Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 27, 2021 | Apr. 16, 2021 | |
Document and Entity Information | ||
Entity Registrant Name | WINMARK CORPORATION | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 27, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-22012 | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 41-1622691 | |
Entity Address, Address Line One | 605 Highway 169 North, Suite 400 | |
Entity Address, City or Town | Minneapolis | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55441 | |
City Area Code | 763 | |
Local Phone Number | 520-8500 | |
Title of 12(b) Security | Common Stock, no par value per share | |
Trading Symbol | WINA | |
Security Exchange Name | NASDAQ | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,701,807 | |
Current Fiscal Year End Date | --12-25 | |
Entity Central Index Key | 0000908315 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) | Mar. 27, 2021 | Dec. 26, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 7,959,900 | $ 6,659,000 |
Restricted cash | 25,000 | 25,000 |
Receivables, less allowance for doubtful accounts of $1,400 and $800 | 2,096,900 | 1,581,900 |
Net investment in leases - current | 8,156,900 | 8,687,500 |
Income tax receivable | 221,200 | |
Inventories | 110,200 | 106,600 |
Prepaid expenses | 839,900 | 995,200 |
Total current assets | 19,188,800 | 18,276,400 |
Net investment in leases - long-term | 2,706,900 | 4,573,600 |
Property and equipment, net | 2,253,300 | 2,332,800 |
Operating lease right of use asset | 3,172,100 | 3,226,300 |
Goodwill | 607,500 | 607,500 |
Other assets | 438,500 | 435,900 |
Deferred income taxes | 2,330,600 | 1,890,700 |
Total assets | 30,697,700 | 31,343,200 |
Current Liabilities: | ||
Notes payable, net of unamortized debt issuance costs of $13,900 and $13,900 | 4,236,100 | 4,236,100 |
Accounts payable | 1,399,300 | 1,769,600 |
Income tax payable | 3,159,200 | |
Accrued liabilities | 2,223,500 | 2,624,000 |
Discounted lease rentals | 959,200 | 1,096,600 |
Deferred revenue | 1,647,700 | 1,657,400 |
Total current liabilities | 13,625,000 | 11,383,700 |
Long-term Liabilities: | ||
Notes payable, net of unamortized debt issuance costs of $51,400 and $54,800 | 16,573,600 | 17,632,700 |
Discounted lease rentals | 382,200 | 574,000 |
Deferred revenue | 6,975,700 | 7,050,900 |
Operating lease liabilities | 5,176,900 | 5,307,400 |
Other liabilities | 768,500 | 773,200 |
Total long-term liabilities | 29,876,900 | 31,338,200 |
Shareholders' Equity (Deficit): | ||
Common stock, no par value, 10,000,000 shares authorized, 3,700,723 and 3,756,028 shares issued and outstanding | 9,281,800 | |
Retained earnings (accumulated deficit) | (12,804,200) | (20,660,500) |
Total shareholders' equity (deficit) | (12,804,200) | (11,378,700) |
Total liabilities and shareholders' equity (deficit) | $ 30,697,700 | $ 31,343,200 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 27, 2021 | Dec. 26, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Receivables, allowance for doubtful accounts | $ 1,400 | $ 800 |
Unamortized debt issuance costs - Current | 13,900 | 13,900 |
Unamortized debt issuance costs - Noncurrent | $ 51,400 | $ 54,800 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 3,700,723 | 3,756,028 |
Common stock, shares outstanding | 3,700,723 | 3,756,028 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Revenue: | ||
Leasing income | $ 3,237,000 | $ 5,871,200 |
Total revenue | 18,658,900 | 18,600,000 |
Leasing expense | 389,500 | 1,416,200 |
Provision for credit losses | (48,700) | 615,400 |
Selling, general and administrative expenses | 5,102,300 | 5,748,900 |
Income from operations | 12,657,000 | 10,101,800 |
Interest expense | (318,100) | (525,200) |
Interest and other income | 6,800 | 5,900 |
Income before income taxes | 12,345,700 | 9,582,500 |
Provision for income taxes | (3,034,600) | (2,265,500) |
Net income | $ 9,311,100 | $ 7,317,000 |
Earnings per share - basic (in dollars per share) | $ 2.49 | $ 1.97 |
Earnings per share - diluted (in dollars per share) | $ 2.40 | $ 1.87 |
Weighted average shares outstanding - basic | 3,736,676 | 3,711,597 |
Weighted average shares outstanding - diluted | 3,874,227 | 3,911,751 |
Royalties | ||
Revenue: | ||
Revenue | $ 14,048,800 | $ 11,172,500 |
Merchandise sales | ||
Revenue: | ||
Revenue | 592,400 | 754,100 |
Cost of merchandise sold | 558,800 | 717,700 |
Franchise fees | ||
Revenue: | ||
Revenue | 359,000 | 387,400 |
Other | ||
Revenue: | ||
Revenue | $ 421,700 | $ 414,800 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) - USD ($) | Common Stock | Retained Earnings (Accumulated Deficit). | Total |
BALANCE at Dec. 28, 2019 | $ 11,929,300 | $ 519,000 | $ 12,448,300 |
BALANCE (in shares) at Dec. 28, 2019 | 3,947,858 | ||
Shareholders' Equity (Deficit) | |||
Repurchase of common stock | $ (12,215,500) | (36,772,000) | (48,987,500) |
Repurchase of common stock (in shares) | (300,000) | ||
Stock options exercised | $ 145,900 | 145,900 | |
Stock options exercised (in shares) | 2,895 | ||
Compensation expense relating to stock options | $ 140,300 | 140,300 | |
Cash dividends | (912,200) | (912,200) | |
Comprehensive income (Net income) | 7,317,000 | 7,317,000 | |
BALANCE at Mar. 28, 2020 | (29,848,200) | (29,848,200) | |
BALANCE (in shares) at Mar. 28, 2020 | 3,650,753 | ||
BALANCE at Dec. 26, 2020 | $ 9,281,800 | (20,660,500) | $ (11,378,700) |
BALANCE (in shares) at Dec. 26, 2020 | 3,756,028 | 3,756,028 | |
Shareholders' Equity (Deficit) | |||
Repurchase of common stock | $ (9,935,800) | (519,400) | $ (10,455,200) |
Repurchase of common stock (in shares) | (58,255) | ||
Stock options exercised | $ 268,800 | 268,800 | |
Stock options exercised (in shares) | 2,950 | ||
Compensation expense relating to stock options | $ 385,200 | 385,200 | |
