With Stock Price Plummeting, Dolan Appoints Chief Restructuring Officer
B-to-b publisher, professional services provider falls below NYSE threshold.
Facing action by the New York Stock Exchange, The Dolan Company has appointed a chief restructuring officer to oversee the company's operations and finances.
New CRO Kevin Nystrom, managing director of restructuring advisory firm Zolfo Cooper, will report directly to the company's board of directors. Dolan specializes in business information and professional services for the legal, financial and real estate sectors.
"We are pleased to be adding such an experienced and capable professional to our team," James P. Dolan, chairman, CEO and president of the company, says in a statement. "Kevin will play a very important role in our efforts to stabilize our finances and strengthen our businesses. I look forward to working closely with him as we move forward."
Dolan did not provide details on what the restructuring process would entail and did not respond to a request for additional comment.
Concurrent with the CRO news, Dolan announced that it has received aĀ continuing listing standards noticeĀ from the NYSE. The exchange mandates that a company's common stock must maintain a closing price of at least $1.00 over a consecutive 30-day trading period. Non-compliant listings may continue to trade while in violation however.
The company's stock price dipped below the $1.00 thresholdĀ after its most-recent earnings reportĀ on Nov. 13. It's continued to fall since, dropping 20 percent to $0.55 after Nystrom's appointment on Jan. 2. Trading at $4.20 a year ago, Dolan wasĀ priced at $0.53Ā at the time of publication.
The company'sĀ revenuesĀ have fallen close to 20 percent since a high of $311 million in 2010. Dolan reported just $117 million in revenue and an operating loss of $21 million through theĀ third quarterĀ of 2013, though theĀ divestitureĀ of two unprofitable mortgage default processing businesses also occurred in the period. Net debt stands at $128.7 million, according to the third-quarter statement.
While publishing is just part of Dolan's operationsāthe company produces 64 print publications, in addition to its servicesāthe banking, financial and insurance publication sector has suffered like much of the b-to-b publishing industry. Ad pages fell 12 percent in the first quarter of 2013, according to theĀ most-recent ABM BIN report.