-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, ClZpYuAnDixiIoFZtHsJvEa9Sx6r2G2qksmR82JG6pzAGCkhFir8FSWMOXnK1IEY cHwR+SABJ57QXNAaSxiV/g== 0001104659-06-067564.txt : 20061019 0001104659-06-067564.hdr.sgml : 20061019 20061019171148 ACCESSION NUMBER: 0001104659-06-067564 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20061019 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061019 DATE AS OF CHANGE: 20061019 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WINMARK CORP CENTRAL INDEX KEY: 0000908315 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-MISCELLANEOUS RETAIL [5900] IRS NUMBER: 411622691 STATE OF INCORPORATION: MN FISCAL YEAR END: 1226 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-22012 FILM NUMBER: 061153874 BUSINESS ADDRESS: STREET 1: 4200 DAHLBERG DRIVE CITY: GOLDEN VALLEY STATE: MN ZIP: 55422-4837 BUSINESS PHONE: 6125208500 FORMER COMPANY: FORMER CONFORMED NAME: GROW BIZ INTERNATIONAL INC DATE OF NAME CHANGE: 19930629 8-K 1 a06-22356_18k.htm CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES

 

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported):  October 19, 2006

Winmark Corporation
(Exact Name of Registrant as Specified in Its Charter)

Minnesota
(State or Other Jurisdiction of Incorporation)

000-22012

 

41-1622691

(Commission File Number)

 

(I.R.S. Employer Identification Number)

 

4200 Dahlberg Drive, Suite 100 Golden Valley, MN 55422-4837
(Address of Principal Executive Offices)  (Zip Code)

(612) 520-8500
(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 




Item 2.02.               Results of Operations and Financial Conditions

On October 19, 2006, the Company announced in a press release its results of operations and financial condition for the third quarter ended September 30, 2006.  A copy of the press release is attached as Exhibit 99.1 of this Current Report on Form 8-K.

Item 9.01.               Financial Statements, Pro Forma Financial Information and Exhibits.

(c)           Exhibits

99.1                           Press Release dated October 19, 2006




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

WINMARK CORPORATION

 

 

 

 

 

 

 

WINMARK CORPORATION

 

 

 

Date: October 19, 2006

 

By:

/s/ Catherine P. Heaven

 

 

 

Catherine P. Heaven

 

 

 

General Counsel

 




EXHIBIT INDEX

to

Form 8-K

Winmark Corporation

 

Exhibit Number

 

 

Exhibit Description

99.1

 

Press Release dated October 19, 2006

 

 



EX-99.1 2 a06-22356_1ex99d1.htm EX-99

Exhibit 99.1

 

Contact:

John L. Morgan

 

 

763/520-8500

 

 

FOR IMMEDIATE RELEASE

WINMARK CORPORATION ANNOUNCES THIRD QUARTER RESULTS

Minneapolis, MN (October 19, 2006)  —  Winmark Corporation (Nasdaq: WINA) today reported net income for the third quarter ended September 30, 2006 of $838,200, or $.14 per share diluted, compared to net income of $926,100, or $.14 per share diluted, in the third quarter of 2005.

For the nine months ended September 30, 2006, net income was $2,601,900, or $.43 per share diluted, compared to net income of $2,168,600, or $.34 per share diluted, for the same period last year.

John L. Morgan, Chairman and Chief Executive Officer, stated, “During the third quarter, our franchising business performed very well.  Our biggest challenge continues to be growing leased assets in Winmark Capital and Wirth Business Credit.”

Winmark Corporation provides financial services and develops franchises for retail stores that buy, sell, trade and consign used and new merchandise.  At September 30, 2006, there were 829 franchises in operation under the Company’s brands and an additional 49 franchises awarded but not open.  Of the franchises in operation, there were 393 Play It Again Sports®, 210 Once Upon A Child®, 176 Plato’s Closet®, 41 Music Go Round® and 9 Wirth Business Credit®.  In addition, at September 30, 2006, the Company had an equipment leasing portfolio equal to $15.4 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)

 

 

September 30, 2006

 

December 31, 2005

 

ASSETS

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

1,301,800

 

$

2,947,700

 

Receivables, less allowance for doubtful accounts of $46,500 and $188,700

 

2,331,800

 

1,836,300

 

Investment in direct finance leases

 

4,548,400

 

1,478,200

 

Income tax receivable

 

