Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Winmark Corporation Announces Third Quarter Results By: Winmark Corporation via Business Wire October 18, 2023 at 11:40 AM EDT Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended September 30, 2023 of $11,149,800 or $3.05 per share diluted compared to net income of $10,368,600 or $2.93 per share diluted in 2022. For the nine months ended September 30, 2023, net income was $30,461,300 or $8.40 per share diluted compared to net income of $29,248,300 or $8.11 per share diluted for the same period last year. Winmark — the Resale Company®, is a nationally recognized franchising business focused on sustainability and small-business formation. We champion and guide entrepreneurs interested in operating one of our award winning resale franchises: Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® and Music Go Round®. At September 30, 2023, there were 1,312 franchises in operation and over 2,800 available territories. An additional 72 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) September 30, 2023 December 31, 2022 ASSETS Current Assets: Cash and cash equivalents $ 40,556,100 $ 13,615,600 Restricted cash 40,000 65,000 Receivables, net 1,704,000 1,438,600 Net investment in leases - current 124,300 344,900 Income tax receivable 1,200 558,700 Inventories 290,900 770,600 Prepaid expenses 1,095,100 1,310,400 Total current assets 43,811,600 18,103,800 Net investment in leases – long-term — 5,400 Property and equipment, net 1,675,900 1,704,600 Operating lease right of use asset 2,510,000 2,716,000 Intangible assets, net 3,082,800 3,348,300 Goodwill 607,500 607,500 Other assets 467,700 429,700 Deferred income taxes 3,392,000 3,540,400 $ 55,547,500 $ 30,455,700 LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) Current Liabilities: Notes payable, net $ 4,217,900 $ 4,217,900 Accounts payable 1,694,900 2,122,000 Accrued liabilities 4,038,900 2,611,700 Deferred revenue 1,680,700 1,643,900 Total current liabilities 11,632,400 10,595,500 Long-Term Liabilities: Line of Credit/Term Loan 30,000,000 30,000,000 Notes payable, net 35,903,300 39,066,700 Deferred revenue 7,553,600 6,974,200 Operating lease liabilities 3,871,600 4,287,000 Other liabilities 1,150,100 1,164,400 Total long-term liabilities 78,478,600 81,492,300 Shareholders’ Equity (Deficit): Common stock, no par, 10,000,000 shares authorized, 3,486,869 and 3,459,673 shares issued and outstanding 6,411,900 1,806,700 Retained earnings (accumulated deficit) (40,975,400 ) (63,438,800 ) Total shareholders’ equity (deficit) (34,563,500 ) (61,632,100 ) $ 55,547,500 $ 30,455,700 WINMARK CORPORATION CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Quarter Ended Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Revenue: Royalties $ 19,210,000 $ 17,859,000 $ 53,063,400 $ 49,230,400 Leasing income 1,291,900 1,762,100 3,948,700 5,845,800 Merchandise sales 997,800 746,000 3,601,900 2,687,500 Franchise fees 334,400 348,100 1,133,400 1,160,200 Other 483,700 449,300 1,456,200 1,361,200 Total revenue 22,317,800 21,164,500 63,203,600 60,285,100 Cost of merchandise sold 935,400 717,600 3,370,500 2,552,300 Leasing expense 11,000 376,300 381,700 891,900 Provision for credit losses 700 (22,000 ) (4,600 ) (46,600 ) Selling, general and administrative expenses 6,248,200 5,671,500 18,694,300 16,673,100 Income from operations 15,122,500 14,421,100 40,761,700 40,214,400 Interest expense (763,100 ) (820,500 ) (2,339,800 ) (2,045,600 ) Interest and other income 385,400 21,700 803,400 7,000 Income before income taxes 14,744,800 13,622,300 39,225,300 38,175,800 Provision for income taxes (3,595,000 ) (3,253,700 ) (8,764,000 ) (8,927,500 ) Net income $ 11,149,800 $ 10,368,600 $ 30,461,300 $ 29,248,300 Earnings per share - basic $ 3.20 $ 3.01 $ 8.77 $ 8.36 Earnings per share - diluted $ 3.05 $ 2.93 $ 