(1) 2012 includes impairment of long-lived assets, and goodwill and fair value adjustments on earnout liabilities in the amount of $150.0 million(2) 2012 includes impairment of long-lived assets and goodwill, fair value adjustments on earnout liabilities, and other one-time charges related to NDeX’s Florida operations, net of the effects of noncontrolling interest and tax
Professional Services Division Results
The Professional Services Division provides specialized processing services to the legal profession through its subsidiaries, NDeX, Counsel Press, and DiscoverReady. National Default Exchange, or NDeX, is a leading provider of mortgage default processing services in the United States. Together, Counsel Press and DiscoverReady comprise the company’s litigation support services segment. Counsel Press is the largest provider of appellate services in the United States, and DiscoverReady provides outsourced discovery management, including document review and data hosting and processing services, to major corporations and law firms.
Note that all financial information and file counts related to NDeX do not include Florida in any of the periods presented due to the restructuring of the NDeX Florida operations in October of 2012, and its classification as a discontinued operation.
Division revenues for the third quarter were $49.8 million, a decline of 3.1% from $51.4 million in the third quarter of 2011. The decline was the result of lower NDeX file volume, offset by strength in the e-discovery business.
NDeX received 51,000 mortgage default files for processing during the third quarter and generated $22.8 million in revenues. This compares to 69,400 files received for processing and $27.1 million in revenues in the third quarter of 2011. The total number of default files received in the second quarter decreased by 32% from last year.
Litigation Support contributed $27.0 million in revenues during the third quarter of 2012, an increase of 11.2%, with the e-discovery business growing 13.0% compared to the third quarter of 2011.