93,500

 

620,500

 

Inventories

 

84,700

 

67,000

 

Prepaid expenses and other

 

1,475,400

 

804,000

 

Deferred income taxes

 

776,800

 

776,800

 

Total current assets

 

10,612,400

 

8,530,500

 

Long-term investment in leasing operations

 

10,881,000

 

5,492,400

 

Long-term investments

 

11,500,000

 

11,000,000

 

Long-term receivables, net

 

76,600

 

94,300

 

Property and equipment, net

 

546,400

 

448,600

 

Other assets, net

 

607,500

 

607,500

 

Deferred income taxes

 

375,400

 

375,400

 

 

 

$

34,599,300

 

$

26,548,700

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Current renewable subordinated notes

 

$

3,294,300

 

$

 

Accounts payable

 

868,300

 

1,156,400

 

Accrued liabilities

 

1,869,300

 

1,435,900

 

Current discounted lease rentals

 

154,500

 

147,600

 

Rents received in advance

 

373,900

 

167,600

 

Current deferred revenue

 

976,600

 

829,100

 

Total current liabilities

 

7,536,900

 

3,736,600

 

 

 

 

 

 

 

Long-term renewable subordinated notes

 

12,046,500

 

-

 

Long-term discounted lease rentals

 

81,400

 

185,600

 

Long-term deferred revenue

 

412,900

 

339,600

 

Shareholders’ Equity:

 

 

 

 

 

Common stock, no par, 10,000,000 shares authorized, 5,632,042 and 6,049,037 shares issued and outstanding

 

136,000

 

3,840,500

 

Retained earnings

 

14,385,600

 

18,446,400

 

 

 

 

 

 

 

Total shareholders’ equity

 

14,521,600

 

22,286,900

 

 

 

$

34,599,300

 

$

26,548,700

 

 




 

WINMARK CORPORATION
CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

Quarter Ended

 

Nine Months Ended

 

 

 

September 30,
2006

 

September 24
2005

 

September 30,
2006

 

September 24,
2005

 

REVENUE:

 

 

 

 

 

 

 

 

 

Royalties

 

$

4,800,000

 

$

4,230,300

 

$

14,320,500

 

$

12,953,400

 

Merchandise sales

 

1,452,600

 

1,446,100

 

3,533,300

 

5,393,700

 

Franchise fees

 

305,000

 

330,000

 

980,700

 

745,000

 

Leasing income

 

523,100

 

119,500

 

1,209,800

 

273,800

 

Other

 

158,900

 

163,800

 

441,900

 

432,300

 

Total revenue

 

7,239,600

 

6,289,700

 

20,486,200

 

19,798,200

 

COST OF MERCHANDISE SOLD

 

1,381,900

 

1,144,900

 

3,378,600

 

4,465,200

 

LEASING EXPENSE

 

84,500

 

600

 

131,200

 

600

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

4,206,300

 

3,645,700

 

12,934,600

 

11,678,100

 

Income from operations

 

1,566,900

 

1,498,500

 

4,041,800

 

3,654,300

 

LOSS FROM EQUITY INVESTMENTS

 

-

 

(5,500

)

-

 

(188,800

)

GAIN ON SALE OF INVESTMENTS

 

-

 

-

 

-

 

17,400

 

INTEREST EXPENSE

 

(307,900

)

-

 

(429,300

)

-

 

INTEREST AND OTHER INCOME

 

145,300

 

90,100

 

746,600

 

224,100

 

Income before income taxes

 

1,404,300

 

1,583,100

 

4,359,100

 

3,707,000

 

PROVISION FOR INCOME TAXES

 

(566,100

)

(657,000

)

(1,757,200

)

(1,538,400

)

NET INCOME

 

$

838,200

 

$

926,100

 

$

2,601,900

 

$

2,168,600

 

EARNINGS PER SHARE — BASIC

 

$

.15

 

$

.15

 

$

.45

 

$

.36

 

WEIGHTED AVERAGE SHARES OUTSTANDING — BASIC

 

5,632,042

 

6,012,463

 

5,841,047

 

6,024,700

 

EARNINGS PER SHARE — DILUTED

 

$

.14

 

$

.14

 

$

.43

 

$

.34

 

WEIGHTED AVERAGE SHARES OUTSTANDING — DILUTED

 

5,853,968

 

6,424,990

 

6,056,690

 

6,452,359

 

 

 



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