Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 27, 2015 | Jul. 13, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | WINMARK CORP | |
Entity Central Index Key | 908,315 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 27, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-26 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 4,128,031 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) | Jun. 27, 2015 | Dec. 27, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 1,120,800 | $ 2,089,700 |
Marketable securities | 215,200 | 466,800 |
Receivables, less allowance for doubtful accounts of $1,800 and $1,600 | 1,241,500 | 1,328,200 |
Net investment in leases - current | 18,727,000 | 19,831,600 |
Income tax receivable | 1,388,200 | 4,163,900 |
Inventories | 60,800 | 93,500 |
Prepaid expenses | 581,600 | 467,400 |
Total current assets | 23,335,100 | 28,441,100 |
Net investment in leases - long-term | 19,983,500 | 24,188,900 |
Property and equipment, net | 1,293,700 | 1,420,300 |
Other assets | 677,500 | 677,500 |
Total assets | 45,289,800 | 54,727,800 |
Current Liabilities: | ||
Line of credit | 18,500,000 | |
Notes payable, net of unamortized debt issuance costs of $11,300 | 1,988,700 | |
Accounts payable | 1,555,500 | 1,955,500 |
Accrued liabilities | 2,459,800 | 1,759,200 |
Discounted lease rentals | 131,200 | 227,300 |
Deferred revenue | 2,276,600 | 2,142,600 |
Deferred income taxes | 3,443,600 | 4,412,600 |
Total current liabilities | 11,855,400 | 28,997,200 |
Long-Term Liabilities: | ||
Line of credit | 49,100,000 | |
Notes payable, net of unamortized debt issuance costs of $99,700 | 22,900,300 | |
Discounted lease rentals | 25,800 | |
Deferred revenue | 1,370,700 | 1,347,800 |
Other liabilities | 1,286,900 | 1,403,200 |
Deferred income taxes | 254,400 | 1,344,300 |
Total long-term liabilities | 74,912,300 | 4,121,100 |
Shareholders' Equity (Deficit): | ||
Common stock, no par, 10,000,000 shares authorized, 4,128,031 and 4,998,512 shares issued and outstanding | 422,400 | |
Accumulated other comprehensive loss | (14,600) | (37,100) |
Retained earnings (accumulated deficit) | (41,463,300) | 21,224,200 |
Total shareholders' equity (deficit) | (41,477,900) | 21,609,500 |
Total liabilities and shareholders' equity | $ 45,289,800 | $ 54,727,800 |
CONSOLIDATED CONDENSED BALANCE3
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 27, 2015 | Dec. 27, 2014 |
CONSOLIDATED CONDENSED BALANCE SHEETS | ||
Unamortized debt issuance costs - Current | $ 11,300 | |
Unamortized debt issuance costs - Noncurrent | 99,700 | |
Receivables, allowance for doubtful accounts (in dollars) | $ 1,800 | $ 1,600 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 4,128,031 | 4,998,512 |
Common stock, shares outstanding | 4,128,031 | 4,998,512 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
REVENUE: | ||||
Royalties | $ 10,214,400 | $ 9,200,800 | $ 19,940,600 | $ 18,010,800 |
Leasing income | 3,663,300 | 3,157,600 | 13,672,900 | 7,533,200 |
Merchandise sales | 686,300 | 685,800 | 1,420,000 | 1,473,800 |
Franchise fees | 475,900 | 607,500 | 770,300 | 956,500 |
Other | 436,800 | 387,200 | 697,000 | 617,200 |
Total revenue | 15,476,700 | 14,038,900 | 36,500,800 | 28,591,500 |
COST OF MERCHANDISE SOLD | 645,800 | 659,300 | 1,344,000 | 1,414,000 |
LEASING EXPENSE | 510,500 | 119,100 | 4,767,900 | 425,700 |
PROVISION FOR CREDIT LOSSES | (93,100) | (11,100) | (162,200) | 27,800 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 6,329,300 | 6,179,000 | 12,492,800 | 12,196,900 |
Income from operations | 8,084,200 | 7,092,600 | 18,058,300 | 14,527,100 |
INTEREST EXPENSE | (369,500) | (144,100) | (455,200) | (206,200) |
INTEREST AND OTHER INCOME (EXPENSE) | 9,700 | 900 | (49,400) | 1,000 |
Income before income taxes | 7,724,400 | 6,949,400 | 17,553,700 | 14,321,900 |
PROVISION FOR INCOME TAXES | (2,973,000) | (2,668,600) | (6,748,000) | (5,489,200) |
NET INCOME | $ 4,751,400 | $ 4,280,800 | $ 10,805,700 | $ 8,832,700 |