Cash dividends | (935,400) | (935,400) | |
Comprehensive income (Net income) | 9,311,100 | 9,311,100 | |
BALANCE at Mar. 27, 2021 | $ (12,804,200) | $ (12,804,200) | |
BALANCE (in shares) at Mar. 27, 2021 | 3,700,723 | 3,700,723 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
OPERATING ACTIVITIES: | ||
Net Income | $ 9,311,100 | $ 7,317,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 113,800 | 123,100 |
Provisions charged to expense | (48,700) | 615,400 |
Compensation expense related to stock options | 385,200 | 140,300 |
Deferred income taxes | (439,900) | 11,100 |
Deferred initial direct costs | (1,500) | (8,500) |
Amortization of deferred initial direct costs | 10,500 | 37,200 |
Operating lease right of use asset amortization | 54,200 | 192,100 |
Tax benefits on exercised stock options | 47,100 | 87,000 |
Change in operating assets and liabilities: | ||
Receivables | (515,000) | 689,000 |
Principal collections on lease receivables | 2,268,700 | 4,988,400 |
Income tax receivable/payable | 3,333,300 | 2,046,500 |
Inventories | (3,600) | (19,200) |
Prepaid expenses | 155,300 | (253,800) |
Other assets | (2,600) | (3,600) |
Accounts payable | (370,300) | 56,200 |
Accrued and other liabilities | (532,300) | (674,200) |
Rents received in advance and security deposits | (95,400) | (885,300) |
Deferred revenue | (84,900) | (95,500) |
Net cash provided by operating activities | 13,585,000 | 14,363,200 |
INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (34,300) | (31,200) |
Purchase of equipment for lease contracts | (65,500) | (1,706,000) |
Net cash used for investing activities | (99,800) | (1,737,200) |
FINANCING ACTIVITIES: | ||
Proceeds from borrowings on line of credit | 45,700,000 | |
Payments on line of credit | (5,700,000) | |
Payments on notes payable | (1,062,500) | (812,500) |
Repurchases of common stock | (10,455,200) | (48,987,500) |
Proceeds from exercises of stock options | 268,800 | 145,900 |
Dividends paid | (935,400) | (912,200) |
Proceeds from discounted lease rentals | 1,157,000 | |
Net cash used for financing activities | (12,184,300) | (9,409,300) |
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 1,300,900 | 3,216,700 |
Cash, cash equivalents and restricted cash, beginning of period | 6,684,000 | 25,180,300 |
Cash, cash equivalents and restricted cash, end of period | $ 7,984,900 | $ 28,397,000 |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - Supplemental Disclosures - USD ($) | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
SUPPLEMENTAL DISCLOSURES: | ||
Cash paid for interest | $ 309,200 | $ 460,600 |
Cash paid for income taxes | 94,100 | 120,900 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | 7,959,900 | 28,347,000 |
Restricted cash | 25,000 | 50,000 |
Total cash, cash equivalents and restricted cash | $ 7,984,900 | $ 28,397,000 |
Management's Interim Financial
Management's Interim Financial Statement Representation: | 3 Months Ended |
Mar. 27, 2021 | |
Management's Interim Financial Statement Representation: | |
Management's Interim Financial Statement Representation: | WINMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS 1. Management’s Interim Financial Statement Representation: The accompanying consolidated condensed financial statements have been prepared by Winmark Corporation and subsidiaries (the Company), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The Company has a 52/53 week year which ends on the last Saturday in December. The information in the consolidated condensed financial statements includes normal recurring adjustments and reflects all adjustments which are, in the opinion of management, necessary for a fair presentation of such financial statements. The consolidated condensed financial statements and notes are presented in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions for Form 10-Q, and therefore do not contain certain information included in the Company’s annual consolidated financial statements and notes. This report should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s latest Annual Report on Form 10-K. Revenues and operating results for the three months ended March 27, 2021 are not necessarily indicative of the results to be expected for the full year. Reclassifications Certain reclassifications of previously reported amounts have been made to conform to the current year presentation. Such reclassifications did not impact net income or shareholders’ equity (deficit) as previously reported. |
Organization and Business_
Organization and Business: | 3 Months Ended |
Mar. 27, 2021 | |
Organization and Business: | |
Organization and Business: | 2. Organization and Business: The Company offers licenses to operate franchises using the service marks Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® and Music Go Round®. The Company also operates a middle market equipment leasing business under the Winmark Capital® mark. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements: | 3 Months Ended |
Mar. 27, 2021 | |
Recent Accounting Pronouncements: | |
Recent Accounting Pronouncements: | 3. Recent Accounting Pronouncements: Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments , which changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. This guidance was to be effective for reporting periods beginning after December 15, 2019, with early adoption permitted. In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Effective Dates, |
Contract Liabilities_
Contract Liabilities: | 3 Months Ended |
Mar. 27, 2021 | |
Contract Liabilities: | |
