By Tom Ryan
Winmark Corp., the parent of Play It Again Sports, reported net income rose 13.7 percent for the quarter ended June 25, to $5.4 million, or $1.25 per share.
Total revenue improved to $16.3 million from $15.5 million. Of that amount, royalty sales advanced to $10.6 million from $10.2 million and leasing income improved to $4.2 million from $3.7 million. Merchandise sales declined slightly to $625,300 from $686,300 while franchise fees improved to $493,500 from $475,000.
The quarter marked a rebound from the first quarter performance. For the six months, net income was $10.0 million, or $2.31 a share, down from $10.8 million, or $2.18, a year ago. Sales dropped to $32.5 million from $36.5 million.
“The second quarter was a strong one for Winmark,” stated Brett D. Heffes, CEO. “Steady franchisee performance, increased leasing activity and sound expense control combined to deliver outstanding growth in operating income and per share results.”
As of June 25, 2016, Winmark operated 1,169 franchises in operation under the brands Plato’s Closet, Once Upon A Child, Play It Again Sports, Style Encore and Music Go Round. An additional 74 retail franchises have been awarded but are not open. In addition, at June 25, 2016, the company had a lease portfolio equal to $37.0 million.
According to its 10K filing, Play It Again’s sales slipped 0.9 percent in 2015 to $225 million from $228 million a year ago as the retailer’s net store count dropped by four locations to 297. Twenty-three franchise leases up for renewal in 2016.
Photo courtesy Play It Again Sports Springfield, Missouri