EARNINGS PER SHARE - BASIC (in dollars per share) | $ 1.04 | $ 0.84 | $ 2.26 | $ 1.72 |
EARNINGS PER SHARE - DILUTED (in dollars per share) | $ 1 | $ 0.82 | $ 2.18 | $ 1.67 |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (in shares) | 4,578,934 | 5,109,049 | 4,789,205 | 5,128,789 |
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (in shares) | 4,768,777 | 5,243,123 | 4,968,122 | 5,275,539 |
CONSOLIDATED CONDENSED STATEME5
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
NET INCOME | $ 4,751,400 | $ 4,280,800 | $ 10,805,700 | $ 8,832,700 |
Unrealized net gains (losses) on marketable securities: | ||||
Unrealized holding net gains (losses) arising during period | (10,000) | 17,200 | 38,700 | 5,200 |
Reclassification adjustment for net gains included in net income | (2,300) | (3,800) | ||
OTHER COMPREHENSIVE INCOME (LOSS), BEFORE TAX | (10,000) | 17,200 | 36,400 | 1,400 |
Unrealized net gains/losses on marketable securities: | ||||
Unrealized holding net gains/losses arising during period | 3,700 | (6,500) | (14,800) | (1,900) |
Reclassification adjustment for net gains included in net income | 900 | 1,400 | ||
INCOME TAX (EXPENSE) BENEFIT RELATED TO ITEMS OF OTHER COMPREHENSIVE INCOME | 3,700 | (6,500) | (13,900) | (500) |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (6,300) | 10,700 | 22,500 | 900 |
COMPREHENSIVE INCOME | $ 4,745,100 | $ 4,291,500 | $ 10,828,200 | $ 8,833,600 |
CONSOLIDATED CONDENSED STATEME6
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
OPERATING ACTIVITIES: | ||
Net Income | $ 10,805,700 | $ 8,832,700 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 214,200 | 202,400 |
Provision for credit losses | (162,200) | 27,800 |
Compensation expense related to stock options | 820,400 | 670,000 |
Deferred income taxes | (2,058,900) | (1,902,700) |
(Gain) loss on sale of marketable securities | 22,800 | (500) |
Deferred initial direct costs | (279,800) | (698,400) |
Amortization of deferred initial direct costs | 395,800 | 375,800 |
Tax benefits on exercised stock options | (16,600) | (74,700) |
Change in operating assets and liabilities: | ||
Receivables | 86,700 | 117,500 |
Income tax receivable / payable | 2,778,400 | (507,800) |
Inventories | 32,700 | 18,100 |
Prepaid expenses | (114,200) | 193,800 |
Accounts payable | (400,000) | (1,017,900) |
Accrued and other liabilities | 496,400 | 1,262,100 |
Rents received in advance and security deposits | 21,700 | 95,200 |
Deferred revenue | 156,900 | 2,500 |
Net cash provided by operating activities | 12,800,000 | 7,595,900 |
INVESTING ACTIVITIES: | ||
Proceeds from sale of marketable securities | 299,000 | 511,400 |
Purchase of marketable securities | (33,800) | (612,900) |
Purchase of property and equipment | (87,600) | (337,900) |
Purchase of equipment for lease contracts | (11,417,300) | (15,155,900) |
Principal collections on lease receivables | 16,606,800 | 9,451,600 |
Net cash provided by (used for) investing activities | 5,367,100 | (6,143,700) |
FINANCING ACTIVITIES: | ||
Proceeds from borrowings on line of credit | 51,600,000 | 26,400,000 |
Payments on line of credit | (21,000,000) | (3,300,000) |
Proceeds from borrowings on notes payable | 25,000,000 | |
Repurchases of common stock | (74,261,500) | (7,186,800) |
Proceeds from exercises of stock options | 159,000 | 392,000 |
Dividends paid | (650,100) | (26,330,000) |
Tax benefits on exercised stock options | 16,600 | 74,700 |
Net cash used for financing activities | (19,136,000) | (9,950,100) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (968,900) | (8,497,900) |
Cash and cash equivalents, beginning of period | 2,089,700 | 10,642,600 |
Cash and cash equivalents, end of period | 1,120,800 | 2,144,700 |
SUPPLEMENTAL DISCLOSURES: | ||
Cash paid for interest | 157,900 | 152,300 |
Cash paid for income taxes | $ 6,028,500 | $ 7,899,800 |
Management's Interim Financial
Management's Interim Financial Statement Representation: | 6 Months Ended |
Jun. 27, 2015 | |
