Wednesday April 15, 8:04 am Eastern Time
Company Press Release
Pre-Paid Announces Record Quarterly Earnings
ADA, Okla.--(BUSINESS WIRE)--April 15, 1998--Pre-Paid Legal Services Inc. (ASE: PPD - news), today reported
record results for the first quarter of 1998.
Net income for the first quarter of 1998 rose 47 percent to $5,836,000 from $3,981,000 for the same period in 1997, while
revenues rose 46 percent to $28,797,000 from $19,725,000 for the 1997 period. Earnings per share, diluted, increased 44
percent to 26 cents per share from 18 cents per share for the comparable quarter of 1997.
While revenues increased 46 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 $3,243,000 for the first quarter of 1998
compared to $2,262,000 for the comparable quarter of 1997 resulting in cash and investment balances of $32,658,000 at
March 31, 1998.
For the first quarter of 1998, the company added 85,223 new members, 37 percent above the 62,307 new members added
during the same period of 1997. New sales associates recruited during the first quarter of 1998 were 14,741, compared to
14,833 for the comparable period of 1997.
''The most exciting development during the first part of 1998 is the continued increase in the number of new sales associates
that elect to participate in our field training program, Fast Start to Success, which we began in January 1997. During the 1998
first quarter 9,827 new sales associates enrolled in the Fast Start program, an increase of 118% from the 4,500 during the
same period of 1997,'' 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).
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PRE-PAID LEGAL SERVICES, INC.
Financial Highlights (Unaudited)
(Amounts in 000's, except per share amounts)
Three Months Ended
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3/31/98 3/31/97
Revenues:
Membership premiums $23,953 $16,219
Associate services 3,731 2,700
Interest income 501 381
Other 612 425
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28,797 19,725
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Costs and expenses:
Membership benefits 7,979 5,447
Commissions 5,097 3,483
General and administrative 2,661 1,888
Associate services and direct
marketing expenses 3,676 2,289
Depreciation 205 161
Premium taxes 365 333
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19,983 13,601
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Income before income taxes 8,814 6,124
Provision for income taxes 2,978 2,143
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Net income 5,836 3,981
Less dividends on preferred shares 2 3
Net income applicable to common ------- -------
shares $ 5,834 $3,978
Earnings per common share $ .26 $ .18
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Earnings per common share-
assuming dilution $ .26 $ .18
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Weighted average number of shares,
as adjusted:
Basic 22,413 21,797
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Diluted 22,814 22,394
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Net cash provided by operating $ 3,243 $ 2,262
activities ======== ========
New membership sales 85,223 62,307
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New sales associates recruited 14,741 14,833
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