Winmark Corporation, the parent of Play It Again Sports, reported net income for the year ended December 30, 2017 of $24.6 million, or $5.66 per share, compared to net income of $22.2 million, or $5.13, in 2016.
Revenues for the year ended December 30, 2017 were $69.7 million, up from $66.6 million in 2016.
As a result of the recently enacted Tax Cut and Jobs Act, the company recognized a one-time, non-cash, tax benefit of approximately $1.5 million, or 36 cents per share, in the fourth quarter related to the remeasurement of its deferred tax assets and liabilities from the reduction in U.S. federal corporate income tax rates.
The fourth quarter 2017 net income was $7.7 million, or $1.86 per share, compared to net income of $6.2 million, or $1.41, for the same period last year. Total revenue in the quarter was $17.8 million, up from $17.4 million.
“Throughout the year, we experienced steady growth in royalties as our franchisees continued to perform well,” noted Brett D. Heffes, chief executive officer. “We have continued to invest in Winmark Franchise Partners since its launch earlier last year, and I am excited by the long-term opportunities for this business.”
Winmark Corporation creates, supports and finances business. At December 30, 2017, there were 1,211 franchises in operation, including Plato’s Closet, Once Upon A Child, Play It Again Sports, Style Encore and Music Go Round. An additional 62 retail franchises have been awarded but are not open. In addition, at December 30, 2017, the company had a lease portfolio of $41.3 million.
