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 First Quarter Results By: Winmark Corporation via Business Wire April 17, 2024 at 10:17 AM EDT Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended March 30, 2024 of $8,819,000 or $2.41 per share diluted compared to net income of $8,942,700 or $2.49 per share diluted in 2023. Results during the quarter were impacted by the Company’s decision in May 2021 to run-off its leasing portfolio “Performance during the first quarter was adequate,” commented Brett D. Heffes, Chair and Chief Executive Officer. Winmark - the Resale Company®, is a nationally recognized franchisor 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 March 30, 2024, there were 1,327 franchises in operation and over 2,800 available territories. An additional 73 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) March 30, 2024 December 30, 2023 ASSETS Current Assets: Cash and cash equivalents $ 22,872,200 $ 13,361,500 Restricted cash — 25,000 Receivables, net 1,688,600 1,475,300 Net investment in leases - current 34,100 75,100 Income tax receivable — 31,400 Inventories 420,900 386,100 Prepaid expenses 1,265,600 1,392,100 Total current assets 26,281,400 16,746,500 Property and equipment, net 1,649,400 1,669,800 Operating lease right of use asset 2,351,700 2,425,900 Intangible assets, net 2,905,800 2,994,300 Goodwill 607,500 607,500 Other assets 487,800 471,300 Deferred income taxes 4,052,400 4,052,400 $ 38,336,000 $ 28,967,700 LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) Current Liabilities: Notes payable, net $ 4,217,900 $ 4,217,900 Accounts payable 1,296,300 1,719,400 Income tax payable 2,469,000 — Accrued liabilities 4,734,000 2,858,200 Deferred revenue 1,657,300 1,666,100 Total current liabilities 14,374,500 10,461,600 Long-Term Liabilities: Line of credit/Term loan 30,000,000 30,000,000 Notes payable, net 33,794,300 34,848,800 Deferred revenue 7,744,400 7,657,500 Operating lease liabilities 3,566,600 3,715,800 Other liabilities 1,435,300 1,440,100 Total long-term liabilities 76,540,600 77,662,200 Shareholders’ Equity (Deficit): Common stock, no par, 10,000,000 shares authorized, 3,4997,430 and 3,496,977 shares issued and outstanding 8,324,700 7,768,800 Retained earnings (accumulated deficit) (60,903,800 ) (66,924,900 ) Total shareholders’ equity (deficit) (52,579,100 ) (59,156,100 ) $ 38,336,000 $ 28,967,700 WINMARK CORPORATION CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 30, 2024 April 1, 2023 Revenue: Royalties $ 17,268,700 $ 16,747,700 Leasing income 836,800 1,637,000 Merchandise sales 1,110,500 1,276,000 Franchise fees 364,500 378,200 Other 529,000 484,700 Total revenue 20,109,500 20,523,600 Cost of merchandise sold 1,038,900 1,187,300 Leasing expense 36,600 316,400 Provision for credit losses (1,500 ) (4,600 ) Selling, general and administrative expenses 6,817,300 6,636,100 Income from operations 12,218,200 12,388,400 Interest expense (737,700 ) (797,600 ) Interest and other income 187,900 125,700 Income before income taxes 11,668,400 11,716,500 Provision for income taxes (2,849,400 ) (2,773,800 ) Net income $ 8,819,000 $ 8,942,700 Earnings per share - basic $ 2.52 $ 2.58 Earnings per share - diluted $ 2.41 $ 2.49 Weighted average shares outstanding - basic 3,497,261 3,460,720 Weighted average shares outstanding - diluted 3,661,367 3,594,234 WINMARK CORPORATION CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 30, 2024 April 1, 2023 OPERATING ACTIVITIES: Net income $ 8,819,000 $ 8,942,700 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 108,300 104,000 Amortization of intangible assets 88,500 88,500 Provision for credit losses (1,500 ) (4,600 ) Compensation expense related to stock options 485,900 475,900 Deferred income taxes — 24,200 Operating lease right of use asset amortization 74,200 66,900 Tax benefits on exercised stock options — 77,700 Change in operating assets and liabilities: Receivables (213,300 ) (143,200 ) Principal collections on lease receivables 62,300 423,800 Income tax receivable/payable 2,500,400 2,490,900 Inventories (34,800 ) 356,300 Prepaid