(1) 2011 includes fair value adjustments on earnout liabilities in the amount of $16.5 million
Professional Services Division Results
The Professional Services Division provides specialized processing services to the legal profession through NDeX, Counsel Press, and DiscoverReady. 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, data hosting and processing services, to major corporations and law firms.
Division revenues for the fourth quarter were $44.8 million, a decline of 5.9% from $47.6 million in the fourth quarter of 2011. The decline was the result of much lower NDeX file volume, which was partially offset by stronger revenue at DiscoverReady.
NDeX received 41,700 mortgage default files for processing during the fourth quarter and generated $19.4 million in revenues. This compares to 60,300 files received for processing and $24.9 million in revenues in the fourth quarter of 2011. The total number of mortgage default files received decreased by more than 30% in the quarter compared to the fourth quarter of 2011.
Litigation Support contributed $25.4 million in revenues during the fourth quarter of 2012, an increase of 12.3% from the fourth quarter of 2011, with the e-discovery business growing 14.0%.
Direct operating expenses within the Professional Services Division increased 14.6% to $25.8 million during the fourth quarter of 2012, from $22.5 million for the same period in 2011. Fourth quarter direct operating expenses also were affected by $1.7 million of non-recurring items. Selling, general and administrative expenses were $15.4 million during the fourth quarter of 2012, roughly equal to the same period in 2011.
Business Information Division Results
The Business Information Division publishes print and electronic legal publications, business journals, court and commercial media and other highly focused information products and services, operates Web sites and produces events for targeted professional audiences in 19 geographic markets across the United States.