Contract Liabilities: | 4. Contract Liabilities: The Company’s contract liabilities for its franchise revenues consist of deferred revenue associated with franchise fees and software license fees. The table below presents the activity of the current and noncurrent deferred franchise revenue during the first three months of 2021 and 2020, respectively: March 27, 2021 March 28, 2020 Balance at beginning of period $ 8,708,300 $ 9,575,500 Franchise and software license fees collected from franchisees, excluding amount earned as revenue during the period 355,700 372,500 Fees earned that were included in the balance at the beginning of the period (440,600) (468,000) Balance at end of period $ 8,623,400 $ 9,480,000 The following table illustrates future estimated revenue to be recognized for the remainder of 2021 and full fiscal years thereafter related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 27, 2021. Contract Liabilities expected to be recognized in Amount 2021 $ 1,220,200 2022 1,537,400 2023 1,366,200 2024 1,168,400 2025 952,100 Thereafter 2,379,100 $ 8,623,400 |
Fair Value Measurements_
Fair Value Measurements: | 3 Months Ended |
Mar. 27, 2021 | |
Fair Value Measurements: | |
Fair Value Measurements: | 5. Fair Value Measurements: The Company defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company uses three levels of inputs to measure fair value: ● Level 1 – quoted prices in active markets for identical assets and liabilities. ● Level 2 – observable inputs other than quoted prices in active markets for identical assets and liabilities. ● Level 3 – unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions. Due to their nature, the carrying value of cash equivalents, receivables, payables and debt obligations approximates fair value. |
Investment in Leasing Operation
Investment in Leasing Operations: | 3 Months Ended |
Mar. 27, 2021 | |
Investment in Leasing Operations: | |
Investment in Leasing Operations: | 6. Investment in Leasing Operations: Investment in leasing operations consists of the following: March 27, 2021 December 26, 2020 Direct financing and sales-type leases: Minimum lease payments receivable $ 11,257,700 $ 12,536,300 Estimated unguaranteed residual value of equipment 2,505,200 2,950,100 Unearned lease income, net of initial direct costs deferred (1,152,500) (1,439,500) Security deposits (2,073,600) (2,169,000) Equipment installed on leases not yet commenced 457,200 1,634,400 Total investment in direct financing and sales-type leases 10,994,000 13,512,300 Allowance for credit losses (221,500) (270,200) Net investment in direct financing and sales-type leases 10,772,500 13,242,100 Operating leases: Operating lease assets 593,800 599,100 Less accumulated depreciation and amortization (502,500) (580,100) Net investment in operating leases 91,300 19,000 Total net investment in leasing operations $ 10,863,800 $ 13,261,100 As of March 27, 2021, the $10.9 million total net investment in leases consists of $8.2 million classified as current and $2.7 million classified as long-term. As of December 26, 2020, the $13.3 million total net investment in leases consists of $8.7 million classified as current and $4.6 million classified as long-term. As of March 27, 2021, there were no customers with leased assets greater than 10% of the Company’s total assets. Future minimum lease payments receivable under lease contracts and the amortization of unearned lease income, net of initial direct costs deferred, is as follows for the remainder of fiscal 2021 and the full fiscal years thereafter as of March 27, 2021: Direct Financing and Sales-Type Leases Minimum Lease Income Fiscal Year Payments Receivable Amortization 2021 $ 7,899,800 $ 918,900 2022 3,228,700 226,400 2023 129,200 7,200 $ 11,257,700 $ 1,152,500 The activity in the allowance for credit losses for leasing operations during the first three months of 2021 and 2020, respectively, is as follows: March 27, 2021 March 28, 2020 Balance at beginning of period $ 270,200 $ 580,600 Provisions charged to expense (48,700) 615,400 Recoveries — 1,500 Deductions for amounts written-off — — Balance at end of period $ 221,500 $ 1,197,500 The Company’s investment in direct financing and sales-type leases (“Investment In Leases”) and allowance for credit losses by loss evaluation methodology are as follows: March 27, 2021 December 26, 2020 Investment Allowance for Investment Allowance for In Leases Credit Losses In Leases Credit Losses Collectively evaluated for loss potential $ 10,994,000 $ 221,500 $ 13,512,300 $ 270,200 Individually evaluated for loss potential — — — — Total $ 10,994,000 $ 221,500 $ 13,512,300 $ 270,200 The Company’s key credit quality indicator for its investment in direct financing and sales-type leases is the status of the lease, defined as accruing or non-accrual. Leases that are accruing income are considered to have a lower risk of loss. Non-accrual leases are those that the Company believes have a higher risk of loss. The following table sets forth information regarding the Company’s accruing and non-accrual leases. Delinquent balances are determined based on the contractual terms of the lease. March 27, 2021 0-60 Days 61-90 Days Over 90 Days Delinquent Delinquent Delinquent and and Accruing and Accruing Accruing Non-Accrual Total Total investment in leases $ 10,994,000 $ — $ — $ — $ 10,994,000 December 26, 2020 0-60 Days 61-90 Days Over 90 Days Delinquent Delinquent Delinquent and and Accruing and Accruing Accruing Non-Accrual Total Total investment in leases $ 13,512,300 $ — $ — $ — $ 13,512,300 The Company leases high-technology and other business-essential equipment to its leasing customers. Upon expiration of the initial term or extended lease term, depending on the structure of the lease, the customer may return the equipment, renew the lease for an additional term, or purchase the equipment. Due to the uncertainty of such outcome at the end of the lease term, the lease as recorded at commencement represents only the current terms of the agreement. As a lessor, the