Pre-Paid Announces 2007 3rd Quarter Membership and Recruiting Results

    ADA, Okla., Oct. 1 /CNW/ -- Pre-Paid Legal Services, Inc. (NYSE:   PPD),
reported new memberships produced and new sales associates enrolled for the
2007 third quarter.  During the 3rd quarter of 2007, new sales associates
enrolled increased 2.7% compared to the third quarter of 2006.  Memberships
produced decreased by .7% while new membership fees written decreased by 3.3%
and our active membership base increased 1.9% compared to the comparable
period of the previous year.
    On a sequential quarterly basis, new associates enrolled increased 14.1%;
new memberships produced increased 5.6%, new membership fees written increased
5.6% and our active membership base increased by 14,986 memberships.

    Three Months Ended

    New Memberships:                   9/30/2007   6/30/2007     9/30/2006
    New legal service membership sales  145,530     138,083       148,311
    New "stand-alone" IDT membership
     sales                                8,771       8,082         7,047
      Total new membership sales        154,301     146,165       155,358
    New "add-on" IDT membership sales   100,888      92,382       102,341
    Average Annual Membership fee       $325.98     $326.04       $334.70

    Active Memberships:
    Active legal service memberships at
     end of period                    1,496,319   1,484,414     1,484,456
    Active "stand-alone" IDT
     memberships at end of period
     (see note below)                    78,237      75,156        60,816
      Total active memberships at end
       of period                      1,574,556   1,559,570     1,545,272
    Active "add-on" IDT memberships
     at end of period (see note below)  616,919     587,550       529,983

    New Sales Associates:
    New sales associates recruited       43,555      38,175        42,395
    Average enrollment fee paid by new
     sales associates                    $40.74      $44.65        $49.74

    Average Membership fee in force:
    Average Annual Membership fee       $297.52     $295.98       $292.60
    Note - reflects 5,506 net transfers from "add-on" status to "stand-alone"
status during the quarter
    Our total active membership fees in force increased approximately 3.6%
during the last year and continue our trend of increasing our membership fees.
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 73.3% for the 12 month period ended September 30, 2007 an increase
from the 70.9% for the 12 month period ended September 30, 2006 and the
highest level since the 12 month period ended June 30, 2000.
    Our third quarter 2007 corporate finance focus has again been on share
repurchases.  During the 3rd quarter, we returned $18.3 million to
shareholders through the repurchase of 355,419 shares of common stock, at an
average per share price of $51.45.  Since April 1999, we have returned $339.3
million to shareholders through the purchase of 12.2 million shares, average
price of $27.71 per share, and $17.1 million in dividends for a combined total
of $356.4 million representing more than 110 percent of our net earnings
during the same timeframe.
    We anticipate announcing our 2007 third quarter financial results on
October 22, 2007 after the market closes.   The Company will conduct a
conference call to present the third quarter results on Wednesday, October 24,
2007, at 8:30 a.m. Eastern Time. The conference call will be webcast on the
investor relations' page of or may be accessed by dialing
(719) 325-4796. Audio replay will be available beginning at 11:30 a.m. Eastern
Time on October 24, 2007 and will run through midnight Wednesday, October 31,
2007 by dialing (719) 457-0820; passcode for the replay is 3197924. The
presentation will be available on the web site indefinitely by selecting
"Earnings Calls" under the "Investor Relations" section. Questions may be
submitted prior to the call via email to
    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
    Forward-Looking Statements
    Statements 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 future
litigation may have a material adverse effect on us if resolved unfavorably to
us, 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 significantly 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 14 and 15 of our 2006
Form 10-K and pages 7 and 8 of our June 30, 2007 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:

For further information: Steve Williamson of Pre-Paid Legal Services, 
Inc., +1-580-436-1234 Web Site:

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890