Pre-Paid Legal Announces 2010 3rd Quarter Production Results
October 01 2010 - 5:52PM
PR Newswire (Canada)
ADA, Okla., Oct. 1 /CNW/ -- Pre-Paid Legal Services, Inc. (NYSE:
PPD) reported new memberships produced and new sales associates
enrolled for the 2010 third quarter. During the 3rd quarter of
2010, new memberships produced decreased 28.1% to 125,912 during
the 2010 quarter compared to 175,022 for the 2009 quarter and new
sales associates enrolled decreased 51.8% to 36,329 from the 75,398
enrolled in the 3rd quarter of 2009. On a sequential quarterly
basis, new memberships produced and new associates enrolled
remained virtually unchanged while new membership fees written
decreased 1.1% and our active membership base decreased by 16,602
memberships. Three Months Ended: ------------------- New
Memberships: 9/30/2010 9/30/2009 6/30/2010 ----------------
--------- --------- --------- New legal service membership sales
121,277 166,377 120,443 New "stand-alone" IDT membership sales
4,635 8,645 4,974 ----- ----- ----- Total new membership sales
125,912 175,022 125,417 ======= ======= ======= New "add-on" IDT
membership sales 75,027 112,653 75,593 Average Annual Membership
fee $328.17 $325.60 $333.29 Active Memberships: -------------------
Active legal service memberships at end of period 1,403,848
1,455,492 1,419,673 Active "stand-alone" IDT memberships at end of
period (see note below) 89,285 90,063 90,062 ------ ------ ------
Total active memberships at end of period 1,493,133 1,545,555
1,509,735 ========= ========= ========= Active "add-on" IDT
memberships at end of period (see note below) 689,409 710,795
697,468 New Sales Associates: --------------------- New sales
associates recruited 36,329 75,398 36,313 Average enrollment fee
paid by new sales associates $65.34 $79.31 $70.58 Average
Membership fee in force: -------------------------------- Average
Annual Membership fee $303.70 $302.86 $303.74 Note - reflects 3,924
net transfers from "add-on" status to "stand- alone" status during
the quarter. Our total active membership fees in force decreased
3.1% 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 71.8% for the 12 month period ended September 30,
2010, a decrease from the 72.6% for the 12 month period ended
September 30, 2009. During the 2010 3rd quarter, we returned $8.5
million to shareholders through the repurchase of 162,648 shares of
common stock, at an average per share price of $52.49. Since April
1999, we have returned $471.8 million to shareholders through the
purchase of 15.4 million shares, at an average price of $30.66 per
share, and $17.1 million in dividends for a combined total of
$488.9 million representing more than 100% of our net earnings
during the same timeframe. We anticipate announcing our 2010 third
quarter financial results on Monday, October 25, 2010 after the
market closes. The Company will conduct a conference call to
present the third quarter results on Wednesday, October 27, 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 (720) 545-0046. Audio replay will be available
beginning at 10:30 a.m. Eastern Time on October 27, 2010 and will
run through midnight Wednesday, November 3, 2010 by dialing (706)
645-9291; conference ID for the replay is 15768290. 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 us and our products can be found at our homepage at
http://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 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 consumer purchases of discretionary
items may be impacted by a downturn in the economy, 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 of our outstanding shares.
Please refer to pages 16 through 19 of our 2009 Form 10-K and pages
7 and 8 of our June 30, 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. ADA, Okla., Oct. 1
/CNW/ -- Steve Williamson of Pre-Paid Legal Services, Inc.,
+1-580-436-1234 Web Site: http://www.prepaidlegal.com
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