Company’s leases do not contain non-lease components. The residual values reflect the estimated amounts to be received at lease termination from sales or other dispositions of leased equipment to unrelated parties. The leased equipment residual values are based on the Company’s best estimate. The Company’s risk management strategy for its residual value includes the contractual obligations of customers to maintain, service, and insure the leased equipment, the use of third party remarketers as well as the analytical review of historical asset dispositions. Leasing income as presented on the Consolidated Condensed Statements of Operations consists of the following: Three Months Ended Three Months Ended March 27, 2021 March 28, 2020 Interest income on direct financing and sales-type leases $ 619,700 $ 1,128,600 Selling profit (loss) at commencement of sales-type leases 1,073,700 313,200 Operating lease income 484,300 435,400 Income on sales of equipment under lease 745,600 3,261,300 Other 313,700 732,700 Leasing income $ 3,237,000 $ 5,871,200 |
Earnings Per Share_
Earnings Per Share: | 3 Months Ended |
Mar. 27, 2021 | |
Earnings Per Share: | |
Earnings Per Share: | 7. Earnings Per Share: The following table sets forth the presentation of shares outstanding used in the calculation of basic and diluted earnings per share (“EPS”): Three Months Ended March 27, 2021 March 28, 2020 Denominator for basic EPS — weighted average common shares 3,736,676 3,711,597 Dilutive shares associated with option plans 137,551 200,154 Denominator for diluted EPS — weighted average common shares and dilutive potential common shares 3,874,227 3,911,751 Options excluded from EPS calculation — anti-dilutive 6,987 2,192 |
Shareholders' Equity (Deficit)_
Shareholders' Equity (Deficit): | 3 Months Ended |
Mar. 27, 2021 | |
Shareholders' Equity (Deficit): | |
Shareholders' Equity (Deficit): | 8. Shareholders’ Equity (Deficit): Dividends On January 27, 2021, the Company’s Board of Directors approved the payment of a $0.25 per share quarterly cash dividend to shareholders of record at the close of business on February 10, 2021, which was paid on March 1, 2021. Repurchase of Common Stock In the first three months of 2021, the Company repurchased 58,255 shares of its common stock. Under the Board of Directors’ authorization, as of March 27, 2021, the Company has the ability to repurchase an additional 72,349 shares of its common stock. Repurchases may be made from time to time at prevailing prices, subject to certain restrictions on volume, pricing and timing. Stock Option Plans and Stock-Based Compensation Stock option activity under the Company’s option plans as of March 27, 2021 was as follows: Weighted Average Remaining Number of Weighted Average Contractual Life Shares Exercise Price (years) Intrinsic Value Outstanding, December 26, 2020 393,488 $ 113.19 5.61 $ 27,864,900 Granted 10,000 182.21 Exercised (2,950) 91.10 Outstanding, March 27, 2021 400,538 $ 115.08 5.47 $ 28,425,900 Exercisable, March 27, 2021 278,583 $ 94.89 4.14 $ 25,395,100 No options were granted during the three months ended March 28, 2020. The fair value of options granted under the Option Plans during the first three months of 2021 were estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions and results: Three Months Ended March 27, 2021 Risk free interest rate 0.64 % Expected life (years) 6 Expected volatility 25.05 % Dividend yield 2.77 % Option fair value $ 30.02 All unexercised options at March 27, 2021 have an exercise price equal to the fair market value on the date of the grant. Compensation expense of $385,200 and $140,300 relating to the vested portion of the fair value of stock options granted was expensed to “Selling, General and Administrative Expenses” in the first three months of 2021 and 2020, respectively. As of March 27, 2021, the Company had $2.8 million of total unrecognized compensation expense related to stock options that is expected to be recognized over the remaining weighted average vesting period of approximately 2.5 years. |
Debt_
Debt: | 3 Months Ended |
Mar. 27, 2021 | |
Debt: | |
Debt: | 9. Debt: Line of Credit As of March 27, 2021, there were no borrowings outstanding under the Company’s revolving credit facility with CIBC Bank USA (the “Line of Credit”), leaving $25.0 million available for additional borrowings. The Line of Credit has been and will continue to be used for general corporate purposes. The Line of Credit, which terminates in August 2024, is secured by a lien against substantially all of the Company’s assets, contains customary financial conditions and covenants, and requires maintenance of minimum levels of debt service coverage and tangible net worth and maximum levels of leverage (all as defined within the Line of Credit). As of March 27, 2021, the Company was in compliance with all of its financial covenants. Notes Payable As of March 27, 2021, the Company had $12.8 million in principal outstanding from the $25.0 million Series A notes issued in May 2015 and $8.1 million in principal outstanding from the $12.5 million Series B notes issued in August 2017 under its Note Agreement with Prudential Investment Management, Inc., its affiliates and managed accounts (“Prudential”). The final maturity of the Series A and Series B in full. For the Series B notes, interest at a rate of 5.10% per annum on the outstanding principal balance is payable quarterly, along with required prepayments of the principal of $312,500 quarterly until the principal is paid in full. The Series A and Series B notes may be prepaid, at the option of the Company, in whole or in part (in a minimum amount of $1.0 million), but prepayments require payment of a Yield Maintenance Amount, as defined in the Note Agreement. The Company’s obligations under the Note Agreement are secured by a lien against substantially all of the Company’s assets (as the notes rank pari passu In connection with the Note Agreement, the Company incurred debt issuance costs, of which unamortized amounts are presented as a direct deduction from the carrying amount of the related liability. |
