Are you talking about the actual Explaination Statement or the personal statement? They are two different things.
If you are talking about the personal statement, I recommend making sure your statement flows. You have to imagine how it must feel to read statement after statement. Are you going to remember something about this applicant if its just a list of paragraphs describing different snippets of their life? What will make your statement stand out from the other 500 personal statements the admissions committee are going to read? Try to make it as painless and enjoyable for them as possible.
Now if you're talking about the explaination statement, where you are explaining why you didn't do so well for a certain semester or whatever, that you may be able to get away with writing as different paragraphs, but then again, I think that statement should be as short and succint as possible with a positive spin to show how you've grown from that experience.
Hope that helps