UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): February 8, 2013
Winmark Corporation
(Exact Name of Registrant as Specified in Its Charter)
Minnesota
(State or Other Jurisdiction of Incorporation)
000-22012 |
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41-1622691 |
(Commission File Number) |
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(I.R.S. Employer Identification Number) |
605 Highway 169 North, Suite 400, Minneapolis, Minnesota 55441
(Address of Principal Executive Offices) (Zip Code)
(763) 520-8500
(Registrants Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 7.01 Regulation FD Disclosure
On February 8, 2013, Winmark Corporation announced in a press release that that it recorded impairment charges relating to its investments in (i) Tomsten, Inc. (d/b/a Archivers) and (ii) BridgeFunds, LLC. A copy of the press release is attached as Exhibit 99.1 of this Current Report on Form 8-K.
Item 8.01 Other Events
On February 8, 2013, Winmark Corporation announced in a press release that that it recorded impairment charges relating to its investments in (i) Tomsten, Inc. (d/b/a Archivers) and (ii) BridgeFunds, LLC. A copy of the press release is attached as Exhibit 99.1 of this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 |
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Press Release dated February 8, 2013 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
WINMARK CORPORATION
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WINMARK CORPORATION | |
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Date: February 11, 2013 |
By: |
/s/ Anthony D. Ishaug |
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Anthony D. Ishaug |
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Chief Financial Officer and Treasurer |
Exhibit 99.1
Contact: |
John L. Morgan |
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763/520-8500 |
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FOR IMMEDIATE RELEASE
WINMARK CORPORATION ANNOUNCES
IMPAIRMENT CHARGES FOR INVESTMENTS IN
TOMSTEN, INC. AND BRIDGEFUNDS, LLC
Minneapolis, MN (February 8, 2013) Winmark Corporation (Nasdaq: WINA) announced today that it recorded impairment charges relating to its investments in (i) Tomsten, Inc. (d/b/a Archivers) and (ii) BridgeFunds, LLC. The impact to Winmarks financial statements includes:
· A $1.8 million reduction to the carrying value of Winmarks investment in Archivers;
· A $0.7 million reduction to the carrying value of Winmarks investment in BridgeFunds, LLC;
· A reduction of Winmarks equity of $2.5 million;
· A reduction of pre-tax income of $2.5 million for the quarter ended December 29, 2012. The charges will negatively impact earnings per share by approximately $0.47 per share for the quarter.
After these non-cash impairment charges, Winmark no longer has any carrying value for either of these investments.
Winmark plans to announce its fourth quarter and year-end results on February 27, 2013.
Winmark Corporation creates, supports and finances business. At December 29, 2012, there were 968 franchises in operation under the brands Platos Closet®, Play It Again Sports®, Once Upon A Child®, and Music Go Round®. An additional 65 retail franchises have been awarded but are not open. In addition, at September 29, 2012, the Company had a lease portfolio of $34.1 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.