Winmark Corporation (NASDAQ: WINA) CEO John L. Morgan recently bought 3,500 shares of WINA common stock for a total investment of $181,965.
WINA shares ended 0.67% lower at $51.65 in trading on Tuesday. Year-to-date, the stock has fallen nearly 10%, compared to a gain of nearly 10% for the NASDAQ.
Morgan’s purchase comes a few days after Winmark reported its second-quarter financial results.
WINA, which is a franchisor of four retail store concepts, reported second-quarter net income of $3.40 million, or $0.65 per share, flat compared to the second quarter of 2011.
At the end of the second quarter, there were 946 franchises in operations under the brands Plato’s Closet®, Play It Again Sports®, Once Upon A Child® and Music Go Round®.
WINA’s total revenue for the second quarter was $12.19 million, compared to $15.22 million reported for the same period in 2011. Second-quarter revenue comprised of royalties, leasing income, merchandise sales, franchise fees, and others.
Royalties for the second quarter of 2012 were $7.69 million, compared to $6.81 million reported for the same period in the previous year. Leasing income for the second quarter of 2012 stood at $3.28 million, compared to $6.98 million reported for the same period in the previous year. Merchandise sales for the quarter were $656,800, compared to $833,000 reported in the second quarter of 2011.
Morgan said that WINA’s second-quarter financial results for the franchising business continue to show steady growth in both royalties and new franchise agreements. Morgan noted that profits from WINA’s leasing business were lower when compared to last year due to unpredictable events in the company’s portfolio. He added that the management is diligent in adding new customers and building a portfolio of leases that ensure WINA’s long-term success.
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