Winmark Corp., the parent of Play It Again Sports, reported earnings rose in the third quarter ended September 24, to $6.09 million, or $1.41 a share, from $5.3 million, or $1.23, a year ago.
Sales reached $16.7 million against $16 million in the same period a year ago. Royalty income for the franchisor reached $11.31 million, about equal with $11.29 million a year ago.
Earnings growth during the third quarter was driven by an increase in customer activity within the company’s lease portfolio and reduced selling, general and administrative expenses.
Brett D. Heffes, chief executive officer, commented, “I am pleased that we were able to grow our earnings per share by 15 percent over last year. Our performance during the quarter demonstrated the benefits of our diverse business model.”
For the nine months ended September 24, 2016, net income was $16.0 million, or $3.72 a share, compared to net income of $16.1 million, or $3.39, for the same period last year.
At September 24, 2016, Winmark had 1,184 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 67 retail franchises have been awarded but are not open. In addition, at September 24, 2016, the company had a lease portfolio of $37.3 million.
