Attached files
| file | filename |
|---|---|
| 8-K - 8-K - WINMARK CORP | a11-6727_18k.htm |
| EX-99.2 - EX-99.2 - WINMARK CORP | a11-6727_1ex99d2.htm |
Exhibit 99.1
Contact: John L. Morgan
763/520-8500
FOR IMMEDIATE RELEASE
WINMARK CORPORATION ANNOUNCES YEAR END RESULTS
Minneapolis, MN (February 24, 2011) — Winmark Corporation (Nasdaq: WINA) announced today net income for the year ended December 25, 2010 of $10,329,000 or $1.98 per share diluted, compared to net income of $5,849,000 or $1.10 per share diluted, in 2009. The fourth quarter 2010 net income was $3,119,200 or $.60 per share diluted, compared to net income of $1,460,500, or $.28 per share diluted, for the same period last year. Revenues for the year ended December 25, 2010 were $41,203,600, up from $37,296,000 in 2009.
John Morgan, Chairman and Chief Executive Officer, stated “Our franchise business continued to grow from both store sales and opening additional stores. Our leasing business increased its profitability year over year and added new customers acceptable for the current economic environment. We continue to be optimistic about the future of our business model.”
Winmark Corporation creates, supports and finances business. At December 25, 2010, there were 903 franchises in operation under the brands Play It Again Sports®, Plato’s Closet®, Once Upon A Child®, and Music Go Round® and there were 15 territories in operation under the Wirth Business Credit® brand. An additional 34 retail franchises have been awarded but are not open. In addition, at December 25, 2010, the Company had loans and leases equal to $32.7 million.
This press release contains forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to future events or the future financial performance of the Company including statements with respect to our ability to finance the growth of our leasing and franchising businesses for the foreseeable future. Such forward-looking statements are only predictions or statements of intention subject to risks and uncertainties and actual events or results could differ materially from those anticipated. Because actual result may differ, shareholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements.
WINMARK CORPORATION
CONDENSED BALANCE SHEETS
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December 25, 2010 |
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December 26, 2009 |
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ASSETS | |||||||
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Current Assets: |
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Cash and cash equivalents |
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$ |
2,257,100 |
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$ |
9,490,800 |
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Marketable securities |
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161,000 |
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1,274,000 |
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Current investments |
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— |
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2,000,000 |
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Receivables, less allowance for doubtful accounts of $17,000 and $35,700 |
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1,841,300 |
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1,761,100 |
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Net investment in leases - current |
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13,856,700 |
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17,575,900 |
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Income tax receivable |
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294,700 |
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— |
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Inventories |
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85,900 |
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111,400 |
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Prepaid expenses |
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382,600 |
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398,800 |
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Total current assets |
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18,879,300 |
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32,612,000 |
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Net investment in leases - long term |
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16,802,500 |
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19,423,700 |
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Long-term investments |
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3,973,800 |
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2,232,900 |
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Property and equipment, net |
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1,785,900 |
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1,843,500 |
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Other assets |
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680,500 |
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692,400 |
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$ |
42,122,000 |
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$ |
56,804,500 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
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Current Liabilities: |
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Current line of credit |
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$ |
8,800,000 |
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$ |
3,983,100 |
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Current renewable unsecured subordinated notes |
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— |
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9,166,900 |
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Accounts payable |
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1,274,200 |
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1,415,200 |
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Income tax payable |
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— |
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183,500 |
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Accrued liabilities |
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1,513,600 |
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1,794,100 |
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Current discounted lease rentals |
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530,400 |
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972,600 |
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Current rents received in advance |
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291,800 |
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294,400 |
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Current deferred revenue |
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1,041,700 |
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1,188,800 |
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Deferred income taxes |
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1,832,500 |
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1,057,700 |
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Total current liabilities |
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15,284,200 |
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20,056,300 |
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Long-term line of credit |
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— |
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5,298,900 |
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Long-term renewable unsecured subordinated notes |
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— |
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12,058,700 |
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Long-term discounted lease rentals |
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26,500 |
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507,600 |
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Long-term rents received in advance |
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696,900 |
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1,332,000 |
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Long-term deferred revenue |
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767,600 |
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709,500 |
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Other long-term liabilities |
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1,678,000 |
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1,298,400 |
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Deferred income taxes |
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655,800 |
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214,400 |
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Shareholders’ Equity: |
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Common stock, no par, 10,000,000 shares authorized, 5,020,739 and 5,125,025 shares issued and outstanding |
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513,700 |
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— |
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Other comprehensive income |
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— |
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9,600 |
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Retained earnings |
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22,499,300 |
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15,319,100 |
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Total shareholders’ equity |
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23,013,000 |
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15,328,700 |
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$ |
42,122,000 |
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$ |
56,804,500 |
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WINMARK CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
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Quarter Ended |
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Fiscal Year Ended |
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December 25, 2010 |
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December 26, 2009 |
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December 25, 2010 |
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December 26, 2009 |
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REVENUE: |
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Royalties |
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$ |
6,727,500 |
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$ |
5,969,600 |
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$ |
26,489,300 |
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$ |
23,616,200 |
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Leasing income |
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2,606,000 |
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2,420,500 |
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9,896,300 |
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9,536,900 |
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Merchandise sales |
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335,600 |
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488,200 |
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2,344,800 |
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2,386,700 |
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Franchise fees |
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480,800 |
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268,300 |
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1,366,400 |
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1,072,900 |
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Other |
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324,500 |
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236,500 |
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1,106,800 |
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683,300 |
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Total revenue |
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10,474,400 |
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9,383,100 |
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41,203,600 |
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37,296,000 |
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COST OF MERCHANDISE SOLD |
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319,300 |
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473,500 |
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2,231,100 |
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2,290,200 |
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LEASING EXPENSE |
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250,000 |
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544,900 |
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1,624,200 |
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2,288,200 |
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PROVISION FOR CREDIT LOSSES |
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46,600 |
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918,000 |
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189,000 |
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2,795,500 |
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SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
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4,527,000 |
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4,761,800 |
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18,620,300 |
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19,141,700 |
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Income from operations |
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5,331,500 |
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2,684,900 |
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18,539,000 |
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10,780,400 |
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GAIN (LOSS) FROM EQUITY INVESTMENTS |
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63,300 |
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(39,100 |
) |
(259,100 |
) |
(100,500 |
) | ||||
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INTEREST EXPENSE |
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(55,000 |
) |
(299,200 |
) |
(980,200 |
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(1,309,000 |
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INTEREST AND OTHER (LOSS) INCOME |
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(119,000 |
) |
107,900 |
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257,800 |
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459,300 |
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Income before income taxes |
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5,220,800 |
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2,454,500 |
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17,557,500 |
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9,830,200 |
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PROVISION FOR INCOME TAXES |
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(2,101,600 |
) |
(994,000 |
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(7,228,500 |
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(3,981,200 |
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NET INCOME |
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$ |
3,119,200 |
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$ |
1,460,500 |
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$ |
10,329,000 |
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$ |
5,849,000 |
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EARNINGS PER SHARE - BASIC |
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$ |
.62 |
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$ |
.28 |
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$ |
2.05 |
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$ |
1.10 |
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EARNINGS PER SHARE - DILUTED |
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$ |
.60 |
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$ |
.28 |
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$ |
1.98 |
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$ |
1.10 |
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WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC |
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5,013,772 |
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5,205,082 |
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5,044,995 |
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5,303,177 |
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WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED |
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5,231,581 |
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5,278,875 |
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5,210,614 |
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5,337,668 |
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