Winmark Corporation (Nasdaq: WINA) announced today net income for the year ended December 26, 2015 of $21,799,700 or $4.69 per share diluted, compared to net income of $20,066,500 or $3.85 per share diluted, in 2014. The fourth quarter 2015 net income was $5,654,400 or $1.31 per share diluted, compared to net income of $5,610,800 or $1.09 per share diluted, for the same period last year. Revenues for the year ended December 26, 2015 were $69,447,800, up from $61,178,700 in 2014.
“During 2015, we passed an important milestone by achieving more than $1 billion in system-wide sales. We have a talented group of franchisees that are thriving in the current retail environment. Our leasing business continues to add dynamic, growing customers to our portfolio,” stated John L. Morgan, Chairman and Chief Executive Officer.
Winmark Corporation creates, supports and finances business. At December 26, 2015, there were 1,150 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 88 retail franchises have been awarded but are not open. In addition, at December 26, 2015, the Company had a lease portfolio equal to $39.0 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 26, 2015 | December 27, 2014 | |||||||||
| ASSETS | ||||||||||
| Current Assets: | ||||||||||
| Cash and cash equivalents | $ | 1,006,700 | $ | 2,089,700 | ||||||
| Marketable securities | 227,800 | 466,800 | ||||||||
| Receivables, net | 1,416,900 | 1,328,200 | ||||||||
| Restricted cash | 25,000 | - | ||||||||
| Net investment in leases - current | 17,741,500 | 19,831,600 | ||||||||
| Income tax receivable | 3,290,400 | 4,163,900 | ||||||||
| Inventories | 45,200 | 93,500 | ||||||||
| Prepaid expenses | 677,800 | 467,400 | ||||||||
| Total current assets | 24,431,300 | 28,441,100 | ||||||||
| Net investment in leases – long-term | 21,246,000 | 24,188,900 | ||||||||
| Property and equipment, net | 1,121,500 | 1,420,300 | ||||||||
| Other assets | 607,500 | 677,500 | ||||||||
| $ | 47,406,300 | $ | 54,727,800 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) | ||||||||||
| Current Liabilities: | ||||||||||
| Line of credit | $ | - | $ | 18,500,000 | ||||||
| Notes payable, net | 1,990,000 | - | ||||||||
| Accounts payable | 1,643,300 | 1,955,500 | ||||||||
| Accrued liabilities | 1,875,700 | 1,759,200 | ||||||||
| Discounted lease rentals | 38,700 | 227,300 | ||||||||
| Deferred revenue | 1,963,200 | 2,142,600 | ||||||||
| Total current liabilities | 7,510,900 | 24,584,600 | ||||||||
| Long-Term Liabilities: | ||||||||||
| Line of credit | 42,400,000 | - | ||||||||
| Notes payable, net | 21,916,500 | - | ||||||||
| Discounted lease rentals | - | 25,800 | ||||||||
| Deferred revenue | 1,421,600 | 1,347,800 | ||||||||
| Other liabilities | 1,216,300 | 1,403,200 | ||||||||
| Deferred income taxes | 3,614,800 | 5,756,900 | ||||||||
| Total long-term liabilities | 70,569,200 | 8,533,700 | ||||||||
| Shareholders’ Equity (Deficit): | ||||||||||
Common stock, no par, 10,000,000 shares authorized, 4,124,767 and 4,998,512 shares issued and outstanding | 406,500 | 422,400 | ||||||||
| Accumulated other comprehensive loss | (32,900 | ) | (37,100 | ) | ||||||
| Retained earnings (accumulated deficit) | (31,047,400 | ) | 21,224,200 | |||||||
| Total shareholders' equity (deficit) | (30,673,800 | ) | 21,609,500 | |||||||
| $ | 47,406,300 | $ | 54,727,800 | |||||||
| WINMARK CORPORATION | ||||||||||||||||||||
| CONDENSED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||
| Quarter Ended | Fiscal Year Ended | |||||||||||||||||||
| December 26, 2015 | December 27, 2014 | December 26, 2015 | December 27, 2014 | |||||||||||||||||
| REVENUE: | ||||||||||||||||||||
| Royalties | $ | 10,681,300 | $ | 10,236,600 | $ | 41,908,000 | $ | 38,972,400 | ||||||||||||
| Leasing income | 4,645,800 | 4,592,300 | 21,565,700 | 16,247,300 | ||||||||||||||||
| Merchandise sales | 634,600 | 468,700 | 2,816,900 | 2,728,600 | ||||||||||||||||
| Franchise fees | 534,600 | 475,000 | 1,788,100 | 1,989,700 | ||||||||||||||||
| Other | 451,200 | 410,200 | 1,369,100 | 1,240,700 | ||||||||||||||||
| Total revenue | 16,947,500 | 16,182,800 | 69,447,800 | 61,178,700 | ||||||||||||||||
| COST OF MERCHANDISE SOLD | 597,500 | 463,600 | 2,653,100 | 2,619,900 | ||||||||||||||||
| LEASING EXPENSE | 818,000 | 396,400 | 5,759,300 | 1,630,600 | ||||||||||||||||
| PROVISION FOR CREDIT LOSSES | (26,300 | ) | 36,800 | (149,700 | ) | 62,900 | ||||||||||||||
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 5,867,700 | 5,931,500 | 24,094,400 | 23,806,000 | ||||||||||||||||
| Income from operations | 9,690,600 | 9,354,500 | 37,090,700 | 33,059,300 | ||||||||||||||||
| INTEREST EXPENSE | (659,300 | ) | (127,800 | ) | (1,802,200 | ) | (484,500 | ) | ||||||||||||
| INTEREST AND OTHER INCOME (EXPENSE) | (1,900 | ) | (14,200 | ) | (63,700 | ) | 14,000 | |||||||||||||
| Income before income taxes | 9,029,400 | 9,212,500 | 35,224,800 | 32,588,800 | ||||||||||||||||
| PROVISION FOR INCOME TAXES | (3,375,000 | ) | (3,601,700 | ) | (13,425,100 | ) | (12,522,300 | ) | ||||||||||||
| NET INCOME | $ | 5,654,400 | $ | 5,610,800 | $ | 21,799,700 | $ | 20,066,500 | ||||||||||||
| EARNINGS PER SHARE – BASIC | $ | 1.37 | $ | 1.12 | $ | 4.89 | $ | 3.96 | ||||||||||||
| EARNINGS PER SHARE – DILUTED | $ | 1.31 | $ | 1.09 | $ | 4.69 | $ | 3.85 | ||||||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC | 4,129,266 | 4,997,831 | 4,458,927 | 5,069,391 | ||||||||||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING – DILUTED | 4,331,634 | 5,159,804 | 4,651,527 | 5,216,914 | ||||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160224006118/en/
Contacts:
Brett D. Heffes, 763-520-8500
