Winmark Corporation, the parent of Play It Again Sports, earned $4.3 million, or 82 cents a share, in the third quarter, up from $3.5 million, or 66 cents, a year ago.
For the nine months ended September 29, 2012, net income was $11,179,900 (or $2.13 per share diluted) compared to net income of $9,910,000 (or $1.89 per share diluted) for the same period last year.
John L. Morgan, Chairman and Chief Executive Officer, stated, “During the quarter, our pre-tax income was reduced by approximately $1.0 million, or $0.20 per share, due to our share of losses from Tomsten, Inc. as well as an impairment charge relating to our investment in BridgeFunds, L.L.C. This compares with a reduction of pre-tax income during the third quarter of 2011 from these investments of $0.5 million, or $0.10 per share.”
Morgan continued, “The strong cash flow from our franchising business allows us to grow our leasing operations. Franchising cash flow is improved by additional stores and store sales growth, which in turn provides us with the capital to invest on behalf of our leasing customers. This combination is the cornerstone of Winmark’s business model.”
Winmark Corporation creates, supports and finances business. At September 29, 2012, there were 958 franchises in operation under the brands Plato's Closet®, Play It Again Sports®, Once Upon A Child®, and Music Go Round®. An additional 59 retail franchises have been awarded but are not open. In addition, at September 29, 2012, the Company had a lease portfolio of $34.1 million.
