Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 29, 2014 | Apr. 15, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'WINMARK CORP | ' |
Entity Central Index Key | '0000908315 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 29-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-27 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 5,121,458 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONSOLIDATED_CONDENSED_BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
Current Assets: | ' | ' |
Cash and cash equivalents | $2,411,800 | $10,642,600 |
Marketable securities | 791,600 | 736,500 |
Receivables, less allowance for doubtful accounts of $4,500 and $4,300 | 1,047,800 | 1,205,500 |
Net investment in leases - current | 17,174,700 | 17,239,900 |
Income tax receivable | ' | 166,500 |
Inventories | 96,700 | 96,700 |
Prepaid expenses | 581,700 | 587,300 |
Total current assets | 22,104,300 | 30,675,000 |
Net investment in leases - long-term | 22,841,900 | 20,301,400 |
Property and equipment, net | 1,405,200 | 1,382,200 |
Other assets | 677,500 | 677,500 |
Total assets | 47,028,900 | 53,036,100 |
Current Liabilities: | ' | ' |
Line of credit | 14,000,000 | ' |
Accounts payable | 1,616,700 | 2,441,400 |
Income tax payable | 1,829,200 | ' |
Accrued liabilities | 2,126,400 | 1,233,100 |
Discounted lease rentals | 378,900 | 424,900 |
Deferred revenue | 2,288,800 | 2,199,900 |
Deferred income taxes | 4,208,200 | 4,208,200 |
Total current liabilities | 26,448,200 | 10,507,500 |
Long-Term Liabilities: | ' | ' |
Discounted lease rentals | 204,300 | 277,400 |
Deferred revenue | 1,238,700 | 1,180,700 |
Other liabilities | 1,480,500 | 1,489,000 |
Deferred income taxes | 1,436,800 | 1,436,800 |
Total long-term liabilities | 4,360,300 | 4,383,900 |
Shareholders' Equity: | ' | ' |
Common stock, no par, 10,000,000 shares authorized, 5,144,589 and 5,143,530 shares issued and outstanding | 2,506,500 | 2,949,500 |
Accumulated other comprehensive loss | -13,900 | -4,100 |
Retained earnings | 13,727,800 | 35,199,300 |
Total shareholders' equity | 16,220,400 | 38,144,700 |
Total liabilities and shareholders' equity | $47,028,900 | $53,036,100 |
CONSOLIDATED_CONDENSED_BALANCE1
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
CONSOLIDATED CONDENSED BALANCE SHEETS | ' | ' |
Receivables, allowance for doubtful accounts (in dollars) | $4,500 | $4,300 |
Common Stock | ' | ' |
Statement | ' | ' |
Common stock, par value (in dollars per share) | ' | ' |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,144,589 | 5,143,530 |
Common stock, shares outstanding | 5,144,589 | 5,143,530 |
CONSOLIDATED_CONDENSED_STATEME
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
REVENUE: | ' | ' |
Royalties | $8,810,000 | $8,474,900 |
Leasing income | 4,375,600 | 3,407,800 |
Merchandise sales | 788,000 | 665,700 |
Franchise fees | 349,000 | 414,600 |
Other | 230,000 | 185,400 |
Total revenue | 14,552,600 | 13,148,400 |
COST OF MERCHANDISE SOLD | 754,700 | 641,100 |
LEASING EXPENSE | 306,600 | 279,700 |
PROVISION FOR CREDIT LOSSES | 38,900 | 13,800 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 6,017,900 | 5,537,900 |
Income from operations | 7,434,500 | 6,675,900 |
INTEREST EXPENSE | -62,100 | -89,500 |
INTEREST AND OTHER INCOME (EXPENSE) | 100 | -10,200 |
Income before income taxes | 7,372,500 | 6,576,200 |
PROVISION FOR INCOME TAXES | -2,820,600 | -2,518,700 |
NET INCOME | $4,551,900 | $4,057,500 |
EARNINGS PER SHARE - BASIC (in dollars per share) | $0.88 | $0.81 |
EARNINGS PER SHARE - DILUTED (in dollars per share) | $0.86 | $0.78 |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (in shares) | 5,148,519 | 4,997,322 |
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (in shares) | 5,307,946 | 5,202,696 |
CONSOLIDATED_CONDENSED_STATEME1
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' |
NET INCOME | $4,551,900 | $4,057,500 |
Unrealized net gains (losses) on marketable securities: | ' | ' |
Unrealized holding net gains (losses) arising during period | -12,000 | 3,400 |
Reclassification adjustment for net gains included in net income | -3,800 | ' |
OTHER COMPREHENSIVE INCOME (LOSS), BEFORE TAX | -15,800 | 3,400 |
Unrealized net gains/losses on marketable securities: | ' | ' |
Unrealized holding net gains arising during period | 4,600 | -1,300 |
Reclassification adjustment for net gains included in net income | 1,400 | ' |
INCOME TAX (EXPENSE) BENEFIT RELATED TO ITEMS OF OTHER COMPREHENSIVE INCOME | 6,000 | -1,300 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | -9,800 | 2,100 |
COMPREHENSIVE INCOME | $4,542,100 | $4,059,600 |
CONSOLIDATED_CONDENSED_STATEME2
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
OPERATING ACTIVITIES: | ' | ' |
Net income | $4,551,900 | $4,057,500 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 105,300 | 107,000 |
Provision for credit losses | 38,900 | 13,800 |
Compensation expense related to stock options | 344,500 | 261,700 |
Gain on sale of marketable securities | -9,400 | ' |
Deferred initial direct costs | -520,300 | -172,900 |
