ADA, Okla., April 4, 2011 /PRNewswire/ -- Pre-Paid Legal
Services, Inc. (NYSE: PPD), reported new memberships produced and
new sales associates enrolled for the 2011 first quarter. During
the 1st quarter of 2011, new sales associates enrolled decreased
56.5% compared to the first quarter of 2010. Memberships produced
decreased by 18.3% while new membership fees written decreased by
23.5% and our active membership base decreased 4.9% compared to the
comparable period of the previous year.
On a sequential quarterly basis, new associates enrolled
decreased 41.8%, new memberships produced decreased 6.7%, new
membership fees written decreased 9.0% and our active membership
base decreased by 23,483 memberships.
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Three Months
Ended
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New Memberships:
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3/31/2011
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12/31/2010
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3/31/2010
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New legal service membership
sales
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103,548
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110,105
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128,989
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New "stand-alone" IDT membership
sales
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6,045
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7,367
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5,192
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Total new membership
sales
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109,593
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117,472
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134,181
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New "add-on" IDT membership
sales
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47,663
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60,416
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76,309
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Average Annual Membership
fee
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$304.40
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$312.15
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$325.17
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Active
Memberships:
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Active legal service memberships
at end of period
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1,357,854
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1,381,428
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1,433,872
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Active "stand-alone" IDT
memberships at end of period (see note below)
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91,900
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91,809
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91,047
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Total active memberships at end
of period
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1,449,754
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1,473,237
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1,524,919
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Active "add-on" IDT memberships
at end of period (see note below)
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645,535
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668,646
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702,266
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New Sales
Associates:
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New sales associates
recruited
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16,378
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28,160
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37,640
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Average enrollment fee paid by
new sales associates
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$147.15
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$97.33
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$70.30
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Average Membership fee in
force:
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Average Annual Membership
fee
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$300.81
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$302.10
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$302.13
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Note – reflects
3,758 net transfers from "add-on" status to "stand-alone" status
during the quarter
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Our total active membership fees in force decreased
approximately 5.4% 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 72.4% for the 12 month
period ended March 31, 2011,
remaining level with the 72.4% for the 12 month period ended
March 31, 2010.
We anticipate announcing our 2011 first quarter financial
results on Monday, April 25, 2011 after the market
closes. The Company will conduct a conference call to present the
first quarter results on Wednesday, April
27, 2011, at 8:30 a.m. Eastern
Time. The conference call will be webcast on the investor
relations' page of www.prepaidlegal.com. 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 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,
that we have repurchased more than half our outstanding shares over
the past years and that completion of the merger with MidOcean is
subject to conditions in the financing commitments that could
impact the ability of MidOcean to obtain long-term financing, the
possibility of the occurrence of an event that could constitute a
Company Material Adverse Effect as defined in the merger agreement
and other risks and uncertainties set forth in the Company's
filings with the Securities and Exchange Commission. Please refer
to pages 20 - 23 of our 2010 Form 10-K for a more complete
description of these risks. There can be no assurance that any
transaction between us and MidOcean will occur, or will occur on or
before July 31, 2011 as previously
announced. Consummation of the merger is subject to customary
conditions, including, without limitation, (i) the approval by the
holders of a majority of the outstanding shares of our Common Stock
entitled to vote on the merger, (ii) the absence of any law,
injunction, judgment or ruling that restrains or prohibits the
consummation of the merger and (iii) the approval of Oklahoma and Florida insurance regulatory authorities.
These risks and uncertainties could cause actual results to differ
materially from any forward-looking statements made herein. We
undertake no duty to update any of the forward-looking statements
in this release.
Additional Information and Where to Find It:
We have filed with the Securities and Exchange Commission a
current report on Form 8-K, which included the merger agreement
with MidOcean and related documents. The proxy statement that we
plan to file with the Securities and Exchange Commission and mail
to our stockholders will contain information about us, the proposed
merger and related matters. STOCKHOLDERS ARE URGED TO READ THE
PROXY STATEMENT CAREFULLY WHEN IT IS AVAILABLE, AS IT WILL CONTAIN
IMPORTANT INFORMATION THAT STOCKHOLDERS SHOULD CONSIDER BEFORE
MAKING A DECISION ABOUT THE MERGER. In addition to receiving the
proxy statement from us by mail, stockholders will be able to
obtain the proxy statement, as well as other filings containing
information about us without charge, from the Securities and
Exchange Commission's website (http://www.sec.gov) or, without
charge, from our website at
http://www.prepaidlegal.com/newCorp2/investor/investor_home.html.
This announcement is neither a solicitation of proxy, an offer to
purchase nor a solicitation of an offer to sell shares of Pre-Paid
Legal Services, Inc.
SOURCE Pre-Paid Legal Services, Inc.