Pre-Paid Announces Record Second-Quarter Results; Earnings Per
Share Up [PPD-news]
Pre-Paid Announces Record Second-Quarter Results; Earnings Per Share Up 56% and Recruiting Up 57% ADA, Okla.--(BUSINESS WIRE)--July 19, 1999--Pre-Paid Legal Services, Inc. [PPD-news], today reported record results for the second quarter and for the six months ended June 30, 1999. As a result of the 1998 fourth-quarter acquisition of TPN, Inc. ("TPN") that was accounted for as a pooling of interests, the 1998 periods have been restated to include the operating results of TPN. Net income for the second quarter of 1999 rose 54 percent to $9,872,000 from $6,419,000 for the prior year's period, while revenues rose 20 percent to $47,959,000 from $39,814,000 for the prior year's period despite planned decreases in TPN product sales. The Company's membership revenues increased 46 percent to $38,557,000 from $26,385,000 for the same period last year. Earnings per share, diluted, increased 56 percent to 42 cents per share from 27 cents per diluted share for last year's comparable quarter. Second-quarter 1999 earnings were increased $455,000, or 2 cents per diluted share, due to gains on the sale of investments. Six-month net income during 1999 increased 60 percent to $18,654,000 from $11,685,000 for the first half of 1998. Earnings per share, diluted, for the 1999 six-month period increased 61 percent to 79 cents per share from 49 cents per diluted share for last year's comparable period. Revenues for the half year were up 19 percent to $92,542,000 from $77,691,000 for the initial six months of the prior year despite planned decreases in TPN product sales. Even though commission advances increased $10.9 million as a result of increasing membership revenues during the second quarter of 1999, cash flow from operations was $5,710,000, an increase of $2,361,000, or 70 percent, over the cash flow of $3,349,000 for the comparable quarter of 1998. At June 30, 1999, the Company had cash and investment balances exceeding $37,000,000 after the Company expended $19.8 million to repurchase 750,000 of its shares during the second quarter. For the second quarter of 1999, the Company added 122,885 new members, 33 percent above the 92,206 new members added during the same period of 1998. New sales associates recruited during the second quarter of 1999 were 25,100 compared to 15,969 for the comparable period of 1998, an increase of 57 percent. "We are extremely pleased with our second-quarter results. We continue to benefit from significant positive cash flow while growing our core revenues by more than 46 percent. The positive cash flow together with our significant cash and investment balances will allow us to continue our previously announced stock repurchase program. We believe the 57 percent increase in recruiting combined with our recent expansion into Canada will supplement our continuing growth," Harland Stonecipher, Chairman, said. Pre-Paid Legal Services develops, underwrites and markets legal service plans nationally. The plans provide for 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 (www.pplsi.com).
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