Amortization of deferred initial direct costs | 163,600 | 140,800 |
Tax benefits on exercised stock options | -60,000 | ' |
Change in operating assets and liabilities: | ' | ' |
Receivables | 157,700 | 26,000 |
Income tax receivable / payable | 2,061,700 | 2,158,800 |
Inventories | ' | -800 |
Prepaid expenses | 5,600 | 22,700 |
Accounts payable | -824,700 | -375,200 |
Accrued and other liabilities | 876,600 | 311,400 |
Rents received in advance and security deposits | -41,100 | 265,100 |
Deferred revenue | 146,900 | -92,900 |
Net cash provided by operating activities | 6,997,200 | 6,723,000 |
INVESTING ACTIVITIES: | ' | ' |
Proceeds from sale of marketable securities | 463,000 | ' |
Purchase of marketable securities | -524,500 | ' |
Purchase of property and equipment | -128,300 | -53,600 |
Purchase of equipment for lease contracts | -6,499,900 | -4,673,500 |
Principal collections on lease receivables | 4,272,600 | 4,530,300 |
Net cash used for investing activities | -2,417,100 | -196,800 |
FINANCING ACTIVITIES: | ' | ' |
Proceeds from borrowings on line of credit | 14,000,000 | ' |
Payments on line of credit | ' | -6,300,000 |
Repurchases of common stock | -1,075,100 | -269,600 |
Proceeds from exercises of stock options | 227,600 | 120,600 |
Dividends paid | -26,023,400 | -200,000 |
Proceeds from discounted lease rentals | ' | 80,900 |
Tax benefits on exercised stock options | 60,000 | ' |
Net cash used for financing activities | -12,810,900 | -6,568,100 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -8,230,800 | -41,900 |
Cash and cash equivalents, beginning of period | 10,642,600 | 2,233,400 |
Cash and cash equivalents, end of period | 2,411,800 | 2,191,500 |
SUPPLEMENTAL DISCLOSURES: | ' | ' |
Cash paid for interest | 29,800 | 84,700 |
Cash paid for income taxes | $762,300 | $359,800 |
Managements_Interim_Financial_
Management's Interim Financial Statement Representation: | 3 Months Ended |
Mar. 29, 2014 | |
Management's Interim Financial Statement Representation: | ' |
Management's Interim Financial Statement Representation: | ' |
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 29, 2014 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 as previously reported. | |
Organization_and_Business
Organization and Business: | 3 Months Ended |
Mar. 29, 2014 | |
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®, Music Go Round® and Style Encore®. The Company also operates both middle market and small-ticket equipment leasing businesses under the Winmark Capital® and Wirth Business Credit® marks. | |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 29, 2014 | |
Fair Value Measurements | ' |
Fair Value Measurements | ' |
3. 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. | |
The Company’s marketable securities were valued based on Level 1 inputs using quoted prices. | |
Due to their nature, the carrying value of cash equivalents, receivables, payables and debt obligations approximates fair value. | |
Investments
Investments: | 3 Months Ended | |||||||||||||
Mar. 29, 2014 | ||||||||||||||
Investments: | ' | |||||||||||||
Investments: | ' | |||||||||||||
4. Investments: | ||||||||||||||
Marketable Securities | ||||||||||||||
The following is a summary of marketable securities classified as available-for-sale securities: | ||||||||||||||
March 29, 2014 | December 28, 2013 | |||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||
Equity securities | $ | 814,000 | $ | 791,600 | $ | 743,100 | $ | 736,500 | ||||||
The Company’s unrealized gains and losses for marketable securities classified as available-for-sale securities in accumulated other comprehensive loss are as follows: | ||||||||||||||
March 29, 2014 | December 28, 2013 | |||||||||||||
Unrealized gains | $ | 5,800 | $ | 6,800 | ||||||||||
Unrealized losses | (28,200 | ) | (13,400 | ) | ||||||||||
Net unrealized losses | $ | (22,400 | ) | $ | (6,600 | ) | ||||||||
The Company’s realized gains and losses recognized on sales of available-for-sale marketable securities are as follows: | ||||||||||||||
Three Months Ended | ||||||||||||||
March 29, 2014 | March 30, 2013 | |||||||||||||
Realized gains | $ | 22,200 | $ | — | ||||||||||
Realized losses | (12,800 | ) | — | |||||||||||
Net realized gains | $ | 9,400 | $ | — | ||||||||||
Amounts reclassified out of accumulated other comprehensive loss into earnings is determined by using the average cost of the security when sold. Gross realized gains (losses) reclassified out of accumulated other comprehensive loss into earnings are included in Interest and Other Income (Expense) and the related tax benefits (expenses) are included in the Provision for Income Taxes lines of the Consolidated Condensed Statements of Operations. | ||||||||||||||
Investment_in_Leasing_Operatio
Investment in Leasing Operations: | 3 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Investment in Leasing Operations: | ' | ||||||||||||||||
Investment in Leasing Operations: | ' | ||||||||||||||||
5. Investment in Leasing Operations: | |||||||||||||||||
