2Q 2011 Y-O-Y Change Revenue $134 million 4% EBIT $ 10 million 89% ------- ------------ ------------ Revenue for Mail Services grew 4 percent while EBIT grew 89 percent. The year-over-year impact of a one-time adjustment last year of $21 million to revenue and $16 million to EBIT, to correct rates used to estimate unbilled International Mail Services (IMS) revenue in prior periods, was partially offset by the effects of the company's Dallas presort facility fire.
The disruption caused by the facility fire in Dallas resulted in the loss of more than $9 million in revenue and about $9 million in EBIT in the quarter. At the end of June, the company opened a new mail processing facility in Dallas reestablishing its unique ability to achieve a high level of presort discounts nationally. The company expects that the facility will be operating at full efficiency by the end of the third quarter. As of today's date, the company has received approximately $25 million as partial payment from insurance companies, of which $15 million was received prior to June 30, 2011. The company expects to recognize in income the portion of these and future proceeds related to business interruption and other recoveries as allocations of these proceeds are resolved with the insurance companies.
Excluding the impact of the fire this year, increasing Standard Mail volume processed through the company's presort network led continued growth in presort revenue and EBIT margin improvement. Excluding the prior year adjustment, revenue in the international mail portion of the business declined due to a lower volume of mail and packages shipped.
2Q 2011 Y-O-Y Change Revenue $ 36 million (3%) EBIT $ 7 million (7%) ------- ------------ ------------ Revenue in Marketing Services declined 3 percent because of fewer household moves compared with the prior year and the transition of online marketing revenue during the quarter. EBIT was impacted by lower revenue and ongoing investments in new services, including the MyMove start-up. MyMove is a recently launched on-line service for movers that allows individuals who are moving to opt-in to various move-relevant products and services. Click through rates from the traditional MoverSource product to MyMove have been increasing steadily.
This guidance discusses future results which are inherently subject to unforeseen risks and developments. As such, discussions about the business outlook should be read in the context of an uncertain future, as well as the risk factors identified in the safe harbor language at the end of this release.
The company is reaffirming its adjusted earnings per diluted share, its GAAP earnings per diluted share and its free cash flow guidance. However, the company is modifying its revenue guidance for the year as a result of the impact of the presort facility fire in Dallas, and the overall economic outlook, particularly given the slow business recovery in the SMB markets in the first half of the year.
The company now expects 2011 revenue, excluding the impacts of currency, to be in a range of minus 2 to positive one percent growth.
The company's 2011 guidance for adjusted diluted earnings per share from continuing operations is unchanged and is summarized below: