Earnings Call Excerpt
Pre-Paid Legal Services, Inc. (PPD)
Q4 2008 Earnings Call
February 25, 2009 8:30 am ET
Executives
Randy Harp – COO
Steve Williamson - CFO
Presentation
Operator
Welcome to the Pre-Paid Legal Services fourth quarter 2008 earnings results conference call. (Operator Instructions) At this time I'd like to turn the conference over to Mr. Randy Harp, Chief Operating Officer; please go ahead sir.
Randy Harp
Good morning. This is Randy Harp, Chief Operating Officer for the company. I want to welcome you to the 2008 fourth quarter and year-end earnings conference call for Pre-Paid Legal Services, Inc. Joining me here at our home office is Steve Williamson, our Chief Financial Officer.
Before we begin I want to remind everybody that the conference call will contain forward-looking statements including our expectations of future results and our future plans. Those actual results might differ materially from those projected in these forward-looking statement.
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 Forms 10-K, 10-Q, 8-K, etc., filed with the SEC and are available on the SEC Edgar website as well as our own website, www.prepaidlegal.com.
Will tell you also we expect to file possibly as early as Friday of this week, the 2008 10-K. If we miss Friday then we’ll file it the first part of next week, we’re very, very close on wrapping that up.
At this time, I would ask our Chief Financial Officer, Steve Williamson to step through the more significant financial highlights of both the 2008 fourth quarter as well as the full year of 2008.
Steve Williamson
Thanks Randy, first an overview for the fourth quarter of 2008 versus 2007, we had $1.2 million less total revenue with $4.2 million less expenses, taxes, which equals about $3 million increase in net income. Add 9% fewer shares and you get to a 38% increase in diluted earnings per share.
The details for the fourth quarter of 2008 were fees, membership fees were up $96,000 over the fourth quarter of 2007 at a total of $109 million. Fourth quarter of 2008 associate services revenue was down 18% or $1.1 million and to $5 million total due to approximately 10% fewer new recruits and we also had lower fees from our eservice membership product.
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