8.40 $ 8.11 Weighted average shares outstanding - basic 3,485,852 3,439,417 3,475,066 3,500,411 Weighted average shares outstanding - diluted 3,653,730 3,540,779 3,627,550 3,605,445 WINMARK CORPORATION CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30, 2023 September 24, 2022 OPERATING ACTIVITIES: Net income $ 30,461,300 $ 29,248,300 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 578,900 409,500 Provision for credit losses (4,600 ) (46,600 ) Compensation expense related to stock options 1,451,000 1,203,800 Deferred income taxes 148,400 (214,700 ) Operating lease right of use asset amortization 206,000 185,700 Tax benefits on exercised stock options 839,000 429,500 Change in operating assets and liabilities: Receivables (265,400 ) (530,200 ) Principal collections on lease receivables 485,200 2,819,200 Income tax receivable/payable (281,500 ) 194,600 Inventories 479,700 (312,700 ) Prepaid expenses 215,300 2,500 Other assets (38,000 ) 2,000 Accounts payable (427,100 ) (189,100 ) Accrued and other liabilities 1,021,600 1,395,000 Rents received in advance and security deposits (254,600 ) (556,200 ) Deferred revenue 616,200 164,700 Net cash provided by operating activities 35,231,400 34,205,300 INVESTING ACTIVITIES: Purchase of property and equipment (284,700 ) (70,000 ) Reacquired franchise rights — (3,540,000 ) Net cash used for investing activities (284,700 ) (3,610,000 ) FINANCING ACTIVITIES: Proceeds from borrowings on line of credit/term loan — 33,700,000 Payments on line of credit/term loan — (3,700,000 ) Payments on notes payable (3,187,500 ) (3,187,500 ) Repurchases of common stock — (48,281,200 ) Proceeds from exercises of stock options 3,154,200 2,937,100 Dividends paid (7,997,900 ) (6,459,700 ) Net cash used for financing activities (8,031,200 ) (24,991,300 ) NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 26,915,500 5,604,000 Cash, cash equivalents and restricted cash, beginning of period 13,680,600 11,437,000 Cash, cash equivalents and restricted cash, end of period $ 40,596,100 $ 17,041,000 SUPPLEMENTAL DISCLOSURES: Cash paid for interest $ 2,309,100 $ 1,925,400 Cash paid for income taxes $ 8,058,100 $ 8,518,100 The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Balance Sheets to the total of the same amounts shown above: Nine Months Ended September 30, 2023 September 24, 2022 Cash and cash equivalents $ 40,556,100 $ 16,986,000 Restricted cash 40,000 55,000 Total cash, cash equivalents and restricted cash $ 40,596,100 $ 17,041,000 View source version on businesswire.com: https://www.businesswire.com/news/home/20231018540190/en/Contacts Anthony D. 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Winmark Corporation Announces Third Quarter Results By: Winmark Corporation via Business Wire October 18, 2023 at 11:40 AM EDT Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended September 30, 2023 of $11,149,800 or $3.05 per share diluted compared to net income of $10,368,600 or $2.93 per share diluted in 2022. For the nine months ended September 30, 2023, net income was $30,461,300 or $8.40 per share diluted compared to net income of $29,248,300 or $8.11 per share diluted for the same period last year. Winmark — the Resale Company®, is a nationally recognized franchising business focused on sustainability and small-business formation. We champion and guide entrepreneurs interested in operating one of our award winning resale franchises: Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® and Music Go Round®. At September 30, 2023, there were 1,312 franchises in operation and over 2,800 available territories. An additional 72 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) September 30, 2023 December 31, 2022 ASSETS Current Assets: Cash and cash equivalents $ 40,556,100 $ 13,615,600 Restricted cash 40,000 65,000 Receivables, net 1,704,000 