Investment in leasing operations consists of the following: | |||||||||||||||||
March 29, 2014 | December 28, 2013 | ||||||||||||||||
Direct financing and sales-type leases: | |||||||||||||||||
Minimum lease payments receivable | $ | 38,245,300 | $ | 35,450,900 | |||||||||||||
Estimated residual value of equipment | 3,953,400 | 4,348,800 | |||||||||||||||
Unearned lease income net of initial direct costs deferred | (6,700,400 | ) | (4,963,400 | ) | |||||||||||||
Security deposits | (3,276,300 | ) | (3,325,600 | ) | |||||||||||||
Equipment installed on leases not yet commenced | 8,570,300 | 6,718,000 | |||||||||||||||
Total investment in direct financing and sales-type leases | 40,792,300 | 38,228,700 | |||||||||||||||
Allowance for credit losses | (870,600 | ) | (822,700 | ) | |||||||||||||
Net investment in direct financing and sales-type leases | 39,921,700 | 37,406,000 | |||||||||||||||
Operating leases: | |||||||||||||||||
Operating lease assets | 375,200 | 1,353,500 | |||||||||||||||
Less accumulated depreciation and amortization | (280,300 | ) | (1,218,200 | ) | |||||||||||||
Net investment in operating leases | 94,900 | 135,300 | |||||||||||||||
Total net investment in leasing operations | $ | 40,016,600 | $ | 37,541,300 | |||||||||||||
As of March 29, 2014, the $40.0 million total net investment in leases consists of $17.2 million classified as current and $22.8 million classified as long-term. As of December 28, 2013, the $37.5 million total net investment in leases consists of $17.2 million classified as current and $20.3 million classified as long-term. | |||||||||||||||||
As of March 29, 2014, no customer had leased assets totaling more 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 2014 and the full fiscal years thereafter as of March 29, 2014: | |||||||||||||||||
Direct Financing and Sales-Type Leases | Operating Leases | ||||||||||||||||
Minimum Lease | Income | Minimum Lease | |||||||||||||||
Payments Receivable | Amortization | Payments Receivable | |||||||||||||||
2014 | $ | 17,918,600 | $ | 4,101,800 | $ | 204,800 | |||||||||||
2015 | 15,189,200 | 2,200,900 | 76,800 | ||||||||||||||
2016 | 4,953,500 | 396,500 | — | ||||||||||||||
2017 | 184,000 | 1,200 | — | ||||||||||||||
2018 | — | — | — | ||||||||||||||
Thereafter | — | — | — | ||||||||||||||
$ | 38,245,300 | $ | 6,700,400 | $ | 281,600 | ||||||||||||
The activity in the allowance for credit losses for leasing operations during the first three months of 2014 and 2013, respectively, is as follows: | |||||||||||||||||
March 29, 2014 | March 30, 2013 | ||||||||||||||||
Balance at beginning of period | $ | 822,700 | $ | 775,800 | |||||||||||||
Provisions charged to expense | 38,900 | 13,800 | |||||||||||||||
Recoveries | 9,000 | 21,300 | |||||||||||||||
Deductions for amounts written-off | — | (10,900 | ) | ||||||||||||||
Balance at end of period | $ | 870,600 | $ | 800,000 | |||||||||||||
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 29, 2014 | December 28, 2013 | ||||||||||||||||
Investment | Allowance for | Investment | Allowance for | ||||||||||||||
In Leases | Credit Losses | In Leases | Credit Losses | ||||||||||||||
Collectively evaluated for loss potential | $ | 40,792,300 | $ | 870,600 | $ | 38,228,700 | $ | 822,700 | |||||||||
Individually evaluated for loss potential | — | — | — | — | |||||||||||||
Total | $ | 40,792,300 | $ | 870,600 | $ | 38,228,700 | $ | 822,700 | |||||||||
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-accruing. 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 29, 2014 | |||||||||||||||||
0-60 Days | 61-90 Days | Over 90 Days | Non-Accrual | Total | |||||||||||||
Delinquent | Delinquent | Delinquent and | |||||||||||||||
and Accruing | and Accruing | Accruing | |||||||||||||||
Middle-Market | $ | 39,281,800 | $ | — | $ | — | $ | 322,300 | $ | 39,604,100 | |||||||
Small-Ticket | 1,188,200 | — | — | — | 1,188,200 | ||||||||||||
Total Investment in Leases | $ | 40,470,000 | $ | — | $ | — | $ | 322,300 | $ | 40,792,300 | |||||||
December 28, 2013 | |||||||||||||||||
0-60 Days | 61-90 Days | Over 90 Days | Non-Accrual | Total | |||||||||||||
Delinquent | Delinquent | Delinquent and | |||||||||||||||
and Accruing | and Accruing | Accruing | |||||||||||||||
Middle-Market | $ | 36,716,100 | $ | — | $ | — | $ | 416,400 | $ | 37,132,500 | |||||||
Small-Ticket | 1,096,200 | — | — | — | 1,096,200 | ||||||||||||
Total Investment in Leases | $ | 37,812,300 | $ | — | $ | — | $ | 416,400 | $ | 38,228,700 | |||||||
Earnings_Per_Share
Earnings Per Share: | 3 Months Ended | |||||
Mar. 29, 2014 | ||||||
Earnings Per Share: | ' | |||||
Earnings Per Share: | ' | |||||
6. 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 29, 2014 | March 30, 2013 | |||||
Denominator for basic EPS — weighted average common shares | 5,148,519 | 4,997,322 | ||||
Dilutive shares associated with option plans | 159,427 | 205,374 | ||||
Denominator for diluted EPS — weighted average common shares and dilutive potential common shares | 5,307,946 | 5,202,696 | ||||
Options excluded from EPS calculation — anti-dilutive | 13,938 | 9,299 | ||||
