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 Second Quarter Results By: Winmark Corporation via Business Wire July 17, 2024 at 11:12 AM EDT Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended June 29, 2024 of $10,431,400 or $2.85 per share diluted compared to net income of $10,368,800 or $2.85 per share diluted in 2023. For the six months ended June 29, 2024, net income was $19,250,400 or $5.26 per share diluted compared to net income of $19,311,500 or $5.34 per share diluted for the same period last year. Results during the quarter were impacted by the Company’s decision in May 2021 to run-off its leasing portfolio. “Year-to-date growth in royalties resulted from higher overall store count and, to a lesser extent, increases in per unit performance,” 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 June 29, 2024, there were 1,336 franchises in operation and over 2,800 available territories. An additional 77 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) June 29, 2024 December 30, 2023 ASSETS Current Assets: Cash and cash equivalents $ 29,397,400 $ 13,361,500 Restricted cash — 25,000 Receivables, net 1,611,400 1,475,300 Net investment in leases - current — 75,100 Income tax receivable 655,800 31,400 Inventories 268,200 386,100 Prepaid expenses 1,020,800 1,392,100 Total current assets 32,953,600 16,746,500 Property and equipment, net 1,636,100 1,669,800 Operating lease right of use asset 2,275,600 2,425,900 Intangible assets, net 2,817,300 2,994,300 Goodwill 607,500 607,500 Other assets 479,500 471,300 Deferred income taxes 3,917,300 4,052,400 $ 44,686,900 $ 28,967,700 LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) Current Liabilities: Notes payable, net $ 4,218,700 $ 4,217,900 Accounts payable 1,478,700 1,719,400 Accrued liabilities 4,092,500 2,858,200 Deferred revenue 1,662,200 1,666,100 Total current liabilities 11,452,100 10,461,600 Long-Term Liabilities: Line of credit/Term loan 30,000,000 30,000,000 Notes payable, net 32,739,000 34,848,800 Deferred revenue 7,874,600 7,657,500 Operating lease liabilities 3,415,300 3,715,800 Other liabilities 1,430,600 1,440,100 Total long-term liabilities 75,459,500 77,662,200 Shareholders’ Equity (Deficit): Common stock, no par, 10,000,000 shares authorized, 3,520,327 and 3,496,977 shares issued and outstanding 11,413,500 7,768,800 Retained earnings (accumulated deficit) (53,638,200 ) (66,924,900 ) Total shareholders’ equity (deficit) (42,224,700 ) (59,156,100 ) $ 44,686,900 $ 28,967,700 WINMARK CORPORATION CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Revenue: Royalties $ 17,774,500 $ 17,105,800 $ 35,043,200 $ 33,853,500 Leasing income 524,400 1,019,800 1,361,200 2,656,800 Merchandise sales 925,500 1,328,100 2,036,000 2,604,100 Franchise fees 366,900 420,700 731,500 798,900 Other 529,200 487,800 1,058,300 972,500 Total revenue 20,120,500 20,362,200 40,230,200 40,885,800 Cost of merchandise sold 861,100 1,247,800 1,900,100 2,435,100 Leasing expense — 54,300 36,600 370,700 Provision for credit losses — (700 ) (1,500 ) (5,300 ) Selling, general and administrative expenses 6,241,800 5,810,000 13,059,200 12,446,100 Income from operations 13,017,600 13,250,800 25,235,800 25,639,200 Interest expense (721,400 ) (779,100 ) (1,459,200 ) (1,576,700 ) Interest and other income 280,800 292,300 468,800 418,000 Income before income taxes 12,577,000 12,764,000 24,245,400 24,480,500 Provision for income taxes (2,145,600 ) (2,395,200 ) (4,995,000 ) (5,169,000 ) Net income $ 10,431,400 $ 10,368,800 $ 19,250,400 $ 19,311,500 Earnings per share - basic $ 2.97 $ 2.98 $ 5.49 $ 5.57 Earnings per share - diluted $ 2.85 $ 2.85 $ 5.26 $ 5.34 Weighted average shares outstanding - basic 3,513,788 3,478,628 3,505,526 3,469,675 Weighted average shares outstanding - diluted 3,657,439 3,634,688 3,659,405 3,614,462 WINMARK CORPORATION CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 29, 2024 July 1, 2023 OPERATING ACTIVITIES: Net income $ 19,250,400 $ 19,311,500 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 224,300 208,100 Amortization of intangible assets 177,000 177,000 Provision for credit losses (1,500 ) (5,300 ) Compensation expense related to stock options 940,500 942,000 Deferred income taxes 135,100 148,400 Operating lease right of use asset amortization 150,300 135,600 Tax benefits on exercised stock options 943,400 832,300 Change in operating assets and liabilities: Receivables (136,100 ) (153,900 ) Principal collections on lease receivables 96,300 499,800 Income tax receivable/payable (1,567,800 ) (796,100 ) Inventories 117,900 323,700 Prepaid expenses 371,300 490,700 Other assets (8,200 ) (31,600 ) Accounts payable (240,700 ) (483,600 ) Accrued and other liabilities 940,300 1,390,000 Rents received in advance and security deposits (19,700 ) (234,200 ) Deferred revenue 213,200 397,900 Net cash provided by operating activities 21,586,000 23,152,300 INVESTING ACTIVITIES: Purchase of property and equipment (190,600 ) (96,900 ) Net cash used for investing activities (190,600 ) (96,900 ) FINANCING ACTIVITIES: Payments on notes payable (2,125,000 ) (2,125,000 ) Proceeds from exercises of stock options 2,704,200 2,974,900 Dividends paid (5,963,700 ) (5,209,400 ) Net cash used for financing activities (5,384,500 ) (4,359,500 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 16,010,900 18,695,900 Cash, cash equivalents and restricted cash, beginning of period 13,386,500 13,680,600 Cash, cash equivalents and restricted cash, end of period $ 29,397,400 $ 32,376,500 SUPPLEMENTAL DISCLOSURES: Cash paid for interest $ 1,448,400 $ 1,563,800 Cash paid for income taxes $ 5,484,400 $ 4,984,600 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: Six Months Ended June 29, 2024 July 1, 2023 Cash and cash equivalents $ 29,397,400 $ 32,321,500 Restricted cash — 55,000 Total cash, cash equivalents and restricted cash $ 29,397,400 $ 32,376,500 View source version on businesswire.com: https://www.businesswire.com/news/home/20240716804566/en/Contacts Anthony D. 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Winmark Corporation Announces Second Quarter Results By: Winmark Corporation via Business Wire July 17, 2024 at 11:12 AM EDT Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended June 29, 2024 of $10,431,400 or $2.85 per share diluted compared to net income of $10,368,800 or $2.85 per share diluted in 2023. For the six months ended June 29, 2024, net income was $19,250,400 or $5.26 per share diluted compared to net income of $19,311,500 or $5.34 per share diluted for the same period last year. Results during the quarter were impacted by the Company’s decision in May 2021 to run-off its leasing portfolio. “Year-to-date growth in royalties resulted from higher overall store count and, to a lesser extent, increases in per unit performance,” 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 June 29, 2024, there were 1,336 franchises in operation and over 2,800 available territories. An additional 77 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) June 29, 2024 December 30, 2023 ASSETS Current Assets: Cash and cash equivalents $ 29,397,400 $ 13,361,500 Restricted cash — 25,000 Receivables, net 1,611,400 1,475,300 Net investment in leases - current — 75,100 Income tax receivable 655,800 31,400 Inventories 268,200 386,100 Prepaid expenses 1,020,800 1,392,100 Total current assets 32,953,600 16,746,500 Property and equipment, net 1,636,100 1,669,800 Operating lease right of use asset 2,275,600 2,425,900 Intangible assets, net 2,817,300 2,994,300 Goodwill 607,500 607,500 Other assets 479,500 471,300 Deferred income taxes 3,917,300 4,052,400 $ 44,686,900 $ 28,967,700 LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) Current Liabilities: Notes payable, net $ 4,218,700 $ 4,217,900 Accounts payable 1,478,700 1,719,400 Accrued liabilities 4,092,500 2,858,200 Deferred revenue 1,662,200 1,666,100 Total current liabilities 11,452,100 10,461,600 Long-Term Liabilities: Line of credit/Term loan 30,000,000 30,000,000 Notes payable, net 32,739,000 34,848,800 Deferred revenue 7,874,600 7,657,500 Operating lease liabilities 3,415,300 3,715,800 Other liabilities 1,430,600 1,440,100 Total long-term liabilities 75,459,500 77,662,200 Shareholders’ Equity (Deficit): Common stock, no par, 10,000,000 shares authorized, 3,520,327 and 3,496,977 shares issued and outstanding 11,413,500 7,768,800 Retained earnings (accumulated deficit) (53,638,200 ) (66,924,900 ) Total shareholders’ equity (deficit) (42,224,700 ) (59,156,100 ) $ 44,686,900 $ 28,967,700 WINMARK CORPORATION CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Revenue: Royalties $ 17,774,500 $ 17,105,800 $ 35,043,200 $ 33,853,500 Leasing income 524,400 1,019,800 1,361,200 2,656,800 Merchandise sales 925,500 1,328,100 2,036,000 2,604,100 Franchise fees 366,900 420,700 731,500 798,900 Other 529,200 487,800 1,058,300 972,500 Total revenue 20,120,500 20,362,200 40,230,200 40,885,800 Cost of merchandise sold 861,100 1,247,800 1,900,100 2,435,100 Leasing expense — 54,300 36,600 370,700 Provision for credit losses — (700 ) (1,500 ) (5,300 ) Selling, general and administrative expenses 6,241,800 5,810,000 13,059,200 12,446,100 Income from operations 13,017,600 13,250,800 25,235,800 25,639,200 Interest expense (721,400 ) (779,100 ) (1,459,200 ) (1,576,700 ) Interest and other income 280,800 292,300 468,800 418,000 Income before income taxes 12,577,000 12,764,000 24,245,400 24,480,500 Provision for income taxes (2,145,600 ) (2,395,200 ) (4,995,000 ) (5,169,000 ) Net income $ 10,431,400 $ 10,368,800 $ 19,250,400 $ 19,311,500 Earnings per share - basic $ 2.97 $ 2.98 $ 5.49 $ 5.57 Earnings per share - diluted $ 2.85 $ 2.85 $ 5.26 $ 5.34 Weighted average shares outstanding - basic 3,513,788 3,478,628 3,505,526 3,469,675 Weighted average shares outstanding - diluted 3,657,439 3,634,688 3,659,405 3,614,462 WINMARK CORPORATION CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 29, 2024 July 1, 2023 OPERATING ACTIVITIES: Net income $ 19,250,400 $ 19,311,500 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 224,300 208,100 Amortization of intangible assets 177,000 177,000 Provision for credit losses (1,500 ) (5,300 ) Compensation expense related to stock options 940,500 942,000 Deferred income taxes 135,100 148,400 Operating lease right of use asset amortization 150,300 135,600 Tax benefits on exercised stock options 943,400 832,300 Change in operating assets and liabilities: Receivables (136,100 ) (153,900 ) Principal collections on lease receivables 96,300 499,800 Income tax receivable/payable (1,567,800 ) (796,100 ) Inventories 117,900 323,700 Prepaid expenses 371,300 490,700 Other assets (8,200 ) (31,600 ) Accounts payable (240,700 ) (483,600 ) Accrued and other liabilities 