MINNEAPOLIS , July 17 /PRNewswire-FirstCall/ -- Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended June 28, 2008 of $930,500 , or $.17 per share diluted, compared to net income of $430,500 , or $.08 per share diluted, in 2007. For the six months ended June 28, 2008 , net income was $1,867,800 , or $.34 per share diluted, compared to net income of $1,060,300 , or $.19 per share diluted, for the same period last year.
Winmark Corporation creates, supports and finances business. At June 28, 2008 , there were 857 franchises in operation under the brands Play It Again Sports(R), Once Upon A Child(R), Plato's Closet(R) and Music Go Round(R) and there were 56 territories in operation under the Wirth Business Credit(R) brand. An additional 50 retail franchises have been awarded but are not open. In addition, at June 28, 2008 , the Company had loans and leases equal to $47.5 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.
WINMARK CORPORATION
CONDENSED BALANCE SHEETS
(unaudited)
June 28, December 29,
2008 2007
ASSETS
Current Assets:
Cash and cash equivalents $2,585,200 $1,253,000
Receivables, less allowance
for doubtful accounts of
$53,500 and $52,200 2,136,400 2,312,300
Net investment in leases - current 16,356,400 10,554,900
Income tax receivable 831,800 166,300
Inventories 70,700 145,000
Prepaid expenses 977,200 1,104,900
Deferred income taxes 208,200 208,200
Total current assets 23,165,900 15,744,600
Net investment in leases - long-term 29,186,600 31,331,600
Long-term investments 7,360,000 7,496,500
Long-term receivables, net 49,400 59,700
Property and equipment, net 612,700 667,400
Other assets 625,800 625,800
Deferred income taxes 1,021,200 1,021,200
$62,021,600 $56,946,800
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current line of credit $3,741,600 $ 7,553,600
Current renewable subordinated notes 4,217,800 3,535,900
Accounts payable 1,149,400 1,414,100
Accrued liabilities 2,843,000 2,501,900
Current discounted lease rentals 948,700 27,400
Rents received in advance 1,729,100 1,385,900
Current deferred revenue 1,104,000 1,132,300
Total current liabilities 15,733,600 17,551,100
Long-term line of credit 11,198,300 8,685,000
Long-term renewable subordinated notes 17,081,300 17,486,000
Long-term discounted lease rentals 1,720,200 -
Long-term deferred revenue 619,000 556,000
Shareholder's Equity:
Common stock, no par, 10,000,000
shares authorized, 5,526,459 and
5,417,775 shares issued and outstanding 1,438,600 305,900
Retained earnings 14,230,600 12,362,800
Total shareholders' equity 15,669,200 12,668,700
$62,021,600 $56,946,800
Winmark Corporation
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Quarter Ended Six Months Ended
June 28, 2008 June 30, 2007 June 28, 2008 June 30, 2007
REVENUE:
Royalties $5,303,800 $4,846,500 $10,635,400 $9,999,400
Leasing income 1,907,000 995,800 3,859,600 1,771,500
Merchandise sales 975,000 1,193,600 1,907,800 2,452,700
Franchise fees 386,100 417,400 913,600 717,400
Other 145,400 109,300 278,300 248,500
Total revenue 8,717,300 7,562,600 17,594,700 15,189,500
COST OF MERCHANDISE
SOLD 940,700 1,148,000 1,834,600 2,355,200
LEASING EXPENSE 463,100 197,400 949,000 333,200
PROVISION FOR CREDIT
LOSSES 269,200 165,300 654,300 279,700
SELLING, GENERAL AND
ADMINISTRATIVE
EXPENSES 5,138,500 4,923,600 10,324,300 9,802,900
Income from
operations 1,905,800 1,128,300 3,832,500 2,418,500
LOSS FROM EQUITY
INVESTMENTS (60,700) (197,400) (136,500) (252,200)
INTEREST EXPENSE (340,200) (387,600) (688,600) (720,600)
INTEREST AND OTHER
INCOME 59,000 171,400 131,800 300,800
Income before
income taxes 1,563,900 714,700 3,139,200 1,746,500
PROVISION FOR INCOME
TAXES (633,400) (284,200) (1,271,400) (686,200)
NET INCOME $930,500 $430,500 $1,867,800 $1,060,300
EARNINGS PER
SHARE - BASIC
$.17 $.08 $.34 $.19
EARNINGS PER
SHARE - DILUTED $.17 $.08 $.34 $.19
WEIGHTED AVERAGE
SHARES OUTSTANDING
- BASIC 5,534,781 5,447,697 5,517,807 5,516,214
WEIGHTED AVERAGE
SHARES OUTSTANDING
- DILUTED 5,562,319 5,560,564 5,548,482 5,638,543
SOURCE Winmark Corporation