Shareholders_Equity
Shareholders' Equity: | 3 Months Ended | |||||||||||
Mar. 29, 2014 | ||||||||||||
Shareholders' Equity: | ' | |||||||||||
Shareholders' Equity: | ' | |||||||||||
7. Shareholders’ Equity: | ||||||||||||
Dividends | ||||||||||||
On January 29, 2014, the Company’s Board of Directors approved the payment of a $0.05 per share quarterly cash dividend to shareholders of record at the close of business on February 12, 2014, which was paid on March 3, 2014. | ||||||||||||
On February 4, 2014, the Company’s Board of Directors approved the payment of a $5.00 per share special cash dividend (the “2014 Special Dividend”) to shareholders of record at the close of business February 17, 2014, which was paid on March 3, 2014. The 2014 Special Dividend totaled $25.8 million and was financed by a combination of cash on hand as well as net borrowings under the Line of Credit of $13.0 million (see Note 8 — “Line of Credit”). | ||||||||||||
Repurchase of Common Stock | ||||||||||||
In the first three months of 2014 the Company repurchased 14,066 shares of its common stock for an aggregate price of $1,075,100 or $76.43 per share. Under the Board of Directors’ authorization, as of March 29, 2014, the Company has the ability to repurchase an additional 318,664 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 | ||||||||||||
The Company had authorized up to 750,000 shares of common stock be reserved for granting either nonqualified or incentive stock options to officers and key employees under the Company’s 2001 Stock Option Plan (the “2001 Plan”). The 2001 Plan expired on February 20, 2011. As of March 29, 2014, the Company has authorized up to 250,000 shares of common stock to be reserved for granting either nonqualified or incentive stock options to officers and key employees under the Company’s 2010 Stock Option Plan (the “2010 Plan”). | ||||||||||||
The Company also sponsors a Stock Option Plan for Nonemployee Directors (the “Nonemployee Directors Plan”) and, as of March 29, 2014, has reserved a total of 300,000 shares for issuance to directors of the Company who are not employees. | ||||||||||||
Stock option activity under the 2001 Plan, 2010 Plan and Nonemployee Directors Plan (collectively, the “Option Plans”) as of March 29, 2014 was as follows: | ||||||||||||
Number of | Weighted | Weighted Average | Intrinsic Value | |||||||||
Shares | Average | Remaining Contractual | ||||||||||
Exercise Price | Life (years) | |||||||||||
Outstanding at December 28, 2013 | 526,712 | $ | 42.87 | 7.33 | $ | 26,446,700 | ||||||
Exercised | (15,125 | ) | 15.05 | |||||||||
Outstanding at March 29, 2014 | 511,587 | $ | 43.69 | 7.14 | $ | 16,222,100 | ||||||
Exercisable at March 29, 2014 | 258,762 | $ | 30.5 | 5.92 | $ | 11,418,400 | ||||||
No options were granted during the three months ended March 29, 2014 or the three months ended March 30, 2013. All unexercised options at March 29, 2014 have an exercise price equal to the fair market value on the date of the grant. | ||||||||||||
Compensation expense of $344,500 and $261,700 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 2014 and 2013, respectively. As of March 29, 2014, the Company had $3.0 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 2.4 years. | ||||||||||||
Line_of_Credit
Line of Credit | 3 Months Ended |
Mar. 29, 2014 | |
Line of Credit | ' |
Line of Credit | ' |
8. Line of Credit | |
On February 21, 2014, the Company’s Line of Credit with The PrivateBank and Trust Company and BMO Harris Bank N.A. was amended to, among other things, amend certain financial covenant calculations to remove the effect of the 2014 Special Dividend in such calculations, to reduce the applicable margin on the interest rate options, and to extend the termination date from February 29, 2016 to February 28, 2018. | |
The Line of Credit provides for an aggregate commitment of $35.0 million, subject to certain borrowing base limitations. During the first three months of 2014, the Line of Credit was used to finance in part the 2014 Special Dividend (as indicated above) and has been and will continue to be used for general corporate purposes. The Line of Credit 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 29, 2014, the Company was in compliance with all of its financial covenants. There were $14.0 million in borrowings outstanding under the Line of Credit bearing interest ranging from 2.40% to 3.25%, leaving $21.0 million available for additional borrowings. | |
Discounted_Lease_Rentals
Discounted Lease Rentals: | 3 Months Ended |
Mar. 29, 2014 | |
Discounted Lease Rentals: | ' |
Discounted Lease Rentals: | ' |
9. Discounted Lease Rentals: | |
The Company utilized certain lease receivables and underlying expenses as collateral to borrow from financial institutions at a weighted average rate of 3.27% at March 29, 2014 on a non-recourse basis. | |
Segment_Reporting
Segment Reporting: | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Segment Reporting: | ' | |||||||
Segment Reporting: | ' | |||||||
