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.
Morganâ€™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 Platoâ€™s ClosetÂ®, Play It Again SportsÂ®, Once Upon A ChildÂ® and Music Go RoundÂ®.
WINAâ€™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 WINAâ€™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 WINAâ€™s leasing business were lower when compared to last year due to unpredictable events in the companyâ€™s portfolio. He added that the management is diligent in adding new customers and building a portfolio of leases that ensure WINAâ€™s long-term success.