MINNEAPOLIS , April 17 /PRNewswire-FirstCall/ -- Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended March 29, 2008 of $937,300 (or $.17 per share diluted) compared to net income of $629,800 (or $.11 per share diluted) in the first quarter of 2007.
Winmark Corporation creates, supports and finances business. At March 29, 2008 , there were 858 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 there were 51 territories in operation under the Wirth Business Credit(R) brand. An additional 53 retail franchises have been awarded but are not open. In addition, at March 29, 2008 , the Company had loans and leases equal to $47.2 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)
March 29, 2008 December 29, 2007
ASSETS
Current Assets:
Cash and cash equivalents $1,541,100 $1,253,000
Receivables, less allowance
for doubtful accounts of
$56,800 and $52,200 2,098,800 2,312,300
Net investment in leases - current 13,646,300 10,554,900
Income tax receivable 976,000 166,300
Inventories 130,200 145,000
Prepaid expenses 986,600 1,104,900
Deferred income taxes 208,200 208,200
Total current assets 19,587,200 15,744,600
Net investment in leases - long-term 31,534,600 31,331,600
Long-term investments 7,420,700 7,496,500
Long-term receivables, net 55,800 59,700
Property and equipment, net 683,100 667,400
Other assets 625,800 625,800
Deferred income taxes 1,021,200 1,021,200
$60,928,400 $56,946,800
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current line of credit $6,670,200 $7,553,600
Current renewable subordinated notes 3,726,100 3,535,900
Accounts payable 1,375,100 1,414,100
Accrued liabilities 2,736,200 2,501,900
Current discounted lease rentals 593,200 27,400
Rents received in advance 1,562,900 1,385,900
Current deferred revenue 1,162,500 1,132,300
Total current liabilities 17,826,200 17,551,100
Long-term line of credit 8,951,500 8,685,000
Long-term renewable subordinated notes 17,197,100 17,486,000
Long-term discounted lease rentals 1,546,100 -
Long-term deferred revenue 596,500 556,000
Shareholder's Equity:
Common stock, no par, 10,000,000
shares authorized, 5,542,262 and
5,417,775 shares issued and
outstanding 1,510,900 305,900
Retained earnings 13,300,100 12,362,800
Total shareholders' equity 14,811,000 12,668,700
$60,928,400 $56,946,800
WINMARK CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
March 29, 2008 March 31, 2007
REVENUE:
Royalties $5,331,600 $5,152,900
Leasing income 1,952,600 775,700
Merchandise sales 932,800 1,259,100
Franchise fees 527,500 300,000
Other 132,900 139,200
Total revenue 8,877,400 7,626,900
COST OF MERCHANDISE SOLD 893,900 1,207,200
LEASING EXPENSE 485,900 135,800
PROVISION FOR CREDIT LOSSES 385,100 114,500
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 5,185,800 4,879,200
Income from operations 1,926,700 1,290,200
LOSS FROM EQUITY INVESTMENTS (75,800) (54,800)
INTEREST EXPENSE (348,400) (333,000)
INTEREST AND OTHER INCOME 72,800 129,400
Income before income taxes 1,575,300 1,031,800
PROVISION FOR INCOME TAXES (638,000) (402,000)
NET INCOME $937,300 $629,800
EARNINGS PER SHARE - BASIC $.17 $.11
EARNINGS PER SHARE - DILUTED $.17 $.11
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 5,500,833 5,584,731
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 5,534,645 5,716,521
SOURCE Winmark Corporation