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 six months ended June 27, 2015 are not necessarily indicative of the results to be expected for the full year. |
Organization and Business_
Organization and Business: | 6 Months Ended |
Jun. 27, 2015 | |
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: | 6 Months Ended |
Jun. 27, 2015 | |
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: | 6 Months Ended |
Jun. 27, 2015 | |
Investments: | |
Investments: | 4. Investments: Marketable Securities The following is a summary of marketable securities classified as available-for-sale securities: June 27, 2015 December 27, 2014 Cost Fair Value Cost Fair Value Equity securities $ $ $ $ The Company’s unrealized gains and losses for marketable securities classified as available-for-sale securities in accumulated other comprehensive loss are as follows: June 27, 2015 December 27, 2014 Unrealized gains $ — $ Unrealized losses ) ) Net unrealized losses $ ) $ ) The Company’s realized gains and losses recognized on sales of available-for-sale marketable securities are as follows: Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Realized gains $ — $ $ $ Realized losses — ) ) ) Net realized gains/(losses) $ — $ ) $ ) $ 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 Operation
Investment in Leasing Operations: | 6 Months Ended |
Jun. 27, 2015 | |
Investment in Leasing Operations: | |
Investment in Leasing Operations: | 5. Investment in Leasing Operations: Investment in leasing operations consists of the following: June 27, 2015 December 27, 2014 Direct financing and sales-type leases: Minimum lease payments receivable $ $ Estimated residual value of equipment Unearned lease income net of initial direct costs deferred ) ) Security deposits ) ) Equipment installed on leases not yet commenced Total investment in direct financing and sales-type leases Allowance for credit losses ) ) Net investment in direct financing and sales-type leases Operating leases: Operating lease assets Less accumulated depreciation and amortization ) ) Net investment in operating leases Total net investment in leasing operations $ $ As of June 27, 2015, the $38.7 million total net investment in leases consists of $18.7 million classified as current and $20.0 million classified as long-term. As of December 27, 2014, the $44.0 million total net investment in leases consists of $19.8 million classified as current and $24.2 million classified as long-term. As of June 27, 2015, leased assets with three customers approximated 17%, 15% and 13%, respectively, 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 2015 and the full fiscal years thereafter as of June 27, 2015: Direct Financing and Sales-Type Leases Operating Leases Minimum Lease Payments Receivable Income Amortization Minimum Lease Payments Receivable 2015 $ $ $ 2016 — 2017 — 2018 — 2019 — — Thereafter — — — $ $ $ The activity in the allowance for credit losses for leasing operations during the first six months of 2015 and 2014, respectively, is as follows: June 27, 2015 June 28, 2014 Balance at beginning of period $ $ Provisions charged to expense ) Recoveries Deductions for amounts written-off ) — Balance at end of period $ $ 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: June 27, 2015 December 27, 2014 Investment In Leases Allowance for Credit Losses Investment In Leases Allowance for Credit Losses Collectively evaluated for loss potential $ $ $ $ Individually evaluated for loss potential — — — — Total $ $ $ $ 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. June 27, 2015 0-60 Days Delinquent and Accruing 61-90 Days Delinquent and Accruing Over 90 Days Delinquent and Accruing Non-Accrual Total Middle-Market $ $ — $ — $ — $ Small-Ticket — — — Total Investment in Leases $ $ — $ — $ — $ December 27, 2014 0-60 Days Delinquent and Accruing 61-90 Days Delinquent and Accruing Over 90 Days Delinquent and Accruing Non-Accrual Total Middle-Market $ $ — $ — $ — $ Small-Ticket — — — Total Investment in Leases $ $ — $ — $ — $ |
Recent Accounting Pronouncement
