Reportable Segments
6 Months Ended
Jun. 30, 2012
Reportable Segments [Abstract]  
Reportable Segments

Note 13. Reportable Segments

 

The Company has two operating divisions: Professional Services and Business Information, and three reportable segments: (1) Mortgage Default Processing Services; (2) Litigation Support Services; and (3) Business Information. The Mortgage Default Processing Services and Litigation Support Services segments are part of the Professional Services Division as these segments provide professional services supporting, primarily, attorneys and/or their clients. The Business Information segment is part of the Business Information Division. The Mortgage Default Processing Services segment generates revenue from NDeX, which provides mortgage default processing and related services to its customers. The Litigation Support Services segment generates revenue by providing discovery management and document review services through DiscoverReady and appellate services through Counsel Press, LLC. Both of these operating segments generate revenues through fee-based arrangements. The Business Information segment provides products, data and certain services through subscription-based products and a variety of media, including court and commercial newspapers, weekly business journals and the Internet. The Business Information segment generates revenues primarily from display and classified advertising (which includes events), public notices, and subscriptions and other. The Company determined its reportable segments based on the types of products sold and services performed.

The tables below reflect summarized financial information concerning the Company’s reportable segments
for the three and six months ended June 30, 2012 and 2011 (in thousands):
               
 Professional Services      
 Mortgage          
 DefaultLitigationBusiness    
 ProcessingSupportInformationCorporateTotal
  
Three Months Ended June 30, 2012          
Revenues$28,098 $16,212 $19,453 $ - $63,763
Direct operating expenses (14,891)  (6,752)  (7,284)   -  (28,927)
Selling, general and administrative expenses (9,670)  (7,003)  (8,610)  (1,621)  (26,904)
Amortization (2,495)  (1,483)  (980)   -  (4,958)
Depreciation (720)  (699)  (428)  (151)  (1,998)
Fair value and other adjustments on earnout liabilities  -  10,143  260   -  10,403
Equity in earnings of affiliates  -   -  599   -  599
Operating income (loss)$322 $10,418 $3,010 $(1,772) $11,978
           
Three Months Ended June 30, 2011              
Revenues$32,689 $15,727 $19,971 $ - $68,387
Direct operating expenses (16,584)  (6,352)  (7,789)   -  (30,725)
Selling, general and administrative expenses (10,405)  (4,645)  (8,936)  (2,193)  (26,179)
Amortization (2,512)  (715)  (1,099)   -  (4,326)
Depreciation (889)  (282)  (446)  (168)  (1,785)
Fair value and other adjustments on earnout liabilities  (189)   -  161   -  (28)
Equity in earnings of affiliates  -   -  441   -  441
Operating income (loss)$2,110 $3,733 $2,303 $(2,361) $5,785
               
 Professional Services      
 Mortgage          
 DefaultLitigationBusiness    
 ProcessingSupportInformationCorporateTotal
  
Six Months Ended June 30, 2012          
Revenues$57,600 $34,615 $38,270 $ - $130,485
Direct operating expenses (30,034)  (15,026)  (14,452)   -  (59,512)
Selling, general and administrative expenses (19,429)  (14,630)  (17,029)  (3,459)  (54,547)
Amortization (4,990)  (2,966)  (1,973)   -  (9,929)
Depreciation (1,542)  (1,380)  (857)  (320)  (4,099)
Fair value and other adjustments on earnout liabilities  -  10,062  410   -  10,472
Equity in earnings of affiliates  -   -  1,024   -  1,024
Operating income (loss)$1,605 $10,675 $5,393 $(3,779) $13,894
           
Six Months Ended June 30, 2011          
Revenues$ 70,544 $29,828 $39,767 $ - $140,139
Direct operating expenses (34,260)  (12,178)  (15,598)   -  (62,036)
Selling, general and administrative expenses (20,546)  (9,642)  (18,511)  (4,299)  (52,998)
Amortization (5,024)  (1,428)  (2,363)   -  (8,815)
Depreciation (1,920)  (513)  (928)  (340)  (3,701)
Fair value and other adjustments on earnout liabilities (378)   -  20   -  (358)
Equity in earnings of affiliates  -   -  1,189   -  1,189
Operating income (loss)$ 8,416 $6,067 $3,576 $(4,639) $13,420