Pre-Paid Legal Services (NYSE: PPD)announced their 2nd quarter results for new memberships and new sales associates. The company had some mixed numbers for the last year, but overall, the company seems to be doing well. While sales and revenue figures haven’t been released, this news might be a hint at what that announcement, due in a few weeks, will bring.
The company reported that during the second quarter of 2008, new sales associates enrolled decreased by slightly over 30% percent compared to the same quarter last year. Membership Produced decreased 8% percent, and New Associates enrolled decreased as well, although slightly less than membership. The company’s Active membership base decreased a bit, by just over 300 memberships during the second quarter.
On the bright side… total active membership fees in force increased approximately 2.0% during the last year and membership persistency rate, which means the number of memberships in force during the year as a percentage of total memberships, increased a bit to almost 73% percent for the 12 month period ending June 30th.
While the numbers are a bit mixed, the company stressed that they are continuing to focus their stock repurchase program. During the second quarter of 08, the company has returned $14.9 million to shareholders by buying back over 340,000 shares of common stock. It is important to note that these numbers are simply membership and enrollment numbers and while they may provide a hint of what the revenue and sales numbers might be, those are a few weeks off. Pre-Paid will announced their 2008 second quarter profits on July 28th after the market closes. They will have an open conference call Wednesday morning, July 30th to discuss the numbers- we will keep you posted.
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