Earnings Call Excerpt
Pre-Paid Legal Services, Inc. (PPD)
Q2 2008 Earnings Call
July 30, 2008 8:30 am ET
Executives
Randy Harp – Chief Operating Officer
Steve Williamson – Chief Financial Officer
Presentation
Operator
Welcome to the Pre-Paid Legal second quarter 2008 earnings result conference call. (Operator’s Instructions) At this time I’d like to turn the conference over to the Chief Operations Officer Mr. Randy Harp.
Randy Harp
This is Randy Harp, Chief Operating Officer of the company. I want to welcome you to the 2008 second quarter earnings conference call for Pre-Paid Legal Services. Joining me here at our home office is Steve Williamson, our Chief Financial Officer. Before we begin, I want to remind everybody that this conference call will contain forward-looking statements including our expectations of future results and our future plans. Actual results might differ materially from those projected in these forward-looking statements. Additional information concerning risk factors that could cause the results to differ materially from those forward-looking statements are contained in our press release announcing our earnings as well as from disclosures in our public reports on Form 10K, Q, 8K, etc. filed with the SEC and available on the SEC Edgar website as well as our own website www.PrepaidLegal.com.
At this time I would ask our Chief Financial Officer Steve Williamson to step through the more significant financial highlights for the 2008 second quarter.
Steve Williamson
To start out second quarter 2008 with membership fees up 2.4% over the 07 quarter resulting in $109.5 million increased of course due to the increase in the average annual fee went to $300 from $295 and also had an increase in the membership base. 2008 associate services revenue is up $335,000 to $6.3 million primarily due to the increased average associate fee. The average was around $99 compared to $45 for 07 which more than offset the lower number of new recruits that we had. eService fees which is included in this line item as well were unchanged at about $3.1 million for both periods. Other revenue declined slightly, actually about $60,000 from $1.2 million to $1.1 million and as you may recall we’ve talked before, this other revenue is primarily the revenue that we recognize on the $10 enrollment fee that we get from a portion of the memberships and recognize the income over three years. It brings total revenues up $2.8 million to $116.9 million for the second quarter of 08.
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