123 0 Kommentare Winmark Corporation Announces Year End Results

Winmark Corporation (Nasdaq: WINA) announced today net income for the year ended December 26, 2020 of $29,823,300 or $7.72 per share diluted compared to net income of $32,149,300 or $7.84 per share diluted in 2019. The fourth quarter 2020 net income was $8,092,300 or $2.09 per share diluted, compared to net income of $8,461,400 or $2.08 per share diluted, for the same period last year. Revenues for the year ended December 26, 2020 were $66,061,800, down from $73,298,900 in 2019.

“In light of the disruption to our franchise store operations from the resurgence of COVID-19 during the fourth quarter, we are satisfied with our results,” commented Brett D. Heffes, Chairman and Chief Executive Officer. “Our franchisees and employees have continued to respond well to the challenging environment with resolve and determination. Our committed franchisees continue to serve local communities by providing a safe, convenient way to buy and sell gently used items. Winmark continues to be a leader in the circular economy and has been at the forefront of the sustainability movement for over thirty years.”

Winmark Corporation creates, supports and finances business. At December 26, 2020, there were 1,264 franchises in operation under the brands Plato’s Closet, Once Upon A Child, Play It Again Sports, Style Encore and Music Go Round. An additional 30 retail franchises have been awarded but are not open.

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)

	December 26, 2020			December 28, 2019
ASSETS
Current Assets:
Cash and cash equivalents	$	6,659,000		$	25,130,300
Restricted cash		25,000			50,000
Receivables, net		1,581,900			1,669,500
Net investment in leases - current		8,687,500			12,800,100
Income tax receivable		221,200			497,900
Inventories		106,600			86,000
Prepaid expenses		995,200			968,100
Total current assets		18,276,400			41,201,900

Net investment in leases – long-term		4,573,600			12,505,500
Property and equipment, net		2,332,800			2,772,600
Operating lease right of use asset		3,226,300			3,595,200
Goodwill		607,500			607,500
Other assets		435,900			492,500
Deferred income taxes		1,890,700			667,000
	$	31,343,200		$	61,842,200

LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current Liabilities:
Notes payable, net	$	4,236,100		$	3,736,100
Accounts payable		1,769,600			1,015,000
Accrued liabilities		2,624,000			2,783,100
Discounted lease rentals		1,096,600			2,680,700
Deferred revenue		1,657,400			1,717,000
Total current liabilities		11,383,700			11,931,900
Long-Term Liabilities:
Notes payable, net		17,632,700			21,868,800
Discounted lease rentals		574,000			836,900
Deferred revenue		7,050,900			7,858,500
Operating lease liabilities		5,307,400			5,846,100
Other liabilities		773,200			1,051,700
Total long-term liabilities		31,338,200			37,462,000
Shareholders’ Equity (Deficit):
Common stock, no par, 10,000,000 shares authorized, 3,756,028 and 3,947,858 shares issued and outstanding		9,281,800			11,929,300
Retained earnings (accumulated deficit)		(20,660,500	)		519,000
Total shareholders’ equity (deficit)		(11,378,700	)		12,448,300
	$	31,343,200		$	61,842,200

WINMARK CORPORATION CONDENSED STATEMENTS OF OPERATIONS (Unaudited)

	Quarter Ended						Fiscal Year Ended
	December 26, 2020			December 28, 2019			December 26, 2020			December 28, 2019
Revenue:
Royalties	$	13,097,900		$	13,198,400		$	46,286,200		$	51,421,800
Leasing income		2,443,200			3,322,000			14,484,000			16,055,800
Merchandise sales		468,600			581,500			2,215,400			2,618,800
Franchise fees		379,600			357,800			1,444,500			1,540,900
Other		406,000			422,900			1,631,700			1,661,600
Total revenue		16,795,300			17,882,600			66,061,800			73,298,900
Cost of merchandise sold		441,900			545,300			2,103,900			2,469,700
Leasing expense		178,900			389,100			2,622,600			2,031,100
Provision for credit losses		(243,600	)		(102,200	)		(79,300	)		(78,300	)
Selling, general and administrative expenses		5,484,000			6,107,400			21,203,100			25,745,300
Income from operations		10,934,100			10,943,000			40,211,500			43,131,100
Interest expense		(327,900	)		(382,400	)		(1,737,500	)		(1,731,100	)
Interest and other income		15,700			73,300			43,400			67,400
Income before income taxes		10,621,900			10,633,900			38,517,400			41,467,400
Provision for income taxes		(2,529,600	)		(2,172,500	)		(8,694,100	)		(9,318,100	)
Net income	$	8,092,300		$	8,461,400		$	29,823,300		$	32,149,300
Earnings per share - basic	$	2.16		$	2.18		$	8.02		$	8.37
Earnings per share - diluted	$	2.09		$	2.08		$	7.72		$	7.84
Weighted average shares outstanding - basic		3,747,604			3,874,570			3,719,485			3,840,638
Weighted average shares outstanding - diluted		3,879,796			4,065,566			3,863,264			4,100,629