Recent Accounting Pronouncements: | 6 Months Ended |
Jun. 27, 2015 | |
Recent Accounting Pronouncements: | |
Recent Accounting Pronouncements: | 6. Recent Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers , which provides guidance for revenue recognition that supersedes existing revenue recognition guidance (but does not apply to nor supersede accounting guidance for lease contracts). The ASU’s core principle is that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The ASU is effective for reporting periods beginning after December 15, 2016, and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. In July 2015, the FASB affirmed its proposal to defer the effective date by one year. The new standard will become effective for the Company beginning with the first quarter of fiscal 2018. The Company is currently in the process of evaluating the impact of the adoption of this ASU on the Company’s consolidated results. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , which amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge (as an asset). The ASU is effective for reporting periods beginning after December 15, 2015, but early adoption is permitted. The Company early adopted the ASU for the fiscal year ending December 26, 2015, and applied its provision retrospectively. The adoption of this ASU resulted in the classification of $111,000 of unamortized debt issuance costs related to Notes Payable as long-term debt within the Company’s Consolidated Condensed Balance Sheet as of June 27, 2015. As the ASU is only applicable to debt issuance costs incurred by the Company for its Note Payable in the second quarter of fiscal 2015, no prior period information has been retrospectively adjusted. Other than this classification, the adoption of this ASU did not have an impact on the Company’s consolidated financial statements. |
Earnings Per Share_
Earnings Per Share: | 6 Months Ended |
Jun. 27, 2015 | |
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 Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Denominator for basic EPS — weighted average common shares Dilutive shares associated with option plans Denominator for diluted EPS — weighted average common shares and dilutive potential common shares Options excluded from EPS calculation — anti-dilutive |
Shareholders' Equity (Deficit)_
Shareholders' Equity (Deficit): | 6 Months Ended |
Jun. 27, 2015 | |
Shareholders' Equity (Deficit): | |
Shareholders' Equity (Deficit): | 8. Shareholders’ Equity (Deficit): Dividends On January 28, 2015, the Company’s Board of Directors approved the payment of a $0.06 per share quarterly cash dividend to shareholders of record at the close of business on February 11, 2015, which was paid on March 2, 2015. On April 29, 2015, the Company’s Board of Directors approved the payment of a $0.07 per share quarterly cash dividend to shareholders of record at the close of business on May 13, 2015, which was paid on June 1, 2015. Repurchase of Common Stock In April 2015, the Company’s Board of Directors authorized the repurchase of up to 875,000 shares of our common stock for a price of $84.72 per share through a tender offer (the “Tender Offer”). The Tender Offer began on the date of the announcement, April 15, 2015 and expired on May 13, 2015. Upon expiration, the Company accepted for payment 875,000 shares for a total purchase price of approximately $74.3 million, including fees and expenses related to the Tender Offer. Under a previous Board of Directors’ authorization, as of June 27, 2015, the Company has the ability to repurchase an additional 166,700 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. The Company has authorized up to 500,000 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 has reserved a total of 350,000 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 June 27, 2015 was as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Intrinsic Value Outstanding at December 27, 2014 $ $ Granted Exercised ) Outstanding at