Earnings Surge at Pre-Paid Legal Services

Earnings surge at Pre-Paid Legal Services

Lower commissions -- down to $31.4 million from $37.4 million -- contribute to higher net income. Lower commissions helped boost third-quarter net income 55 percent at Pre-Paid Legal Services Inc.

The Ada-based company reported Monday that it earned $13.4 million, or 93 cents a diluted share, compared with $8.6 million, or 55 cents a share, in the same period a year ago.

Diluted earnings per share assumes the exercise of stock options and warrants, and the conversion of convertible bonds and preferred shares in computing outstanding shares. Because diluted income per share involves spreading net income over more outstanding shares, the additional equity dilutes, or reduces, earnings on a per-share basis, according to an online definition.

 

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