Winmark Corporation, the parent of Play It Again Sports, reported net income for the quarter ended June 26, 2010 of $2.33 million, or 45 cents a share, up from $1.2 million, or 22 cents, a year ago. Revenues improved 11.8% to $9.9 million from $8.8 million.
For the six months ended June 26, 2010, net income was $4,519,800, or 87 cents a share, from $2.6 million, or 49 cents, a year earlier.
John L. Morgan, Chairman and Chief Executive Officer, stated, â€During the second quarter, we were able to grow our profits while maintaining expenses relatively flat when compared to last year. We are extremely pleased with how our business has performed during the first six months of 2010.â€
Winmark Corporation creates, supports and finances business. At June 26, 2010, there were 889 franchises in operation under the brands Play It Again Sports®, Once Upon A Child®, Plato's Closet® and Music Go Round® and there were 19 territories in operation under the Wirth Business Credit® brand. An additional 46 retail franchises have been awarded but are not open. In addition, at June 26, 2010, the Company had loans and leases equal to $35.4 million.
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WINMARK CORPORATION
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CONDENSED STATEMENTS OF OPERATIONS
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(Unaudited) |
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Quarter Ended |
Six Months Ended |
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June 26, 2010 |
June 27, 2009 |
June 26, 2010 |
June 27, 2009 |
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REVENUE: |
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Royalties |
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$ |
6,368,300 |
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$ |
5,607,900 |
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$ |
12,731,800 |
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$ |
11,241,400 |
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Leasing income |
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2,345,800 |
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2,143,100 |
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4,870,700 |
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4,844,800 |
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Merchandise sales |
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550,500 |
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679,300 |
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1,045,200 |
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1,304,700 |
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Franchise fees |
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305,000 |
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235,000 |
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528,500 |
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385,000 |
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Other |
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309,500 |
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172,800 |
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545,700 |
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312,200 |
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Total revenue |
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9,879,100 |
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8,838,100 |
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19,721,900 |
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18,088,100 |
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COST OF MERCHANDISE SOLD |
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520,200 |
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651,100 |
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991,200 |
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1,247,000 |
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LEASING EXPENSE |
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439,300 |
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512,800 |
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986,600 |
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1,195,300 |
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PROVISION FOR CREDIT LOSSES |
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(160,200 |
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604,200 |
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11,900 |
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1,023,900 |
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SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
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4,877,200 |
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4,830,600 |
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9,733,100 |
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9,713,100 |
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Income from operations |
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4,202,600 |
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2,239,400 |
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7,999,100 |
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4,908,800 |
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LOSS FROM EQUITY INVESTMENTS |
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(102,000 |
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(600 |
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(122,200 |
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(4,100 | |
