• Home:
• News:
• Winmark Corporation:

Winmark Corporation Announces Third Quarter Results

By: Winmark Corporation |  0 Shares     82 Reads

MINNEAPOLIS - October 15, 2014 - (BUSINESS WIRE) - Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended September 27, 2014 of $5,623,000 (or $1.09 per share diluted) compared to net income of $5,251,500 (or $1.00 per share diluted) in the third quarter of 2013. For the nine months ended September 27, 2014, net income was $14,455,700 (or $2.76 per share diluted) compared to net income of $13,645,800 (or $2.61 per share diluted) for the same period last year.

About Winmark Corporation 

Winmark Corporation creates, supports and finances business. At September 27, 2014, there were 1,070 franchises in operation under the brands Plato's Closet®, Once Upon A Child®, Play It Again Sports®, Music Go Round® and Style Encore®. An additional 104 retail franchises have been awarded but are not open. In addition, at September 27, 2014, the Company had a lease portfolio of $43.2 million.

This press release contains forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to future events or the future financial performance of the Company including statements with respect to our ability to finance the growth of our leasing and franchising businesses for the foreseeable future. Such forward-looking statements are only predictions or statements of intention subject to risks and uncertainties and actual events or results could differ materially from those anticipated. Because actual result may differ, shareholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements.

WINMARK CORPORATION
CONDENSED BALANCE SHEETS
(unaudited)
		September 27, 2014				December 28, 2013
ASSETS
Current Assets:
Cash and cash equivalents		$	2,015,200			$	10,642,600
Marketable securities			715,800				736,500
Receivables, net			1,106,600				1,205,500
Net investment in leases - current			20,036,200				17,239,900
Income tax receivable			-				166,500
Inventories			96,200				96,700
Prepaid expenses			654,200				587,300
Total current assets			24,624,200				30,675,000
Net investment in leases – long-term			23,114,800				20,301,400
Property and equipment, net			1,501,300				1,382,200
Other assets			677,500				677,500
Deferred income taxes			23,500				-
		$	49,941,300			$	53,036,100
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Line of credit		$	20,000,000			$	-
Accounts payable			3,109,400				2,441,400
Income tax payable			26,900				-
Accrued liabilities			2,874,000				1,233,100
Discounted lease rentals			288,300				424,900
Deferred revenue			2,225,200				2,199,900
Deferred income taxes			2,810,500				4,208,200
Total current liabilities			31,334,300				10,507,500
Long-Term Liabilities:
Discounted lease rentals			94,300				277,400
Deferred revenue			1,255,800				1,180,700
Other liabilities			1,385,000				1,489,000
Deferred income taxes			-				1,436,800
Total long-term liabilities			2,735,100				4,383,900
Shareholders’ Equity:
Common stock, no par, 10,000,000 shares authorized, 4,997,512 and 5,143,530 shares issued and outstanding			-				2,949,500
Accumulated other comprehensive loss			(41,300	)			(4,100	)
Retained earnings			15,913,200				35,199,300
Total shareholders’ equity			15,871,900				38,144,700
		$	49,941,300			$	53,036,100

 

WINMARK CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
		Quarter Ended								Nine Months Ended
		September 27, 2014				September 28, 2013				September 27, 2014				September 28, 2013
REVENUE:
Royalties		$	10,725,000			$	9,853,900			$	28,735,800			$	26,937,000
Leasing income			4,121,800				3,810,100				11,655,000				11,348,100
Merchandise sales			786,100				598,000				2,259,900				1,821,100
Franchise fees			558,200				340,000				1,514,700				1,144,200
Other			213,300				189,900				830,500				713,400
Total revenue			16,404,400				14,791,900				44,995,900				41,963,800
COST OF MERCHANDISE SOLD			742,300				569,200				2,156,300				1,734,700
LEASING EXPENSE			808,500				399,300				1,234,200				1,289,500
PROVISION FOR CREDIT LOSSES			(1,700	)			(29,800	)			26,100				(67,700	)
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES			5,677,600				5,311,900				17,874,500				16,728,900
Income from operations			9,177,700				8,541,300				23,704,800				22,278,400
INTEREST EXPENSE			(150,500	)			(35,500	)			(356,700	)			(180,100	)
INTEREST AND OTHER INCOME/(EXPENSE)			27,200				5,500				28,200				(4,800	)
Income before income taxes			9,054,400				8,511,300				23,376,300				22,093,500
PROVISION FOR INCOME TAXES			(3,431,400	)			(3,259,800	)			(8,920,600	)			(8,447,700	)
NET INCOME		$	5,623,000			$	5,251,500			$	14,455,700			$	13,645,800
EARNINGS PER SHARE – BASIC		$	1.12			$	1.03			$	2.84			$	2.70
EARNINGS PER SHARE – DILUTED		$	1.09			$	1.00			$	2.76			$	2.61
WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC			5,022,166				5,116,872				5,093,243				5,046,156
WEIGHTED AVERAGE SHARES OUTSTANDING – DILUTED			5,156,785				5,263,311				5,235,949				5,222,196

SOURCE Winmark Corporation

Contact:

Brett D. Heffes
Winmark Corporation
763-520-8500

###

Comments:

comments powered by Disqus