This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Winmark Corporation Announces First Quarter Results

Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended March 31, 2012 of $3,516,000 (or $.67 per share diluted) compared to net income of $3,026,300 (or $.58 per share diluted) in the first quarter of 2011.

John L. Morgan, Chairman and Chief Executive Officer, stated, “We are pleased with our performance during the first quarter. Our results were driven by the growth of our franchising business and continued progress in building our leasing portfolio.”

Winmark Corporation creates, supports and finances business. At March 31, 2012, there were 939 franchises in operation under the brands Plato's Closet®, Play It Again Sports®, Once Upon A Child®, and Music Go Round®. An additional 50 retail franchises have been awarded but are not open. In addition, at March 31, 2012, the Company had a lease portfolio equal to $29.6 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)

       
March 31, 2012   December 31, 2011
 
ASSETS
Current Assets:  
Cash and cash equivalents $ 2,093,400 $ 9,020,100
Marketable securities - 1,043,800
Receivables, net 1,282,400 1,316,200
Net investment in leases - current 11,465,300 11,746,900
Income tax receivable - 116,500
Inventories 69,100 68,500
Prepaid expenses   437,400   362,000
Total current assets 15,347,600 23,674,000
Net investment in leases – long-term 18,096,700 18,102,000
Long-term investments, net 3,780,000 3,817,400
Property and equipment, net 1,384,000 1,474,800
Other assets   677,500   677,500
$ 39,285,800 $ 47,745,700
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Line of credit $ 12,100,000 $ -
Accounts payable 1,269,800 1,460,300
Income taxes payable 58,200 -
Accrued liabilities 1,709,900 1,346,000
Discounted lease rentals 13,900 20,800
Rents received in advance 282,000 274,700
Deferred revenue 1,376,800 1,212,400
Deferred income taxes   3,487,900   3,464,800
Total current liabilities 20,298,500 7,779,000
 
Long-Term Liabilities:
Rents received in advance 194,500 269,400
Deferred revenue 847,300 844,300
Other liabilities 1,314,200 1,389,200
Deferred income taxes   2,607,100   2,355,100
Total long-term liabilities 4,963,100 4,858,000
 
Shareholders’ Equity:

Common stock, no par, 10,000,000 shares authorized,  5,075,954 and 4,987,643 shares issued and outstanding

1,565,800

629,800

Accumulated other comprehensive income - 17,000
Retained earnings   12,458,400   34,461,900
Total shareholders’ equity   14,024,200   35,108,700
$ 39,285,800 $ 47,745,700
 

WINMARK CORPORATION

CONDENSED STATEMENTS OF OPERATIONS

(unaudited)

   
Three Months Ended
March 31, 2012   March 26, 2011
REVENUE:  
Royalties $ 8,288,500 $ 7,052,800
Leasing income 2,392,100 3,235,000
Merchandise sales 709,800 501,400
Franchise fees 285,000 75,000
Other   158,000     240,700  
Total revenue 11,833,400 11,104,900
 
COST OF MERCHANDISE SOLD 664,300 482,900
 
LEASING EXPENSE 239,800 518,700
 
PROVISION FOR CREDIT LOSSES (53,000 ) 45,400
 
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES   5,136,100     4,845,900  
Income from operations 5,846,200 5,212,000
 
LOSS FROM EQUITY INVESTMENTS (37,400 ) (77,000 )
 
INTEREST EXPENSE (69,800 ) (31,100 )
 
INTEREST AND OTHER INCOME   46,300     17,200  
Income before income taxes 5,785,300 5,121,100
 

PROVISION FOR INCOME TAXES

 

(2,269,300

)

 

(2,094,800

)

 

NET INCOME

$

3,516,000

 

$

3,026,300

 
 
EARNINGS PER SHARE - BASIC $ .70   $ .61  
 
EARNINGS PER SHARE - DILUTED $ .67   $ .58  
 
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC   5,052,952     4,989,588  
 
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED   5,280,202     5,215,484  




1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs