Winmark Corporation (WINA) has reported a 9.05 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $6.17 million, or $1.41 a share in the quarter, compared with $5.65 million, or $1.31 a share for the same period last year.
Revenue during the quarter went up marginally by 2.47 percent to $17.37 million from $16.95 million in the previous year period. Gross margin for the quarter expanded 114 basis points over the previous year period to 97.77 percent. Total expenses were 39.53 percent of quarterly revenues, down from 42.82 percent for the same period last year. This has led to an improvement of 329 basis points in operating margin to 60.47 percent.
Operating income for the quarter was $10.50 million, compared with $9.69 million in the previous year period.
"During the year, we experienced growth in our leasing portfolio and made steady progress in both the performance and number of our franchised locations," stated Brett D. Heffes, chief executive officer.
Working capital declines
Winmark Corporation has witnessed a decline in the working capital over the last year. It stood at $15.44 million as at Dec. 31, 2016, down 8.77 percent or $1.48 million from $16.92 million on Dec. 26, 2015. Current ratio was at 3.10 as on Dec. 31, 2016, down from 3.25 on Dec. 26, 2015.
Debt comes down significantly
Winmark Corporation has recorded a decline in total debt over the last one year. It stood at $45.32 million as on Dec. 31, 2016, down 31.70 percent or $21.03 million from $66.35 million on Dec. 26, 2015. Total debt was 93.28 percent of total assets as on Dec. 31, 2016, compared with 139.95 percent on Dec. 26, 2015. Interest coverage ratio improved to 18.89 for the quarter from 14.70 for the same period last year.
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