PRE-PAID LEGAL SERVICES,
® INC.Serving America's families since 1972
For Release 8:00 a.m. EST
Wednesday, July 15, 1998
Contact :Melanie Lawson
(580) 436-1234
PRE-PAID ANNOUNCES RECORD SECOND QUARTER RESULTS
Net Income Rises 54% on 42% Revenue Gain
ADA, OK, July 15, 1998 - Pre-Paid Legal Services, Inc. (ASE:PPD), today reported excellent results for the second quarter and for the six months ended June 30, 1998.
Net income for the second quarter of 1998 rose 54 percent to $6,725,000 from $4,355,000 for the prior year’s period, while revenues rose 42 percent to $31,535,000 from $22,199,000 for the prior year’s period. Earnings per share, diluted , increased 53% to 29 cents per share from 19 cents per diluted share for last year’s comparable quarter.
Six-month net income applicable to common shares during 1998 increased 51 percent to $12,556,000, or 55 cents per diluted share, from $8,329,000, or 37 cents per diluted share, for the first half of 1997. Revenues for the half-year were up 44% to $60,332,000 from $41,924,000 for the initial six months of the prior year.
While revenues increased 44% as a result of new memberships written, cash flow exceeded cost of operations and acquisition of new business and resulted in positive cash flow from operations of $7,009,000 for the six-month period of 1998 .
"The need for our service by middle income Americans continues to increase and as a result the market awareness and acceptance by the general public has improved dramatically over the last several months. Shareholders can take justifiab le pride in the quality, professionalism and productiveness of our sales force. This coupled with the competitive edge in the delivery of service by our provider law firms allows for tremendous future growth potential." Harland Stonecipher, Chairman, said .
Pre-Paid Legal Services, develops, underwrites and markets legal service plans nationally. The plans provide for or reimburse legal service benefits, including unlimited attorney consultation, will preparation, traffic violation defense , automobile-related criminal charges, letter writing, document preparation and review and a general trial defense benefit. More information can be located at the Company’s homepage on the worldwide web (http://www.pplsi.com).
PRE-PAID LEGAL SERVICES, INC.
Financial Highlights (Unaudited)
(Amounts in 000’s, except per share amounts)
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
6/30/98 |
|
6/30/97 |
|
6/30/98 |
|
6/30/97 |
|
Revenues: |
|
|
|
|
|
|
|
|
Membership premiums |
$ 26,385 |
|
$ 18,390 |
|
$ 50,338 |
|
$ 34,609 |
|
Associate services |
3,986 |
|
2,935 |
|
7,717 |
|
5,635 |
|
Interest income |
537 |
|
364 |
|
1,038 |
|
745 |
|
Other |
627 |
|
510 |
|
1,239 |
|
935 |
|
|
31,535 |
|
22,199 |
|
60,332 |
|
41,924 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
Membership benefits |
8,617 |
|
6,187 |
|
16,596 |
|
11,634 |
|
Commissions |
5,780 |
|
4,087 |
|
10,877 |
|
7,570 |
|
General and administrative |
2,945 |
|
2,095 |
|
5,606 |
|
3,983 |
|
Associate services and direct marketing expenses |
3,536 |
|
2,811 |
|
7,212 |
|
5,100 |
|
Depreciation |
209 |
|
164 |
|
414 |
|
325 |
|
Premium taxes |
266 |
|
155 |
|
631 |
|
488 |
|
|
21,353 |
|
15,499 |
|
41,336 |
|
29,100 |
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
10,182 |
|
6,700 |
|
18,996 |
|
12,824 |
|
Provision for income taxes |
3,457 |
|
2,345 |
|
6,435 |
|
4,488 |
|
Net income |
6,725 |
|
4,355 |
|
12,561 |
|
8,336 |
|
Less dividends on preferred shares |
3 |
|
4 |
|
5 |
|
7 |
|
Net income applicable to common shares |
$ 6,722 |
|
$ 4,351 |
|
$ 12,556 |
|
$ 8,329 |
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
$ .30 |
|
$ .19 |
|
$ .56 |
|
$ .37 |
|
Earnings per common share - assuming dilution |
$ .29 |
|
$ .19 |
|
$ .55 |
|
$ .37 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares, as adjusted: |
|
|
|
|
|
|
|
Basic |
22,431 |
|
22,515 |
|
22,422 |
|
22,456 |
Diluted |
22,925 |
|
22,587 |
|
22,934 |
|
22,527 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ 3,766 |
|
$ 1,445 |
|
$ 7,009 |
|
$ 3,707 |
|
|
|
|
|
|
|
|
|
|
New membership sales |
92,206 |
|
69,836 |
|
177,429 |
|
133,607 |
|
New sales associates recruited |
15,969 |
|
14,790 |
|
30,710 |
|
29,623 |
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