Discounted Lease Rentals_
Discounted Lease Rentals: | 3 Months Ended |
Mar. 27, 2021 | |
Discounted Lease Rentals: | |
Discounted Lease Rentals: | 10. Discounted Lease Rentals: The Company utilized certain lease receivables and underlying equipment as collateral to borrow from financial institutions at a weighted average rate of 5.41% at March 27, 2021 on a non-recourse basis. As of March 27, 2021, $1.0 million of the $1.3 million liability balance is current. |
Operating Leases_
Operating Leases: | 3 Months Ended |
Mar. 27, 2021 | |
Operating Leases: | |
Operating Leases: | 11. Operating Leases: As of March 27, 2021, the Company leases its Minnesota corporate headquarters in a facility with an operating lease that expires in December 2029. The remaining lease term for this lease is 8.75 years and the discount rate is 5.5 %. The Company recognized $300,900 and $300,400 of rent expense for the periods ended March 27, 2021 and March 28, 2020, respectively. Maturities of operating lease liabilities is as follows for the remainder of fiscal 2021 and full fiscal years thereafter as of March 27, 2021: Operating Lease Liabilities expected to be recognized in Amount 2021 $ 544,000 2022 742,900 2023 763,300 2024 784,400 2025 806,000 Thereafter 3,452,600 Total lease payments 7,093,200 Less imputed interest (1,468,100) Present value of lease liabilities $ 5,625,100 Of the $5.6 million operating lease liability outstanding at March 27, 2021, $0.4 million is included in Accrued liabilities in the Current liabilities Supplemental cash flow information related to our operating leases is as follows for the period ended March 27, 2021: Three Months Ended March 27, 2021 March 28, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow outflow from operating leases $ 179,100 $ 174,300 |
Segment Reporting_
Segment Reporting: | 3 Months Ended |
Mar. 27, 2021 | |
Segment Reporting: | |
Segment Reporting: | 12. Segment Reporting: The Company currently has two reportable business segments, franchising and leasing. The franchising segment franchises value-oriented retail store concepts that buy, sell, trade and consign merchandise. The leasing segment includes the Company’s equipment leasing and financing business. Segment reporting is intended to give financial statement users a better view of how the Company manages and evaluates its businesses. The Company’s internal management reporting is the basis for the information disclosed for its business segments and includes allocation of shared-service costs. Segment assets are those that are directly used in or identified with segment operations, including cash, restricted cash, accounts receivable, prepaid expenses, inventory, property and equipment, investment in leasing operations and goodwill. Unallocated assets include corporate cash and cash equivalents, current and deferred tax amounts, operating lease right of use assets and other corporate assets. Inter-segment balances and transactions have been eliminated. The following tables summarize financial information by segment and provide a reconciliation of segment contribution to operating income: Three Months Ended March 27, 2021 March 28, 2020 Revenue: Franchising $ 15,421,900 $ 12,728,800 Leasing 3,237,000 5,871,200 Total revenue $ 18,658,900 $ 18,600,000 Reconciliation to operating income: Franchising segment contribution $ 10,724,500 $ 7,211,400 Leasing segment contribution 1,932,500 2,890,400 Total operating income $ 12,657,000 $ 10,101,800 Depreciation and amortization: Franchising $ 65,900 $ 72,600 Leasing 47,900 50,500 Total depreciation and amortization $ 113,800 $ 123,100 As of March 27, 2021 December 26, 2020 Identifiable assets: Franchising $ 4,728,700 $ 4,848,300 Leasing 11,814,700 14,462,600 Unallocated 14,154,300 12,032,300 Total $ 30,697,700 $ 31,343,200 |
Contract Liabilities_ (Tables)
Contract Liabilities: (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Contract Liabilities: | |
Schedule of activity of current and noncurrent deferred franchise revenue | March 27, 2021 March 28, 2020 Balance at beginning of period $ 8,708,300 $ 9,575,500 Franchise and software license fees collected from franchisees, excluding amount earned as revenue during the period 355,700 372,500 Fees earned that were included in the balance at the beginning of the period (440,600) (468,000) Balance at end of period $ 8,623,400 $ 9,480,000 |
Schedule of future estimated revenue to be recognized related to performance obligations | Contract Liabilities expected to be recognized in Amount 2021 $ 1,220,200 2022 1,537,400 2023 1,366,200 2024 1,168,400 2025 952,100 Thereafter 2,379,100 $ 8,623,400 |
Investment in Leasing Operati_2
Investment in Leasing Operations: (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Investment in Leasing Operations: | |
Schedule of investment in leasing operations | March 27, 2021 December 26, 2020 Direct financing and sales-type leases: Minimum lease payments receivable $ 11,257,700 $ 12,536,300 Estimated unguaranteed residual value of equipment 2,505,200 2,950,100 Unearned lease income, net of initial direct costs deferred (1,152,500) (1,439,500) Security deposits (2,073,600) (2,169,000) Equipment installed on leases not yet commenced 457,200 1,634,400 Total investment in direct financing and sales-type leases 10,994,000 13,512,300 Allowance for credit losses (221,500) (270,200) Net investment in direct financing and sales-type leases 10,772,500 13,242,100 Operating leases: Operating lease assets 593,800 599,100 Less accumulated depreciation and amortization (502,500) (580,100) Net investment in operating leases 91,300 19,000 Total net investment in leasing operations $ 10,863,800 $ 13,261,100 |
