“Litigation Support Services, led by our e-discovery business, had another strong quarter. Litigation Support revenue grew by 12% year over year, including 14% growth in our e-discovery business. Similar to the third quarter, we saw a healthy balance of growth from both new and existing clients. We are excited about DiscoverReady’s integrated offerings of processing, technology services and cost-efficient managed review, and we will work hard to continue expansion of our client base in 2013,” Dolan said.
“Business Information revenue declined by 9% in the fourth quarter compared to last year, while public notice revenue declined by 17%. Public notice advertising felt the impact of the new federal mortgage default regulations, reversing a trend of stability and modest growth in the previous quarters of 2012. We believe the decline in public notice revenue is mostly timing related and should improve. Management of this division consolidated operations and reduced costs during 2012. Their hard work meant that Business Information free cash flow and margins remained relatively stable through 2012,” Dolan said.
“Due to the previously announced restructuring of our NDeX Florida operations in the third quarter, the Dolan Company will have a net operating loss for the year, which we estimate will result in a refund during the second quarter of 2013 of approximately $10 million for previously paid income taxes,” Dolan added.
“In the first quarter of 2013, the company strengthened its balance sheet by selling $17.5 million (face value) in 8.5% series B cumulative preferred stock, with proceeds used to reduce senior debt. We were pleased with investor response to the offering and to subsequent market support for the issue, which trades on the New York Stock Exchange as DM.PrB,” Dolan said.2013 Guidance Due to the lack of near-term visibility into its NDeX default processing operation and the overall foreclosure-related environment, the company is providing only partial 2013 guidance. At this time, the company is providing revenue and adjusted EBITDA guidance for its Business Information and Litigation Support segments. The company’s 2013 financial guidance is as follows:
2013 Financial Guidance
( dollars in millions, except per share )
|Total revenues (excluding NDeX operations)||$160-$170 million|
|Adjusted EBITDA (excluding NDeX operations)||$30-$35 million|
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