1,438,600 Net investment in leases - current 124,300 344,900 Income tax receivable 1,200 558,700 Inventories 290,900 770,600 Prepaid expenses 1,095,100 1,310,400 Total current assets 43,811,600 18,103,800 Net investment in leases – long-term — 5,400 Property and equipment, net 1,675,900 1,704,600 Operating lease right of use asset 2,510,000 2,716,000 Intangible assets, net 3,082,800 3,348,300 Goodwill 607,500 607,500 Other assets 467,700 429,700 Deferred income taxes 3,392,000 3,540,400 $ 55,547,500 $ 30,455,700 LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) Current Liabilities: Notes payable, net $ 4,217,900 $ 4,217,900 Accounts payable 1,694,900 2,122,000 Accrued liabilities 4,038,900 2,611,700 Deferred revenue 1,680,700 1,643,900 Total current liabilities 11,632,400 10,595,500 Long-Term Liabilities: Line of Credit/Term Loan 30,000,000 30,000,000 Notes payable, net 35,903,300 39,066,700 Deferred revenue 7,553,600 6,974,200 Operating lease liabilities 3,871,600 4,287,000 Other liabilities 1,150,100 1,164,400 Total long-term liabilities 78,478,600 81,492,300 Shareholders’ Equity (Deficit): Common stock, no par, 10,000,000 shares authorized, 3,486,869 and 3,459,673 shares issued and outstanding 6,411,900 1,806,700 Retained earnings (accumulated deficit) (40,975,400 ) (63,438,800 ) Total shareholders’ equity (deficit) (34,563,500 ) (61,632,100 ) $ 55,547,500 $ 30,455,700 WINMARK CORPORATION CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Quarter Ended Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Revenue: Royalties $ 19,210,000 $ 17,859,000 $ 53,063,400 $ 49,230,400 Leasing income 1,291,900 1,762,100 3,948,700 5,845,800 Merchandise sales 997,800 746,000 3,601,900 2,687,500 Franchise fees 334,400 348,100 1,133,400 1,160,200 Other 483,700 449,300 1,456,200 1,361,200 Total revenue 22,317,800 21,164,500 63,203,600 60,285,100 Cost of merchandise sold 935,400 717,600 3,370,500 2,552,300 Leasing expense 11,000 376,300 381,700 891,900 Provision for credit losses 700 (22,000 ) (4,600 ) (46,600 ) Selling, general and administrative expenses 6,248,200 5,671,500 18,694,300 16,673,100 Income from operations 15,122,500 14,421,100 40,761,700 40,214,400 Interest expense (763,100 ) (820,500 ) (2,339,800 ) (2,045,600 ) Interest and other income 385,400 21,700 803,400 7,000 Income before income taxes 14,744,800 13,622,300 39,225,300 38,175,800 Provision for income taxes (3,595,000 ) (3,253,700 ) (8,764,000 ) (8,927,500 ) Net income $ 11,149,800 $ 10,368,600 $ 30,461,300 $ 29,248,300 Earnings per share - basic $ 3.20 $ 3.01 $ 8.77 $ 8.36 Earnings per share - diluted $ 3.05 $ 2.93 $ 8.40 $ 8.11 Weighted average shares outstanding - basic 3,485,852 3,439,417 3,475,066 3,500,411 Weighted average shares outstanding - diluted 3,653,730 3,540,779 3,627,550 3,605,445 WINMARK CORPORATION CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30, 2023 September 24, 2022 OPERATING ACTIVITIES: Net income $ 30,461,300 $ 29,248,300 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 578,900 409,500 Provision for credit losses (4,600 ) (46,600 ) Compensation expense related to stock options 1,451,000 1,203,800 Deferred income taxes 148,400 (214,700 ) Operating lease right of use asset amortization 206,000 185,700 Tax benefits on exercised stock options 839,000 429,500 Change in operating assets and liabilities: Receivables (265,400 ) (530,200 ) Principal collections on lease receivables 485,200 2,819,200 Income tax receivable/payable (281,500 ) 194,600 Inventories 479,700 (312,700 ) Prepaid expenses 215,300 2,500 Other assets (38,000 ) 2,000 Accounts payable (427,100 ) (189,100 ) Accrued and other liabilities 1,021,600 1,395,000 Rents received in advance and security deposits (254,600 ) (556,200 ) Deferred revenue 616,200 164,700 Net cash provided by operating activities 35,231,400 34,205,300 