Winmark Corporation, owner of Play It Again Sports franchise, announced net income for the first quarter ended March 27, 2010 of $2.2 million, or 42 cents per share diluted, compared to $1.4 million, or 26 cents, in the first quarter of 2009.


John L. Morgan, Chairman and Chief Executive Officer, stated, “Both our franchising and leasing businesses produced significant earnings growth during the first quarter. We are pleased with our performance and are optimistic about our prospects for the remainder of 2010.”


Winmark Corporation creates, supports and finances business. At March 27, 2010, there were 883 franchises in operation under the brands Play It Again Sports�, Plato’s Closet�, Once Upon A Child�, and Music Go Round� and there were 21 territories in operation under the Wirth Business Credit� brand. An additional 49 retail franchises have been awarded but are not open. In addition, at March 27, 2010, the company had loans and leases equal to $36.6 million.

 WINMARK CORPORATION  
CONDENSED STATEMENTS OF OPERATIONS 
(unaudited)
 
          
  Three Months Ended 
  March 27, 2010     March 28, 2009 
REVENUE:     
Royalties   $ 6,363,500   $ 5,633,500 
Leasing income   2,524,900   2,701,700 
Merchandise sales   494,700   625,400 
Franchise fees   223,500   150,000 
Other   236,200   139,400 
Total revenue   9,842,800   9,250,000 
      
COST OF MERCHANDISE
SOLD   471,000   595,900 
LEASING EXPENSE   547,300   682,500 
PROVISION FOR CREDIT
LOSSES   172,100   419,700 
SG&A EXPENSES   4,855,900    4,882,500 
      
Income from
operations   3,796,500   2,669,400 
      
LOSS FROM EQUITY
INVESTMENTS   (20,200)   (3,500) 
INTEREST EXPENSE   (288,200)    (351,100) 
INTEREST AND
OTHER INCOME   177,700    61,100 
      
Income before
income taxes   3,665,800    2,375,900 
      
PROVISION FOR
INCOME TAXES   (1,484,700) (962,200)
 
      
NET INCOME   $ 2,181,100 $ 1,413,700
 
      
EARNINGS PER SHARE
– BASIC   $ .43   $ .26 
      
EARNINGS PER SHARE
– DILUTED   $ .42    $ .26 

































































































































































































WINMARK CORPORATION
CONDENSED STATEMENTS OF OPERATIONS

(unaudited)



     


Three Months Ended


March 27, 2010   March 28, 2009
REVENUE:



Royalties
$ 6,363,500
$ 5,633,500
Leasing income
2,524,900
2,701,700
Merchandise sales
494,700
625,400
Franchise fees
223,500
150,000
Other
236,200
139,400
Total revenue
9,842,800
9,250,000




 
COST OF MERCHANDISE SOLD
471,000
595,900
LEASING EXPENSE
547,300
682,500
PROVISION FOR CREDIT LOSSES
172,100
419,700
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
4,855,900
4,882,500




 

Income from operations


3,796,500
2,669,400




 
LOSS FROM EQUITY INVESTMENTS
(20,200)
(3,500)
INTEREST EXPENSE
(288,200)
(351,100)
INTEREST AND OTHER INCOME
177,700
61,100




 

Income before income taxes


3,665,800
2,375,900




 

PROVISION FOR INCOME TAXES



(1,484,700)



(962,200)





 

NET INCOME



$ 2,181,100



$ 1,413,700





 
EARNINGS PER SHARE – BASIC
$ .43
$ .26




 
EARNINGS PER SHARE – DILUTED
$ .42
$ .26


































































































































































































WINMARK CORPORATION
CONDENSED STATEMENTS OF OPERATIONS

(unaudited)



     


Three Months Ended


March 27, 2010   March 28, 2009
REVENUE:



Royalties
$ 6,363,500
$ 5,633,500
Leasing income
2,524,900
2,701,700
Merchandise sales
494,700
625,400
Franchise fees
223,500
150,000
Other
236,200
139,400
Total revenue
9,842,800
9,250,000




 
COST OF MERCHANDISE SOLD
471,000
595,900
LEASING EXPENSE
547,300
682,500
PROVISION FOR CREDIT LOSSES
172,100
419,700
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
4,855,900
4,882,500




 

Income from operations


3,796,500
2,669,400




 
LOSS FROM EQUITY INVESTMENTS
(20,200)
(3,500)
INTEREST EXPENSE
(288,200)
(351,100)
INTEREST AND OTHER INCOME
177,700
61,100




 

Income before income taxes


3,665,800
2,375,900




 

PROVISION FOR INCOME TAXES



(1,484,700)



(962,200)





 

NET INCOME



$ 2,181,100



$ 1,413,700





 
EARNINGS PER SHARE – BASIC
$ .43
$ .26




 
EARNINGS PER SHARE – DILUTED
$ .42
$ .26
























































































































WINMARK CORPORATION
CONDENSED STATEMENTS OF OPERATIONS

(unaudited)



     


Three Months Ended


March 27, 2010   March 28, 2009
REVENUE:



Royalties
$ 6,363,500
$ 5,633,500
Leasing income
2,524,900
2,701,700
Merchandise sales
494,700
625,400
Franchise fees
223,500
150,000
Other
236,200
139,400
Total revenue
9,842,800
9,250,000




 
COST OF MERCHANDISE SOLD
471,000
595,900
LEASING EXPENSE
547,300
682,500
PROVISION FOR CREDIT LOSSES
172,100
419,700
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
4,855,900
4,882,500




 

Income from operations


3,796,500
2,669,400




 
LOSS FROM EQUITY INVESTMENTS