The Dolan Company
saw earnings rise during the second quarter as strong revenue growth in its professional service segment offset increased expenses.
For the quarter ended June 30, the company saw earnings rise 5.2% to $8.6 million, or 33 cents per diluted share, compared with earnings of $8.2 million, or 14 cents per diluted share, in the same period a year ago. Earnings from continuing operations were 29 cents per share, slightly below analyst estimates of 30 cents a share.
Revenue rose 18.2% to $79.2 million from $67 million during the quarter. Revenue from its professional service segment increased 27.5% to $56.5 million from $44.3 million.
"Our diversified business model served us well in the second quarter, allowing us to deliver double-digit revenue growth amid a challenging economic environment," said James Dolan, CEO and president. "The litigation support segment comprised 29.7% of professional services division revenues, fueled by the strong performance of our discovery management provider, DiscoverReady."
DiscoverReady, which the company acquired in November 2009, brought in $13.3 million in revenue, but also resulted in increased costs. The total operating expenses was up 22.6% to $63.8 million from $53.1 million.
For the first half of the year, earnings rose 5.6% to $17.8 million, or 63 cents a share, compared with earnings of $16.9 million, or 32 cents a share, in the same period a year ago.
Revenue rose 19.2% to $156.2 million from $131 million. Revenue from its professional services segment was up 30.3% to $112.5 million from $86.3 million.
Management reaffirmed its financial earnings guidance of $34 to $36 million, and $307 to $310 million in total revenues for the year. It also confirmed its net income attributable to The Dolan Company of $1.11 to $1.18 per diluted share, and cash earnings of $1.54 to $1.60 per diluted share.
-- Reported by Theresa McCabe in Boston.
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