Revenue dipped by 2.1 percent at the Bureau of National Affairs while lower operating costs, particularly for retirement benefits, helped the company to a 33-percent increase in net income for the first quarter ended March 27. Meanwhile, the company's software operations continued to provide a disproportionate amount of operating profits.
BNA said revenue dipped to $73.2 million in the most recently ended period, down from $74.8 million a year earlier. Net income for the 12 weeks was $8.2 million, up from $6.2 million. The bottom line benefitted as net operating expenses fell to $60.6 million, down 7.9 percent from $65.8 million in last year's corresponding period.
The company said that lower subscription revenue stemmed primarily from timing issues and predicted revenue should improve during the year. It said the improvement in profits was at least partially a timing issue.
The company contributed $4 million to employee pension plans in 2010, but expects the same expense to be $2 million this year. That's because the company closed its defined benefit pension plan to employees hired after Sept. 1, 2010. And while it contributed $2 million in the year-ago first quarter, it made no contributions in the most recent period. Last year, the company also changed its postretirement health benefits for Medicare eligible retirees from providing self-insure health benefits to a fixed annual stipend for retiree use to offset health insurance costs. That produced a $109 million reduction in the obligation
Software revenue rose to $8.3 million in the first quarter, up by 1.4 percent from $8.2 million in last year corresponding period. Operating profit from that segment was $3.7 million, compared to just under $3 million a year ago.
