Winmark Corporation, owner of Play it again Sports, said net income for the quarter ended Sept. 25, 2010 of $2.69 million, or 51 cents per share diluted, compared to net income of $1.78 million, or 33 cents per share diluted, in 2009.
For the nine months ended Sept. 25, 2010, net income was $7.21 million, or $1.39 per share diluted, compared to net income of $4.39 million, or 82 cents per share diluted, for the same period last year.
John L. Morgan, chairman and CEO, stated, “The positive trends in our business continued during the third quarter. Our strong financial performance included the further strengthening of our balance sheet.”
| WINMARK CORPORATION | ||||||||||||||||
| CONDENSED STATEMENTS OF OPERATIONS | ||||||||||||||||
|
|
||||||||||||||||
|
|
|
|||||||||||||||
|
|
|
Quarter Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
September 25, 2010 |
September 26, 2009 |
|
September 25, 2010 |
September 26, 2009 |
||||||||||
REVENUE: |
|
|
|
|
|
|
|
|
||||||||
Royalties |
|
$ |
7,030,000 |
|
|
$ |
6,405,200 |
|
|
$ |
19,761,800 |
|
|
$ |
17,646,600 |
|
Leasing income |
|
|
2,419,600 |
|
|
|
2,271,600 |
|
|
|
7,290,300 |
|
|
|
7,116,400 |
|
Merchandise sales |
|
|
964,000 |
|
|
|
593,800 |
|
|
|
2,009,200 |
|
|
|
1,898,500 |
|
Franchise fees |
|
|
357,100 |
|
|
|
419,600 |
|
|
|
885,600 |
|
|
|
804,600 |
|
Other |
|
236,600 |
|
134,600 |
|
782,300 |
|
446,800 | ||||||||
Total revenue |
|
|
11,007,300 |
|
|
|
9,824,800 |
|
|
|
30,729,200 |
|
|
|
27,912,900 |
|
COST OF MERCHANDISE SOLD |
|
|
920,600 |
|
|
|
569,700 |
|
|
|
1,911,800 |
|
|
|
1,816,700 |
|
LEASING EXPENSE |
|
|
387,600 |
|
|
|
548,000 |
|
|
|
1,374,200 |
|
|
|
1,743,300 |
|
PROVISION FOR CREDIT LOSSES |
|
|
130,500 |
|
|
|
853,600 |
|
|
|
142,400 |
|
|
|
1,877,500 |
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|
4,360,200 |
|
4,666,800 |
|
14,093,300 |
|
14,379,900 | ||||||||
Income from operations |
|
|
5,208,400 |
|
|
|
3,186,700 |
|
|
|
13,207,500 |
|
|
|
8,095,500 |
|
LOSS FROM EQUITY INVESTMENTS |
|
|
(200,200 |
) |
|
|
(57,300 |
) |
|
|
(322,400 |
) |
|
|
(61,400 |
) |
INTEREST EXPENSE |
|
|
(363,900 |
) |
|
|
(317,300 |
) |
|
|
(925,200 |
) |
|
|
(1,009,800 |
) |
INTEREST AND OTHER INCOME |
|
96,100 |
|
178,700 |
|
376,800 |
|
351,400 | ||||||||
Income before income taxes |
|
|
4,740,400 |
|
|
|
2,990,800 |
|
|
|
12,336,700 |
|
|
|
7,375,700 |
|
PROVISION FOR INCOME TAXES |
|
(2,050,400 | ) |
|
(1,211,300 | ) |
|
(5,126,900 | ) |
|
(2,987,200 | ) | ||||
NET INCOME |
|
$ | 2,690,000 |
|
$ | 1,779,500 |
|
$ | 7,209,800 |
|
$ | 4,388,500 | ||||
EARNINGS PER SHARE BASIC |
|
$ | .54 |
|
$ | .34 |
|
$ | 1.43 |
|
$ | .82 | ||||
EARNINGS PER SHARE DILUTED |
|
$ | .51 |
|
$ | .33 |
|
$ | 1.39 |
|
$ | .82 | ||||
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC |
|
5,011,862 |
|
5,282,349 | ||||||||||||
