Winmark Corporation, the parent of Play it Again Sports, reported net income for the
quarter ended Sept. 24 reached $3.48 million, or 66 cents a share, up from $2.69 million, or 51 cents, a year ago.
For the nine months ended September 24, 2011, net
income was $9,910,000, or $1.89 per share diluted, compared to net
income of $7,209,800, or $1.39 per share diluted, for the same period
last year.
John L. Morgan, chairman and chief executive officer, stated, “During
the quarter, our earnings growth was primarily driven by the continued
strong performance of our franchising brands. Additionally, our leasing
business continued to show significant increases in both profitability
and customer activity. During the quarter, our pre-tax income was
reduced by approximately $0.5 million, or $0.10 per share, due to our
share of losses from Tomsten, Inc. as well as an impairment charge
relating to our investment in BridgeFunds, LLC.”
Winmark Corporation creates, supports and finances business. At
September 24, 2011, there were 923 franchises in operation under the
brands Play It Again Sports®, Plato's Closet®, Once Upon A Child®, and
Music Go Round®. An additional 39 retail franchises have been awarded
but are not open. In addition, at September 24, 2011, the company had
loans and leases equal to $31.8 million.
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WINMARK CORPORATION
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CONDENSED STATEMENTS OF OPERATIONS
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(Unaudited) |
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Quarter Ended |
Nine Months Ended |
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September 24, 2011 |
September 25, 2010 |
September 24, 2011 |
September 25, 2010 |
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REVENUE: |
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Royalties |
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$ |
8,046,400 |
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$ |
7,030,000 |
|
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$ |
21,918,500 |
|
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$ |
19,761,800 |
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Leasing income |
|
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2,369,300 |
|
|
|
2,419,600 |
|
|
|
12,584,500 |
|
|
|
7,290,300 |
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Merchandise sales |
|
|
664,300 |
|
|
|
964,000 |
|
|
|
1,998,700 |
|
|
|
2,009,200 |
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Franchise fees |
|
|
516,200 |
|
|
|
357,100 |
|
|
|
836,200 |
|
|
|
885,600 |
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Other |
|
177,300 |
|
236,600 |
|
765,300 |
|
782,300 | ||||||||
Total revenue |
|
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11,773,500 |
|
|
|
11,007,300 |
|
|
|
38,103,200 |
|
|
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30,729,200 |
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COST OF MERCHANDISE SOLD |
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631,400 |
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|
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920,600 |
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|
|
1,908,500 |
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|
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1,911,800 |
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LEASING EXPENSE |
|
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290,400 |
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|
|
387,600 |
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|
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4,149,300 |
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|
|
1,374,200 |
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PROVISION FOR CREDIT LOSSES |
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(13,100 |
) |
|
|
130,500 |
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|
|
8,200 |
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|
|
142,400 |
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SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
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4,219,100 |
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4,360,200 |
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14,095,400 |
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14,093,300 | ||||||||
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Income from operations |
|
|
6,645,700 |
|
|
|
5,208,400 |
|
|
|
17,941,800 |
|
|
|
13,207,500 |
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LOSS FROM EQUITY INVESTMENTS |
|
|
(224,700 |
) |
|
|
(200,200 |
) |
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(444,600 |
) |
|
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(322,400 |
) |
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IMPAIRMENT OF INVESTMENT IN NOTES |
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|
(293,200 |
) |
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|
– |
|
|
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(546,100 |
) |
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– |
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INTEREST EXPENSE |
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|
(26,200 |
) |
|
|
(363,900 |
) |
|
|
(84,200 |
) |
|
|
(925,200 |
) |
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INTEREST AND OTHER INCOME/(EXPENSE) |
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