Winmark Corporation, owner of Play It Again Sports franchise, announced net income for the first quarter ended March 27, 2010 of $2.2 million, or 42 cents per share diluted, compared to $1.4 million, or 26 cents, in the first quarter of 2009.
John L. Morgan, Chairman and Chief Executive Officer, stated, “Both our franchising and leasing businesses produced significant earnings growth during the first quarter. We are pleased with our performance and are optimistic about our prospects for the remainder of 2010.”
Winmark Corporation creates, supports and finances business. At March 27, 2010, there were 883 franchises in operation under the brands Play It Again Sports�, Plato’s Closet�, Once Upon A Child�, and Music Go Round� and there were 21 territories in operation under the Wirth Business Credit� brand. An additional 49 retail franchises have been awarded but are not open. In addition, at March 27, 2010, the company had loans and leases equal to $36.6 million.
WINMARK CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
March 27, 2010 March 28, 2009
REVENUE:
Royalties $ 6,363,500 $ 5,633,500
Leasing income 2,524,900 2,701,700
Merchandise sales 494,700 625,400
Franchise fees 223,500 150,000
Other 236,200 139,400
Total revenue 9,842,800 9,250,000
COST OF MERCHANDISE
SOLD 471,000 595,900
LEASING EXPENSE 547,300 682,500
PROVISION FOR CREDIT
LOSSES 172,100 419,700
SG&A EXPENSES 4,855,900 4,882,500
Income from
operations 3,796,500 2,669,400
LOSS FROM EQUITY
INVESTMENTS (20,200) (3,500)
INTEREST EXPENSE (288,200) (351,100)
INTEREST AND
OTHER INCOME 177,700 61,100
Income before
income taxes 3,665,800 2,375,900
PROVISION FOR
INCOME TAXES (1,484,700) (962,200)
NET INCOME $ 2,181,100 $ 1,413,700
EARNINGS PER SHARE
– BASIC $ .43 $ .26
EARNINGS PER SHARE
– DILUTED $ .42 $ .26
| WINMARK CORPORATION | ||||
| CONDENSED STATEMENTS OF OPERATIONS | ||||
(unaudited) | ||||
| Three Months Ended | ||||
| March 27, 2010 | March 28, 2009 | |||
| REVENUE: | ||||
| Royalties | $ 6,363,500 | $ 5,633,500 | ||
| Leasing income | 2,524,900 | 2,701,700 | ||
| Merchandise sales | 494,700 | 625,400 | ||
| Franchise fees | 223,500 | 150,000 | ||
| Other | 236,200 | 139,400 | ||
| Total revenue | 9,842,800 | 9,250,000 | ||
| COST OF MERCHANDISE SOLD | 471,000 | 595,900 | ||
| LEASING EXPENSE | 547,300 | 682,500 | ||
| PROVISION FOR CREDIT LOSSES | 172,100 | 419,700 | ||
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 4,855,900 | 4,882,500 | ||
Income from operations | 3,796,500 | 2,669,400 | ||
| LOSS FROM EQUITY INVESTMENTS | (20,200) | (3,500) | ||
| INTEREST EXPENSE | (288,200) | (351,100) | ||
| INTEREST AND OTHER INCOME | 177,700 | 61,100 | ||
Income before income taxes | 3,665,800 | 2,375,900 | ||
PROVISION FOR INCOME TAXES | (1,484,700) | (962,200) | ||
NET INCOME | $ 2,181,100 | $ 1,413,700 | ||
| EARNINGS PER SHARE – BASIC | $ .43 | $ .26 | ||
| EARNINGS PER SHARE – DILUTED | $ .42 | $ .26 | ||
| WINMARK CORPORATION | ||||
| CONDENSED STATEMENTS OF OPERATIONS | ||||
(unaudited) | ||||
| Three Months Ended | ||||
| March 27, 2010 | March 28, 2009 | |||
| REVENUE: | ||||
| Royalties | $ 6,363,500 | $ 5,633,500 | ||
| Leasing income | 2,524,900 | 2,701,700 | ||
| Merchandise sales | 494,700 | 625,400 | ||
| Franchise fees | 223,500 | 150,000 | ||
| Other | 236,200 | 139,400 | ||
| Total revenue | 9,842,800 | 9,250,000 | ||
| COST OF MERCHANDISE SOLD | 471,000 | 595,900 | ||
| LEASING EXPENSE | 547,300 | 682,500 | ||
| PROVISION FOR CREDIT LOSSES | 172,100 | 419,700 | ||
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 4,855,900 | 4,882,500 | ||
Income from operations | 3,796,500 | 2,669,400 | ||
| LOSS FROM EQUITY INVESTMENTS | (20,200) | (3,500) | ||
| INTEREST EXPENSE | (288,200) | (351,100) | ||
| INTEREST AND OTHER INCOME | 177,700 | 61,100 | ||
Income before income taxes | 3,665,800 | 2,375,900 | ||
PROVISION FOR INCOME TAXES | (1,484,700) | (962,200) | ||
NET INCOME | $ 2,181,100 | $ 1,413,700 | ||
| EARNINGS PER SHARE – BASIC | $ .43 | $ .26 | ||
| EARNINGS PER SHARE – DILUTED | $ .42 | $ .26 | ||
| WINMARK CORPORATION | ||||
| CONDENSED STATEMENTS OF OPERATIONS | ||||
(unaudited) | ||||
| Three Months Ended | ||||
| March 27, 2010 | March 28, 2009 | |||
| REVENUE: | ||||
| Royalties | $ 6,363,500 | $ 5,633,500 | ||
| Leasing income | 2,524,900 | 2,701,700 | ||
| Merchandise sales | 494,700 | 625,400 | ||
| Franchise fees | 223,500 | 150,000 | ||
| Other | 236,200 | 139,400 | ||
| Total revenue | 9,842,800 | 9,250,000 | ||
| COST OF MERCHANDISE SOLD | 471,000 | 595,900 | ||
| LEASING EXPENSE | 547,300 | 682,500 | ||
| PROVISION FOR CREDIT LOSSES | 172,100 | 419,700 | ||
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 4,855,900 | 4,882,500 | ||
Income from operations | 3,796,500 | 2,669,400 | ||
| LOSS FROM EQUITY INVESTMENTS | ||||
