New foreclosure regulations dragged down the publisher’s sales, profits.
New mortgage default regulations clipped Dolan Co.’s revenue for the fourth quarter and 2012 and prevented the company from providing a full estimate for 2013 sales.
Minneapolis-based Dolan Co. provides professional services and business information to legal, financial and real estate sectors. Fourth-quarter revenue dropped 6.7 percent to $62.9 million and full-year 2012 revenue was down 5.3 percent to $254.3 million.
The company reported a net loss of $3.3 million for the quarter and $101.8 million for 2012, but the company reported adjusted operating earnings of $5.9 million and $38.5 million, down 57 percent and 31 percent, respectively, from a year ago.
Dolan operates two divisions. The professional services division provides specialized processing services to the legal profession and mortgage default processing services. Revenue in the fourth quarter was $44.8 million, a 5.9 percent decline from last year, mostly because of fewer mortgage default filings.
The company’s business information division publishes print and electronic legal publications and business journals in 19 U.S. markets. Sales for that segment were down 8.8 percent in the fourth quarter to $18.8 million. Most of the decrease was attributed to lower revenue from public notices published in the company’s print and electronic publications.
“In the fourth quarter, our foreclosure-related businesses were significantly affected by the reduced pace of referrals as new regulations and procedures were put in place,” James Dolan, chairman, president and CEO, said in a statement
The company provided only partial guidance for 2013 citing “lack of near-term visibility” regarding the overall foreclosure-related environment. It expects its litigation support revenue to grow by high single-digits to low double-digits and business information revenue to be flat to down 5 percent. Dolan shares closed Friday at $2.61, up 6 cents.