Pre-paid Legal Services, Inc. (PPD) Tops Q1 EPS by 2c, Revenues Beat; Offers 2Q Revenue Guidance Below Consensus

Pre-paid Legal Services, Inc. (NASDAQ: PPD) reported Q1 EPS of $0.24, $0.02 better than the analyst estimate of $0.22. Revenue for the quarter came in at $1.07 billion versus the consensus estimate of $1.04 billion.

Highlights

• Net authorizations of $1,063.6 million, representing 8.8% growth over first quarter 2019 and resulting in a net book-to-bill ratio of 1.30x on a historical basis
• Ending backlog of $7,312.2 million, representing 11.9% growth over first quarter 2019 on a historical basis
• Revenue of $1,072.5 million, representing 11.3% growth over first quarter 2019
• Net income attributable to common stockholders of $4.2 million, representing 194.6% growth over first quarter 2019
• Adjusted EBITDA of $196.9 million, representing 17.3% growth over first quarter 2019
• Cash and cash equivalents of $738.4 million as of March 31, 2020
• Full year 2020 financial guidance withdrawn due to uncertainty associated with COVID-19
• Second quarter 2020 guidance for revenue of $907 million to $946 million; and adjusted EBITDA of $170 million to $177 million

“While we were pleased with our strong commercial and financial results for Q1, our full attention is focused on navigating the challenges presented by the COVID-19 pandemic, most importantly, ensuring the health and safety of our employees, patients and customers,” said David Simmons, PPD’s chairman and CEO. “We are coordinating closely with customers to minimize study disruptions where possible and ensure continued access to drug supply for patients in ongoing studies. This pandemic highlights the crucial role the life sciences industry plays in our society and underscores the importance of PPD’s purpose and mission ‘to improve health by helping our customers deliver life-changing therapies.’ To that end, we are proud to be actively working on 39 studies related to COVID-19 treatments and vaccines.”

GUIDANCE:

Pre-paid Legal Services, Inc. sees Q2 2020 revenue of $907-946 million, versus the consensus of $960.92 million.

For earnings history and earnings-related data on Pre-paid Legal Services, Inc. (PPD) click here.

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