10. 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 (i) Winmark Capital Corporation, a middle-market equipment leasing business and (ii) Wirth Business Credit, Inc., a small ticket 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, accounts receivable, prepaids, inventory, property and equipment and investment in leasing operations. Unallocated assets include corporate cash and cash equivalents, marketable securities, current and deferred tax amounts 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 29, 2014 | March 30, 2013 | |||||||
Revenue: | ||||||||
Franchising | $ | 10,177,000 | $ | 9,740,600 | ||||
Leasing | 4,375,600 | 3,407,800 | ||||||
Total revenue | $ | 14,552,600 | $ | 13,148,400 | ||||
Reconciliation to operating income: | ||||||||
Franchising segment contribution | $ | 4,701,200 | $ | 4,834,100 | ||||
Leasing segment contribution | 2,733,300 | 1,841,800 | ||||||
Total operating income | $ | 7,434,500 | $ | 6,675,900 | ||||
Depreciation: | ||||||||
Franchising | $ | 83,100 | $ | 84,200 | ||||
Leasing | 22,200 | 22,800 | ||||||
Total depreciation | $ | 105,300 | $ | 107,000 | ||||
As of | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Identifiable assets: | ||||||||
Franchising | $ | 2,534,100 | $ | 7,407,400 | ||||
Leasing | 41,499,000 | 42,490,800 | ||||||
Unallocated | 2,995,800 | 3,137,900 | ||||||
Total | $ | 47,028,900 | $ | 53,036,100 | ||||
Managements_Interim_Financial_1
Management's Interim Financial Statement Representation: (Policies) | 3 Months Ended |
Mar. 29, 2014 | |
Management's Interim Financial Statement Representation: | ' |
Reclassifications | ' |
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 as previously reported. | |
Investments_Tables
Investments: (Tables) | 3 Months Ended | |||||||||||||
Mar. 29, 2014 | ||||||||||||||
Investments: | ' | |||||||||||||
Summary of marketable securities classified as available-for-sale securities | ' | |||||||||||||
March 29, 2014 | December 28, 2013 | |||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||
Equity securities | $ | 814,000 | $ | 791,600 | $ | 743,100 | $ | 736,500 | ||||||
Schedule of the Company's unrealized gains and losses for marketable securities classified as available-for-sale securities in accumulated other comprehensive loss | ' | |||||||||||||
March 29, 2014 | December 28, 2013 | |||||||||||||
Unrealized gains | $ | 5,800 | $ | 6,800 | ||||||||||
Unrealized losses | (28,200 | ) | (13,400 | ) | ||||||||||
Net unrealized losses | $ | (22,400 | ) | $ | (6,600 | ) | ||||||||
Schedule of the Company's realized gains and losses recognized on sales of available-for-sale marketable securities | ' | |||||||||||||
Three Months Ended | ||||||||||||||
March 29, 2014 | March 30, 2013 | |||||||||||||
Realized gains | $ | 22,200 | $ | — | ||||||||||
Realized losses | (12,800 | ) | — | |||||||||||
Net realized gains | $ | 9,400 | $ | — | ||||||||||
Investment_in_Leasing_Operatio1
Investment in Leasing Operations: (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Investment in Leasing Operations: | ' | ||||||||||||||||
Schedule of investment in leasing operations | ' | ||||||||||||||||
March 29, 2014 | December 28, 2013 | ||||||||||||||||
Direct financing and sales-type leases: | |||||||||||||||||
Minimum lease payments receivable | $ | 38,245,300 | $ | 35,450,900 | |||||||||||||
Estimated residual value of equipment | 3,953,400 | 4,348,800 | |||||||||||||||
Unearned lease income net of initial direct costs deferred | (6,700,400 | ) | (4,963,400 | ) | |||||||||||||
Security deposits | (3,276,300 | ) | (3,325,600 | ) | |||||||||||||
Equipment installed on leases not yet commenced | 8,570,300 | 6,718,000 | |||||||||||||||
Total investment in direct financing and sales-type leases | 40,792,300 | 38,228,700 | |||||||||||||||
Allowance for credit losses | (870,600 | ) | (822,700 | ) | |||||||||||||
Net investment in direct financing and sales-type leases | 39,921,700 | 37,406,000 | |||||||||||||||
Operating leases: | |||||||||||||||||
Operating lease assets | 375,200 | 1,353,500 | |||||||||||||||
Less accumulated depreciation and amortization | (280,300 | ) | (1,218,200 | ) | |||||||||||||
Net investment in operating leases | 94,900 | 135,300 | |||||||||||||||
Total net investment in leasing operations | $ | 40,016,600 | $ | 37,541,300 | |||||||||||||
Schedule of future minimum lease payments receivable under lease contracts and the amortization of unearned lease income, net of initial direct costs deferred | ' | ||||||||||||||||
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 2014 and the full fiscal years thereafter as of March 29, 2014: | |||||||||||||||||
Direct Financing and Sales-Type Leases | Operating Leases | ||||||||||||||||
Minimum Lease | Income | Minimum Lease | |||||||||||||||
Payments Receivable | Amortization | Payments Receivable | |||||||||||||||
2014 | $ | 17,918,600 | $ | 4,101,800 | $ | 204,800 | |||||||||||
2015 | 15,189,200 | 2,200,900 | 76,800 | ||||||||||||||
2016 | 4,953,500 | 396,500 | — | ||||||||||||||
2017 | 184,000 | 1,200 | — | ||||||||||||||
