Winmark Corporation, the parent of Play It Again Sports, reported net income of $5.7 million, or $1.33 a share against $6.1 million, or $1.41, a year ago, a decline of 6.6 percent.
Total revenue rose to $17.6 million from $16.7 million. Of that, royalty revenues increased to $12.3 million from $11.3 million a year ago. Leasing income slid to $3.9 million from $4.2 million a year ago. Merchandise sales climbed to $773.1 million from $520.0 million.
For the nine months ended September 30, net income was $16.9 million, or $3.83 a share, compared to net income of $16.05 million, or $3.72, a year ago.
The company said the royalty growth in the quarter was driven primarily by increased sales from franchisees, while profits in the leasing business were lower when compared to last year due to a decrease in customer activity within the lease portfolio.
Brett D. Heffes, chief executive officer, commented, “We are pleased with the performance of the franchising business during the quarter, and the response to Winmark Franchise Partners, which we have continued to invest in during the quarter, has been extremely positive.”
Winmark Corporation creates, supports and finances business. At September 30, 2017, there were 1,210 franchises in operation under the brands Plato’s Closet, Once Upon A Child, Play It Again Sports, Style Encore and Music Go Round. An additional 62 retail franchises have been awarded but are not open. In addition, at September 30, 2017, the company had a lease portfolio of $40.6 million.
Photo courtesy Play It Again Sports
