Foreclosure rise boosts Dolan Media's earnings

Daily Record, The (Baltimore), Mar 28, 2008 by Ben Mook

The continuing increase in home foreclosures boosted revenue in the last quarter of 2007 for business and legal information publisher Dolan Media Co.

Minneapolis-based Dolan, parent company of The Daily Record, said Thursday that total revenue for the fourth quarter was $40.9 million, up 26 percent from $32.2 million recorded in the fourth quarter of 2006. Four analysts polled by First Call/Thomson Financial had predicted $39 million in revenue for the quarter.

The company said the increase was due largely to its professional services division, which has benefited from the softening real estate market. Dolan increased its stake in American Processing Co. in 2007 to nearly 90 percent, and saw business jump in the states with the two highest foreclosure rates.

"These results were driven by growth in our mortgage default processing business, which continued to benefit from increases in Indiana and Michigan foreclosures," Dolan Media Chairman, President and CEO James P. Dolan said on a conference call with analysts.

For the year, Dolan Media saw total revenue of $152 million, a 36 percent increase over the $111.6 million recorded in 2006. The company's net loss jumped to $54 million in 2007, compared to $20.3 million in 2006.

The company said it expected its first quarter earnings to be in the $40 million to $41 million range. For the year, Dolan Media is expecting revenue in the $168 million to $178 million range. Capital expenditures for the full year are expected to be up to 4.5 percent of projected revenue.

Dolan Media publishes 60 print publications consisting mainly of business and legal newspapers in 20 markets, including Baltimore, Boston and New Orleans. Dolan publications saw an 18 percent increase in revenue for the fourth quarter.

"This, at a time when most media-related companies are reporting negative year-to-year growth in revenues," Dolan said.

Shares of Dolan Media gained 10 cents to close at $24 on the New York Stock Exchange Thursday. The earnings were released after the close of trading.