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November 23, 2009 9:34 AM ET

Pre-Paid Legal Services Inc.

(PPD:NYSE)

LAST $37.22 USD
CHANGE TODAY 0.00 0.00%
VOLUME 0.0
As of November 20, 2009 All times are local (Market data by Reuters is delayed by at least 15 minutes).

Snapshot of Pre-Paid Legal Services Inc. (PPD)

OPEN
--
PREVIOUS CLOSE
$37.22
DAY HIGH
--
DAY LOW
--
52 WEEK HIGH
10/6/09 - $53.05
52 WEEK LOW
02/23/09 - $26.45
MARKET CAP
407.6M
AVERAGE VOLUME 3 mo
310.6K
DILUTED EPS TTM
$5.22
SHARES OUTSTANDING
11.0M
PPD Does Not Pay Dividends
P/E TTM
7.1x
K = Thousands  M = Millions  B = Billions

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PPD Details

Pre-Paid Legal Services, Inc. designs, underwrites, and markets legal expense plans in the United States and Canada. It sells memberships, which allow members to access legal services through a network of independent law firms. The company primarily provides preventive legal services that offer toll-free access to a member’s provider law firm for advice and consultation on legal matters; motor vehicle legal protection services; and trial defense services, such as the provision of assistance to the member and the member’s spouse through a schedule of benefits based on Membership year. It also offers internal revenue service (IRS) audit services that provide up to 50 hours of legal assistance per year in the event the member, spouse, or dependent children receive written notification of an IRS audit or are summoned in writing to appear before the IRS concerning a tax return; and various discounted legal services. In addition, the company offers specialty service plans, including business owners’ legal solutions plan, which provides business oriented legal service benefits for small businesses; commercial driver legal plan designed for professional truck drivers and offers various driving-related benefits; home-based business plan designed to provide small business owners access to commonly needed legal services; and comprehensive group legal services plan designed for the large group employee benefit market. Further, it offers legal shield plan that provides members with 24-hour access to a toll-free number for provider law firm assistance if the member is arrested or detained; identity theft shield, which enable members to toll free access to the identity theft specialists; and Canadian family plan that provides assistance with Canadian Government agencies, warranty assistance, and small claims court assistance. As of December 31, 2008, Pre-Paid Legal Services had 1,559,154 memberships. The company was founded in 1972 and is headquartered in Ada, Oklahoma.

PPD Top Compensated Officers

Chairman, Chief Executive Officer and Preside...
Age: 70
Total Annual Compensation: $400.8K
Chief Financial Officer and Principal Account...
Age: 48
Total Annual Compensation: $161.6K
Chief Operating Officer
Age: 53
Total Annual Compensation: $276.5K
Chief Marketing Officer and Senior Vice Presi...
Age: 56
Total Annual Compensation: --
Vice President of Regulatory Compliance and S...
Age: 56
Total Annual Compensation: $172.9K
Compensation as of Fiscal Year 2008.

Key developments for Pre-Paid Legal Services Inc. (PPD)

Pre-Paid Legal Reports Unaudited Earnings Results for Third Quarter and Nine Months Ended September 30, 2009

Pre-Paid Legal Services Inc. reported unaudited earnings results for third quarter and nine months ended September 30, 2009. For the quarter, the company reported net income of $10,831,000 or $0.99 per diluted share on total revenues of $113,947,000 compared to net income of $14,442,000 or $1.23 per diluted share on total revenues of $116,523,000 for the same period a year ago. Income before income taxes was $18,479,000 compared to income before income taxes of $24,326,000 for the same period a year ago. For nine months period, the company reported net income of $43,723,000 or $3.95 per diluted share on total revenues of $339,460,000 compared to net income of $45,440,000 or $3.77 per diluted share on total revenues of $349,581,000 for the same period a year ago. Income before income taxes was $71,683,000 compared to income before income taxes of $74,191,000 for the same period a year ago. Net cash provided from operating activities increased 9% to $48.4 million for the first nine months of 2009 from $44.3 million for 2008 primarily due to higher income taxes paid during the 2008 period.

Pre-Paid Legal Services Inc. Announces Subpoena Inquiry

Pre-Paid Legal Services Inc. announced that as part of a fact-finding inquiry, The company received a subpoena from the Division of Enforcement of the Securities and Exchange Commission. The subpoena requires the company to produce a variety of documents pertaining to treasury stock repurchase program; ADRS program and other marketing practices; membership statistical information; segment reporting; the FTC contingency disclosure; and other operational practices. This investigation is a fact-finding inquiry and does not mean that the SEC has reached any conclusions.

Pre-Paid Legal Services Inc., Q3 2009 Earnings Call, Oct-28-2009

Pre-Paid Legal Services Inc., Q3 2009 Earnings Call, Oct 28 2009

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PPD Competitors

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Industry Analysis

Valuation PPD Industry Range
Price/Earnings 7.1x
Price/Sales 0.9x
Price/Book 6.5x
Price/Cash Flow 7.0x
TEV/Sales 0.7x

PPD

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