June 27, 2015 $ $ Exercisable at June 27, 2015 $ $ The fair value of options granted under the Option Plans during the first six months of 2015 and 2014 were estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions and results: Six Months Ended June 27, 2015 June 28, 2014 Risk free interest rate % % Expected life (years) Expected volatility % % Dividend yield % % Option fair value $ $ During the six months ended June 27, 2015, option holders surrendered 587 shares of previously owned common stock as payment for option shares exercised as provided for by the Option Plans. All unexercised options at June 27, 2015 have an exercise price equal to the fair market value on the date of the grant. Compensation expense of $820,400 and $670,000 relating to the vested portion of the fair value of stock options granted was expensed to “Selling, General and Administrative Expenses” in the first six months of 2015 and 2014, respectively. As of June 27, 2015, the Company had $4.0 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 2.6 years. A reconciliation of common shares outstanding and total equity (deficit) from December 27, 2014 to June 27, 2015 is as follows: Common Shares Total Equity (Deficit) BALANCE, December 27, 2014 $ Repurchase of common stock ) ) Stock options exercised and related tax benefits Compensation expense relating to stock options — Cash dividends — ) Comprehensive income — BALANCE, June 27, 2015 $ ) |
Debt_
Debt: | 6 Months Ended |
Jun. 27, 2015 | |
Debt: | |
Debt: | 9. Debt: Line of Credit In April 2015, the Company’s Line of Credit with the PrivateBank and Trust Company and BMO Harris Bank N.A. was amended to, among other things: · Provide the consent of the lenders for the Tender Offer; · Increase the aggregate commitments from $35.0 million to $60.0 million to partially fund the Tender Offer; · Extend the termination date from February 28, 2018 to May 14, 2019; · Amend the tangible net worth covenant calculation to remove the effect of the Tender Offer and amend the leverage ratio to allow for an increase in the maximum of such ratio for a period of approximately two years from the effective date of the amendment; · Provide for a change in the applicable margin on the interest rate options based upon the leverage ratio; · Provide for additional LIBOR interest periods of six months and twelve months and remove the fixed rate interest options; and · Permit the Company to sell up to $30 million in term notes to Prudential Investment Management, Inc., its affiliates and managed accounts (“Prudential”) to partially fund the Tender Offer. During the first six months of 2015, the Line of Credit was used to finance in part the Tender Offer 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 June 27, 2015, the Company was in compliance with all of its financial covenants. There were $49.1 million in borrowings outstanding under the line of credit bearing interest ranging from 2.44% to 3.25%, leaving $10.9 million available for additional borrowings. Notes Payable In May 2015, the Company entered into a $25.0 million Note Agreement (the “Note Agreement”) with Prudential. Proceeds from the Note Agreement of $25.0 million were used to fund in part the Tender Offer. The final maturity of the notes is 10 years. Interest at a rate of 5.50% per annum on the outstanding principal balance is payable quarterly, along with required prepayments of the principal of $500,000 quarterly for the first five years, and $750,000 quarterly thereafter until the principal is paid in full. The 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 with the Line of Credit), and the Note Agreement contains customary financial conditions and covenants, and requires maintenance of minimum levels of fixed charge coverage and tangible net worth and maximum levels of leverage (all as defined within the Note Agreement). In connection with the Note Agreement, the Company incurred $112,800 in 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: | 6 Months Ended |
