Tuesday January 27, 8:01 am Eastern Time
Company Press Release
Pre-Paid Announces Record Quarterly/Year End Earnings
ADA, Okla.--(BUSINESS WIRE)--Jan. 27, 1998--Pre-Paid Legal Services, Inc. (ASE: PPD - news), today reported
record results for the fourth quarter and the year ended December 31, 1997.
Net income for the fourth quarter of 1997 rose 57 percent to $5,471,000 from $3,486,000 for the same period in 1996, while
revenues rose 57 percent to $26,345,000 from $16,770,000 for the 1996 period. Earnings per share, diluted, increased 50
percent to 24 cents per share from 16 cents per share for the comparable quarter of 1996.
Net income for 1997 rose 51 percent to $18,790,000, or 83 cents per share, diluted, from $12,470,000, or 56 cents per
share, diluted, reported in 1996. The year's revenues surged 56 percent to $92,468,000 from $59,208,000 for 1996.
While revenues increased 56 percent 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 $7,733,000 for 1997 compared to $942,000
for 1996 resulting in cash and investment balances of $29,467,000.
For the fourth quarter of 1997, the company reported adding 75,636 new members, 44 percent above the 52,414 new
members gained during the same period in 1996. As a result, 283,723 members were added during 1997, increasing new
memberships 46 percent above the 194,843 new members gained in 1996.
''We remain very excited about the continued growth in membership sales generated by our independent sales force. This
continued growth, together with the joint marketing relationships announced during the last quarter of 1997 with CNA and
Primerica Financial Services, provides a great beginning for 1998,'' 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 For the Year
Ended Ended
12/31/97 12/31/96 12/31/97 12/31/96
Revenues:
Membership premiums $21,930 $14,641 $76,688 $50,582
Associate services 3,366 1,400 12,143 5,646
Interest income 484 342 1,636 1,302
Other 565 387 2,001 1,678
26,345 16,770 92,468 59,208
Costs and expenses:
Membership benefits 7,022 4,884 25,132 16,871
Commissions 4,729 3,372 16,717 11,476
General and administrative 2,496 1,726 8,711 6,227
Associate services and direct
marketing expenses 3,290 1,190 11,431 4,544
Depreciation 196 139 704 533
Premium taxes 196 96 866 372
17,929 11,407 63,561 40,023
Income before income taxes 8,416 5,363 28,907 19,185
Provision for income taxes 2,945 1,877 10,117 6,715
Net income 5,471 3,486 18,790 12,470
Less dividends on preferred
shares 3 4 13 15
Net income applicable to common
shares $5,468 $3,482 $18,777 $12,455
Earnings per common share $. 24 $ .16 $ .85 $ .58
Earnings per common share -
assuming dilution $ .24 $ .16 $ .83 $ .56
Weighted average number of shares,
as adjusted:
Basic 22,377 21,636 22,127 21,332
Diluted 22,731 22,344 22,575 22,319
Net cash provided by operating
activities $2,280 $ 894 $7,733 $ 942
New membership sales 75,636 52,414 283,723 194,843
New sales associates recruited 14,260 15,561 58,121 69,789 |
