Winmark Corporation Announces Second Quarter Results
Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended June 26, 2010 of $2,338,700 (or $.45 per share diluted) compared to net income of $1,195,300 (or $.22 per share diluted) in 2009. For the six months ended June 26, 2010, net income was $4,519,800 (or $.87 per share diluted) compared to net income of $2,609,000 (or $.49 per share diluted) for the same period last year.
John L. Morgan, Chairman and Chief Executive Officer, stated, “During the second quarter, we were able to grow our profits while maintaining expenses relatively flat when compared to last year. We are extremely pleased with how our business has performed during the first six months of 2010.”
Winmark Corporation creates, supports and finances business. At June 26, 2010, there were 889 franchises in operation under the brands Play It Again Sports®, Once Upon A Child®, Plato's Closet® and Music Go Round® and there were 19 territories in operation under the Wirth Business Credit® brand. An additional 46 retail franchises have been awarded but are not open. In addition, at June 26, 2010, the Company had loans and leases equal to $35.4 million.
This press release contains forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to future events or the future financial performance of the Company including statements with respect to our ability to finance the growth of our leasing and franchising businesses and the payment of cash dividends for the foreseeable future. Such forward-looking statements are only predictions or statements of intention subject to risks and uncertainties and actual events or results could differ materially from those anticipated. Because actual result may differ, shareholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements.
CONDENSED BALANCE SHEETS
|June 26, 2010||December 26, 2009|
|Cash and cash equivalents||$||10,635,800||$||9,490,800|
Receivables, less allowance for doubtful accounts of$19,400 and $35,700
|Net investment in leases - current||14,733,200||17,575,900|
|Income tax receivable||183,400||-|
|Total current assets||30,259,900||32,612,000|
|Net investment in leases – long-term||18,664,600||19,423,700|
|Long-term receivables, net||9,100||14,900|
|Property and equipment, net||1,754,500||1,843,500|
|LIABILITIES AND SHAREHOLDERS’ EQUITY|
|Current line of credit||$||3,763,300||$||3,983,100|
|Current renewable subordinated notes||8,706,800||9,166,900|
|Income tax payable||-||183,500|
|Current discounted lease rentals||603,200||972,600|
|Current rents received in advance||329,800||294,400|
|Current deferred revenue||1,257,800||1,188,800|
|Deferred income taxes||1,057,700||1,057,700|
|Total current liabilities||19,756,200||20,056,300|
|Long-term line of credit||3,550,600||5,298,900|
|Long-term renewable subordinated notes||9,896,000||12,058,700|
|Long-term discounted lease rentals||259,000||507,600|
|Long-term rents received in advance||982,000||1,332,000|
|Long-term deferred revenue||761,600||709,500|
|Other long-term liabilities||1,239,400||1,298,400|
|Deferred income taxes||214,400||214,400|
Common stock, no par, 10,000,000 shares authorized,5,011,862 and 5,125,025 shares issued and outstanding
|Accumulated other comprehensive income (loss)||(73,600||)||9,600|
|Total shareholders’ equity||16,817,000||15,328,700|
CONDENSED STATEMENTS OF OPERATIONS
|Quarter Ended||Six Months Ended|
|June 26, 2010||June 27, 2009||June 26, 2010||June 27, 2009|
|COST OF MERCHANDISE SOLD||520,200||651,100||991,200||1,247,000|
|PROVISION FOR CREDIT LOSSES||(160,200||)||604,200||11,900||1,023,900|
|SELLING, GENERAL AND ADMINISTRATIVE EXPENSES||4,877,200||4,830,600||9,733,100||9,713,100|
|Income from operations||4,202,600||2,239,400||7,999,100||4,908,800|
|LOSS FROM EQUITY INVESTMENTS||(102,000||)||(600||)||(122,200||)||(4,100||)|
|INTEREST AND OTHER INCOME||103,000||111,600||280,700||172,700|
|Income before income taxes||3,930,500||2,009,000||7,596,300||4,384,900|
|PROVISION FOR INCOME TAXES||(1,591,800||)||(813,700||)||(3,076,500||)||(1,775,900||)|
|EARNINGS PER SHARE – BASIC||$||.47||$||.22||$||.89||$||.49|
|EARNINGS PER SHARE – DILUTED||$||.45||$||.22||$||.87||$||.49|
|WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC||5,025,944||5,328,831||5,077,179||5,362,489|
|WEIGHTED AVERAGE SHARES OUTSTANDING – DILUTED||5,189,925||5,343,532||5,193,154||5,370,900|
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.