The Dolan Company has entered negotiations to sell two of its properties – the Colorado Springs Business Journal and the Mississippi Business Journal.
Executives from Dolan, a publicly traded company, are not commenting about who the buyers are, or about the selling prices of either publication. Business Journal employees were notified hours before the company filed its quarterly earnings report with the Securities and Exchange Commission.
Dolan owns newspapers in 21 markets.
“In 2011, management committed to a plan of action to dispose of two of our smallest-market operating units within the Business Information Division,” the filing said. “We expect the sale of these assets to occur in 2012, and as such, have classified the results of the operations – including the impairment charges and certain exit costs, as discontinued operations.”
The company recorded an aggregate impairment of long-lived assets of $.7 million, meaning it is selling the properties for less than their book-values, and $.4 million in estimated exit costs.
Total revenue for the company was $285.6 million in 2011, down from $306.9 million in 2010.
Dolan also reported a drop in revenue of 6.9 percent from 2010, primarily as a result of a $33.9 million decrease in its processing services revenues, and a $5.3 million decrease in its business information division revenues. Dolan reports that the revenue loss was offset by a $17.9 million increase in litigation support services revenue, the result of the purchase of ACT Litigation Services.
Dolan purchased ACT in July 2011, marking another move away from the newspaper industry and toward professional services delivery. NDeX is a subsidiary of Dolan, a company that provides mortgage default processing services to eight law firms throughout the country.
Dolan also moved into providing other services in recent years– document review and discovery management through its subsidiary DiscoverReady and litigation support services through Counsel Press.
Those services, according to the SEC filing, provide 75 percent of Dolan’s revenue, while its business information division – business and legal newspapers – provide 25 percent.
In a conference call concerning the 2011 fiscal results, CEO Jim Dolan said the company was focusing only on its larger markets.
The CSBJ has been in business for more than 20 years. The Dolan Company purchased it in 1998.
To read more about Dolan’s fourth quarter and end-of-year report, click here.
To read the total 10k filing, click here.