Schedule of future minimum lease payments receivable under lease contracts and the amortization of unearned lease income, net of initial direct costs deferred | Direct Financing and Sales-Type Leases Minimum Lease Income Fiscal Year Payments Receivable Amortization 2021 $ 7,899,800 $ 918,900 2022 3,228,700 226,400 2023 129,200 7,200 $ 11,257,700 $ 1,152,500 |
Schedule of activity in the allowance for credit losses for leasing operations | March 27, 2021 March 28, 2020 Balance at beginning of period $ 270,200 $ 580,600 Provisions charged to expense (48,700) 615,400 Recoveries — 1,500 Deductions for amounts written-off — — Balance at end of period $ 221,500 $ 1,197,500 |
Schedule of investment in direct financing and sales-type leases ("Investment in Leases") and allowance for credit losses by loss evaluation methodology | March 27, 2021 December 26, 2020 Investment Allowance for Investment Allowance for In Leases Credit Losses In Leases Credit Losses Collectively evaluated for loss potential $ 10,994,000 $ 221,500 $ 13,512,300 $ 270,200 Individually evaluated for loss potential — — — — Total $ 10,994,000 $ 221,500 $ 13,512,300 $ 270,200 |
Schedule of information regarding accruing and non-accrual leases | March 27, 2021 0-60 Days 61-90 Days Over 90 Days Delinquent Delinquent Delinquent and and Accruing and Accruing Accruing Non-Accrual Total Total investment in leases $ 10,994,000 $ — $ — $ — $ 10,994,000 December 26, 2020 0-60 Days 61-90 Days Over 90 Days Delinquent Delinquent Delinquent and and Accruing and Accruing Accruing Non-Accrual Total Total investment in leases $ 13,512,300 $ — $ — $ — $ 13,512,300 |
Schedule of components of leasing income | Three Months Ended Three Months Ended March 27, 2021 March 28, 2020 Interest income on direct financing and sales-type leases $ 619,700 $ 1,128,600 Selling profit (loss) at commencement of sales-type leases 1,073,700 313,200 Operating lease income 484,300 435,400 Income on sales of equipment under lease 745,600 3,261,300 Other 313,700 732,700 Leasing income $ 3,237,000 $ 5,871,200 |
Earnings Per Share_ (Tables)
Earnings Per Share: (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Earnings Per Share: | |
Schedule of shares outstanding used in the calculation of basic and diluted earnings per share | Three Months Ended March 27, 2021 March 28, 2020 Denominator for basic EPS — weighted average common shares 3,736,676 3,711,597 Dilutive shares associated with option plans 137,551 200,154 Denominator for diluted EPS — weighted average common shares and dilutive potential common shares 3,874,227 3,911,751 Options excluded from EPS calculation — anti-dilutive 6,987 2,192 |
Shareholders' Equity (Deficit_2
Shareholders' Equity (Deficit): (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Shareholders' Equity (Deficit): | |
Schedule of stock option activity | Weighted Average Remaining Number of Weighted Average Contractual Life Shares Exercise Price (years) Intrinsic Value Outstanding, December 26, 2020 393,488 $ 113.19 5.61 $ 27,864,900 Granted 10,000 182.21 Exercised (2,950) 91.10 Outstanding, March 27, 2021 400,538 $ 115.08 5.47 $ 28,425,900 Exercisable, March 27, 2021 278,583 $ 94.89 4.14 $ 25,395,100 |
Schedule of weighted average assumptions used in estimation of fair value of options granted | Three Months Ended March 27, 2021 Risk free interest rate 0.64 % Expected life (years) 6 Expected volatility 25.05 % Dividend yield 2.77 % Option fair value $ 30.02 |
Operating Leases_ (Tables)
Operating Leases: (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Operating Leases: | |
Schedule of maturities of operating lease liabilities | Operating Lease Liabilities expected to be recognized in Amount 2021 $ 544,000 2022 742,900 2023 763,300 2024 784,400 2025 806,000 Thereafter 3,452,600 Total lease payments 7,093,200 Less imputed interest (1,468,100) Present value of lease liabilities $ 5,625,100 |
Schedule of supplemental cash flow information related to operating leases | Three Months Ended March 27, 2021 March 28, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow outflow from operating leases $ 179,100 $ 174,300 |
Segment Reporting_ (Tables)
Segment Reporting: (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Segment Reporting: | |
Schedule of financial information by segment and reconciliation of segment contribution to operating income | Three Months Ended March 27, 2021 March 28, 2020 Revenue: Franchising $ 15,421,900 $ 12,728,800 Leasing 3,237,000 5,871,200 Total revenue $ 18,658,900 $ 18,600,000 Reconciliation to operating income: Franchising segment contribution $ 10,724,500 $ 7,211,400 Leasing segment contribution 1,932,500 2,890,400 Total operating income $ 12,657,000 $ 10,101,800 Depreciation and amortization: Franchising $ 65,900 $ 72,600 Leasing 47,900 50,500 Total depreciation and amortization $ 113,800 $ 123,100 As of March 27, 2021 December 26, 2020 Identifiable assets: Franchising $ 4,728,700 $ 4,848,300 Leasing 11,814,700 14,462,600 Unallocated 14,154,300 12,032,300 Total $ 30,697,700 $ 31,343,200 |
Management's Interim Financia_2
Management's Interim Financial Statement Representation: (Details) | 3 Months Ended |
Mar. 27, 2021item | |
Minimum | |
Number of Weeks in Fiscal Year | 52 |
Maximum | |
Number of Weeks in Fiscal Year | 53 |
Contract Liabilities_ Activity
Contract Liabilities: Activity (Details) - USD ($) | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Activity of the current and noncurrent deferred franchise revenue | ||
Balance at beginning of period | $ 8,708,300 | $ 9,575,500 |
