ADA, Okla., July 21 /CNW/ -- Net Income Up 4%; Earnings Per Share
Up 15% Pre-Paid Legal Services, Inc. (NYSE: PPD) announced results
for the second quarter ended June 30, 2010. Net income for the
second quarter of 2010 increased 4% to $16.5 million from $15.8
million for the prior year's second quarter. Diluted earnings per
share increased 15% to $1.65 per share from $1.44 per share for the
prior year's comparable quarter due to an increase in net income of
4% and a 9% decrease in the weighted average outstanding shares.
Membership fees in the second quarter of 2010 increased 1% to
$106.7 million from $105.5 million for the same period last year.
First half 2010 membership revenues increased 1% to $214.1 million
vs. $212.4 million for the first half of 2009. Net income for the
first six months of 2010 increased 7% to $35.3 million vs. $32.9
million for the first six months of 2009. Diluted earnings per
share increased 19% to $3.52 vs. $2.96. Diluted earnings per share
increased more than net income due to a 10% decrease in the
weighted average number of outstanding shares. Net cash provided
from operating activities decreased 3% to $34.3 million for the
first half of 2010 from $35.5 million for 2009. During the first
half of 2010, we returned $5.4 million to shareholders through the
repurchase of 123,807 shares of common stock, at an average per
share price of $43.41. Since April 1999, we have returned $463.2
million to shareholders through the purchase of 15.2 million
shares, average price of $30.43 per share, and $17.1 million in
dividends for a combined total of $480.3 million representing more
than 100% of our net earnings during the same timeframe. At June
30, 2010, we had $28.1 million of debt outstanding and $70.1
million in cash and cash equivalents and unpledged investments and
had availability pursuant to our lending agreements to spend
approximately $26.7 million for share repurchases and/or dividends.
Second quarter 2010 membership fees decreased $581,000 to $106.7
million from $107.3 million for the first quarter of 2010.
Associate services revenues decreased during the 2010 second
quarter by approximately $1.5 million to $6.5 million from $8.0
million for the 2010 first quarter and associate services and
direct marketing expenses increased by $2.0 million during the same
period. Membership benefits totaled $35.9 million in the second
quarter of 2010 compared to $35.7 million for the 2010 first
quarter and represented 34% and 33%, respectively, of membership
fees for the two periods. Commissions to associates totaled $29.2
million in the 2010 second quarter compared to $29.5 million for
the 2010 first quarter and represented 27% and 28%, respectively,
of membership fees for the two periods. General and administrative
expenses increased $142,000 during the 2010 second quarter to $12.4
million compared to $12.3 million for the 2010 first quarter and
represented 12% and 11%, respectively, of membership fees for both
periods. The $142,000 increase in general and administrative
expenses included increases in employee cost and consulting fees
which were partially offset by decreases in accounting fees, bank
service charges, legal expenses and telecommunications fees. We
will conduct a conference call to present the second quarter
results on Friday, July 23, 2010, at 8:30 a.m. Eastern Time. The
conference call will be webcast on the investor relations' page of
www.prepaidlegal.com or may be accessed by dialing (970) 315-0440.
Audio replay will be available beginning at 11:30 a.m. Eastern Time
on July 23, 2010 and will run through midnight Friday, July 30,
2010 by dialing (706) 645-9291; conference ID for the replay is
79886196. 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 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 our products and us can be found at our homepage
at www.prepaidlegal.com. 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 founder and Chairman, 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, 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 and
that we have repurchased more than half our outstanding shares over
the past years. Please refer to pages 16 - 19 of our 2009 Form 10-K
and pages 7 and 8 of our March 31, 2010 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. PRE-PAID
LEGAL SERVICES, INC. Financial Highlights (Unaudited) (Dollars and
shares in 000s, except per share amounts) Three Months Ended Six
Months Ended June 30, June 30, 2010 2009 2010 2009 ---- ---- ----
---- Revenues: Membership fees $106,739 $105,516 $214,059 $212,421
Associate services 6,496 5,908 14,524 11,190 Other 895 969 1,778
1,902 --- --- ----- ----- 114,130 112,393 230,361 225,513 -------
------- ------- ------- Costs and expenses: Membership benefits
35,851 36,013 71,533 72,218 Commissions 29,245 29,335 58,771 56,347
Associate services and direct marketing 7,554 6,502 13,101 13,305
General and administrative 12,444 12,922 24,746 26,305 Other, net
2,227 1,845 4,607 4,134 ----- ----- ----- ----- 87,321 86,617
172,758 172,309 ------ ------ ------- ------- Income before income
taxes 26,809 25,776 57,603 53,204 Provision for income taxes 10,323
9,985 22,331 20,312 ------ ----- ------ ------ Net income $16,486
$15,791 $35,272 $32,892 ======= ======= ======= ======= Basic
earnings per common share $1.65 $1.44 $3.52 $2.97 ===== ===== =====
===== Diluted earnings per common share $1.65 $1.44 $3.52 $2.96
===== ===== ===== ===== Weighted average number of shares, as
adjusted: Primary 9,975 10,980 10,007 11,091 ===== ====== ======
====== Diluted 9,989 10,993 10,021 11,104 ===== ====== ======
====== Net cash provided by operating activities $7,617 $5,855
$34,300 $35,516 ====== ====== ======= ======= Net cash provided by
(used in) investing activities $2,199 $(2,181) $1,268 $(5,740)
====== ======= ====== ======= Net cash used in financing activities
$(8,374) $(6,757) $(19,509) $(27,240) ======= ======= ========
======== Steve Williamson of Pre-Paid Legal Services, Inc.,
+1-580-436-1234 Web Site: http://www.prepaidlegal.com
Copyright
Pre Paid Legal (NYSE:PPD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Pre Paid Legal (NYSE:PPD)
Historical Stock Chart
From Jul 2023 to Jul 2024