Jun. 27, 2015 | |
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 interest rate of 3.26% at June 27, 2015 on a non-recourse basis. |
Segment Reporting_
Segment Reporting: | 6 Months Ended |
Jun. 27, 2015 | |
Segment Reporting: | |
Segment Reporting: | 11. 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 Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Revenue: Franchising $ $ $ $ Leasing Total revenue $ $ $ $ Reconciliation to operating income: Franchising segment contribution $ $ $ $ Leasing segment contribution Total operating income $ $ $ $ Depreciation: Franchising $ $ $ $ Leasing Total depreciation $ $ $ $ As of June 27, 2015 December 27, 2014 Identifiable assets: Franchising $ $ Leasing Unallocated Total $ $ |
Investments_ (Tables)
Investments: (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Investments: | |
Summary of marketable securities classified as available-for-sale securities | June 27, 2015 December 27, 2014 Cost Fair Value Cost Fair Value Equity securities $ $ $ $ |
Schedule of the Company's unrealized gains and losses for marketable securities classified as available-for-sale securities in accumulated other comprehensive loss | June 27, 2015 December 27, 2014 Unrealized gains $ — $ Unrealized losses ) ) Net unrealized losses $ ) $ ) |
Schedule of the Company's realized gains and losses recognized on sales of available-for-sale marketable securities | Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Realized gains $ — $ $ $ Realized losses — ) ) ) Net realized gains/(losses) $ — $ ) $ ) $ |
Investment in Leasing Operati19
Investment in Leasing Operations: (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Investment in Leasing Operations: | |
Schedule of investment in leasing operations | June 27, 2015 December 27, 2014 Direct financing and sales-type leases: Minimum lease payments receivable $ $ Estimated residual value of equipment Unearned lease income net of initial direct costs deferred ) ) Security deposits ) ) Equipment installed on leases not yet commenced Total investment in direct financing and sales-type leases Allowance for credit losses ) ) Net investment in direct financing and sales-type leases Operating leases: Operating lease assets Less accumulated depreciation and amortization ) ) Net investment in operating leases Total net investment in leasing operations $ $ |
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 2015 and the full fiscal years thereafter as of June 27, 2015: Direct Financing and Sales-Type Leases Operating Leases Minimum Lease Payments Receivable Income Amortization Minimum Lease Payments Receivable 2015 $ $ $ 2016 — 2017 — 2018 — 2019 — — Thereafter — — — $ $ $ |
Schedule of activity in the allowance for credit losses for leasing operations | June 27, 2015 June 28, 2014 Balance at beginning of period $ $ Provisions charged to expense ) Recoveries Deductions for amounts written-off ) — Balance at end of period $ $ |
Schedule of investment in direct financing and sales-type leases (investment in leases) and allowance for credit losses by loss evaluation methodology | June 27, 2015 December 27, 2014 Investment In Leases Allowance for Credit Losses Investment In Leases Allowance for Credit Losses Collectively evaluated for loss potential $ $ $ $ Individually evaluated for loss potential — — — — Total $ $ $ $ |
Schedule of information regarding accruing and non-accrual leases | June 27, 2015 0-60 Days Delinquent and Accruing 61-90 Days Delinquent and Accruing Over 90 Days Delinquent and Accruing Non-Accrual Total Middle-Market $ $ — $ — $ — $ Small-Ticket — — — Total Investment in Leases $ $ — $ — $ — $ December 27, 2014 0-60 Days Delinquent and Accruing 61-90 Days Delinquent and Accruing Over 90 Days Delinquent and Accruing Non-Accrual Total Middle-Market $ $ — $ — $ — $ Small-Ticket — — — Total Investment in Leases $ $ — $ — $ — $ |
Earnings Per Share_ (Tables)
Earnings Per Share: (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Earnings Per Share: | |
