Attached files
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8-K - 8-K - WINMARK CORP | a12-6224_18k.htm |
EX-10.1 - EX-10.1 - WINMARK CORP | a12-6224_1ex10d1.htm |
Exhibit 99.1
Contact: |
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John L. Morgan |
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763/520-8500 |
FOR IMMEDIATE RELEASE
WINMARK CORPORATION ANNOUNCES YEAR END RESULTS
Minneapolis, MN (February 29, 2012) Winmark Corporation (Nasdaq: WINA) announced today net income for the year ended December 31, 2011 of $14,095,000 or $2.69 per share diluted, compared to net income of $10,329,000 or $1.98 per share diluted, in 2010. The fourth quarter 2011 net income was $4,185,000 or $.80 per share diluted, compared to net income of $3,119,200 or $.60 per share diluted, for the same period last year. Revenues for the year ended December 31, 2011 were $51,335,000, up from $41,203,600 in 2010.
John L. Morgan, Chairman and Chief Executive Officer, stated, We had a good year and fourth quarter due to the steady growth of our franchise business and the significant improvement in our leasing business. We believe that we are well positioned for long-term profitable growth.
Winmark Corporation creates, supports and finances business. At December 31, 2011, there were 930 franchises in operation under the brands Platos Closet®, Play It Again Sports®, Once Upon A Child®, and Music Go Round®. An additional 44 retail franchises have been awarded but are not open. In addition, at December 31, 2011, the Company had a lease portfolio equal to $29.8 million.
This press release contains forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), relating to future events or the future financial performance of the Company including statements with respect to our ability to finance the growth of our leasing and franchising businesses for the foreseeable future. Such forward-looking statements are only predictions or statements of intention subject to risks and uncertainties and actual events or results could differ materially from those anticipated. Because actual result may differ, shareholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements.
WINMARK CORPORATION
CONDENSED BALANCE SHEETS
(unaudited)
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December 31, 2011 |
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December 25, 2010 |
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ASSETS | |||||||
Current Assets: |
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Cash and cash equivalents |
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$ |
9,020,100 |
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$ |
2,257,100 |
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Marketable securities |
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1,043,800 |
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161,000 |
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Receivables, net |
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1,316,200 |
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1,841,300 |
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Net investment in leases - current |
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11,746,900 |
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13,856,700 |
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Income tax receivable |
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116,500 |
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294,700 |
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Inventories |
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68,500 |
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85,900 |
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Prepaid expenses |
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362,000 |
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382,600 |
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Total current assets |
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23,674,000 |
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18,879,300 |
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Net investment in leases long-term |
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18,102,000 |
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16,802,500 |
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Long-term investments, net |
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3,817,400 |
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3,973,800 |
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Property and equipment, net |
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1,474,800 |
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1,785,900 |
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Other assets |
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677,500 |
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680,500 |
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$ |
47,745,700 |
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$ |
42,122,000 |
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LIABILITIES AND SHAREHOLDERS EQUITY | |||||||
Current Liabilities: |
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Line of credit |
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$ |
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$ |
8,800,000 |
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Accounts payable |
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1,460,300 |
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1,274,200 |
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Accrued liabilities |
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1,346,000 |
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1,513,600 |
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Discounted lease rentals |
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20,800 |
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530,400 |
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Rents received in advance |
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274,700 |
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291,800 |
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Deferred revenue |
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1,212,400 |
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1,041,700 |
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Deferred income taxes |
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3,464,800 |
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1,832,500 |
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Total current liabilities |
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7,779,000 |
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15,284,200 |
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Long-Term Liabilities: |
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Discounted lease rentals |
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26,500 |
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Rents received in advance |
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269,400 |
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696,900 |
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Deferred revenue |
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844,300 |
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767,600 |
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Other liabilities |
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1,389,200 |
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1,678,000 |
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Deferred income taxes |
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2,355,100 |
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655,800 |
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Total long-term liabilities |
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4,858,000 |
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3,824,800 |
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Shareholders Equity: |
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Common stock, no par, 10,000,000 shares authorized, 4,987,643 and 5,020,739 shares issued and outstanding |
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629,800 |
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513,700 |
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Accumulated other comprehensive income |
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17,000 |
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Retained earnings |
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34,461,900 |
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22,499,300 |
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Total shareholders equity |
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35,108,700 |
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23,013,000 |
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$ |
47,745,700 |
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$ |
42,122,000 |
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WINMARK CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
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Quarter Ended |
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Fiscal Year Ended |
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December 31, 2011 |
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December 25, 2010 |
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December 31, 2011 |
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December 25, 2010 |
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REVENUE: |
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Royalties |
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$ |
8,442,100 |
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$ |
6,727,500 |
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$ |
30,360,600 |
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$ |
26,489,300 |
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Leasing income |
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3,780,200 |
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2,606,000 |
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16,364,700 |
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9,896,300 |
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Merchandise sales |
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482,900 |
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335,600 |
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2,481,600 |
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2,344,800 |
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Franchise fees |
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245,000 |
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480,800 |
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1,081,200 |
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1,366,400 |
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Other |
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281,600 |
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324,500 |
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1,046,900 |
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1,106,800 |
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Total revenue |
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13,231,800 |
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10,474,400 |
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51,335,000 |
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41,203,600 |
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COST OF MERCHANDISE SOLD |
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457,900 |
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319,300 |
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2,366,400 |
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2,231,100 |
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LEASING EXPENSE |
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966,500 |
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250,000 |
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5,115,800 |
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1,624,200 |
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PROVISION FOR CREDIT LOSSES |
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(51,600 |
) |
46,600 |
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(43,400 |
) |
189,000 |
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SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
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4,953,200 |
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4,527,000 |
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19,048,600 |
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18,620,300 |
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Income from operations |
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6,905,800 |
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5,331,500 |
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24,847,600 |
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18,539,000 |
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GAIN (LOSS) FROM EQUITY INVESTMENTS |
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(71,200 |
) |
63,300 |
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(515,800 |
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(259,100 |
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IMPAIRMENT OF INVESTMENT IN NOTES |
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(337,000 |
) |
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(883,100 |
) |
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INTEREST EXPENSE |
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(27,800 |
) |
(55,000 |
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(112,000 |
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(980,200 |
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INTEREST AND OTHER INCOME/(EXPENSE) |
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22,800 |
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(119,000 |
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44,900 |
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257,800 |
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Income before income taxes |
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6,492,600 |
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5,220,800 |
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23,381,600 |
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17,557,500 |
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PROVISION FOR INCOME TAXES |
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(2,307,600 |
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(2,101,600 |
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(9,286,600 |
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(7,228,500 |
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NET INCOME |
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$ |
4,185,000 |
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$ |
3,119,200 |
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$ |
14,095,000 |
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$ |
10,329,000 |
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EARNINGS PER SHARE BASIC |
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$ |
.84 |
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$ |
.62 |
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$ |
2.83 |
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$ |
2.05 |
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EARNINGS PER SHARE DILUTED |
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$ |
.80 |
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$ |
.60 |
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$ |
2.69 |
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$ |
1.98 |
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WEIGHTED AVERAGE SHARES OUTSTANDING BASIC |
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4,975,878 |
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5,013,772 |
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4,979,036 |
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5,044,995 |
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WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED |
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5,235,590 |
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5,231,581 |
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5,238,412 |
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5,210,614 |
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