Winmark Corporation Announces First Quarter Results

MINNEAPOLIS - April 13, 2016 - (BUSINESS WIRE) - Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended March 26, 2016 of $4,562,900 (or $1.06 per share diluted) compared to net income of $6,054,300 (or $1.17 per share diluted) in the first quarter of 2015.

Brett D. Heffes, Chief Executive Officer, noted, “During the first quarter, our franchising business experienced modest royalty growth and the timing of customer activity in our leasing portfolio created variability in our results.”

Winmark Corporation creates, supports and finances business. At March 26, 2016, there were 1,154 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 84 retail franchises have been awarded but are not open. In addition, at March 26, 2016, the Company had a lease portfolio equal to $38.3 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. 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)

         
    March 26, 2016   December 26, 2015
ASSETS
Current Assets:        
Cash and cash equivalents   $ 1,213,000   $ 1,006,700
Marketable securities     220,100     227,800
Receivables, net     1,345,800     1,416,900
Restricted cash     15,000     25,000
Net investment in leases - current     18,122,400     17,741,500
Income tax receivable     -     3,290,400
Inventories     80,300     45,200
Prepaid expenses     946,300     677,800
Total current assets     21,942,900     24,431,300
             
Net investment in leases – long-term     20,172,900     21,246,000
Property and equipment, net     1,032,200     1,121,500
Goodwill     607,500     607,500
    $ 43,755,500   $ 47,406,300
 
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current Liabilities:        
Notes payable, net   $ 1,990,000   $ 1,990,000
Accounts payable     2,070,000     1,643,300
Income tax payable     1,610,200     -
Accrued liabilities     2,258,900     1,875,700
Discounted lease rentals     -     38,700
Deferred revenue     2,017,100     1,963,200
Total current liabilities     9,946,200     7,510,900
             
Long-Term Liabilities:        
Line of credit     33,500,000     42,400,000
Notes payable, net     21,419,000     21,916,500
Deferred revenue     1,375,300     1,421,600
Other liabilities     1,158,200     1,216,300
Deferred income taxes     3,614,800     3,614,800
Total long-term liabilities     61,067,300     70,569,200
             
Shareholders’ Equity (Deficit):        

Common stock, no par, 10,000,000 shares authorized, 4,110,805 and 4,124,767 shares issued and outstanding

   

-

   

406,500

Accumulated other comprehensive loss     (23,200)     (32,900)
Retained earnings (accumulated deficit)     (27,234,800)     (31,047,400)
             
Total shareholders’ equity (deficit)     (27,258,000)     (30,673,800)
    $ 43,755,500   $ 47,406,300
         

 

WINMARK CORPORATION

CONDENSED STATEMENTS OF OPERATIONS

(unaudited)

     
    Three Months Ended
    March 26, 2016   March 28, 2015
REVENUE:        
Royalties   $ 10,272,500   $ 9,726,200
Leasing income     4,512,700     10,009,600
Merchandise sales     737,100     733,700
Franchise fees     372,500     294,400
Other     285,500     260,200
Total revenue     16,180,300     21,024,100
             
COST OF MERCHANDISE SOLD     697,400     698,200
             
LEASING EXPENSE     904,100     4,257,400
             
PROVISION FOR CREDIT LOSSES     (14,400)     (69,100)
             
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES     6,554,600     6,163,500
Income from operations     8,038,600     9,974,100
             
INTEREST EXPENSE     (640,700)     (85,700)
             
INTEREST AND OTHER INCOME (EXPENSE)     (10,500)     (59,100)
Income before income taxes     7,387,400     9,829,300
             

PROVISION FOR INCOME TAXES

   

(2,824,500)

   

(3,775,000)

             

NET INCOME

 

$

4,562,900

 

$

6,054,300

         
EARNINGS PER SHARE - BASIC   $ 1.11   $ 1.21
         
EARNINGS PER SHARE - DILUTED   $ 1.06   $ 1.17
         
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC     4,114,071     4,999,475
         
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED     4,313,920     5,167,466

SOURCE Winmark Corporation

Contact:

Brett D. Heffes
Winmark Corporation
763-520-8500

###

Share this Story:

Comments:

comments powered by Disqus

Franchise News Room »


News By Industry »


Featured Opportunities

Anytime Fitness
Align with the world leader in fitness. Recurring-revenue business model, multi-club ownership potential. Don’t just join a franchise, join a...
BirthdayPak
BirthdayPak is an award-winning marketing platform that brings local upscale businesses together with their best customers.
B.GOOD
B.GOOD is an innovative fast-casual restaurant concept serving healthy, sustainably-sourced, and hand-prepared fresh food in-house.
Capriotti's Sandwich Shop
Capriotti's has mastered the art of sandwich making since 1976, achieving over 250 awards & counting. Our fans & franchise community agree,...
FIT36®
Start a fitness business with one of the best, manager-run franchise models in the industry. FIT36® delivers a proven business model backed by a...

Subscribe to Franchising.com Express

A Franchise Update Media Production
Franchise Update Media | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2017. All Rights Reserved.

In Loving Memory Of Timothy Gardner (1987-2014)