MINNEAPOLIS , Feb. 23 /PRNewswire-FirstCall/ -- Winmark Corporation (Nasdaq: WINA) announced today net income for the year ended December 30, 2006 of $3,421,300 or $.57 per share diluted, compared to net income of $2,100,000 or $.33 per share diluted, in 2005. The fourth quarter 2006 net income was $819,400 , or $.14 per share diluted, compared to net loss of ( $68,600 ), or ( $.01 ) per share diluted, for the same period last year. Revenues for the year were $27,370,500 , up from $26,599,800 in 2005.
Winmark Corporation creates, supports and finances business. At December 30, 2006 , there were 836 franchises in operation under the brands Play It Again Sports(R), Once Upon A Child(R), Plato's Closet(R), Music Go Round(R) and Wirth Business Credit(TM). An additional 55 franchises have been awarded but are not open. In addition, at December 30, 2006 , the Company had loans and leases equal to $22.3 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)
December 30, December 31,
2006 2005
ASSETS
Current Assets:
Cash and cash equivalents $1,037,800 $2,947,700
Receivables, less allowance for doubtful
accounts of $66,900 and $188,700 2,203,500 1,836,300
Investment in direct finance leases 5,777,400 1,478,200
Income tax receivable 812,700 620,500
Inventories 68,700 67,000
Prepaid expenses and other 1,435,100 785,700
Deferred income taxes 191,500 776,800
Total current assets 11,526,700 8,512,200
Long-term investment in leasing operations 12,474,000 5,492,400
Long-term investments 11,500,000 11,000,000
Long-term notes receivables, net 73,800 94,300
Property and equipment, net 573,500 448,600
Other assets, net 625,800 625,800
Deferred income taxes 832,300 375,400
$37,606,100 $26,548,700
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Line of credit $600,000 $-
Current renewable subordinated notes 3,239,600 -
Accounts payable 1,608,100 1,156,400
Accrued liabilities 2,029,700 1,435,900
Current discounted lease rentals 157,300 147,600
Rents received in advance 479,300 167,600
Current deferred revenue 1,116,100 829,100
Total current liabilities 9,230,100 3,736,600
Long-term renewable subordinated notes 12,138,600 -
Long-term discounted lease rentals 41,000 185,600
Long-term deferred revenue 441,400 339,600
Shareholder's Equity:
Common stock, no par, 10,000,000 shares
authorized, 5,657,042 and 6,049,037 shares
issued and outstanding 550,000 3,840,500
Retained earnings 15,205,000 18,446,400
Total shareholders' equity 15,755,000 22,286,900
$37,606,100 $26,548,700
WINMARK CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
Quarter Ended Fiscal Year Ended
December 30, December 31, December 30, December 31,
2006 2005 2006 2005
REVENUE:
Royalties $4,891,600 $4,921,600 $19,212,100 $17,875,000
Merchandise sales 936,000 1,260,900 4,469,300 6,654,600
Leasing income 642,900 163,300 1,852,700 437,100
Franchise fees 265,000 307,500 1,245,700 1,052,500
Other 148,800 148,300 590,700 580,600
Total revenue 6,884,300 6,801,600 27,370,500 26,599,800
COST OF MERCHANDISE
SOLD 904,700 1,040,600 4,283,300 5,505,800
LEASING EXPENSE 95,900 6,200 227,100 6,800
SELLING, GENERAL
AND ADMINISTRATIVE
EXPENSES 4,564,000 4,915,000 17,498,600 16,593,100
Income from
operations 1,319,700 839,800 5,361,500 4,494,100
GAIN (LOSS) FROM
EQUITY INVESTMENTS 250,000 (980,100) 250,000 (1,168,900)
GAIN ON SALE OF
INVESTMENTS - 9,600 - 27,000
INTEREST EXPENSE (299,400) - (728,700) -
INTEREST AND OTHER
INCOME 120,700 79,000 867,300 303,100
Income (loss)
before income
taxes 1,391,000 (51,700) 5,750,100 3,655,300
PROVISION FOR
INCOME TAXES (571,600) (16,900) (2,328,800) (1,555,300)
NET INCOME (LOSS) $819,400 $(68,600) $3,421,300 $2,100,000
EARNINGS (LOSS) PER
SHARE - BASIC $.15 $(.01) $.59 $.35
EARNINGS (LOSS) PER
SHARE - DILUTED $.14 $(.01) $.57 $.33
WEIGHTED AVERAGE SHARES
OUTSTANDING -
BASIC 5,642,866 5,998,787 5,791,503 6,018,197
WEIGHTED AVERAGE SHARES
OUTSTANDING -
DILUTED 5,819,279 6,335,904 6,006,969 6,358,167
SOURCE Winmark Corporation
