with our upwardly revised estimate of $17.5 million. The segment’s robust quarter was driven by several new clients acquired during the period and continued Covid related, healthcare business.Raising estimates. The fourth quarter indicated favorable operating momentum into 2022. We are raising our full year 2022 revenue and adj. EBITDA estimates to $203.4 million and $19.9 million from $177.3 million and $15.1 million, respectively. We are also posting our full year 2023 revenue and adj. EBITDA estimate of $211.2 million and $21.5 million, respectively. Aggressive debt reduction. As of December 31, the company had $15 million in cash and $5 million in long-term debt, compared with $16 million in cash and $13.1 million in long term debt at the end of Q3. With the prospect of being debt free and building cash, we believe that the company will seek tuck-in acquisitions to enhance long term growth. Given the improved financial position, we are raising our fundamental assessment from 3.0 to 3.5 checks, which is above average.Raising price target. Near current levels, the HHS shares trade at a modest 1.5 times Enterprise Value to our upwardly revised 2022 adj. EBITDA estimate of $19.9 million. Taking into account is unfunded pension obligations, the shares trade at a compelling 3.8 times EV to our 2023 adj. EBITDA. We are raising our target from $17 to $20, reflecting our upwardly revised expectations and substantially improved financial position. Read More >>