Monday morning, Pre-Paid Legal Services Inc. (PPD | charts | news | PowerRating), a company that develops, underwrites and markets legal service plans, announced financial results for the first quarter, reporting higher net income on increased revenues.
The Ada, Oklahoma-based company said that net income for the quarter rose to $13.07 million or $0.84 per share from $8.95 million or $0.57 per share in the same period of the previous year. The company said that net income increased primarily due to lower associate services and direct marketing expenses and although total commissions paid were higher in 2006 period compared to the 2005 period, commissions were lower as a percentage of membership revenues.
Revenues for the quarter rose to $109.96 million from $100.89 million in the same period of the previous year. The company said that the main contributory to revenues were membership fees which represented $101.74 million of revenues for the current quarter compared to $92.50 million in the same period of the prior year. During the first quarter, the company returned $16.2 million to shareholders through the repurchase of 448,426 shares at an average per share price of $36.05 and also paid $4.6 million in dividends.
At March 31, 2006, the company's total indebtedness was $33.7 million and we had unpledged cash and investment balances exceeding $50 million.
PPD is currently trading at $35.56, up $0.49 per share.