Winmark Corporation, the parent of  Play It Again Sports, reported net income for the year ended Dec. 31, 2011 of $14.1 million, or 2.69 per share, compared to net income of $10.3 million, or $1.98, in 2010. The fourth quarter 2011 net income was $4.2 million, or 80 cents per share diluted, compared to net income of $3.1 million, or 60 cents, for the same period last year. Revenues for the year ended December 31, 2011 were $51.3 million, up from $41.2 million in 2010.

John L. Morgan, chairman and chief executive officer, stated, “We had a good year and fourth quarter due to the steady growth of our franchise business and the significant improvement in our leasing business. We believe that we are well positioned for long-term profitable growth.”

Winmark Corporation creates, supports and finances business. At December 31, 2011, there were 930 franchises in operation under the brands Plato's Closet®, Play It Again Sports®, Once Upon A Child, and Music Go Round®. An additional 44 retail franchises have been awarded but are not open. In addition, at December 31, 2011, the Company had a lease portfolio equal to $29.8 million.








































































































































































































































































































































































































































































































































































































































































WINMARK CORPORATION

CONDENSED STATEMENTS OF OPERATIONS

(unaudited)

       


Quarter Ended   Fiscal Year Ended


December 31, 2011   December 25, 2010   December 31, 2011   December 25, 2010
REVENUE:

 


 
Royalties
$ 8,442,100

$ 6,727,500

$ 30,360,600

$ 26,489,300
Leasing income

3,780,200


2,606,000


16,364,700


9,896,300
Merchandise sales

482,900


335,600


2,481,600


2,344,800
Franchise fees

245,000


480,800


1,081,200


1,366,400
Other
  281,600  
  324,500  
  1,046,900  
  1,106,800  
Total revenue

13,231,800


10,474,400


51,335,000


41,203,600
















 
COST OF MERCHANDISE SOLD

457,900


319,300


2,366,400


2,231,100
















 
LEASING EXPENSE

966,500


250,000


5,115,800


1,624,200
















 
PROVISION FOR CREDIT LOSSES

(51,600 )

46,600


(43,400 )

189,000
















 
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
  4,953,200  
  4,527,000  
  19,048,600  
  18,620,300  
















 
Income from operations

6,905,800


5,331,500


24,847,600


18,539,000
















 
GAIN (LOSS) FROM EQUITY INVESTMENTS

(71,200 )

63,300


(515,800 )

(259,100 )
















 
IMPAIRMENT OF INVESTMENT IN NOTES

(337,000 )

–


(883,100 )

–
















 
INTEREST EXPENSE

(27,800 )

(55,000 )

(112,000 )

(980,200 )
















 
INTEREST AND OTHER INCOME/(EXPENSE)
  22,800  
  (119,000 )
  44,900  
  257,800  
















 
Income before income taxes

6,492,600


5,220,800


23,381,600


17,557,500
















 
PROVISION FOR INCOME TAXES
  (2,307,600 )
  (2,101,600 )
  (9,286,600 )
  (7,228,500 )
















 
NET INCOME
$ 4,185,000  
$ 3,119,200  
$ 14,095,000  
$ 10,329,000  
















 
EARNINGS PER SHARE – BASIC
$ .84  
$ .62  
$ 2.83  
$ 2.05  
















 
EARNINGS PER SHARE – DILUTED
$ .80  
$ .60  
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