ADA, Okla., Jan. 4, 2011 /PRNewswire/ -- 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, 2010. During the 4th quarter of 2010,
new sales associates enrolled decreased 54.3% to 28,160 from the
61,623 enrolled in the 4th quarter of 2009 and new memberships
produced decreased 20.8% to 117,472 during the 2010 quarter
compared to 148,248 for the 2009 quarter.
For the year 2010, new sales associates enrolled decreased 25.6%
to 138,442 compared to 186,064 enrolled during 2009 while new
memberships produced were 502,982, a decrease of 11.5% from
568,095. Our active memberships decreased 4.8% during 2010 from
1,547,585 to 1,473,237. From the 3rd quarter of 2010 to the 4th
quarter of 2010, our active memberships decreased by 19,896
memberships.
|
Three Months
Ended:
|
Year
Ended:
|
|
New Memberships:
|
12/31/2010
|
9/30/2010
|
12/31/2009
|
12/31/2010
|
12/31/2009
|
|
New legal service membership
sales
|
110,105
|
121,277
|
139,076
|
480,814
|
541,138
|
|
New "stand-alone" IDT membership
sales
|
7,367
|
4,635
|
9,172
|
22,168
|
26,957
|
|
Total new membership
sales
|
117,472
|
125,912
|
148,248
|
502,982
|
568,095
|
|
New "add-on" IDT membership
sales
|
60,416
|
75,027
|
85,095
|
287,345
|
348,607
|
|
Average Annual Membership
fee
|
$312.15
|
$328.17
|
$316.87
|
$324.90
|
$322.77
|
|
Active
Memberships:
|
|
|
|
|
|
|
Active legal service memberships
at end of period
|
1,381,428
|
1,403,848
|
1,454,661
|
1,381,428
|
1,454,661
|
|
Active "stand-alone" IDT
memberships at end of period
(see note
below)
|
91,809
|
89,285
|
92,924
|
91,809
|
92,924
|
|
Total active memberships at end
of period
|
1,473,237
|
1,493,133
|
1,547,585
|
1,473,237
|
1,547,585
|
|
Active "add-on" IDT memberships
at end of period (see note below)
|
668,646
|
689,409
|
711,131
|
668,646
|
711,131
|
|
New Sales
Associates:
|
|
|
|
|
|
|
New sales associates
recruited
|
28,160
|
36,329
|
61,623
|
138,442
|
186,064
|
|
Average enrollment fee paid by
new sales associates
|
$97.33
|
$65.34
|
$71.31
|
$74.57
|
$87.41
|
|
Average Membership fee in
force:
|
|
|
|
|
|
|
Average Annual Membership
fee
|
$302.10
|
$303.70
|
$302.51
|
$302.10
|
$302.51
|
|
Note – reflects
4,031 net transfers from "add-on" status to "stand-alone" status
during the 2010 4th quarter
|
|
|
|
|
|
|
|
Our total active membership premium in force decreased 4.9% to
$445.1 million at December 31, 2010 from $468.2 million at December
31, 2009. 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
71.8% for 2010.
During the 2010 4th quarter, we retired all outstanding bank
debt and accrued interest, leaving us completely debt free.
Additionally, we returned $189,000 to
shareholders through the repurchase of 3,220 shares of common
stock, at an average per share price of $58.62. Since April
1999, we have returned $472.0
million to shareholders through the purchase of 15.4 million
shares, average price of $30.67 per
share, and $17.1 million in dividends
for a combined total of more than $489
million representing more than 100 percent of our net
earnings during the same timeframe. We have reduced the number of
shares outstanding by approximately 59% from 23.6 million at
March 31, 1999 to 9.8 million
today.
We anticipate announcing our 2010 fourth quarter and annual
earnings on February 21, 2011 after the market closes and
hosting a conference call to discuss such earnings on
February 23, 2011.
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 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 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 September 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.
SOURCE Pre-Paid Legal Services, Inc.