ADA, Okla., July 1 /CNW/ -- Pre-Paid Legal Services, Inc. (NYSE: PPD),
reported new memberships produced and new sales associates enrolled for the
2009 second quarter. During the 2nd quarter of 2009, new sales associates
enrolled decreased 3.6% compared to the second quarter of 2008. Memberships
produced decreased by 9.1% while new membership fees written decreased by 9.3%
and our active membership base decreased 3.9% compared to the comparable
period of the previous year.
On a sequential quarterly basis, new associates enrolled increased 5.5%,
new memberships produced decreased 0.3%, new membership fees written increased
2.5% and our active membership base decreased by 21,192 memberships.Three Months Ended
New Memberships: 6/30/2009 3/31/2009 6/30/2008
---------------
New legal service membership sales 118,050 117,635 127,804
New "stand-alone" IDT membership
sales 4,180 4,960 6,642
Total new membership sales 122,230 122,595 134,446
======= ======= =======
New "add-on" IDT membership sales 78,009 72,850 82,623
Average Annual Membership fee $328.79 $319.86 $329.44Active Memberships:
-------------------
Active legal service memberships at
end of period 1,419,092 1,438,519 1,481,051
Active "stand-alone" IDT
memberships at end of period (see
note below) 86,779 88,544 85,588
Total active memberships at end of
period 1,505,871 1,527,063 1,566,639
========= ========= =========
Active "add-on" IDT memberships at
end of period (see note below) 670,769 671,850 658,365New Sales Associates:
---------------------
New sales associates recruited 25,172 23,871 26,102
Average enrollment fee paid by new
sales associates $120.98 $119.17 $98.93Average Membership fee in force:
--------------------------------
Average Annual Membership fee $301.37 $300.81 $300.46Note - reflects 4,386 net transfers from "add-on" status to "stand-alone"
status during the quarterOur total active membership fees in force decreased approximately 3.6%
during the last twelve months. Membership persistency rate (defined as the
number of memberships in force at the end of a 12 month period as a percentage
of the total of memberships in force at the beginning of such period, plus new
memberships sold during such period) was 72.1% for the 12 month period ended
June 30, 2009, a decrease from the 73.3% for the 12 month period ended June
30, 2008.
During the 2009 2nd quarter, we returned $524,824 to shareholders through
the repurchase of 13,315 shares of common stock, at an average per share price
of $39.42. Since April 1999, we have returned $421.2 million to shareholders
through the purchase of 14.2 million shares, average price of $29.70 per
share, and $17.1 million in dividends for a combined total of $438.3 million.
We anticipate announcing our 2009 second quarter financial results on
Monday, July 27, 2009 after the market closes. The Company will conduct a
conference call to present the first quarter results on Wednesday, July 29,
2009, at 8:30 a.m. Eastern Time. The conference call will be webcast on the
investor relations' page of www.prepaidlegal.com. Questions may be submitted
prior to the call via email to investor@pplsi.com.
About Us - We believe our products are one of a kind, life events legal
service plans. Our plans provide for legal service benefits provided through a
network of independent law firms across the U.S. and Canada, and include
unlimited attorney consultation, will preparation, traffic violation defense,
automobile-related criminal charges defense, letter writing, document
preparation and review and a general trial defense benefit. We have an
identity theft restoration product we think is also one of a kind due to the
combination of our identity theft restoration partner and our provider law
firms. More information about us and our products can be found at our homepage
at www.prepaidlegal.com.Forward-Looking StatementsStatements in this press release, other than purely historical
information, regarding our future plans and objectives and expected operating
results, dividends and share repurchases and statements of the assumptions
underlying such statements, constitute forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934. The
forward-looking statements contained herein are based on certain assumptions
that may not be correct. They are subject to risks and uncertainties incident
to our business that could cause actual results to differ materially from
those described in the forward-looking statements. These risks and
uncertainties are described in the reports and statements filed by us with the
Securities and Exchange Commission, including (among others) those listed in
our Form 10-K, Form 10-Q and Form 8-K, and include the risks that our
membership persistency or renewal rates may decline, that we may not be able
to continue to grow our memberships and earnings, that we are dependent on the
continued active participation of our principal executive officer, that
pending or future litigation may have a material adverse effect on us if
resolved unfavorably to us, that we may have compromises of our information
security, that during an economic downturn in the economy consumer purchases
of discretionary items may be affected which could materially harm our sales,
retention rates, profitability and financial condition, that we could be
adversely affected by regulatory developments, that competition could
adversely affect us, that we are substantially dependent on our marketing
force, that our stock price may be affected by short sellers, that we have
been unable to increase our employee group membership sales and that our
active premium in force is not indicative of future revenue as a result of
changes in active memberships from cancellations and additional membership
sales. Please refer to pages 15 - 17 of our 2008 Form 10-K and pages 7 and 8
of our March 31, 2009 Form 10-Q for a more complete description of these
risks. We undertake no duty to update any of the forward-looking statements in
this release.
For further information: Steve Williamson of Pre-Paid Legal Services,
Inc., +1-580-436-1234 Web Site: http://www.prepaidlegal.com
