Exhibit 99.1

 

Picture 1

 

 

Contact:Brett D. Heffes 

763/520-8500

 

FOR IMMEDIATE RELEASE

 

WINMARK CORPORATION ANNOUNCES 

FIRST QUARTER RESULTS

 

Minneapolis, MN (April 14, 2020) 

 Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended March 28, 2020 of $7,317,000 or $1.87 per share diluted compared to net income of $7,272,200 or $1.73 per share diluted in 2019.  

 

First quarter earnings were positively impacted by an increase in customer activity in the Company’s lease portfolio.  Despite a lower portfolio size, the Company’s leasing income net of leasing expense was comparable to the first quarter of 2019.  Earnings also benefited from a lower level of selling, general and administrative expenses in the first quarter of approximately $1.2 million when compared to the first quarter of 2019.  These items were partially offset by additional provision for credit losses in the Company’s lease portfolio to reflect the estimated impact of the COVID-19 pandemic, as well as lower royalty revenues when compared to the first quarter of 2019.

 

“Following a strong start to the year, during the last three weeks of the quarter our franchising performance was negatively impacted by the COVID-19 pandemic.  This led to a substantial number of temporary store closings and greatly reduced customer traffic for our franchised locations that were still operational during the quarter,” stated Brett D. Heffes, Chairman and Chief Executive Officer.  “I want to express my sincere gratitude and thank you to our employees who are managing through this crisis in an exceptional manner.  I applaud your work ethic, passion for Winmark and your commitment to continue to support both our franchisees and leasing customers during this unprecedented period of time.”

 

“While our franchisees’ operations have been negatively impacted and our visibility is limited, we are still experiencing modest levels of royalties due to the ingenuity, resiliency and perseverance of our franchise partners.  We are inspired daily by our franchisees and the efforts they are undertaking to continue to serve the communities in which we operate.”

 

Winmark Corporation creates, supports and finances business. At March 28, 2020, there were 1,256 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 42 retail franchises have been awarded but are not open.

 

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, 2020

    

December 28, 2019

ASSETS

Current Assets:

 

 

    

 

 

 

 Cash and cash equivalents

 

$

28,347,000

 

$

25,130,300

 Restricted cash

 

 

50,000

 

 

50,000

 Receivables, net

 

 

980,500

 

 

1,669,500

 Net investment in leases - current

 

 

12,422,200

 

 

12,800,100

 Income tax receivable

 

 

 —

 

 

497,900

 Inventories

 

 

105,200

 

 

86,000

 Prepaid expenses

 

 

1,221,900

 

 

968,100

     Total current assets

 

 

43,126,800

 

 

41,201,900

 

 

 

 

 

 

 

 Net investment in leases – long-term

 

 

8,921,700

 

 

12,505,500

 Property and equipment, net

 

 

2,680,700

 

 

2,772,600

 Operating lease right of use asset

 

 

3,403,100

 

 

3,595,200

 Goodwill

 

 

607,500

 

 

607,500

 Other assets

 

 

496,100

 

 

492,500

 Deferred income taxes

 

 

655,900

 

 

667,000

 

 

$

59,891,800

 

$

61,842,200

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)

Current Liabilities:

 

 

 

 

 

 

 Notes payable, net

 

$

3,986,100

 

$

3,736,100

 Accounts payable

 

 

1,071,200

 

 

1,015,000

 Income tax payable

 

 

1,635,600

 

 

 —

 Accrued liabilities

 

 

2,342,000

 

 

2,783,100

 Discounted lease rentals

 

 

2,436,300

 

 

2,680,700

 Deferred revenue

 

 

1,714,400

 

 

1,717,000

     Total current liabilities

 

 

13,185,600

 

 

11,931,900

Long-Term Liabilities:

 

 

 

 

 

 

 Line of Credit

 

 

40,000,000

 

 

 —

 Notes payable, net

 

 

20,809,700

 

 

21,868,800

 Discounted lease rentals

 

 

1,341,400

 

 

836,900

 Deferred revenue

 

 

7,765,600

 

 

7,858,500

 Operating lease liabilities

 

 

5,625,100

 

 

5,846,100

 Other liabilities

 

 

1,012,600

 

 

1,051,700

     Total long-term liabilities

 

 

76,554,400

 

 

37,462,000

Shareholders’ Equity (Deficit):

 

 

 

 

 

 

Common stock, no par, 10,000,000 shares authorized,
3,650,753 and 3,947,858 shares issued and outstanding

 

 

 —

 

 

11,929,300

 Retained earnings (accumulated deficit)

 

 

(29,848,200)

 

 

519,000

     Total shareholders’ equity (deficit)

 

 

(29,848,200)

 

 

12,448,300

 

 

$

59,891,800

 

$

61,842,200

 

 

 

Winmark Corporation

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 28, 2020

 

March 30, 2019

 

Revenue:

    

 

 

    

 

 

    

 Royalties

 

$

11,172,500

 

$

11,761,400

 

 Leasing income

 

 

5,871,200

 

 

5,155,300

 

 Merchandise sales

 

 

754,100

 

 

611,000

 

 Franchise fees

 

 

387,400

 

 

391,800

 

 Other

 

 

414,800

 

 

411,700

 

              Total revenue

 

 

18,600,000

 

 

18,331,200

 

Cost of merchandise sold

 

 

717,700

 

 

571,500

 

Leasing expense

 

 

1,416,200

 

 

698,700

 

Provision for credit losses

 

 

615,400

 

 

10,100

 

Selling, general and administrative expenses

 

 

5,748,900

 

 

6,984,400

 

              Income from operations

 

 

10,101,800

 

 

10,066,500

 

Interest expense

 

 

(525,200)

 

 

(442,200)

 

Interest and other income (expense)

 

 

5,900

 

 

(300)

 

              Income before income taxes

 

 

9,582,500

 

 

9,624,000

 

Provision for income taxes

 

 

(2,265,500)

 

 

(2,351,800)

 

Net income

 

$

7,317,000

 

$

7,272,200

 

Earnings per share - basic

 

$

1.97

 

$

1.86

 

Earnings per share - diluted

 

$

1.87

 

$

1.73

 

Weighted average shares outstanding - basic

 

 

3,711,597

 

 

3,906,895

 

Weighted average shares outstanding - diluted

 

 

3,911,751

 

 

4,198,454

 

 

 

 


The following information was filed by Winmark Corp (WINA) on Tuesday, April 14, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one quarter 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 10-Q Quarterly Report 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