PREPAID LEGAL DISTRIBUTORS BREATHE SIGH OF RELIEF
17 Mar 2011 - As Many of you know MidOcean Partners acquisition of PrePaid Legal caused some anxiety in the PrePaid Legal field force. Too often with these “changes in command” come some dire consequences for the MLM Distributor force especially in pay! Here is an update:
Frank Schiff - Managing Director of MidOcean Partners - provided an overview of the New York based firm including its investment philosophy (see page 2). Schiff announced that following closing Rip Mason would become CEO while Alan Fearnley would become President and Chief Commercial Officer. Closing is expected to occur this summer. Mr. Schiff noted Rip and Alan’s network marketing experience and success, which would be important at this point in the development of PPL.
A PPL Compensation Plan survey is presently underway and getting data from all downline levels. It is thought to be the first Compensation Field survey in the history of PPL. Mr. Schiff’s extensive business processes experience will provide direction and focus on the capture of data permitting a statistically based decision making process.
Editor’s Note: So far so good! Fingers crossed! The WatchDog is standing by watching! Theoretically, without having to pay dividends on public stock Pre Paid Legal should be able to put more money into the compensation pay plan ! ?
PREPAID LEGAL GOES PRIVATE $650 MILLION
MAKING A LOT OF PPL DISTRIBUTORS NERVOUS!
Editors Note: Just more evidence that the MLM - Network Marketing is growing up into a major industry!
PrePaid LEGAL Does It Again!
Ed Note: See paragraph four - new members vs. sales associates. Amazing! Beats my cynical estimates and most certainly those of the short sellers reported earlier. And No I don't belong to pre-paid or even own stock! Rod
From: <newsdesk@broadcast.shareholder.com>
To: Fred Farfunkle <FF@mlmconsultant.com>
Sent: Monday, October 21, 2002 3:02 PM
Subject: PPD Announces Record 3rd Quarter Results
Pre-Paid Legal Announces Record 2002 Third Quarter Results
- - -
Net Income Up 29%, EPS Up 44% and Nine-Month Cash Flow Up 51%
- - -
38th Consecutive Quarter of Increased Membership Base &
Membership Revenues
ADA, OK, October 21, 2002 - Pre-Paid Legal Services, Inc. (NYSE:PPD), today announced results for the third quarter and nine months ended September 30, 2002. Reported net income for the third quarter of 2002 increased 29 percent to $9.0 million from $7.0 million for the prior year's third quarter. Membership revenues increased 18 percent to a record $79.6 million from $67.4 million for the same period last year. Diluted earnings per share increased 44 percent to 46 cents per share from 32 cents per share for the prior year's comparable quarter due to increased net income of 29 percent and an approximate 10 percent decrease in the weighted average number of outstanding shares.
Reported net income for the first nine months of 2002 increased 36 percent to $26.4 million from $19.4 million for the first nine months of 2001. Diluted earnings per share for the 2002 nine-month period increased 47 percent to $1.32 per share from 90 cents per share for the prior year's comparable period. Membership revenues for the first nine months of 2002 were up 18 percent to $229.1 million from $193.8 million for the prior year period.
Net cash provided from operating activities for the nine months ended September 30, 2002 increased 51 percent to $39.0 million from $25.8 million for the comparable period of 2001. At September 30, 2002, the Company had cash and investment balances exceeding $35 million after spending $42.4 million during the first nine months of 2002 to repurchase 2.0 million shares of its stock at an average share price of $20.94. Between April 1999 and September 30, 2002, the Company has purchased 5.2 million shares at a cost of $117.3 million, or an average share cost of $22.50. The stock buyback initiative has reduced the number of outstanding shares by approximately 20 percent to approximately 19.0 million shares outstanding at September 30, 2002. At September 30, 2002, the Company had outstanding $8.4 million on its lines of credit for stock repurchases and new office construction, all of which was borrowed during the quarter.
For the third quarter of 2002, the Company added 197,442 new members and 46,653 new sales associates compared to 177,135 new members and 22,002 new sales associates added during the same period of 2001. Sales associate recruiting in the 2002 quarter was positively impacted by the reduced sales associate entry price of $99 during July 2002 and $149 during August and September 2002 compared to the normal sales associate entry price of $249, which was in effect during the three months ended September 30, 2001. For the nine months ended September 30, 2002, the Company added 604,417 new members and 126,108 new sales associates compared to 548,967 new members and 83,193 new sales associates added during the same period of 2001. Active memberships as of September 30, 2002, increased 14 percent to a
record 1,389,467 from 1,216,889 at September 30, 2001.
Commenting on the third quarter highlights, Harland C. Stonecipher, Chairman and Chief Executive Officer of Pre-Paid Legal Services, Inc. said, "This quarter is the 38th consecutive quarter we have increased membership revenues and active memberships. The fact that cash flow increased 51% during the first nine months of 2002, while still growing our membership base by 14%, demonstrates the economic soundness of our business
model."
The Company will conduct a conference call to present the third quarter results on Tuesday, October 22, 2002 at 8:30 a.m. Eastern Time. The conference call will be webcast on the investor relations' page of www.prepaidlegal.com or may be accessed by dialing (913) 981-5572. Audio replay will be available beginning at 11:30 a.m. Eastern Time on October 22, 2002 and will run through midnight Wednesday, October 30, 2002 by dialing (719) 457-0820; passcode for the replay is 479649. The presentation will be available on the web site indefinitely by selecting "Earnings Calls" under the "Investor Relations" section. Questions may be submitted prior to the call via email to investor@pplsi.com.
The Company expects to file its quarterly report on Form 10-Q for the three months ended September 30, 2002 later this week.
About Pre-Paid Legal Services
Pre-Paid Legal Services develops and markets legal service plans across North America. The plans provide for legal service benefits, including unlimited attorney consultation, will preparation, traffic violation defense, automobile-related criminal charges defense, 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 http://www.prepaidlegal.com.
Please Take A Moment To Sign Our Guest Book:
