Earnings Call Excerpt
PrePaid Legal Expenses, Inc. (PPD)
Q1 2009 Earnings Call
April 29, 2009 8:30 am ET
Executives
Randy Harp Chief Operating Officer
Steve Williamson Chief Financial Officer
Presentation
Operator
Good day, and welcome to the PrePaid Legal Services first quarter 2009 earnings conference call. Today's conference call will be recorded. At this time, I would like to turn the conference over to Mr. Randy Harp, please go ahead.
Randy Harp
Good morning. This is Randy Harp, Chief Operating Officer of the company. I want to welcome you to the 2009 first quarter earnings conference call for PrePaid Legal Services. Joining me here at our home office in Ada, Oklahoma, is Steve Williamson, our Chief Financial Officer.
Before we begin, I want to remind everybody that the conference call will contain forwardlooking statements, including our expectations of future results and future plans. The actual results might differ materially from those projected in any forwardlooking statement. Additional information concerning risk factors that could cause the results to differ materially from those forwardlooking statements are contained in our press release announcing this quarter's earnings as well as our disclosures in our public reports on Forms 10K, 10Q, and 8K filed with the SEC and available on the SEC Edgar website as well as our own website.
At this time, I would ask our Chief Financial Officer, Steve Williamson, to step through the more significant financial highlights for the first quarter of 2009.
Steve Williamson
I will first kind of go over the big picture of the quarter, give you a little summary. We had $3.1 million less in total revenues; and we had $4.2 million less in expenses and taxes, which resulted in a 7% increase or $1,159,000 increase in net income with a 9% decrease in diluted shares outstanding. That gives us an 18% increase in diluted EPS or $1.52 for the quarter.
2008 membership revenues decreases 2% primarily due to the decrease in the average premium in force and as we saw in the press release a reduced number of memberships outstanding. Associate services revenue declined primarily due to the lower eService fee that we receive for that product that we make available to the associate sales force. Other revenue is primarily the amortization and income of the $10 enrollment fee over a threeyear period that we collect on the nongroup memberships. This revenue has declined due to the decline in the new membership [inaudible].
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