Schedule of shares outstanding used in the calculation of basic and diluted earnings per share | Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Denominator for basic EPS — weighted average common shares Dilutive shares associated with option plans Denominator for diluted EPS — weighted average common shares and dilutive potential common shares Options excluded from EPS calculation — anti-dilutive |
Shareholders' Equity (Deficit21
Shareholders' Equity (Deficit): (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Shareholders' Equity (Deficit): | |
Schedule of stock option activity under the 2001 Plan, 2010 Plan and Nonemployee Directors Plan | Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Intrinsic Value Outstanding at December 27, 2014 $ $ Granted Exercised ) Outstanding at June 27, 2015 $ $ Exercisable at June 27, 2015 $ $ |
Schedule of weighted average assumptions used in estimation of fair value of options granted | Six Months Ended June 27, 2015 June 28, 2014 Risk free interest rate % % Expected life (years) Expected volatility % % Dividend yield % % Option fair value $ $ |
Schedule of a reconciliation of common shares outstanding and total equity (deficit) | Common Shares Total Equity (Deficit) BALANCE, December 27, 2014 $ Repurchase of common stock ) ) Stock options exercised and related tax benefits Compensation expense relating to stock options — Cash dividends — ) Comprehensive income — BALANCE, June 27, 2015 $ ) |
Segment Reporting_ (Tables)
Segment Reporting: (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Segment Reporting: | |
Schedule of financial information by segment and reconciliation of segment contribution to operating income | Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Revenue: Franchising $ $ $ $ Leasing Total revenue $ $ $ $ Reconciliation to operating income: Franchising segment contribution $ $ $ $ Leasing segment contribution Total operating income $ $ $ $ Depreciation: Franchising $ $ $ $ Leasing Total depreciation $ $ $ $ As of June 27, 2015 December 27, 2014 Identifiable assets: Franchising $ $ Leasing Unallocated Total $ $ |
Management's Interim Financia23
Management's Interim Financial Statement Representation: (Details) | 6 Months Ended |
Jun. 27, 2015item | |
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 | 6 Months Ended | ||
Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | Dec. 27, 2014 | |
Summary of marketable securities classified as available-for-sale securities | ||||
Equity securities, Cost | $ 238,600 | $ 526,600 | ||
Equity securities, Fair Value | 215,200 | 466,800 | ||
Unrealized gains and losses for marketable securities classified as available-for-sale securities in accumulated other comprehensive loss | ||||
Unrealized gains | 3,300 | |||
Unrealized losses | (23,400) | (63,100) | ||
Net unrealized losses | (23,400) | $ (59,800) | ||
Realized gains and losses recognized on sales of available-for-sale marketable securities | ||||
Realized gains | $ 4,600 | 13,400 | $ 26,800 | |
Realized losses | (13,500) | (36,200) | (26,300) | |
Net realized gains (losses) | $ (8,900) | $ (22,800) | $ 500 |
Investment in Leasing Operati25
Investment in Leasing Operations: (Details) - USD ($) | Jun. 27, 2015 | Dec. 27, 2014 |
Direct financing and sales-type leases: | ||
Minimum lease payments receivable | $ 39,912,800 | $ 40,739,900 |
Estimated residual value of equipment | 4,475,300 | 4,347,100 |
Unearned lease income net of initial direct costs deferred | (5,357,100) | (6,061,100) |
Security deposits | (3,298,000) | (3,253,200) |
Equipment installed on leases not yet commenced | 3,685,500 | 8,364,100 |
Total | 39,418,500 | 44,136,800 |
Allowance for credit losses | (844,800) | (386,000) |
Net investment in direct financing and sales-type leases | 38,573,700 | 43,750,800 |
Operating leases: | ||
Operating lease assets | 1,204,700 | 806,100 |
Less accumulated depreciation and amortization | (1,067,900) | (536,400) |
Net investment in operating leases | 136,800 | 269,700 |
