Winmark Corp., the parent of Play It Again Sports, reported net income for the quarter ended June 28 jumped 116%, to $930,500, or 17 cents a share, from $430,500, or 8 cents, a year ago. Revenues grew to $8.7 million from $7.6 million. Of those revenues, royalties climbed to $5.3 million from $4.8 million and leasing income jumped to $1.9 million from $995,800. Merchandise sales decreased to $975,000 from $1.19 million, franchise fees slipped to $366,100 from $417,400, and other revenues increased to $145,400 from $109,300.
John Morgan, chairman and CEO, stated, “Our franchise business continues to perform well in the current economic environment while our leasing business has some different challenges. While trying to grow our leasing portfolio, we need to be cautious with our credit decisions until the economy improves.”
For the six months, net income was $1.87 million, or 34 cents a share, from $1.06 million, or 19 cents, for the same period last year. Revenues lifted to $17.6 million from $15.2 million.
Winmark has about 370 Play It Again units. It total, there were 857 franchises in operation at June 28 under the brands Play It Again Sports, Once Upon A Child, Plato's Closet and Music Go Round and there were 56 territories in operation under the Wirth Business Credit brand. An additional 50 retail franchises have been awarded but are not open.
