The economy pushed revenue down by almost 2 percent for thePublishing revenue, by far the biggest segment, dropped to $123.8 million in the 24 weeks, a decrease of 2.6 percent from $127.1 million in last year's 24 weeks. Printing revenue fell to $14.4 million, off 6.6 percent from $15.4 million. The best performing segment was software, which turned in just over $16 million in income, a rise of 9.1 percent from $14.7 million in last year's corresponding period.
The software segment, which combines operations of STF Services and BNA Software, also saw a 2.2 percent decline in expenses. BNA Software revenue rose by 10.5 percent in the first half. With operating expenses down 1.9 percent, operating profit hit $4.2 million in 2010 up 44.8 percent from $2.9 million in last year’s corresponding period. STF revenue rose by 3.6 percent and with operating expenses down 3.7 percent, producing an 11.8-percent increase in operating profit.
The employee-owned company made a big change to its postretirement health benefits for Medicare-eligible retirees of the parent company. In the first quarter, it switched from self-insured healthcare benefits to a plan that gives a fixed annual stipend to retirees to offset their purchase of health insurance. That reduced the postretirement obligation by $109 million, added $65 million to accumulated other comprehensive income, and cut $44 million from deferred income taxes. BNA expects expenses in their area will continue to be substantially lower.
The company, which was once headquartered in Washington, D.C., this month agreed to sell its Rockville, Md., subscriber relations facility to a developer for $18 million to $19 million and expects a pre-tax gain of about $16 million after all costs once the deal is completed by early 2012.
