Pre-Paid Announces Record Third Quarter Results

Pre-Paid Legal Services reported record results for the third quarter and for the nine months ended September 30, 2000. Net income for the third quarter of 2000 rose 45 percent to $14,360,000 from $9,870,000 for the prior year’s period.

The company’s membership revenues increased 37 percent to $54,581,000 from $39,748,000 for the same period last year. Total revenues for the quarter rose 37 percent to $67,198,000 from $49,025,000 for the prior year’s period.For the third quarter of 2000, the company added 171,753 new members, an increase of 27 percent.

“We are extremely excited about our third quarter results. We surpassed one million active memberships during the quarter and while this is our 28th year in business, our goal is to reach two million active members during the next 28 months. We have increased our quarterly membership revenues each quarter for 30 consecutive quarters,” said Pre-Paid Chairman Harland Stonecipher.

“And with more than $48 million in cash and investments, a high percentage of recurring revenues, no debt and a fixed-cost business model coupled with a tremendous market for our legal service plans, we continue to believe very strongly that the best is yet to come. We believe nothing can stop an idea whose time has come and firmly believe the time for legal service plans is now.”