Exhibit 99.1

 

Picture 1

 

 

 

 

 

Contact:Brett D. Heffes 

763/520-8500

 

 

 

 

FOR IMMEDIATE RELEASE

 

WINMARK CORPORATION ANNOUNCES

THIRD QUARTER RESULTS

 

Minneapolis, MN (October 17, 2018)   Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended September 29, 2018 of $8,364,300 (or $2.01 per share diluted)  compared to net income of $5,860,600 (or $1.36 per share diluted) in the third quarter of 2017.  For the nine months ended September 29, 2018, net income was $22,467,700 (or $5.43 per share diluted) compared to net income of $16,942,100 (or $3.84 per share diluted) for the same period last year.

 

Brett D. Heffes, Chief Executive Officer, commented, “Earnings growth during the third quarter reflected a continuation of the strong operating performance of our businesses throughout the year.”

 

Winmark Corporation creates, supports and finances business.  At September 29, 2018, there were 1,236 franchises in operation under the brands Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® and Music Go Round®.  An additional 51 retail franchises have been awarded but are not open.  In addition, at September 29, 2018, the Company had a lease portfolio of  $44.5 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.  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)

 

 

 

 

 

 

 

 

 

    

September 29, 2018

    

December 30, 2017  (1)

ASSETS

Current Assets:

 

 

    

 

 

 

 Cash and cash equivalents

 

$

1,187,200

 

$

1,073,200

 Restricted cash

 

 

55,000

 

 

90,000

 Receivables, net

 

 

1,756,900

 

 

1,796,000

 Net investment in leases - current

 

 

17,568,700

 

 

15,332,300

 Income tax receivable

 

 

 —

 

 

2,161,800

 Inventories

 

 

128,200

 

 

97,100

 Prepaid expenses

 

 

1,075,400

 

 

901,600

     Total current assets

 

 

21,771,400

 

 

21,452,000

 

 

 

 

 

 

 

 Net investment in leases – long-term

 

 

26,949,600

 

 

25,945,300

 Property and equipment, net

 

 

725,500

 

 

486,800

 Goodwill

 

 

607,500

 

 

607,500

 Other assets

 

 

440,500

 

 

350,400

 

 

$

50,494,500

 

$

48,842,000

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)

Current Liabilities:

 

 

 

 

 

 

 Notes payable, net

 

$

3,236,100

 

$

3,236,100

 Accounts payable

 

 

1,445,000

 

 

2,073,000

 Income tax payable

 

 

902,800

 

 

 —

 Accrued liabilities

 

 

3,273,000

 

 

1,837,300

 Discounted lease rentals

 

 

2,555,600

 

 

570,800

 Deferred revenue

 

 

2,887,200

 

 

3,012,700

     Total current liabilities

 

 

14,299,700

 

 

10,729,900

 

 

 

 

 

 

 

Long-Term Liabilities:

 

 

 

 

 

 

 Line of credit

 

 

10,100,000

 

 

35,400,000

 Notes payable, net

 

 

26,413,900

 

 

28,841,000

 Discounted lease rentals

 

 

2,364,600

 

 

1,121,600

 Deferred revenue

 

 

7,387,300

 

 

7,297,500

 Other liabilities

 

 

1,211,900

 

 

845,000

 Deferred income taxes

 

 

425,800

 

 

320,500

     Total long-term liabilities

 

 

47,903,500

 

 

73,825,600

 

 

 

 

 

 

 

Shareholders’ Equity (Deficit):

 

 

 

 

 

 

Common stock, no par, 10,000,000 shares authorized,
3,901,202 and 3,843,078 shares issued and outstanding

 

 

4,597,400

 

 

1,476,200

 Retained earnings (accumulated deficit)

 

 

(16,306,100)

 

 

(37,189,700)

 

 

 

 

 

 

 

     Total shareholders’ equity (deficit)

 

 

(11,708,700)

 

 

(35,713,500)

 

 

$

50,494,500

 

$

48,842,000

 

(1)

Adjusted for the adoption of ASU 2014-09 under the retrospective method.

 

 


 

Winmark Corporation

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Nine Months Ended

 

 

 

Sept. 29, 2018

 

Sept. 30, 2017 (1)

 

Sept. 29, 2018

 

Sept. 30, 2017 (1)

 

REVENUE:

    

 

 

    

 

 

    

 

 

    

 

 

    

 Royalties

 

$

12,865,900

 

$

12,316,700

 

$

35,735,900

 

$

33,865,100

 

 Leasing income

 

 

4,608,600

 

 

3,915,800

 

 

14,994,500

 

 

13,722,000

 

 Merchandise sales

 

 

858,400

 

 

773,100

 

 

2,340,200

 

 

2,058,500

 

 Franchise fees

 

 

383,300

 

 

342,900

 

 

1,162,300

 

 

1,180,300

 

 Other

 

 

402,300

 

 

382,400

 

 

1,206,400

 

 

1,145,600

 

              Total revenue

 

 

19,118,500

 

 

17,730,900

 

 

55,439,300

 

 

51,971,500

 

COST OF MERCHANDISE SOLD

 

 

811,500

 

 

728,300

 

 

2,235,000

 

 

1,942,400

 

LEASING EXPENSE

 

 

718,500

 

 

792,000

 

 

1,769,200

 

 

2,724,000

 

PROVISION FOR CREDIT LOSSES

 

 

(55,600)

 

 

(13,300)

 

 

148,400

 

 

(26,200)

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

6,208,800

 

 

6,184,400

 

 

19,702,500

 

 

19,165,300

 

              Income from operations

 

 

11,435,300

 

 

10,039,500

 

 

31,584,200

 

 

28,166,000

 

INTEREST EXPENSE

 

 

(576,900)

 

 

(613,900)

 

 

(1,978,600)

 

 

(1,559,300)

 

INTEREST AND OTHER INCOME (EXPENSE)

 

 

(1,000)

 

 

28,000

 

 

(13,300)

 

 

29,900

 

              Income before income taxes

 

 

10,857,400

 

 

9,453,600

 

 

29,592,300

 

 

26,636,600

 

PROVISION FOR INCOME TAXES

 

 

(2,493,100)

 

 

(3,593,000)

 

 

(7,124,600)

 

 

(9,694,500)

 

NET INCOME

 

$

8,364,300

 

$

5,860,600

 

$

22,467,700

 

$

16,942,100

 

EARNINGS PER SHARE – BASIC

 

$

2.15

 

$

1.46

 

$

5.81

 

$

4.10

 

EARNINGS PER SHARE – DILUTED

 

$

2.01

 

$

1.36

 

$

5.43

 

$

3.84

 

WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC

 

 

3,886,473

 

 

4,024,692

 

 

3,864,077

 

 

4,131,269

 

WEIGHTED AVERAGE SHARES OUTSTANDING – DILUTED

 

 

4,164,339

 

 

4,314,412

 

 

4,140,816

 

 

4,416,185

 

 

(1)Adjusted for the adoption of ASU 2014-09 under the retrospective method.

 


View differences made from one to another to evaluate Winmark Corp's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Winmark Corp.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account