ADA, Okla., Jan. 2 /PRNewswire-FirstCall/ -- Pre-Paid Legal Services, Inc. , reported new memberships produced and new sales associates enrolled for the fourth quarter and for the year ended December 31, 2008. During the 4th quarter of 2008, new sales associates enrolled decreased 9.7% to 32,533 from the 36,029 enrolled in the 4th quarter of 2007 and new memberships produced decreased 11.6% to 132,641 during the 2008 quarter compared to 150,100 for the 2007 quarter.
For the year 2008, new sales associates enrolled decreased 17.8% to 122,255 compared to 148,802 enrolled during 2007 while new memberships produced were 552,327, down 9.8% from 612,096. Our active memberships decreased 1.1% during 2008 from 1,575,802 to 1,559,154. From the 3rd quarter of 2008 to the 4th quarter of 2008, our active memberships decreased by 16,739 memberships.
Three Months Ended: Year Ended: New Memberships: 12/31/2008 9/30/2008 12/31/2007 12/31/2008 12/31/2007 New legal service membership sales 124,629 137,227 139,282 521,522 570,637 New "stand-alone" IDT membership sales 8,012 7,814 10,818 30,805 41,459 Total new membership sales 132,641 145,041 150,100 552,327 612,096 New "add-on" IDT membership sales 85,221 95,762 94,945 344,869 381,419 Average Annual Membership fee $321.00 $326.14 $321.32 $324.52 $321.18 Active Memberships: Active legal service memberships at end of period 1,469,315 1,488,259 1,492,341 1,469,315 1,492,341 Active "stand-alone" IDT memberships at end of period (see note below) 89,839 87,634 83,461 89,839 83,461 Total active memberships at end of period 1,559,154 1,575,893 1,575,802 1,559,154 1,575,802 Active "add-on" IDT memberships at end of period (see note below) 680,862 681,118 631,910 680,862 631,910 New Sales Associates: New sales associates recruited 32,533 37,820 36,029 122,255 148,802 Average enrollment fee paid by new sales associates $49.02 $56.17 $48.99 $71.53 $56.75 Average Membership fee in force: Average Annual Membership fee $300.80 $301.40 $297.62 $300.80 $297.62 Note -- reflects 4,941 net transfers from "add-on" status to "stand-alone" status during the 2008 4th quarter
Our total active membership premium in force remained unchanged at $469.0 million at December 31, 2008 and 2007. The membership persistency rate (defined as the number of memberships in force at the end of a 12 month period as a percentage of the total of memberships in force at the beginning of such period, plus new memberships sold during such period) was 73.3% for 2008.
Our fourth quarter 2008 corporate finance focus has again been on share repurchases. During the 4th quarter, we returned $7.8 million to shareholders through the repurchase of 220,766 shares of common stock, at an average per share price of $35.21. Since April 1999, we have returned $407.1 million to shareholders through the purchase of 13.7 million shares, average price of $29.62 per share, and $17.1 million in dividends for a combined total of more than $424 million representing more than 115 percent of our net earnings during the same timeframe. We have reduced the number of shares outstanding by approximately 52% from 23.6 million at March 31, 1999 to 11.4 million today.
We anticipate announcing our 2008 fourth quarter and yearly earnings on February 23, 2009 after the market closes and hosting a conference call to discuss such earnings on February 25, 2009.
About Us -- We believe our products are one of a kind, life events legal service plans. Our plans provide for legal service benefits provided through a network of independent law firms across the U.S. and Canada, and include unlimited attorney consultation as well as will preparation, traffic violation defense, automobile-related criminal charges defense, letter writing, document preparation and review and a general trial defense benefit. We have an identity theft restoration product we think is also one of a kind because of the combination of outside vendors and our provider law firms. More information about us and our products can be found at our homepage at http://www.prepaidlegal.com/.
Forward-Looking Statements
Statements in this press release, other than purely historical information, regarding our future plans and objectives and expected operating results, dividends and share repurchases 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 our 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 us with the Securities and Exchange Commission, including (among others) those listed in our Form 10- K, Form 10-Q and Form 8-K, and include the risks that our membership persistency or renewal rates may decline, that we may not be able to continue to grow our memberships and earnings, that we are dependent on the continued active participation of our principal executive officer, that pending or future litigation may have a material adverse effect on us if resolved unfavorably to us, that we could be adversely affected by regulatory developments, that competition could adversely affect us, that we are substantially dependent on our marketing force, that our stock price may be affected by short sellers, that we have been unable to increase our employee group membership sales and that our active premium in force is not indicative of future revenue as a result of changes in active memberships from cancellations and additional membership sales. Please refer to pages 14 and 15 of our 2007 Form 10-K and pages 7 and 8 of our September 30, 2008 Form 10-Q for a more complete description of these risks. We undertake no duty to update any of the forward-looking statements in this release.
