Pre-Paid Legal Announces 2007 3rd Quarter Results

ADA, Okla., Oct. 22 /CNW/ -- Pre-Paid Legal Services, Inc. (NYSE: PPD), announced financial results for the third quarter ended September 30, 2007. Membership revenues increased 4% to $107.7 million from $103.6 million for the same period last year. Net income decreased 14% to $11.6 million from $13.4 million for the previous year primarily due to higher commission payments and associate services and direct marketing expenses. Diluted earnings per share for the quarter decreased 5% to 88 cents per share from 93 cents per share for the prior year's comparable quarter, lower than the net income decrease, due to a 9% decrease in the weighted average number of outstanding shares.

Membership revenues for the first nine months of 2007 increased 3% to a record $318.5 million vs. $308.4 million for the comparable period of 2006. Net income for the first nine months of 2007 increased 2% to $39.5 million vs. $38.6 million for the first nine months of 2006. Diluted earnings per share increased 15% to $2.96 vs. $2.58. Diluted earnings per share increased more than net income due to an 11% decrease in the weighted average number of outstanding shares.