News Source: Biloxi Sun Herald
"Pre-Paid Legal Services, Inc. (NYSE: PPD), announced results for the fourth quarter and year ended December 31, 2007. Net income for the fourth quarter of 2007 decreased 11% to $11.7 million from $13.2 million for the prior year's fourth quarter due to a fourth quarter 2007 charge of $2.9 million relating to income taxes. In the fourth quarter, we discovered and corrected a clerical error in the amount of net operating loss reported in a 2003 state income tax return which resulted in nonpayment of income taxes in that state for several years. The $2.9 million charge was comprised of $2.0 million pertaining to 2006 and prior years and $900,000 pertaining to the first 3 quarters of 2007. This charge was not individually material to the 2007 prior quarters or 2006 or prior years. Diluted earnings per share decreased 2% to 92 cents per share from 94 cents per share for the prior year's comparable quarter due to a decrease in net income of 11% and 9% decrease in the weighted average outstanding shares. Membership revenues in the fourth quarter of 2007 increased 5% to $108.9 million from $103.8 million for the same period last year."