INVESTING ACTIVITIES: Purchase of property and equipment (284,700 ) (70,000 ) Reacquired franchise rights — (3,540,000 ) Net cash used for investing activities (284,700 ) (3,610,000 ) FINANCING ACTIVITIES: Proceeds from borrowings on line of credit/term loan — 33,700,000 Payments on line of credit/term loan — (3,700,000 ) Payments on notes payable (3,187,500 ) (3,187,500 ) Repurchases of common stock — (48,281,200 ) Proceeds from exercises of stock options 3,154,200 2,937,100 Dividends paid (7,997,900 ) (6,459,700 ) Net cash used for financing activities (8,031,200 ) (24,991,300 ) NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 26,915,500 5,604,000 Cash, cash equivalents and restricted cash, beginning of period 13,680,600 11,437,000 Cash, cash equivalents and restricted cash, end of period $ 40,596,100 $ 17,041,000 SUPPLEMENTAL DISCLOSURES: Cash paid for interest $ 2,309,100 $ 1,925,400 Cash paid for income taxes $ 8,058,100 $ 8,518,100 The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Balance Sheets to the total of the same amounts shown above: Nine Months Ended September 30, 2023 September 24, 2022 Cash and cash equivalents $ 40,556,100 $ 16,986,000 Restricted cash 40,000 55,000 Total cash, cash equivalents and restricted cash $ 40,596,100 $ 17,041,000 View source version on businesswire.com: https://www.businesswire.com/news/home/20231018540190/en/Contacts Anthony D. Ishaug 763/520-8500
Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended September 30, 2023 of $11,149,800 or $3.05 per share diluted compared to net income of $10,368,600 or $2.93 per share diluted in 2022. For the nine months ended September 30, 2023, net income was $30,461,300 or $8.40 per share diluted compared to net income of $29,248,300 or $8.11 per share diluted for the same period last year. Winmark — the Resale Company®, is a nationally recognized franchising business focused on sustainability and small-business formation. We champion and guide entrepreneurs interested in operating one of our award winning resale franchises: Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® and Music Go Round®. At September 30, 2023, there were 1,312 franchises in operation and over 2,800 available territories. An additional 72 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) September 30, 2023 December 31, 2022 ASSETS Current Assets: Cash and cash equivalents $ 40,556,100 $ 13,615,600 Restricted cash 40,000 65,000 Receivables, net 1,704,000 1,438,600 Net investment in leases - current 124,300 344,900 Income tax receivable 1,200 558,700 Inventories 290,900 770,600 Prepaid expenses 1,095,100 1,310,400 Total current assets 43,811,600 18,103,800 Net investment in leases – long-term — 5,400 Property and equipment, net 1,675,900 1,704,600 Operating lease right of use asset 2,510,000 2,716,000 Intangible assets, net 3,082,800 3,348,300 Goodwill 607,500 607,500 Other assets 467,700 429,700 Deferred income taxes 3,392,000 3,540,400 $ 55,547,500 $ 30,455,700 LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) Current Liabilities: Notes payable, net $ 4,217,900 $ 4,217,900 Accounts payable 1,694,900 2,122,000 Accrued liabilities 4,038,900 2,611,700 Deferred revenue 1,680,700 1,643,900 Total current liabilities 11,632,400 10,595,500 Long-Term Liabilities: Line of Credit/Term Loan 30,000,000 30,000,000 Notes payable, net 35,903,300 39,066,700 Deferred revenue 7,553,600 6,974,200 Operating lease liabilities 3,871,600 4,287,000 Other liabilities 1,150,100 1,164,400 Total long-term liabilities 78,478,600 81,492,300 Shareholders’ Equity (Deficit): Common stock, no par, 10,000,000 shares authorized, 3,486,869 and 3,459,673 shares issued and outstanding 6,411,900 1,806,700 Retained earnings (accumulated deficit) (40,975,400 ) (63,438,800 ) Total shareholders’ equity (deficit) (34,563,500 ) (61,632,100 ) $ 55,547,500 $ 30,455,700 WINMARK CORPORATION CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Quarter Ended Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Revenue: Royalties $ 19,210,000 $ 17,859,000 $ 53,063,400 $ 49,230,400 Leasing income 1,291,900 1,762,100 3,948,700 5,845,800 Merchandise sales 997,800 746,000 3,601,900 2,687,500 Franchise fees 334,400 348,100 1,133,400 1,160,200 Other 483,700 449,300 1,456,200 1,361,200 Total revenue 22,317,800 21,164,500 63,203,600 60,285,100 Cost of merchandise sold 935,400 717,600 3,370,500 2,552,300 Leasing expense 11,000 376,300 381,700 891,900 Provision for credit losses 700 (22,000 ) (4,600 ) (46,600 ) Selling, general and administrative expenses 6,248,200 5,671,500 18,694,300 16,673,100 Income from operations 15,122,500 14,421,100 40,761,700 40,214,400 Interest expense (763,100 ) (820,500 ) (2,339,800 ) (2,045,600 ) Interest and other income 385,400 21,700 803,400 7,000 Income before income taxes 14,744,800 13,622,300 39,225,300 38,175,800 Provision for income taxes (3,595,000 ) (3,253,700 ) (8,764,000 ) (8,927,500 ) Net income $ 11,149,800 $ 10,368,600 $ 30,461,300 $ 29,248,300 Earnings per share - basic $ 3.20 $ 3.01 $ 8.77 $ 8.36 Earnings per share - diluted $ 3.05 $ 2.93 $ 8.40 $ 8.11 Weighted average shares outstanding - basic 3,485,852 3,439,417 3,475,066 3,500,411 Weighted average shares outstanding - diluted 3,653,730 3,540,779 3,627,550 3,605,445 WINMARK CORPORATION CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30, 2023 September 24, 2022 OPERATING ACTIVITIES: Net income $ 30,461,300 $ 29,248,300 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 578,900 409,500 Provision for credit losses (4,600 ) (46,600 ) Compensation expense related to stock options 1,451,000 1,203,800 Deferred income taxes 148,400 (214,700 ) Operating lease right of use asset amortization 206,000 185,700 Tax benefits on exercised stock options 839,000 429,500 Change in operating assets and liabilities: Receivables (265,400 ) (530,200 ) Principal collections on lease receivables 485,200 2,819,200 Income tax receivable/payable (281,500 ) 194,600 Inventories 479,700 (312,700 ) Prepaid expenses 215,300 2,500 Other assets (38,000 ) 2,000 Accounts payable (427,100 ) (189,100 ) Accrued and other liabilities 1,021,600 1,395,000 Rents received in advance and security deposits (254,600 ) (556,200 ) Deferred revenue 616,200 164,700 Net cash provided by operating activities 35,231,400 34,205,300 INVESTING ACTIVITIES: Purchase of property and equipment (284,700 ) (70,000 ) Reacquired franchise rights — (3,540,000 ) Net cash used for investing activities (284,700 ) (3,610,000 ) FINANCING ACTIVITIES: Proceeds from borrowings on line of credit/term loan — 33,700,000 Payments on line of credit/term loan — (3,700,000 ) Payments on notes payable (3,187,500 ) (3,187,500 ) Repurchases of common stock — (48,281,200 ) Proceeds from exercises of stock options 3,154,200 2,937,100 Dividends paid (7,997,900 ) (6,459,700 ) Net cash used for financing activities (8,031,200 ) (24,991,300 ) NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 26,915,500 5,604,000 Cash, cash equivalents and restricted cash, beginning of period 13,680,600 11,437,000 Cash, cash equivalents and restricted cash, end of period $ 40,596,100 $ 17,041,000 SUPPLEMENTAL DISCLOSURES: Cash paid for interest $ 2,309,100 $ 1,925,400 Cash paid for income taxes $ 8,058,100 $ 8,518,100 The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Balance Sheets to the total of the same amounts shown above: Nine Months Ended September 30, 2023 September 24, 2022 Cash and cash equivalents $ 40,556,100 $ 16,986,000 Restricted cash 40,000 55,000 Total cash, cash equivalents and restricted cash $ 40,596,100 $ 17,041,000 View source version on businesswire.com: https://www.businesswire.com/news/home/20231018540190/en/