940,300 1,390,000 Rents received in advance and security deposits (19,700 ) (234,200 ) Deferred revenue 213,200 397,900 Net cash provided by operating activities 21,586,000 23,152,300 INVESTING ACTIVITIES: Purchase of property and equipment (190,600 ) (96,900 ) Net cash used for investing activities (190,600 ) (96,900 ) FINANCING ACTIVITIES: Payments on notes payable (2,125,000 ) (2,125,000 ) Proceeds from exercises of stock options 2,704,200 2,974,900 Dividends paid (5,963,700 ) (5,209,400 ) Net cash used for financing activities (5,384,500 ) (4,359,500 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 16,010,900 18,695,900 Cash, cash equivalents and restricted cash, beginning of period 13,386,500 13,680,600 Cash, cash equivalents and restricted cash, end of period $ 29,397,400 $ 32,376,500 SUPPLEMENTAL DISCLOSURES: Cash paid for interest $ 1,448,400 $ 1,563,800 Cash paid for income taxes $ 5,484,400 $ 4,984,600 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: Six Months Ended June 29, 2024 July 1, 2023 Cash and cash equivalents $ 29,397,400 $ 32,321,500 Restricted cash — 55,000 Total cash, cash equivalents and restricted cash $ 29,397,400 $ 32,376,500 View source version on businesswire.com: https://www.businesswire.com/news/home/20240716804566/en/Contacts Anthony D. Ishaug 763/520-8500
Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended June 29, 2024 of $10,431,400 or $2.85 per share diluted compared to net income of $10,368,800 or $2.85 per share diluted in 2023. For the six months ended June 29, 2024, net income was $19,250,400 or $5.26 per share diluted compared to net income of $19,311,500 or $5.34 per share diluted for the same period last year. Results during the quarter were impacted by the Company’s decision in May 2021 to run-off its leasing portfolio. “Year-to-date growth in royalties resulted from higher overall store count and, to a lesser extent, increases in per unit performance,” 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 June 29, 2024, there were 1,336 franchises in operation and over 2,800 available territories. An additional 77 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) June 29, 2024 December 30, 2023 ASSETS Current Assets: Cash and cash equivalents $ 29,397,400 $ 13,361,500 Restricted cash — 25,000 Receivables, net 1,611,400 1,475,300 Net investment in leases - current — 75,100 Income tax receivable 655,800 31,400 Inventories 268,200 386,100 Prepaid expenses 1,020,800 1,392,100 Total current assets 32,953,600 16,746,500 Property and equipment, net 1,636,100 1,669,800 Operating lease right of use asset 2,275,600 2,425,900 Intangible assets, net 2,817,300 2,994,300 Goodwill 607,500 607,500 Other assets 479,500 471,300 Deferred income taxes 3,917,300 4,052,400 $ 44,686,900 $ 28,967,700 LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) Current Liabilities: Notes payable, net $ 4,218,700 $ 4,217,900 Accounts payable 1,478,700 1,719,400 Accrued liabilities 4,092,500 2,858,200 Deferred revenue 1,662,200 1,666,100 Total current liabilities 11,452,100 10,461,600 Long-Term Liabilities: Line of credit/Term loan 30,000,000 30,000,000 Notes payable, net 32,739,000 34,848,800 Deferred revenue 7,874,600 7,657,500 Operating lease liabilities 3,415,300 3,715,800 Other liabilities 1,430,600 1,440,100 Total long-term liabilities 75,459,500 77,662,200 Shareholders’ Equity (Deficit): Common stock, no par, 10,000,000 shares authorized, 3,520,327 and 3,496,977 shares issued and outstanding 11,413,500 7,768,800 Retained earnings (accumulated deficit) (53,638,200 ) (66,924,900 ) Total shareholders’ equity (deficit) (42,224,700 ) (59,156,100 ) $ 44,686,900 $ 28,967,700 WINMARK CORPORATION CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Revenue: Royalties $ 17,774,500 $ 17,105,800 $ 35,043,200 $ 33,853,500 Leasing income 524,400 1,019,800 1,361,200 2,656,800 Merchandise sales 925,500 1,328,100 2,036,000 2,604,100 Franchise fees 366,900 420,700 731,500 798,900 Other 529,200 487,800 1,058,300 972,500 Total revenue 20,120,500 20,362,200 40,230,200 40,885,800 Cost of merchandise sold 861,100 1,247,800 1,900,100 2,435,100 Leasing expense — 54,300 36,600 370,700 Provision for credit losses — (700 ) (1,500 ) (5,300 ) Selling, general and administrative expenses 6,241,800 5,810,000 13,059,200 12,446,100 Income from operations 13,017,600 13,250,800 25,235,800 25,639,200 Interest expense (721,400 ) (779,100 ) (1,459,200 ) (1,576,700 ) Interest and other income 280,800 292,300 468,800 418,000 Income before income taxes 12,577,000 12,764,000 24,245,400 24,480,500 Provision for income taxes (2,145,600 ) (2,395,200 ) (4,995,000 ) (5,169,000 ) Net income $ 10,431,400 $ 10,368,800 $ 19,250,400 $ 19,311,500 Earnings per share - basic $ 2.97 $ 2.98 $ 5.49 $ 5.57 Earnings per share - diluted $ 2.85 $ 2.85 $ 5.26 $ 5.34 Weighted average shares outstanding - basic 3,513,788 3,478,628 3,505,526 3,469,675 Weighted average shares outstanding - diluted 3,657,439 3,634,688 3,659,405 3,614,462 WINMARK CORPORATION CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 29, 2024 July 1, 2023 OPERATING ACTIVITIES: Net income $ 19,250,400 $ 19,311,500 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 224,300 208,100 Amortization of intangible assets 177,000 177,000 Provision for credit losses (1,500 ) (5,300 ) Compensation expense related to stock options 940,500 942,000 Deferred income taxes 135,100 148,400 Operating lease right of use asset amortization 150,300 135,600 Tax benefits on exercised stock options 943,400 832,300 Change in operating assets and liabilities: Receivables (136,100 ) (153,900 ) Principal collections on lease receivables 96,300 499,800 Income tax receivable/payable (1,567,800 ) (796,100 ) Inventories 117,900 323,700 Prepaid expenses 371,300 490,700 Other assets (8,200 ) (31,600 ) Accounts payable (240,700 ) (483,600 ) Accrued and other liabilities 940,300 1,390,000 Rents received in advance and security deposits (19,700 ) (234,200 ) Deferred revenue 213,200 397,900 Net cash provided by operating activities 21,586,000 23,152,300 INVESTING ACTIVITIES: Purchase of property and equipment (190,600 ) (96,900 ) Net cash used for investing activities (190,600 ) (96,900 ) FINANCING ACTIVITIES: Payments on notes payable (2,125,000 ) (2,125,000 ) Proceeds from exercises of stock options 2,704,200 2,974,900 Dividends paid (5,963,700 ) (5,209,400 ) Net cash used for financing activities (5,384,500 ) (4,359,500 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 16,010,900 18,695,900 Cash, cash equivalents and restricted cash, beginning of period 13,386,500 13,680,600 Cash, cash equivalents and restricted cash, end of period $ 29,397,400 $ 32,376,500 SUPPLEMENTAL DISCLOSURES: Cash paid for interest $ 1,448,400 $ 1,563,800 Cash paid for income taxes $ 5,484,400 $ 4,984,600 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: Six Months Ended June 29, 2024 July 1, 2023 Cash and cash equivalents $ 29,397,400 $ 32,321,500 Restricted cash — 55,000 Total cash, cash equivalents and restricted cash $ 29,397,400 $ 32,376,500 View source version on businesswire.com: https://www.businesswire.com/news/home/20240716804566/en/
