111 0 Kommentare Winmark Corporation Announces First Quarter Results

Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended March 27, 2021 of $9,311,100 or $2.40 per share diluted compared to net income of $7,317,000 or $1.87 per share diluted in 2020.

“The resiliency of our business model combined with the improving execution of our franchisees led to exceptional first quarter results,” commented Brett D. Heffes, Chairman and Chief Executive Officer.

Winmark Corporation creates, supports and finances business. At March 27, 2021, 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 32 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)


	March 27, 2021			December 26, 2020
ASSETS
Current Assets:
Cash and cash equivalents	$	7,959,900		$	6,659,000
Restricted cash		25,000			25,000
Receivables, net		2,096,900			1,581,900
Net investment in leases - current		8,156,900			8,687,500
Income tax receivable		—			221,200
Inventories		110,200			106,600
Prepaid expenses		839,900			995,200
Total current assets		19,188,800			18,276,400

Net investment in leases – long-term		2,706,900			4,573,600
Property and equipment, net		2,253,300			2,332,800
Operating lease right of use asset		3,172,100			3,226,300
Goodwill		607,500			607,500
Other assets		438,500			435,900
Deferred income taxes		2,330,600			1,890,700
	$	30,697,700		$	31,343,200

LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current Liabilities:
Notes payable, net	$	4,236,100		$	4,236,100
Accounts payable		1,399,300			1,769,600
Income tax payable		3,159,200			—
Accrued liabilities		2,223,500			2,624,000
Discounted lease rentals		959,200			1,096,600
Deferred revenue		1,647,700			1,657,400
Total current liabilities		13,625,000			11,383,700
Long-Term Liabilities:
Notes payable, net		16,573,600			17,632,700
Discounted lease rentals		382,200			574,000
Deferred revenue		6,975,700			7,050,900
Operating lease liabilities		5,176,900			5,307,400
Other liabilities		768,500			773,200
Total long-term liabilities		29,876,900			31,338,200
Shareholders’ Equity (Deficit):
Common stock, no par, 10,000,000 shares authorized, 3,700,723 and 3,756,028 shares issued and outstanding		—			9,281,800
Retained earnings (accumulated deficit)		(12,804,200	)		(20,660,500	)
Total shareholders’ equity (deficit)		(12,804,200	)		(11,378,700	)
	$	30,697,700		$	31,343,200

WINMARK CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended
	March 27, 2021			March 28, 2020
Revenue:
Royalties	$	14,048,800		$	11,172,500
Leasing income		3,237,000			5,871,200
Merchandise sales		592,400			754,100
Franchise fees		359,000			387,400
Other		421,700			414,800
Total revenue		18,658,900			18,600,000
Cost of merchandise sold		558,800			717,700
Leasing expense		389,500			1,416,200
Provision for credit losses		(48,700	)		615,400
Selling, general and administrative expenses		5,102,300			5,748,900
Income from operations		12,657,000			10,101,800
Interest expense		(318,100	)		(525,200	)
Interest and other income		6,800			5,900
Income before income taxes		12,345,700			9,582,500
Provision for income taxes		(3,034,600	)		(2,265,500	)
Net income	$	9,311,100		$	7,317,000
Earnings per share - basic	$	2.49		$	1.97
Earnings per share - diluted	$	2.40		$	1.87
Weighted average shares outstanding - basic		3,736,676			3,711,597
Weighted average shares outstanding - diluted		3,874,227			3,911,751