2018 | — | — | — | ||||||||||||||
Thereafter | — | — | — | ||||||||||||||
$ | 38,245,300 | $ | 6,700,400 | $ | 281,600 | ||||||||||||
Schedule of activity in the allowance for credit losses for leasing operations | ' | ||||||||||||||||
March 29, 2014 | March 30, 2013 | ||||||||||||||||
Balance at beginning of period | $ | 822,700 | $ | 775,800 | |||||||||||||
Provisions charged to expense | 38,900 | 13,800 | |||||||||||||||
Recoveries | 9,000 | 21,300 | |||||||||||||||
Deductions for amounts written-off | — | (10,900 | ) | ||||||||||||||
Balance at end of period | $ | 870,600 | $ | 800,000 | |||||||||||||
Schedule of investment in direct financing and sales-type leases (investment in leases) and allowance for credit losses by loss evaluation methodology | ' | ||||||||||||||||
March 29, 2014 | December 28, 2013 | ||||||||||||||||
Investment | Allowance for | Investment | Allowance for | ||||||||||||||
In Leases | Credit Losses | In Leases | Credit Losses | ||||||||||||||
Collectively evaluated for loss potential | $ | 40,792,300 | $ | 870,600 | $ | 38,228,700 | $ | 822,700 | |||||||||
Individually evaluated for loss potential | — | — | — | — | |||||||||||||
Total | $ | 40,792,300 | $ | 870,600 | $ | 38,228,700 | $ | 822,700 | |||||||||
Schedule of information regarding accruing and non-accrual leases | ' | ||||||||||||||||
March 29, 2014 | |||||||||||||||||
0-60 Days | 61-90 Days | Over 90 Days | Non-Accrual | Total | |||||||||||||
Delinquent | Delinquent | Delinquent and | |||||||||||||||
and Accruing | and Accruing | Accruing | |||||||||||||||
Middle-Market | $ | 39,281,800 | $ | — | $ | — | $ | 322,300 | $ | 39,604,100 | |||||||
Small-Ticket | 1,188,200 | — | — | — | 1,188,200 | ||||||||||||
Total Investment in Leases | $ | 40,470,000 | $ | — | $ | — | $ | 322,300 | $ | 40,792,300 | |||||||
December 28, 2013 | |||||||||||||||||
0-60 Days | 61-90 Days | Over 90 Days | Non-Accrual | Total | |||||||||||||
Delinquent | Delinquent | Delinquent and | |||||||||||||||
and Accruing | and Accruing | Accruing | |||||||||||||||
Middle-Market | $ | 36,716,100 | $ | — | $ | — | $ | 416,400 | $ | 37,132,500 | |||||||
Small-Ticket | 1,096,200 | — | — | — | 1,096,200 | ||||||||||||
Total Investment in Leases | $ | 37,812,300 | $ | — | $ | — | $ | 416,400 | $ | 38,228,700 | |||||||
Earnings_Per_Share_Tables
Earnings Per Share: (Tables) | 3 Months Ended | |||||
Mar. 29, 2014 | ||||||
Earnings Per Share: | ' | |||||
Schedule of shares outstanding used in the calculation of basic and diluted earnings per share | ' | |||||
Three Months Ended | ||||||
March 29, 2014 | March 30, 2013 | |||||
Denominator for basic EPS — weighted average common shares | 5,148,519 | 4,997,322 | ||||
Dilutive shares associated with option plans | 159,427 | 205,374 | ||||
Denominator for diluted EPS — weighted average common shares and dilutive potential common shares | 5,307,946 | 5,202,696 | ||||
Options excluded from EPS calculation — anti-dilutive | 13,938 | 9,299 | ||||
Shareholders_Equity_Tables
Shareholders' Equity: (Tables) | 3 Months Ended | |||||||||||
Mar. 29, 2014 | ||||||||||||
Shareholders' Equity: | ' | |||||||||||
Schedule of stock option activity under the 2001 Plan, 2010 Plan and Nonemployee Directors Plan | ' | |||||||||||
Number of | Weighted | Weighted Average | Intrinsic Value | |||||||||
Shares | Average | Remaining Contractual | ||||||||||
Exercise Price | Life (years) | |||||||||||
Outstanding at December 28, 2013 | 526,712 | $ | 42.87 | 7.33 | $ | 26,446,700 | ||||||
Exercised | (15,125 | ) | 15.05 | |||||||||
Outstanding at March 29, 2014 | 511,587 | $ | 43.69 | 7.14 | $ | 16,222,100 | ||||||
Exercisable at March 29, 2014 | 258,762 | $ | 30.5 | 5.92 | $ | 11,418,400 | ||||||
Segment_Reporting_Tables
Segment Reporting: (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Segment Reporting: | ' | |||||||
Schedule of financial information by segment and reconciliation of segment contribution to operating income | ' | |||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Revenue: | ||||||||
Franchising | $ | 10,177,000 | $ | 9,740,600 | ||||
Leasing | 4,375,600 | 3,407,800 | ||||||
Total revenue | $ | 14,552,600 | $ | 13,148,400 | ||||
Reconciliation to operating income: | ||||||||
Franchising segment contribution | $ | 4,701,200 | $ | 4,834,100 | ||||
Leasing segment contribution | 2,733,300 | 1,841,800 | ||||||
Total operating income | $ | 7,434,500 | $ | 6,675,900 | ||||
Depreciation: | ||||||||
Franchising | $ | 83,100 | $ | 84,200 | ||||
Leasing | 22,200 | 22,800 | ||||||
Total depreciation | $ | 105,300 | $ | 107,000 | ||||
As of | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Identifiable assets: | ||||||||
Franchising | $ | 2,534,100 | $ | 7,407,400 | ||||
Leasing | 41,499,000 | 42,490,800 | ||||||
Unallocated | 2,995,800 | 3,137,900 | ||||||
Total | $ | 47,028,900 | $ | 53,036,100 | ||||
Managements_Interim_Financial_2
Management's Interim Financial Statement Representation: (Details) | 3 Months Ended |
Mar. 29, 2014 | |
WK | |
