Pre-Paid Announces 2007 4th Quarter & Year-End Results

    4th Quarter Memberships Up! 4th Quarter Recruiting Up!

    ADA, Okla., Jan. 2 /CNW/ -- Pre-Paid Legal Services, Inc. (NYSE:   PPD)
reported new memberships produced and new sales associates enrolled for the
fourth quarter and for the year ended December 31, 2007. During the 4th
quarter of 2007, new sales associates enrolled increased 2% to 36,029 from the
35,311 enrolled in the 4th quarter of 2006 and new memberships produced
increased 7% to 150,100 during the 2007 quarter compared to 139,638 for the
2006 quarter.
    For the year 2007, new sales associates enrolled decreased 14% to 148,802
compared to 172,999 enrolled during 2006 while new memberships produced were
612,096, down slightly from 612,726.  Our active memberships increased 2%
during 2007 from 1,538,740 to 1,575,802.  From the 3rd quarter of 2007 to the
4th quarter of 2007, our active memberships increased by 1,246 memberships.

    Three Months Ended:           Year Ended:

    New Memberships:        12/31/     9/30/      12/31/      12/31/   

                             2007       2007       2006        2007      2006
    New legal service
     membership sales      139,282    145,530    131,628     570,637   584,408

    New "stand-alone"
     IDT membership sales   10,818      8,771      8,010      41,459    28,318

    Total new membership
     sales                 150,100    154,301    139,638     612,096   612,726

    New "add-on" IDT
     membership sales       94,945    100,888     88,255     381,419   389,157

    Average Annual
     Membership fee        $321.32    $325.98    $323.54     $321.18   $328.36

    Active Memberships:
    Active legal service
     memberships at end
     of period           1,492,341  1,496,319  1,473,710   1,492,341 1,473,710

    Active "stand-alone"
     IDT memberships at
     end of period
     (see note below)       83,461     78,237     65,030      83,461    65,030

    Total active
     memberships at
     end of period       1,575,802  1,574,556  1,538,740   1,575,802 1,538,740

    Active "add-on" IDT
     memberships at
     end of period
     (see note below)      631,910    616,919    540,253     631,910   540,253

    New Sales Associates:
    New sales associates
     recruited              36,029     43,555     35,311     148,802   172,999

    Average enrollment fee
     paid by new sales
     associates             $48.99     $40.74     $49.47      $56.75    $49.69

    Average Membership
     fee in force:

    Average Annual
     Membership fee        $297.62    $297.52    $293.00     $297.62   $293.00

    Note -- reflects 5,824 net transfers from "add-on" status to

            status during the quarter
    Our total active membership premium in force increased approximately 4%
during 2007 and represents the 15th consecutive year of increasing our
membership fees.  The 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 2007.
    Our fourth quarter 2007 corporate finance focus has again been on share
repurchases.  During the 4th quarter, we returned $22.9 million to
shareholders through the repurchase of 446,682 shares of common stock, at an
average per share price of $51.27.  Since April 1999, we have returned $362.4
million to shareholders through the purchase of 12.7 million shares, average
price of $28.56 per share, and $17.1 million in dividends for a combined total
of more than $379 million representing more than 115 percent of our net
earnings during the same timeframe.  We have reduced the number of shares
outstanding by approximately 47% from 23.6 million at March 31, 1999 to 12.4
million today.
    We anticipate announcing our 2007 fourth quarter and yearly earnings on
February 19, 2008 after the market closes and hosting a conference call to
discuss such earnings on February 21, 2008.
    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 as well as 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 because of
the combination of outside vendors 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 September 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