ADA, Okla., April 27 /PRNewswire-FirstCall/ -- Pre-Paid Legal Services, Inc. (NYSE: PPD) announced results for the first quarter ended March 31, 2009. Net income for the first quarter of 2009 increased 7% to $17.1 million from $15.9 million for the prior year's first quarter. Diluted earnings per share increased 18% to $1.52 per share from $1.29 per share for the prior year's comparable quarter due to an increase in net income of 7% and a 9% decrease in the weighted average outstanding shares. Membership fees in the first quarter of 2009 decreased 2% to $106.9 million from $109.1 million for the same period last year.

Net cash provided from operating activities increased 42% to $29.7 million for the first quarter of 2009 from $20.8 million for 2008 primarily due to higher cash taxes paid during the 2008 period. During the 2009 first quarter, we returned $13.5 million to shareholders through the repurchase of 422,505 shares of common stock, at an average per share price of $32.05. Since April 1999, we have returned $420.7 million to shareholders through the purchase of 14.2 million shares, average price of $29.69 per share, and $17.1 million in dividends for a combined total of $437.8 million representing more than 110% of our net earnings during the same timeframe. At March 31, 2009, we had $52.6 million of debt outstanding and $68.5 million in cash and cash equivalents and unpledged investments.

First quarter 2009 membership fees decreased $2.1 million to $106.9 million from $109.0 million for the fourth quarter of 2008. Associate services revenues increased during the 2009 first quarter by approximately $330,000 to $5.3 million from $5.0 million for the 2008 fourth quarter and associate services and direct marketing expenses increased by $1.2 million during the same period. Membership benefits totaled $36.2 million in the first quarter of 2009 compared to $37.6 million for the 2008 fourth quarter and represented 34% of membership fees for the first quarter and 35% for the 2008 fourth quarter. Commissions to associates totaled $27.0 million in the 2009 first quarter compared to $31.1 million for the 2008 fourth quarter and represented 25% and 28%, respectively, of membership fees for the two periods. General and administrative expenses decreased $772,000 during the 2009 first quarter to $13.4 million compared to $14.2 million for the 2008 fourth quarter and represented 13% of membership fees for both periods. The $772,000 decrease in general and administrative expenses included decreases in employee cost, telecommunications and bank service charges which were partially offset by increases in postage, legal expenses and accounting fees.

We will conduct a conference call to present the first quarter results on Wednesday, April 29, 2009, at 8:30 a.m. Eastern Time. The conference call will be webcast on the investor relations' page of www.prepaidlegal.com or may be accessed by dialing (719) 325-2164. Audio replay will be available beginning at 11:30 a.m.