Management's Interim Financial Statement Representation: | ' |
Minimum number of weeks in a fiscal year | 52 |
Maximum number of weeks in a fiscal year | 53 |
Investments_Details
Investments: (Details) (USD $) | 3 Months Ended | |
Mar. 29, 2014 | Dec. 28, 2013 | |
Summary of marketable securities classified as available-for-sale securities | ' | ' |
Equity securities, Cost | $814,000 | $743,100 |
Equity securities, Fair Value | 791,600 | 736,500 |
Unrealized gains and losses for marketable securities classified as available-for-sale securities in accumulated other comprehensive loss | ' | ' |
Unrealized gains | 5,800 | 6,800 |
Unrealized losses | -28,200 | -13,400 |
Net unrealized losses | -22,400 | -6,600 |
Realized gains and losses recognized on sales of available-for-sale marketable securities | ' | ' |
Realized gains | 22,200 | ' |
Realized losses | -12,800 | ' |
Net realized gains | $9,400 | ' |
Investment_in_Leasing_Operatio2
Investment in Leasing Operations: (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
Direct financing and sales-type leases: | ' | ' |
Minimum lease payments receivable | $38,245,300 | $35,450,900 |
Estimated residual value of equipment | 3,953,400 | 4,348,800 |
Unearned lease income net of initial direct costs deferred | -6,700,400 | -4,963,400 |
Security deposits | -3,276,300 | -3,325,600 |
Equipment installed on leases not yet commenced | 8,570,300 | 6,718,000 |
Total investment in direct financing and sales-type leases | 40,792,300 | 38,228,700 |
Allowance for credit losses | -870,600 | -822,700 |
Net investment in direct financing and sales-type leases | 39,921,700 | 37,406,000 |
Operating leases: | ' | ' |
Operating lease assets | 375,200 | 1,353,500 |
Less accumulated depreciation and amortization | -280,300 | -1,218,200 |
Net investment in operating leases | 94,900 | 135,300 |
Total net investment in leasing operations | 40,016,600 | 37,541,300 |
Net investment in leases - current | 17,174,700 | 17,239,900 |
Net investment in leases - long-term | $22,841,900 | $20,301,400 |
Investment_in_Leasing_Operatio3
Investment in Leasing Operations: (Details 2) (Total assets, Customer one concentration risk for leased assets) | 3 Months Ended |
Mar. 29, 2014 | |
customer | |
Total assets | Customer one concentration risk for leased assets | ' |
Investment in leasing operations | ' |
Number of customers | 0 |
Percentage of concentration risk | 10.00% |
Investment_in_Leasing_Operatio4
Investment in Leasing Operations: (Details 3) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
Direct Financing and Sales-Type Leases, Minimum Lease Payments Receivable | ' | ' |
2014 | $17,918,600 | ' |
2015 | 15,189,200 | ' |
2016 | 4,953,500 | ' |
2017 | 184,000 | ' |
Total | 38,245,300 | 35,450,900 |
Direct Financing and Sales-Type Leases, Income Amortization | ' | ' |
2014 | 4,101,800 | ' |
2015 | 2,200,900 | ' |
2016 | 396,500 | ' |
2017 | 1,200 | ' |
Total | 6,700,400 | ' |
Operating Leases, Minimum Lease Payments Receivable | ' | ' |
2014 | 204,800 | ' |
2015 | 76,800 | ' |
Total | $281,600 | ' |
Investment_in_Leasing_Operatio5
Investment in Leasing Operations: (Details 4) (Investment in leases, USD $) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Investment in leases | ' | ' |
Activity in the allowance for credit losses for leasing operations | ' | ' |
Balance at beginning of period | $822,700 | $775,800 |
Provisions charged to expense | 38,900 | 13,800 |
Recoveries | 9,000 | 21,300 |
Deductions for amounts written-off | ' | -10,900 |
Balance at end of period | $870,600 | $800,000 |
Investment_in_Leasing_Operatio6
Investment in Leasing Operations: (Details 5) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
Investment In Leases | ' | ' |
Total investment in direct financing and sales-type leases | $40,792,300 | $38,228,700 |
Allowance for Credit Losses | ' | ' |
Total | 870,600 | 822,700 |
Investment in leases | ' | ' |
Investment In Leases | ' | ' |
Collectively evaluated for loss potential | 40,792,300 | 38,228,700 |
Total investment in direct financing and sales-type leases | 40,792,300 | 38,228,700 |
Allowance for Credit Losses | ' | ' |
Collectively evaluated for loss potential | 870,600 | 822,700 |
Total | $870,600 | $822,700 |
Investment_in_Leasing_Operatio7
Investment in Leasing Operations: (Details 6) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
Investment in leasing operations | ' | ' |
0-60 Days Delinquent and Accruing | $40,470,000 | $37,812,300 |
Non-Accrual | 322,300 | 416,400 |
Total investment in direct financing and sales-type leases | 40,792,300 | 38,228,700 |
Middle-Market | ' | ' |
Investment in leasing operations | ' | ' |
0-60 Days Delinquent and Accruing | 39,281,800 | 36,716,100 |
Non-Accrual | 322,300 | 416,400 |
Total investment in direct financing and sales-type leases | 39,604,100 | 37,132,500 |
Small-Ticket | ' | ' |
Investment in leasing operations | ' | ' |
0-60 Days Delinquent and Accruing | 1,188,200 | 1,096,200 |
Total investment in direct financing and sales-type leases | $1,188,200 | $1,096,200 |
Earnings_Per_Share_Details
