Dolan Co., which owns business newspapers across the country, reported first quarter earnings that fell 62 percent on revenue that fell 5.8 percent as the company experienced a slowdown in its foreclosure data business.
The Minneapolis-based company reported net income of $3.5 million, or 11 cents per share, down from the $9.2 million, or 30 cents per share, in earnings in the first three months of 2010. Revenue fell to $72.5 million from $77 million.
“The default slowdown caused our revenues to fall below expectations, and also affected margins,” said CEO James Dolan in a statement. “We have been very busy investing in systems and preparing process revisions that our law firm affiliates are required by regulators and servicers to implement. We believe this prepares us for a quick ramp-up when the volume returns.”
The company also provided guidance for the year, saying its revenue would be between $308 million and $325 million and its net income would be 76 cents per share to 97 cents per share.
The projections are below Wall Street expectations. Analysts are currently projecting earnings of $1.17 per share for the year and revenue of $328.6 million for the year.
Dolan owns the Long Island Business News, Mississippi Business Journal, the Colorado Springs Business Journal, the Idaho Business Review and the Daily Journal of Commerce in Portland, Ore., among others.
Read the earnings release here.
