Profit and revenue for the Bureau of National Affairs rebounded for the year ended December 31 with its software operations continuing to produce a disproportionate amount of the company's operating profits. BNA net income rose by 58 percent, largely because of lower expenses, while revenue was virtually unchanged. However, the software segment, which includes BNA Software and STF Services Corp., produced 24 percent of the operating profit even though it represents only 9.4 percent of revenue.
Net income for 2010 was $27.6 million, compared to $17.5 million the prior year. Revenue for the most recently ended year was $331.0 million, down from $331.25 million. Revenue remains below the $352.2 million record in both fiscal 2008 and fiscal 2007 and the $344.9 million in fiscal 2006. The company ended the year with 1,536 employees, down 8 percent from 1,638 in 2009. BNA is also reducing retirement expenses since it closed its pension plan to employees hired after Sept. 1, 2010.
One drag on results was the Specialized Business Publishing segment with its $12-million operating loss, although that was down sharply from a $20.5-million loss the prior year. That segment includes BNA Subsidiaries, whose lines are Kennedy Information and IOMA. The parent put that unit into voluntary Chapter 11 for restructuring last year and it is expected to conclude the process during the current quarter.
The legal, tax, and regulatory publishing segment represented 79 percent of revenue. Revenue for that segment was $261.5 million, up 2.3 percent from $255.7 million, a big improvement from the 6 percent decline in revenue from 2009 to 2010. However, its operating margin was 18.4 percent compared to an operating margin of 35.7 percent for the software business.
A major factor in the software performance was the BNA Income Tax Planner. The company cited the combination of tax legislation and its success in "correcting license violations" as leading to higher new sales and renewal. It also saw "strong new sales" of the BNA Corporate Tax Analyzer.
Revenue from the STF Services Corp. declined by 1 percent from 2009 because of low growth in the tax forms market. However, that unit improved operating profit through process improvements and cost containment, BNA said. That reduced expenses by 2.8 percent leading to 1.3-percent increase in operating profit.
Revenue for BNA Software rose by 8.6 percent over 2010 while operating expenses were down 5.2 percent. Operating profit was $8.3 million for the year just ended compared to $5.1 million the prior year. The company did not break out revenue for BNA Software and STF,
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards. Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that. A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
