Winmark Corp., the parent of Play It Again Sports, reported net income for the quarter ended July 1, 2017 of $5.8 million, or $1.29 a share, up from $5.4 million, or $1.25, a year ago, representing a gain of 7.4 percent.
Total revenues climbed 2.8 percent to $16.7 million. Royalty revenues gained 5.1 percent to $11.1 million while leasing income declined 5.6 percent to $3.9 million.
For the six months ended July 1, 2017, net income was $11.2 million, or $2.50, compared to net income of $9.96 million, or $2.31, for the same period last year.
Winmark also announced the commencement of a self-tender offer to purchase up to 400,000 shares, or approximately 9.5 percent of its outstanding common stock, for a price of $124.48 per share. The company intends to finance the tender offer with its existing revolving credit facility as well as an additional term loan.
At July 1, 2017, the company had 1,199 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 59 retail franchises have been awarded but are not open. In addition, at July 1, 2017, the company had a lease portfolio equal to $41.0 million.
As Of April 1, Play It Again had 279 locations. At the time, Winmark’s biggest franchise was Plato’s Closet, with 470 stores; and Once Upon A Closet, 347. Smaller franchisees were Style encore, 54; and Music Go Round, 34.
Founded in 1988.,Play It Again Sports stores buy, sell, trade and consign used and new sporting goods, equipment and accessories for a variety of athletic activities including team sports (baseball/softball, hockey, football, lacrosse, soccer), fitness, ski/snowboard and golf among others. Sales last year were $228 million.
Photo courtesy Play It Again Sports
