Earnings PR PPD
Pre-Paid Legal Services Announces Quarterly Earnings Up Record 68% and
Positive Cash Flow Up 824%
News provided by
Business Wire
Apr 19, 9:02 am
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ADA, OKLA. (April 19) BUSINESS WIRE -April 19, 1999--Pre-Paid Legal Services, Inc. (AMEX:PPD), today reported record results for the first
quarter of 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 first quarter has
been restated to include the operating results of TPN.
Net income for the first quarter of 1999 rose 67 percent to $8,782,000 from $5,266,000 for the same period in 1998. Total revenues rose 18 percent
to $44,583,000 from $37,877,000 for the 1998 period due to decreased TPN product sales. The Company's membership revenues increased 41
percent to $33,767,000 from $23,953,000 for the same periods. Earnings per share, diluted, increased 68 percent to 37 cents per share from 22 cents
per share for the comparable quarter of 1998.
Even though membership revenues increased 41% 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 $1,951,000 for the first quarter of 1999, an increase of 824% from the
$211,000 for the comparable quarter of 1998, resulting in cash and investment balances of $54,585,000 at March 31, 1999.
For the first quarter of 1999, the Company added 118,814 new members, 39 percent above the 85,223 new members added during the same period
of 1998. New sales associates recruited during the first quarter of 1999 were 20,442 compared to 14,741 for the comparable period of 1998, also an
increase of 39 percent.
"We are obviously very pleased with our first quarter operating results, but more than ever, firmly believe the best is yet to come. As we celebrate
our 27th year in business, we are in the best financial condition in our history with cash and investment balances of more than $54 million, no long
term debt and significant positive cash flow while growing our core revenues at better than 40 percent. Our continued growth in new memberships
written and new sales associates recruited coupled with our new recruiting, presentation and communication systems all contribute to our belief
that the best is still ahead of us," Harland Stonecipher, Chairman, said. "These results reflect the increasing market acceptance of our product and
the Company's ability to effectively deliver the services that so many Americans need."
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 at www.pplsi.com
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