Franchise and software license fees collected from franchisees, excluding amount earned as revenue during the period | 355,700 | 372,500 |
Fees earned that were included in the balance at the beginning of the period | (440,600) | (468,000) |
Balance at end of period | $ 8,623,400 | $ 9,480,000 |
Contract Liabilities_ Performan
Contract Liabilities: Performance Obligations (Details) | Mar. 27, 2021USD ($) |
Future estimated revenue to be recognized related to performance obligations | |
Revenue, remaining performance obligation | $ 8,623,400 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-28 | |
Future estimated revenue to be recognized related to performance obligations | |
Duration of expected recognition period for remaining performance obligation | 9 months |
Revenue, remaining performance obligation | $ 1,220,200 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-26 | |
Future estimated revenue to be recognized related to performance obligations | |
Duration of expected recognition period for remaining performance obligation | 1 year |
Revenue, remaining performance obligation | $ 1,537,400 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Future estimated revenue to be recognized related to performance obligations | |
Duration of expected recognition period for remaining performance obligation | 1 year |
Revenue, remaining performance obligation | $ 1,366,200 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-31 | |
Future estimated revenue to be recognized related to performance obligations | |
Duration of expected recognition period for remaining performance obligation | 1 year |
Revenue, remaining performance obligation | $ 1,168,400 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-29 | |
Future estimated revenue to be recognized related to performance obligations | |
Duration of expected recognition period for remaining performance obligation | 1 year |
Revenue, remaining performance obligation | $ 952,100 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-12-28 | |
Future estimated revenue to be recognized related to performance obligations | |
Duration of expected recognition period for remaining performance obligation | |
Revenue, remaining performance obligation | $ 2,379,100 |
Investment in Leasing Operati_3
Investment in Leasing Operations: Summary of Leasing Operations (Details) - USD ($) | Mar. 27, 2021 | Dec. 26, 2020 |
Direct financing and sales-type leases: | ||
Minimum lease payments receivable | $ 11,257,700 | $ 12,536,300 |
Estimated unguaranteed residual value of equipment | 2,505,200 | 2,950,100 |
Unearned lease income net of initial direct costs deferred | (1,152,500) | (1,439,500) |
Security deposits | (2,073,600) | (2,169,000) |
Equipment installed on leases not yet commenced | 457,200 | 1,634,400 |
Total investment in direct financing and sales-type leases | 10,994,000 | 13,512,300 |
Allowance for credit losses | (221,500) | (270,200) |
Net investment in direct financing and sales-type leases | 10,772,500 | 13,242,100 |
Operating leases: | ||
Operating lease assets | 593,800 | 599,100 |
Less accumulated depreciation and amortization | (502,500) | (580,100) |
Net investment in operating leases | 91,300 | 19,000 |
Total net investment in leasing operations | 10,863,800 | 13,261,100 |
Net investment in leases - current | 8,156,900 | 8,687,500 |
Net investment in leases - long-term | $ 2,706,900 | $ 4,573,600 |
Investment in Leasing Operati_4
Investment in Leasing Operations: Minimum Lease Payments Receivable (Details) - USD ($) | Mar. 27, 2021 | Dec. 26, 2020 |
Direct Financing and Sales-Type Leases, Minimum Lease Payments Receivable | ||
2021 | $ 7,899,800 | |
2022 | 3,228,700 | |
2023 | 129,200 | |
Total | 11,257,700 | $ 12,536,300 |
Direct Financing and Sales-Type Leases, Income Amortization | ||
2021 | 918,900 | |
2022 | 226,400 | |
2023 | 7,200 | |
Total | $ 1,152,500 |
Investment in Leasing Operati_5
Investment in Leasing Operations: Credit Losses (Details) - USD ($) | 3 Months Ended | ||
Mar. 27, 2021 | Mar. 28, 2020 | Dec. 26, 2020 | |
Activity in the allowance for credit losses for leasing operations | |||
Balance at beginning of period | $ 270,200 | $ 580,600 | |
Provisions charged to expense | (48,700) | 615,400 | |
Recoveries | 1,500 | ||
Balance at end of period | 221,500 | $ 1,197,500 | |
Investment In Leases | |||
Total investment in direct financing and sales-type leases | 10,994,000 | $ 13,512,300 | |
Allowance for Credit Losses | |||
Total | 221,500 | 270,200 | |
Investment in leases | |||
Investment In Leases | |||
Collectively evaluated for loss potential | 10,994,000 | 13,512,300 | |
Total investment in direct financing and sales-type leases | 10,994,000 | 13,512,300 | |
Allowance for Credit Losses | |||
Collectively evaluated for loss potential | 221,500 | 270,200 | |
Total | $ 221,500 | $ 270,200 |
Investment in Leasing Operati_6
Investment in Leasing Operations: Investment Aging (Details) - USD ($) | Mar. 27, 2021 | Dec. 26, 2020 |
Investment in Leasing Operations: | ||
0-60 Days Delinquent and Accruing | $ 10,994,000 | $ 13,512,300 |
Total investment in direct financing and sales-type leases | $ 10,994,000 | $ 13,512,300 |
Investment in Leasing Operati_7
Investment in Leasing Operations: Leasing Income (Details) - USD ($) | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Leasing income | ||
Interest income on direct financing and sales-type leases | $ 619,700 | $ 1,128,600 |
Selling profit (loss) at commencement of sales-type leases | 1,073,700 | 313,200 |
Operating lease income | 484,300 | 435,400 |
Income on sales of equipment under lease | 745,600 | 3,261,300 |
Other | 313,700 | 732,700 |
Leasing income | $ 3,237,000 | $ 5,871,200 |
Earnings Per Share_ (Details)
Earnings Per Share: (Details) - shares | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Earnings Per Share: | ||