expenses 126,500 422,400 Other assets (16,600 ) (40,400 ) Accounts payable (423,100 ) (678,300 ) Accrued and other liabilities 1,729,800 1,140,200 Rents received in advance and security deposits (19,700 ) (194,200 ) Deferred revenue 78,100 297,700 Net cash provided by operating activities 13,364,000 13,850,500 INVESTING ACTIVITIES: Purchase of property and equipment (87,900 ) (5,500 ) Net cash used for investing activities (87,900 ) (5,500 ) FINANCING ACTIVITIES: Payments on notes payable (1,062,500 ) (1,062,500 ) Proceeds from exercises of stock options 70,000 590,400 Dividends paid (2,797,900 ) (2,421,900 ) Net cash used for financing activities (3,790,400 ) (2,894,000 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 9,485,700 10,951,000 Cash, cash equivalents and restricted cash, beginning of period 13,386,500 13,680,600 Cash, cash equivalents and restricted cash, end of period $ 22,872,200 $ 24,631,600 SUPPLEMENTAL DISCLOSURES: Cash paid for interest $ 725,700 $ 791,500 Cash paid for income taxes $ 349,100 $ 181,200 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: Three Months Ended March 30, 2024 April 1, 2023 Cash and cash equivalents $ 22,872,200 $ 24,551,600 Restricted cash — 80,000 Total cash, cash equivalents and restricted cash $ 22,872,200 $ 24,631,600 View source version on businesswire.com: https://www.businesswire.com/news/home/20240416444706/en/Contacts Anthony D. 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Winmark Corporation Announces First Quarter Results By: Winmark Corporation via Business Wire April 17, 2024 at 10:17 AM EDT Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended March 30, 2024 of $8,819,000 or $2.41 per share diluted compared to net income of $8,942,700 or $2.49 per share diluted in 2023. Results during the quarter were impacted by the Company’s decision in May 2021 to run-off its leasing portfolio “Performance during the first quarter was adequate,” commented Brett D. Heffes, Chair and Chief Executive Officer. Winmark - the Resale Company®, is a nationally recognized franchisor 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 March 30, 2024, there were 1,327 franchises in operation and over 2,800 available territories. An additional 73 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) March 30, 2024 December 30, 2023 ASSETS Current Assets: Cash and cash equivalents $ 22,872,200 $ 13,361,500 Restricted cash — 25,000 Receivables, net 1,688,600 1,475,300 Net investment in leases - current 34,100 75,100 Income tax receivable — 31,400 Inventories 420,900 386,100 Prepaid expenses 1,265,600 1,392,100 Total current assets 26,281,400 16,746,500 Property and equipment, net 1,649,400 1,669,800 Operating lease right of use asset 2,351,700 2,425,900 Intangible assets, net 2,905,800 2,994,300 Goodwill 607,500 607,500 Other assets 487,800 471,300 Deferred income taxes 4,052,400 4,052,400 $ 38,336,000 $ 28,967,700 LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) Current Liabilities: Notes payable, net $ 4,217,900 $ 4,217,900 Accounts payable 1,296,300 1,719,400 Income tax payable 2,469,000 — Accrued liabilities 4,734,000 2,858,200 Deferred revenue 1,657,300 1,666,100 Total current liabilities 14,374,500 10,461,600 Long-Term Liabilities: Line of credit/Term loan 30,000,000 30,000,000 Notes payable, net 33,794,300 34,848,800 Deferred revenue 7,744,400 7,657,500 Operating lease liabilities 3,566,600 3,715,800 Other liabilities 1,435,300 1,440,100 Total long-term liabilities 76,540,600 77,662,200 Shareholders’ Equity (Deficit): Common stock, no par, 10,000,000 shares authorized, 3,4997,430 and 3,496,977 shares issued and outstanding 8,324,700 7,768,800 Retained earnings (accumulated deficit) (60,903,800 ) (66,924,900 ) Total shareholders’ equity (deficit) (52,579,100 ) (59,156,100 ) $ 38,336,000 $ 28,967,700 WINMARK CORPORATION CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 30, 2024 April 1, 2023 Revenue: Royalties $ 17,268,700 $ 16,747,700 Leasing income 836,800 1,637,000 Merchandise sales 1,110,500 1,276,000 Franchise fees 364,500 378,200 Other 529,000 484,700 Total revenue 