Winmark Corp., the parent of Play It Again Sports, reported earnings grew in its first quarter ended Mar. 31, to $3.5 million, or 67 cents a share, from $3.03 million, or 58 cents, in the first quarter of 2011.
John L. Morgan, Chairman and Chief Executive Officer, stated, “We are pleased with our performance during the first quarter. Our results were driven by the growth of our franchising business and continued progress in building our leasing portfolio.”
Winmark Corporation creates, supports and finances business. At March 31, 2012, there were 939 franchises in operation under the brands Plato's Closet, Play It Again Sports, Once Upon A Child, and Music Go Round. An additional 50 retail franchises have been awarded but are not open. In addition, at March 31, 2012, the company had a lease portfolio equal to $29.6 million.
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WINMARK CORPORATION |
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CONDENSED STATEMENTS OF OPERATIONS |
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Three Months Ended |
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March 31, 2012 |
March 26, 2011 |
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REVENUE: |
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Royalties |
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$ |
8,288,500 |
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$ |
7,052,800 |
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Leasing income |
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2,392,100 |
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3,235,000 |
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Merchandise sales |
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709,800 |
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501,400 |
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Franchise fees |
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285,000 |
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75,000 |
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Other |
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158,000 |
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240,700 | ||||
Total revenue |
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11,833,400 |
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11,104,900 |
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COST OF MERCHANDISE SOLD |
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664,300 |
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482,900 |
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LEASING EXPENSE |
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239,800 |
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518,700 |
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PROVISION FOR CREDIT LOSSES |
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(53,000 |
) |
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45,400 |
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SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
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5,136,100 |
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4,845,900 | ||||
Income from operations |
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5,846,200 |
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5,212,000 |
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LOSS FROM EQUITY INVESTMENTS |
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(37,400 |
) |
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(77,000 |
) |
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INTEREST EXPENSE |
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(69,800 |
) |
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(31,100 |
) |
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INTEREST AND OTHER INCOME |
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46,300 |
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17,200 | ||||
Income before income taxes |
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5,785,300 |
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5,121,100 |
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(2,269,300 |
) |
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(2,094,800 |
) |
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$ |
3,516,000 |
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$ |
3,026,300 |
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EARNINGS PER SHARE – BASIC |
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$ | .70 |
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$ | .61 | ||
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EARNINGS PER SHARE – DILUTED |
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$ | .67 |
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$ | .58 | ||
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WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC |
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5,052,952 |
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4,989,588 | ||||
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WEIGHTED AVERAGE SHARES OUTSTANDING – DILUTED |
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5,280,202 |
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5,215,484 | ||||
