Winmark Corp., the parent of Play It Again Sports, reported net income increased 28.1% in the second quarter to $1.2 million, or 22 cents a share, from $930,500, or 17 cents, a year ago. Sales were virtually flat at $8.8 million versus $8.7 million a year ago.
Royalty revenues increased to $5.6 million from $5.3 million and leased income grew to $2.1 million from $1.9 million. Merchandise sles dipped to
$679,300 from $975,000.
John L. Morgan, chairman and CEO, stated, “Our second quarter performance was acceptable in light of the current economic environment. Our franchising and middle market leasing businesses performed well, but we have been negatively impacted by write-offs in our small business leasing portfolio. We fully expect the small business portfolio to continue to perform poorly until there is a broad recovery in the U.S. economy.”
For the six months ended June 27,, net income was $2,609,000, or 49 cents per share, compared to net income of $1.9 million or 34 cents, for the same period last year. Revenues increased to $18.1 million from $17.6 million.
At June 27, Winmark had 867 franchises in operation under the brands Play It Again Sports, Once Upon A Child, Plato's Closet and Music Go Round.
