EX-99.1 2 a15-9096_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

Contact:

 

Brett D. Heffes

 

 

763/520-8500

 

FOR IMMEDIATE RELEASE

 

WINMARK CORPORATION ANNOUNCES

FIRST QUARTER RESULTS

 

Minneapolis, MN (April 15, 2015)  —  Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended March 28, 2015 of $6,054,300 (or $1.17 per share diluted) compared to net income of $4,551,900 (or $.86 per share diluted) in the first quarter of 2014.

 

John L. Morgan, Chairman and Chief Executive Officer, commented, “Both our franchising and leasing businesses exhibited solid top-line growth in the first quarter which led to a 34% increase in operating income.  We are pleased with our start to the year.”

 

Winmark Corporation creates, supports and finances business.  At March 28, 2015, there were 1,099 franchises in operation under the brands Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Music Go Round® and Style Encore®.  An additional 110 retail franchises have been awarded but are not open.  In addition, at March 28, 2015, the Company had a lease portfolio equal to $42.9 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.  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 28, 2015

 

December 27, 2014

 

ASSETS

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

2,160,300

 

$

2,089,700

 

Marketable securities

 

225,200

 

466,800

 

Receivables, net

 

1,189,000

 

1,328,200

 

Net investment in leases - current

 

19,222,500

 

19,831,600

 

Income tax receivable

 

 

4,163,900

 

Inventories

 

76,100

 

93,500

 

Prepaid expenses

 

530,100

 

467,400

 

Total current assets

 

23,403,200

 

28,441,100

 

 

 

 

 

 

 

Net investment in leases — long-term

 

23,627,700

 

24,188,900

 

Property and equipment, net

 

1,365,400

 

1,420,300

 

Other assets

 

677,500

 

677,500

 

 

 

$

49,073,800

 

$

54,727,800

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Line of credit

 

$

5,600,000

 

$

18,500,000

 

Accounts payable

 

2,462,800

 

1,955,500

 

Income tax payable

 

1,500,000

 

 

Accrued liabilities

 

1,789,100

 

1,759,200

 

Discounted lease rentals

 

186,100

 

227,300

 

Deferred revenue

 

2,300,300

 

2,142,600

 

Deferred income taxes

 

3,928,200

 

4,412,600

 

Total current liabilities

 

17,766,500

 

28,997,200

 

 

 

 

 

 

 

Long-Term Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Discounted lease rentals

 

 

25,800

 

Deferred revenue

 

1,348,200

 

1,347,800

 

Other liabilities

 

1,343,000

 

1,403,200

 

Deferred income taxes

 

801,400

 

1,344,300

 

Total long-term liabilities

 

3,492,600

 

4,121,100

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

Common stock, no par, 10,000,000 shares authorized, 4,999,594 and 4,998,512 shares issued and outstanding

 

844,400

 

422,400

 

Accumulated other comprehensive loss

 

(8,300

)

(37,100

)

Retained earnings

 

26,978,600

 

21,224,200

 

Total shareholders’ equity

 

27,814,700

 

21,609,500

 

 

 

$

49,073,800

 

$

54,727,800

 

 



 

WINMARK CORPORATION

CONDENSED STATEMENTS OF OPERATIONS

(unaudited)

 

 

 

Three Months Ended

 

 

 

March 28, 2015

 

March 29, 2014

 

REVENUE:

 

 

 

 

 

Royalties

 

$

9,726,200

 

$

8,810,000

 

Leasing income

 

10,009,600

 

4,375,600

 

Merchandise sales

 

733,700

 

788,000

 

Franchise fees

 

294,400

 

349,000

 

Other

 

260,200

 

230,000

 

Total revenue

 

21,024,100

 

14,552,600

 

 

 

 

 

 

 

COST OF MERCHANDISE SOLD

 

698,200

 

754,700

 

LEASING EXPENSE

 

4,257,400

 

306,600

 

PROVISION FOR CREDIT LOSSES

 

(69,100

)

38,900

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

6,163,500

 

6,017,900

 

Income from operations

 

9,974,100

 

7,434,500

 

INTEREST EXPENSE

 

(85,700

)

(62,100

)

INTEREST AND OTHER INCOME (EXPENSE)

 

(59,100

)

100

 

Income before income taxes

 

9,829,300

 

7,372,500

 

 

 

 

 

 

 

PROVISION FOR INCOME TAXES

 

(3,775,000

)

(2,820,600

)

 

 

 

 

 

 

NET INCOME

 

$

6,054,300

 

$

4,551,900

 

 

 

 

 

 

 

EARNINGS PER SHARE - BASIC

 

$

1.21

 

$

.88

 

 

 

 

 

 

 

EARNINGS PER SHARE - DILUTED

 

$

1.17

 

$

.86

 

 

 

 

 

 

 

WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC

 

4,999,475

 

5,148,519

 

 

 

 

 

 

 

WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED

 

5,167,466

 

5,307,946