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 compose the company’s litigation support 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 second quarter were $30.9 million, an increase of 31.5% from $23.5 million in the second quarter of 2012. The increase was the result of much stronger revenue at DiscoverReady, which was partially offset by lower NDeX file volume.
Note that NDeX second quarter results no longer include a contribution from NDeX South or NDeX Indiana because they were sold subsequent to the end of the quarter and are classified as discontinued operations. For the second quarter of 2013, the combination of NDeX South and Indiana revenues on a pro forma basis would have been $10.8 million with a negative impact on adjusted EBITDA of more than $3 million. Current NDeX results reported here are from the company’s Michigan and Minnesota operations.NDeX received 10,400 mortgage default files for processing during the second quarter and generated $4.9 million in revenues. This compares to 17,400 files received for processing and $7.3 million in revenues in the second quarter of 2012. The total number of mortgage default files received decreased by more than 30% in the quarter compared to the second quarter of last year. The litigation support segment contributed $25.9 million in revenues during the second quarter of 2013, an increase of 59.9% from a year ago, with the e-discovery business growing 74.2%. E-discovery growth was driven by both new and existing clients, and benefited from an unusually weak quarter a year ago due to the timing of legal matters.
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