SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: July 2, 2003
(Date of earliest event reported)
Pre-Paid Legal Services, Inc.
(Exact name of registrant as specified in its charter)
(Commission File No. 1-9293)
Oklahoma 73-1016728
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation)
321 East Main Street
Ada, Oklahoma 74821-0145
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (580) 436-1234
Item 7. Financial Statements and Exhibits
The following exhibits are included with this report:
Exhibit No. Description
99.1 Company Press Release dated July 2, 2003
Item 12. Results of Operation and Financial Condition
On July 2, 2003, Pre-Paid Legal Services, Inc. (the "Company") issued a
press release announcing its membership production and recruiting information
for the three months ended June 30, 2003. A copy of the release is included as
an exhibit to this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PRE-PAID LEGAL SERVICES, INC.
By: /s/ Randy Harp
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Date: July 2, 2003 Randy Harp, Chief Operating Officer
INDEX TO EXHIBITS
Exhibit No. Description
99.1 Company Press Release dated July 2, 2003
For Immediate Release Company Melanie Lawson
Wednesday, July 2, 2003 Contact: (580) 436-1234
PRE-PAID LEGAL ANNOUNCES SECOND QUARTER PRODUCTION
ADA, OK, July 2, 2003 - Pre-Paid Legal Services, Inc. (NYSE:PPD), today
reported production highlights for the quarter ended June 30, 2003.
Highlights of the quarter included:
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o Membership base up 3.3% year over year
o Purchase of more than one-half million treasury shares
Production results: Three Months Ended
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6/30/2003 6/30/2002
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New membership sales............................... 171,180 -17.0% 206,195
New sales associates recruited..................... 22,747 -50.5% *45,962
Active memberships at end of period................ 1,405,121 +3.3% 1,360,502
* assisted by the reduced sales associate entry price of $99 during June 2002.
Harland Stonecipher, Chairman commented, "Although we're certainly not
satisfied with our second quarter membership and recruiting numbers and are
working to increase new membership sales and improve retention, our membership
base grew sequentially quarter to quarter and year over year, which is an
important performance indicator. The 2nd quarter of 2002 was the best quarter in
the history of the Company in terms of new memberships and the second best in
history in terms of new sales associates. For the month of June 2002, we lowered
the fees for new associates to $99.
"In the 2003-second quarter we expended approximately $12.3 million to
repurchase stock under our stock repurchase program and expect to continue to
use our cash flow to repurchase shares. We have reduced the diluted number of
shares outstanding by 12% since June 30, 2002. We have also seen several
positive developments during the second quarter including a change in the
regulatory requirements in Texas, one of our largest membership states, second
only to California. Effective no later than early 2004, our Texas sales
associates will no longer have to go through the extensive insurance agent
licensing process, which should enhance our recruiting efforts there.
Additionally, we are approaching our largest leadership event in Company history
later this month in Las Vegas with more than 12,000 sales associates already
registered."
About Pre-Paid Legal Services
Pre-Paid Legal Services develops and markets legal service plans across
North America. The plans provide for legal service benefits, including unlimited
attorney consultation, will preparation, traffic violation defense,
automobile-related criminal charges defense, letter writing, document
preparation and review and a general trial defense benefit. More information can
be located at the Company's homepage on the worldwide web at
http://www.prepaidlegal.com.
Safe Harbor Language
Statements in this press release, other than purely historical information,
including those statements above regarding future stock repurchases and
additional funding arrangements, regarding the Company's future plans and
objectives and expected operating results, and statements of the assumptions
underlying such statements, constitute forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934. The
forward-looking statements contained herein are based on certain assumptions
that may not be correct. They are subject to risks and uncertainties incident to
the Company's business that could cause actual results to differ materially from
those described in the forward-looking statements. These risks and uncertainties
are described in the reports and statements filed by the Company with the
Securities and Exchange Commission, including (among others) those listed in the
Company's Form 10-K and Form 10-Q, and include the risks that the Company's
membership persistency or renewal rates may decline, that the Company may not be
able to continue to grow its memberships and earnings, that the Company is
dependent on the continued active participation of its principal executive
officer, that pending or future litigation may have a material adverse effect on
the Company if resolved unfavorably to the Company, that the Company could be
adversely affected by regulatory developments, that competition could adversely
affect the Company, that the Company is substantially dependent on its marketing
force, that regulatory changes may not benefit the Company as anticipated and
that the Company's stock price may be affected by short sellers. Please refer to
pages 37 and 38 of the Company's 2002 Form 10-K and pages 8 through 10 of the
Company's March 31, 2003 Form 10-Q for a more complete description of these
risks. The Company undertakes no duty to update any of the forward-looking
statements in this release.