20,109,500 20,523,600 Cost of merchandise sold 1,038,900 1,187,300 Leasing expense 36,600 316,400 Provision for credit losses (1,500 ) (4,600 ) Selling, general and administrative expenses 6,817,300 6,636,100 Income from operations 12,218,200 12,388,400 Interest expense (737,700 ) (797,600 ) Interest and other income 187,900 125,700 Income before income taxes 11,668,400 11,716,500 Provision for income taxes (2,849,400 ) (2,773,800 ) Net income $ 8,819,000 $ 8,942,700 Earnings per share - basic $ 2.52 $ 2.58 Earnings per share - diluted $ 2.41 $ 2.49 Weighted average shares outstanding - basic 3,497,261 3,460,720 Weighted average shares outstanding - diluted 3,661,367 3,594,234 WINMARK CORPORATION CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 30, 2024 April 1, 2023 OPERATING ACTIVITIES: Net income $ 8,819,000 $ 8,942,700 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 108,300 104,000 Amortization of intangible assets 88,500 88,500 Provision for credit losses (1,500 ) (4,600 ) Compensation expense related to stock options 485,900 475,900 Deferred income taxes — 24,200 Operating lease right of use asset amortization 74,200 66,900 Tax benefits on exercised stock options — 77,700 Change in operating assets and liabilities: Receivables (213,300 ) (143,200 ) Principal collections on lease receivables 62,300 423,800 Income tax receivable/payable 2,500,400 2,490,900 Inventories (34,800 ) 356,300 Prepaid expenses 126,500 422,400 Other assets (16,600 ) (40,400 ) Accounts payable (423,100 ) (678,300 ) Accrued and other liabilities 1,729,800 1,140,200 Rents received in advance and security deposits (19,700 ) (194,200 ) Deferred revenue 78,100 297,700 Net cash provided by operating activities 13,364,000 13,850,500 INVESTING ACTIVITIES: Purchase of property and equipment (87,900 ) (5,500 ) Net cash used for investing activities (87,900 ) (5,500 ) FINANCING ACTIVITIES: Payments on notes payable (1,062,500 ) (1,062,500 ) Proceeds from exercises of stock options 70,000 590,400 Dividends paid (2,797,900 ) (2,421,900 ) Net cash used for financing activities (3,790,400 ) (2,894,000 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 9,485,700 10,951,000 Cash, cash equivalents and restricted cash, beginning of period 13,386,500 13,680,600 Cash, cash equivalents and restricted cash, end of period $ 22,872,200 $ 24,631,600 SUPPLEMENTAL DISCLOSURES: Cash paid for interest $ 725,700 $ 791,500 Cash paid for income taxes $ 349,100 $ 181,200 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: Three Months Ended March 30, 2024 April 1, 2023 Cash and cash equivalents $ 22,872,200 $ 24,551,600 Restricted cash — 80,000 Total cash, cash equivalents and restricted cash $ 22,872,200 $ 24,631,600 View source version on businesswire.com: https://www.businesswire.com/news/home/20240416444706/en/Contacts Anthony D. Ishaug 763/520-8500
Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended March 30, 2024 of $8,819,000 or $2.41 per share diluted compared to net income of $8,942,700 or $2.49 per share diluted in 2023. Results during the quarter were impacted by the Company’s decision in May 2021 to run-off its leasing portfolio “Performance during the first quarter was adequate,” commented Brett D. Heffes, Chair and Chief Executive Officer. Winmark - the Resale Company®, is a nationally recognized franchisor 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 March 30, 2024, there were 1,327 franchises in operation and over 2,800 available territories. An additional 73 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) March 30, 2024 December 30, 2023 ASSETS Current Assets: Cash and cash equivalents $ 22,872,200 $ 13,361,500 Restricted cash — 25,000 Receivables, net 1,688,600 1,475,300 Net investment in leases - current 34,100 75,100 Income tax receivable — 31,400 Inventories 420,900 386,100 Prepaid expenses 1,265,600 1,392,100 Total current assets 26,281,400 16,746,500 Property and equipment, net 1,649,400 1,669,800 Operating lease right of use asset 2,351,700 2,425,900 Intangible assets, net 2,905,800 2,994,300 Goodwill 607,500 607,500 Other