Pre-Paid Legal Services, Inc. (PPD)

Q1 2010 Earnings Call Transcript

April 28, 2010 8:30 am ET

Executives

Randy Harp – Co-CEO, President and COO

Mark Brown – Co-CEO, SVP and Chief Marketing Officer

Steve Williamson – CFO

Presentation

Operator

Good day ladies and gentlemen and welcome to the Pre-Paid Legal Services first quarter earnings results conference call. (Operator Instructions)

I would now like to turn the conference over to your host Mr. Randy Harp. Please go ahead.

Randy Harp

Thank you, Ellie. Good morning this is Randy Harp, Co-CEO, President and Chief Operating Officer of the company. I want to welcome you to the 2010 first quarter earnings conference call for Pre-Paid Legal Services Inc.

Joining me here at our home office is Mark Brown, our Co-CEO, Senior Vice President

Chief Marketing Officer as well as Steve Williamson, our Chief Financial Officer.

Before we begin, I would like to remind everybody that the conference call will contain forward-looking statements including our expectations of future results and future plans. Actual results might differ materially from those projected in any forward-looking statements. Additional information concerning risk factors that could cause the results to differ materially from these forward-looking statements are contained in our press release announcing our earnings as well as from disclosures in our public reports on Forms 10-K, 10-Q and 8-K and is getting amendments thereto filed with the SEC and all of those are available on the SEC at the website www.sec.gov or our website prepaidlegal.com.

I will now turn the call over to Mark Brown for his comments.

Mark Brown

Thank you, Randy very much. And it is a pleasure to be on the call this morning. And I just wanted to talk a little bit about our product, and honestly why I'm able to be here at One Pre-Paid Way. And my 15 years in our pre-paid legal business came about because of the very membership that we offer in North America.

And I had a printing business for 18 years. I was sold the product by a printing customer of mine early on in the early part of 1995. And I had an ongoing situation at the time, and I bought the membership because I was, like most Americans are, I felt locked out of the legal system. I felt like it was an exclusive country club I couldn't join. I did what a lot of people do. I tried to handle the problem myself or ignored it. What I find – what you find when you do things like that though, when you have a problem on your mind it causes you to lose sleep, you become unproductive.

So I bought the membership and used it immediately. And the law firm simply wrote a letter on my behalf, and a week later I had a resolution to my problem. It was a debt situation. I didn't know that they – this other company had me owning that and were gunning me for it. What I found, and what I want to – what I always try to share with people is some things that our membership does that I think is extremely valuable. Number one, I got to – as part of our membership, I got to call the law firm. They called me back with a lawyer in the area that I needed. And I got to unburden myself to that gentleman and tell him the story. I had been kind of compartmentalizing it, kind of keeping it to myself, trying to figure it out, trying to handle it. I was losing sleep. I was unproductive. I unburdened myself to him. He – fortunately, they were able to write a letter for me, sent me a copy of it. A week later I had a resolution to the situation.

Now, I always tell people I am not trying to tell you we have a magic law from there and they wrote a magic letter. The magic was, Randy, I never had to leave my office to get that done.

Randy Harp

Right.

Mark Brown

I didn't throw a dart at the Yellow Pages. I didn't run all over town, take a check out of my checkbook, trying to figure out where to go, how to handle it. I simply made a call from my office. I unburdened myself to this gentleman and once I got a resolution to this, I kind of reflected back over that week and the past three months that I had been dealing with this issue. And number one, what happened to me in my – in having this membership was number one, after I unburdened myself to that lawyer that day, I slept better that night. I think anybody who has probably gone to bed with a problem on their mind, couldn't go to sleep worrying about it. I slept good that night. I became more productive that week. I actually got back to work. I actually didn't think about that problem again, like I had been obsessing over it.

And just sitting there in my office after I got that call talking about the resolution to this situation, I just thought, man, everybody is going to have this. Unbelievable that I have never heard of it and if people would just understand what it did, everybody would have it because the world we live in is more complicated today than it was 15 years ago when I bought the membership.

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