Earnings Per Share: (Details) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Earnings Per Share: | ' | ' |
Denominator for basic EPS - weighted average common shares | 5,148,519 | 4,997,322 |
Dilutive shares associated with option plans | 159,427 | 205,374 |
Denominator for diluted EPS - weighted average common shares and dilutive potential common shares | 5,307,946 | 5,202,696 |
Options excluded from EPS calculation - anti-dilutive (in shares) | 13,938 | 9,299 |
Shareholders_Equity_Details
Shareholders' Equity: (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
Feb. 04, 2014 | Jan. 29, 2014 | Mar. 29, 2014 | |
Common Stock Repurchase Program | |||
Dividends | ' | ' | ' |
Cash dividend approved by Board of Directors (in dollars per share) | ' | $0.05 | ' |
Special cash dividend approved by Board of Directors (in dollars per share) | $5 | ' | ' |
Total special dividend in cash | $25,800,000 | ' | ' |
Borrowings on line of credit for special dividend | 13,000,000 | ' | ' |
Repurchase of Common Stock | ' | ' | ' |
Number of shares repurchased | ' | ' | 14,066 |
Aggregate purchase price of shares repurchased (in dollars) | ' | ' | $1,075,100 |
Aggregate purchase price per share of shares repurchased (in dollars per share) | ' | ' | $76.43 |
Number of additional shares that can be repurchased | ' | ' | 318,664 |
Shareholders_Equity_Details_2
Shareholders' Equity: (Details 2) (Stock options, USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | Dec. 28, 2013 | |
Number of Shares | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 526,712 | ' | ' |
Exercised (in shares) | -15,125 | ' | ' |
Outstanding at the end of the period (in shares) | 511,587 | ' | 526,712 |
Exercisable at the end of the period (in shares) | 258,762 | ' | ' |
Granted (in shares) | 0 | 0 | ' |
Weighted Average Exercise Price | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $42.87 | ' | ' |
Exercised (in dollars per share) | $15.05 | ' | ' |
Outstanding at the end of the period (in dollars per share) | $43.69 | ' | $42.87 |
Exercisable at the end of the period (in dollars per share) | $30.50 | ' | ' |
Weighted Average Remaining Contractual Life (years) | ' | ' | ' |
Outstanding | '7 years 1 month 20 days | ' | '7 years 3 months 29 days |
Exercisable at the end of the period | '5 years 11 months 1 day | ' | ' |
Intrinsic Value | ' | ' | ' |
Outstanding at the beginning of the period | $26,446,700 | ' | ' |
Outstanding at the end of the period | 16,222,100 | ' | 26,446,700 |
Exercisable at the end of the period | $11,418,400 | ' | ' |
2001 Plan | ' | ' | ' |
Stock option plans | ' | ' | ' |
Number of shares authorized for issuance | 750,000 | ' | ' |
2010 Plan | ' | ' | ' |
Stock option plans | ' | ' | ' |
Number of shares authorized for issuance | 250,000 | ' | ' |
Nonemployee Directors Plan | ' | ' | ' |
Stock option plans | ' | ' | ' |
Number of shares authorized for issuance | 300,000 | ' | ' |
Shareholders_Equity_Details_3
Shareholders' Equity: (Details 3) (Stock options, USD $) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Stock options | ' | ' |
Additional disclosures | ' | ' |
Compensation expense | $344,500 | $261,700 |
Total unrecognized compensation expense | $3,000,000 | ' |
Weighted average period for recognition of unrecognized compensation expense | '2 years 4 months 24 days | ' |
Line_of_Credit_Details
Line of Credit (Details) (Line of Credit, USD $) | Mar. 29, 2014 |
In Millions, unless otherwise specified | |
Line of Credit | ' |
Aggregate commitments | $35 |
Borrowings outstanding | 14 |
Amount available for additional borrowings | $21 |
Minimum | ' |
Line of Credit | ' |
Interest rate (as a percent) | 2.40% |
Maximum | ' |
Line of Credit | ' |
Interest rate (as a percent) | 3.25% |
Discounted_Lease_Rentals_Detai
Discounted Lease Rentals: (Details) | Mar. 29, 2014 |
Discounted Lease Rentals: | ' |
Weighted average interest rate on a non-recourse basis (as a percent) | 3.27% |
Segment_Reporting_Details
Segment Reporting: (Details) (USD $) | 3 Months Ended | ||
Mar. 29, 2014 | Mar. 30, 2013 | Dec. 28, 2013 | |
item | |||
Segment Reporting: | ' | ' | ' |
Number of reportable business segments | 2 | ' | ' |
Segment Reporting | ' | ' | ' |
Total revenue | $14,552,600 | $13,148,400 | ' |
Total operating income | 7,434,500 | 6,675,900 | ' |
Total depreciation | 105,300 | 107,000 | ' |
Total identifiable assets | 47,028,900 | ' | 53,036,100 |
Operating | Franchising | ' | ' | ' |
Segment Reporting | ' | ' | ' |
Total revenue | 10,177,000 | 9,740,600 | ' |
Total operating income | 4,701,200 | 4,834,100 | ' |
Total depreciation | 83,100 | 84,200 | ' |
Total identifiable assets | 2,534,100 | ' | 7,407,400 |
Operating | Leasing | ' | ' | ' |
Segment Reporting | ' | ' | ' |
Total revenue | 4,375,600 | 3,407,800 | ' |
Total operating income | 2,733,300 | 1,841,800 | ' |
Total depreciation | 22,200 | 22,800 | ' |
Total identifiable assets | 41,499,000 | ' | 42,490,800 |
Unallocated | ' | ' | ' |
Segment Reporting | ' | ' | ' |
Total identifiable assets | $2,995,800 | ' | $3,137,900 |