Overachieves Q1 expectations. Total company revenues increased 8% to 43.75 million, 6.5% above our $41.10 million estimate. The revenue growth was the first time since 2014! The company's Customer Care segment accounted for the largest upside variance (+10.4%), but each segment was better than our estimate. Adjusted EBITDA was significantly better than expected, $2.23 million versus our $600,000 estimate.Draws a line in the sand. Management indicated that it believes that the base revenues for the company is $40 million per quarter. The favorable revenue outlook reflects continued strength in its Customer Care business into the second quarter and improving revenue trends in its Marketing and Fulfillment & Logistics Services segments. We are raising our full year 2021 revenue estimate from $166.4 million to $170.3 million.Raising estimates. Based on the stronger than expected Q1 and upward revisions in Q2, we are raising our full year 2021 adjusted EBITDA from $7.6 million to $10.0 million. Due to the better-than-expected base business in 2021, we are raising our full year 2022 adj. EBITDA estimate from $10.9 million to $12.4 million. Free cash flow positive. The company is expected to benefit from lower pension contributions and, in 2021, a tax refund of $7.5 million. As such, the company is expected to swing toward free cash flow in 2021. Notably given our upwardly revised 2022 cash flow estimate, the company is expected to be free cash flow positive in 2022, as well.Compelling risk/reward relationship. Near current levels, the HRTH shares trade at modest 2.1 times Enterprise Value to our 2022 adj. EBITDA estimate. For more conservative investors that wish to take into account the unfunded pension liability, the shares trade at 7.5 times EV to our 2022 cash flow estimate. In our view, the multiple is compelling for a company that is expected to show strong, double digit cash flow growth in an early stage turnaround and an economic and advertising recovery. We rate the shares Outperform with a $17 price target. Read More >>