Winmark Corporation Announces Year End Results

MINNEAPOLIS--()--Winmark Corporation (Nasdaq: WINA) announced today net income for the year ended December 31, 2016 of $22,217,600 or $5.13 per share diluted, compared to net income of $21,799,700 or $4.69 per share diluted, in 2015. The fourth quarter 2016 net income was $6,166,200 or $1.41 per share diluted, compared to net income of $5,654,400 or $1.31 per share diluted, for the same period last year. Revenues for the year ended December 31, 2016 were $66,580,300, down from $69,447,800 in 2015.

“During the year, we experienced growth in our leasing portfolio and made steady progress in both the performance and number of our franchised locations”

“During the year, we experienced growth in our leasing portfolio and made steady progress in both the performance and number of our franchised locations,” stated Brett D. Heffes, Chief Executive Officer.

Winmark Corporation creates, supports and finances business. At December 31, 2016, there were 1,186 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 74 retail franchises have been awarded but are not open. In addition, at December 31, 2016, the Company had a lease portfolio equal to $41.4 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)

       
December 31, 2016   December 26, 2015
ASSETS
Current Assets:  
Cash and cash equivalents $ 1,252,900 $ 1,006,700
Marketable securities 199,900 227,800
Receivables, net 1,479,200 1,416,900
Restricted cash 40,000 25,000
Net investment in leases - current 17,004,800 17,741,500
Income tax receivable 1,678,800 3,290,400
Inventories 87,500 45,200
Prepaid expenses   1,050,700     677,800  
Total current assets 22,793,800 24,431,300
 
Net investment in leases – long-term 24,410,700 21,246,000
Property and equipment, net 769,600 1,121,500
Goodwill   607,500     607,500  
$ 48,581,600   $ 47,406,300  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current Liabilities:
Notes payable, net $ 1,990,000 $ 1,990,000
Accounts payable 1,692,000 1,643,300
Accrued liabilities 1,811,100 1,875,700
Discounted lease rentals - 38,700
Deferred revenue   1,864,700     1,963,200  
Total current liabilities 7,357,800 7,510,900
 
Long-Term Liabilities:
Line of credit 23,400,000 42,400,000
Notes payable, net 19,926,500 21,916,500
Deferred revenue 1,423,800 1,421,600
Other liabilities 993,600 1,216,300
Deferred income taxes   3,331,900     3,614,800  
Total long-term liabilities 49,075,800 70,569,200
 
Shareholders’ Equity (Deficit):

Common stock, no par, 10,000,000 shares authorized, 4,165,769 and 4,124,767 shares issued and outstanding

2,976,100

406,500

Accumulated other comprehensive loss (9,900 ) (32,900 )
Retained earnings (accumulated deficit)   (10,818,200 )   (31,047,400 )
 
Total shareholders' equity (deficit)   (7,852,000 )   (30,673,800 )
$ 48,581,600   $ 47,406,300  
 

WINMARK CORPORATION

CONDENSED STATEMENTS OF OPERATIONS

  (unaudited)

       
Quarter Ended   Fiscal Year Ended
December 31, 2016   December 26, 2015   December 31, 2016   December 26, 2015
REVENUE:    
Royalties $ 11,854,100 $ 10,681,300 $ 43,994,900 $ 41,908,000
Leasing income 4,444,600 4,645,800 17,283,600 21,565,700
Merchandise sales 334,500 634,600 2,216,900 2,816,900
Franchise fees 257,000 534,600 1,624,800 1,788,100
Other   475,700     451,200     1,460,100     1,369,100  
Total revenue 17,365,900 16,947,500 66,580,300 69,447,800
 
COST OF MERCHANDISE SOLD 316,600 597,500 2,101,400 2,653,100
 
LEASING EXPENSE 313,400 818,000 2,323,800 5,759,300
 
PROVISION FOR CREDIT LOSSES 70,500 (26,300 ) 18,500 (149,700 )
 
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES   6,164,100     5,867,700     23,835,600     24,094,400  
 
Income from operations 10,501,300 9,690,600 38,301,000 37,090,700
 
INTEREST EXPENSE (556,000 ) (659,300 ) (2,342,800 ) (1,802,200 )
 
INTEREST AND OTHER INCOME (EXPENSE)   (4,900 )   (1,900 )   (12,200 )   (63,700 )
 
Income before income taxes 9,940,400 9,029,400 35,946,000 35,224,800
 
PROVISION FOR INCOME TAXES   (3,774,200 )   (3,375,000 )   (13,728,400 )   (13,425,100 )
 
NET INCOME $ 6,166,200   $ 5,654,400   $ 22,217,600   $ 21,799,700  
 
EARNINGS PER SHARE – BASIC $ 1.49   $ 1.37   $ 5.39   $ 4.89  
 
EARNINGS PER SHARE – DILUTED $ 1.41   $ 1.31   $ 5.13   $ 4.69  
 
WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC   4,148,021     4,129,266     4,122,854     4,458,927  
 
WEIGHTED AVERAGE SHARES OUTSTANDING – DILUTED   4,359,170     4,331,634     4,330,490     4,651,527  

Contacts

Winmark Corporation
Brett D. Heffes, 763-520-8500

Recent Stories

  • Winmark Corporation Announces Increase in Cash Dividend
    April 26, 2017
    MINNEAPOLIS--(EON: Enhanced Online News)--Winmark Corporation (Nasdaq: WINA) announced today that its Board of Directors has approved an increase in its regular quarterly cash dividend to sharehold... more »
  • Winmark Corporation Announces First Quarter Results
    April 18, 2017
    MINNEAPOLIS--(EON: Enhanced Online News)--Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended April 1, 2017 of $5,416,400 (or $1.22 per share diluted) compared to ne... more »
  • Winmark Corporation Announces Cash Dividend
    January 25, 2017
    MINNEAPOLIS--(EON: Enhanced Online News)--Winmark Corporation (Nasdaq: WINA) announced today that its Board of Directors has approved the payment of a quarterly cash dividend to shareholders. The q... more »
RSS feed for Winmark Corporation

Winmark Corporation