assets 487,800 471,300 Deferred income taxes 4,052,400 4,052,400 $ 38,336,000 $ 28,967,700 LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) Current Liabilities: Notes payable, net $ 4,217,900 $ 4,217,900 Accounts payable 1,296,300 1,719,400 Income tax payable 2,469,000 — Accrued liabilities 4,734,000 2,858,200 Deferred revenue 1,657,300 1,666,100 Total current liabilities 14,374,500 10,461,600 Long-Term Liabilities: Line of credit/Term loan 30,000,000 30,000,000 Notes payable, net 33,794,300 34,848,800 Deferred revenue 7,744,400 7,657,500 Operating lease liabilities 3,566,600 3,715,800 Other liabilities 1,435,300 1,440,100 Total long-term liabilities 76,540,600 77,662,200 Shareholders’ Equity (Deficit): Common stock, no par, 10,000,000 shares authorized, 3,4997,430 and 3,496,977 shares issued and outstanding 8,324,700 7,768,800 Retained earnings (accumulated deficit) (60,903,800 ) (66,924,900 ) Total shareholders’ equity (deficit) (52,579,100 ) (59,156,100 ) $ 38,336,000 $ 28,967,700 WINMARK CORPORATION CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 30, 2024 April 1, 2023 Revenue: Royalties $ 17,268,700 $ 16,747,700 Leasing income 836,800 1,637,000 Merchandise sales 1,110,500 1,276,000 Franchise fees 364,500 378,200 Other 529,000 484,700 Total revenue 20,109,500 20,523,600 Cost of merchandise sold 1,038,900 1,187,300 Leasing expense 36,600 316,400 Provision for credit losses (1,500 ) (4,600 ) Selling, general and administrative expenses 6,817,300 6,636,100 Income from operations 12,218,200 12,388,400 Interest expense (737,700 ) (797,600 ) Interest and other income 187,900 125,700 Income before income taxes 11,668,400 11,716,500 Provision for income taxes (2,849,400 ) (2,773,800 ) Net income $ 8,819,000 $ 8,942,700 Earnings per share - basic $ 2.52 $ 2.58 Earnings per share - diluted $ 2.41 $ 2.49 Weighted average shares outstanding - basic 3,497,261 3,460,720 Weighted average shares outstanding - diluted 3,661,367 3,594,234 WINMARK CORPORATION CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 30, 2024 April 1, 2023 OPERATING ACTIVITIES: Net income $ 8,819,000 $ 8,942,700 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 108,300 104,000 Amortization of intangible assets 88,500 88,500 Provision for credit losses (1,500 ) (4,600 ) Compensation expense related to stock options 485,900 475,900 Deferred income taxes — 24,200 Operating lease right of use asset amortization 74,200 66,900 Tax benefits on exercised stock options — 77,700 Change in operating assets and liabilities: Receivables (213,300 ) (143,200 ) Principal collections on lease receivables 62,300 423,800 Income tax receivable/payable 2,500,400 2,490,900 Inventories (34,800 ) 356,300 Prepaid expenses 126,500 422,400 Other assets (16,600 ) (40,400 ) Accounts payable (423,100 ) (678,300 ) Accrued and other liabilities 1,729,800 1,140,200 Rents received in advance and security deposits (19,700 ) (194,200 ) Deferred revenue 78,100 297,700 Net cash provided by operating activities 13,364,000 13,850,500 INVESTING ACTIVITIES: Purchase of property and equipment (87,900 ) (5,500 ) Net cash used for investing activities (87,900 ) (5,500 ) FINANCING ACTIVITIES: Payments on notes payable (1,062,500 ) (1,062,500 ) Proceeds from exercises of stock options 70,000 590,400 Dividends paid (2,797,900 ) (2,421,900 ) Net cash used for financing activities (3,790,400 ) (2,894,000 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 9,485,700 10,951,000 Cash, cash equivalents and restricted cash, beginning of period 13,386,500 13,680,600 Cash, cash equivalents and restricted cash, end of period $ 22,872,200 $ 24,631,600 SUPPLEMENTAL DISCLOSURES: Cash paid for interest $ 725,700 $ 791,500 Cash paid for income taxes $ 349,100 $ 181,200 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: Three Months Ended March 30, 2024 April 1, 2023 Cash and cash equivalents $ 22,872,200 $ 24,551,600 Restricted cash — 80,000 Total cash, cash equivalents and restricted cash $ 22,872,200 $ 24,631,600 View source version on businesswire.com: https://www.businesswire.com/news/home/20240416444706/en/