Denominator for basic EPS - weighted average common shares | 3,736,676 | 3,711,597 |
Dilutive shares associated with option plans | 137,551 | 200,154 |
Denominator for diluted EPS - weighted average common shares and dilutive potential common shares | 3,874,227 | 3,911,751 |
Options excluded from EPS calculation - anti-dilutive (in shares) | 6,987 | 2,192 |
Shareholders' Equity (Deficit_3
Shareholders' Equity (Deficit): Dividends and Repurchase of Common Stock (Details) - $ / shares | Jan. 27, 2021 | Mar. 27, 2021 |
Dividends | ||
Cash dividends declared and paid (in dollars per share) | $ 0.25 | |
Common Stock Repurchase Program | ||
Repurchase of Common Stock | ||
Number of shares repurchased | 58,255 | |
Number of additional shares that can be repurchased | 72,349 |
Shareholders' Equity (Deficit_4
Shareholders' Equity (Deficit): Stock Option Plans and Stock-Based Compensation (Details) - Stock options - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | Dec. 26, 2020 | |
Number of Shares | |||
Outstanding at the beginning of the period (in shares) | 393,488 | ||
Granted (in shares) | 10,000 | 0 | |
Exercised (in shares) | (2,950) | ||
Outstanding at the end of the period (in shares) | 400,538 | 393,488 | |
Exercisable at the end of the period (in shares) | 278,583 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 113.19 | ||
Granted (in dollars per share) | 182.21 | ||
Exercised (in dollars per share) | 91.10 | ||
Outstanding at the end of the period (in dollars per share) | 115.08 | $ 113.19 | |
Exercisable at the end of the period (in dollars per share) | $ 94.89 | ||
Weighted Average Remaining Contractual Life (years) | |||
Outstanding | 5 years 5 months 19 days | 5 years 7 months 9 days | |
Exercisable at the end of the period | 4 years 1 month 20 days | ||
Intrinsic Value | |||
Outstanding | $ 28,425,900 | $ 27,864,900 | |
Exercisable at the end of the period | $ 25,395,100 | ||
Weighted average assumptions and results used in estimation of fair value of options granted | |||
Risk free interest rate (as a percent) | 0.64% | ||
Expected life (years) | 6 years | ||
Expected volatility (as a percent) | 25.05% | ||
Dividend yield (as a percent) | 2.77% | ||
Option fair value (in dollars per share) | $ 30.02 | ||
Additional disclosures | |||
Compensation expense | $ 385,200 | $ 140,300 | |
Total unrecognized compensation expense | $ 2,800,000 | ||
Weighted average period for recognition of unrecognized compensation expense | 2 years 6 months |
Debt_ Line of Credit (Details)
Debt: Line of Credit (Details) - Line of Credit $ in Millions | Mar. 27, 2021USD ($) |
Line of Credit | |
Borrowings outstanding | $ 0 |
Line of credit available for additional borrowings | $ 25 |
Debt_ Notes Payable (Details)
Debt: Notes Payable (Details) - Prudential Investment Management, Inc - USD ($) | 3 Months Ended | ||
Mar. 27, 2021 | Aug. 31, 2017 | May 31, 2015 | |
Notes Payable | |||
Notes Payable | |||
Minimum prepayment | $ 1,000,000 | ||
Series A Notes | |||
Notes Payable | |||
Principal amount outstanding | $ 12,800,000 | ||
Note payable, face amount | $ 25,000,000 | ||
Term of notes payable | 10 years | ||
Interest rate (as a percent) | 5.50% | ||
Quarterly principal payment, first five years | $ 500,000 | ||
Quarterly principal payment, thereafter | 750,000 | ||
Series B Notes | |||
Notes Payable | |||
Principal amount outstanding | $ 8,100,000 | ||
Note payable, face amount | $ 12,500,000 | ||
Term of notes payable | 10 years | ||
Interest rate (as a percent) | 5.10% | ||
Quarterly principal payment | $ 312,500 |
Discounted Lease Rentals_ (Deta
Discounted Lease Rentals: (Details) - USD ($) | Mar. 27, 2021 | Dec. 26, 2020 |
Discounted Lease Rentals | ||
Discounted lease rentals, current | $ 959,200 | $ 1,096,600 |
Discounted lease rentals | $ 1,300,000 | |
Secured Debt. | ||
Discounted Lease Rentals | ||
Weighted average interest rate on a non-recourse basis (as a percent) | 5.41% |
Operating Leases_ (Details)
Operating Leases: (Details) - USD ($) | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Operating Leases: | ||
Remaining lease term | 8 years 9 months | |
Discount rate (as a percent) | 5.50% | |
Rent expense | $ 300,900 | $ 300,400 |
Maturities of operating lease liabilities: | ||
2021 | 544,000 | |
2022 | 742,900 | |
2023 | 763,300 | |
2024 | 784,400 | |
2025 | 806,000 | |
Thereafter | 3,452,600 | |
Total | 7,093,200 | |
Less imputed interest | (1,468,100) | |
Present value of lease liabilities | 5,625,100 | |
Operating lease liability | ||
Operating lease liability, current | $ 400,000 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flow outflow from operating leases | $ 179,100 | $ 174,300 |
Segment Reporting_ (Details)
Segment Reporting: (Details) | 3 Months Ended | ||
Mar. 27, 2021USD ($)item | Mar. 28, 2020USD ($) | Dec. 26, 2020USD ($) | |
Segment Reporting | |||
Number of reportable business segments | item | 2 | ||
Total revenue | $ 18,658,900 | $ 18,600,000 | |
Total operating income | 12,657,000 | 10,101,800 | |
Total depreciation and amortization | 113,800 | 123,100 | |
Total identifiable assets | 30,697,700 | $ 31,343,200 | |
Operating | Franchising | |||
Segment Reporting | |||
Total revenue | 15,421,900 | 12,728,800 | |
Total operating income | 10,724,500 | 7,211,400 | |
Total depreciation and amortization | 65,900 | 72,600 | |
Total identifiable assets | 4,728,700 | 4,848,300 | |
Operating | Leasing | |||
Segment Reporting | |||
Total revenue | 3,237,000 | 5,871,200 | |
Total operating income | 1,932,500 | 2,890,400 | |
Total depreciation and amortization | 47,900 | $ 50,500 | |
Total identifiable assets | 11,814,700 | 14,462,600 | |
Unallocated | |||
Segment Reporting | |||
Total identifiable assets | $ 14,154,300 | $ 12,032,300 |