Total net investment in leasing operations | 38,710,500 | 44,020,500 |
Net investment in leases - current | 18,727,000 | 19,831,600 |
Net investment in leases - long-term | $ 19,983,500 | $ 24,188,900 |
Investment in Leasing Operati26
Investment in Leasing Operations: (Details 2) - 6 months ended Jun. 27, 2015 - Total assets - item | Total |
Investment in leasing operations | |
Number of customers | 3 |
Customer one concentration risk for leased assets | |
Investment in leasing operations | |
Percentage of concentration risk | 15.00% |
Customer Two Concentration Risk | |
Investment in leasing operations | |
Percentage of concentration risk | 13.00% |
Customer Three Concentration Risk Member | |
Investment in leasing operations | |
Percentage of concentration risk | 17.00% |
Investment in Leasing Operati27
Investment in Leasing Operations: (Details 3) - USD ($) | Jun. 27, 2015 | Dec. 27, 2014 |
Direct Financing and Sales-Type Leases, Minimum Lease Payments Receivable | ||
2,015 | $ 12,289,800 | |
2,016 | 17,926,500 | |
2,017 | 8,765,100 | |
2,018 | 929,300 | |
2,019 | 2,100 | |
Total | 39,912,800 | $ 40,739,900 |
Direct Financing and Sales-Type Leases, Income Amortization | ||
2,015 | 2,310,300 | |
2,016 | 2,419,800 | |
2,017 | 610,700 | |
2,018 | 16,300 | |
Total | 5,357,100 | |
Operating Leases, Minimum Lease Payments Receivable | ||
2,015 | 18,900 | |
Total | $ 18,900 |
Investment in Leasing Operati28
Investment in Leasing Operations: (Details 4) - Investment in leases - USD ($) | 6 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Activity in the allowance for credit losses for leasing operations | ||
Balance at beginning of period | $ 386,000 | $ 822,700 |
Provisions charged to expense | (162,200) | 27,800 |
Recoveries | 630,300 | 88,800 |
Deductions for amounts written-off | (9,300) | |
Balance at end of period | $ 844,800 | $ 939,300 |
Investment in Leasing Operati29
Investment in Leasing Operations: (Details 5) - USD ($) | Jun. 27, 2015 | Dec. 27, 2014 |
Investment In Leases | ||
Total | $ 39,418,500 | $ 44,136,800 |
Allowance for Credit Losses | ||
Collectively evaluated for loss potential | 844,800 | 386,000 |
Total | 844,800 | 386,000 |
Investment in leases | ||
Investment In Leases | ||
Collectively evaluated for loss potential | 39,418,500 | 44,136,800 |
Total | $ 39,418,500 | $ 44,136,800 |
Investment in Leasing Operati30
Investment in Leasing Operations: (Details 6) - USD ($) | Jun. 27, 2015 | Dec. 27, 2014 |
Investment in leasing operations | ||
0-60 Days Delinquent and Accruing | $ 39,418,500 | $ 44,136,800 |
Total | 39,418,500 | 44,136,800 |
Middle-Market | ||
Investment in leasing operations | ||
0-60 Days Delinquent and Accruing | 38,340,500 | 42,948,000 |
Total | 38,340,500 | 42,948,000 |
Small-Ticket | ||
Investment in leasing operations | ||
0-60 Days Delinquent and Accruing | 1,078,000 | 1,188,800 |
Total | $ 1,078,000 | $ 1,188,800 |
Recent Accounting Pronounceme31
Recent Accounting Pronouncements (Details) | Jun. 27, 2015USD ($) |
New Accounting Pronouncement, Early Adoption, Effect [Member] | |
New Accounting Pronouncement, Early Adoption [Line Items] | |
Classification of unamortized debt issuance costs related to Notes Payable as long-term debt | $ 111,000 |
Earnings Per Share_ (Details)
Earnings Per Share: (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Earnings Per Share: | ||||
Denominator for basic EPS - weighted average common shares | 4,578,934 | 5,109,049 | 4,789,205 | 5,128,789 |
Dilutive shares associated with option plans | 189,843 | 134,074 | 178,917 | 146,750 |
Denominator for diluted EPS - weighted average common shares and dilutive potential common shares | 4,768,777 | 5,243,123 | 4,968,122 | 5,275,539 |
Options excluded from EPS calculation - anti-dilutive (in shares) | 16,692 | 31,813 | 26,372 | 23,002 |
Shareholders' Equity (Deficit33
Shareholders' Equity (Deficit): (Details) - USD ($) | May. 13, 2015 | Apr. 29, 2015 | Apr. 15, 2015 | Jan. 28, 2015 | Jun. 27, 2015 | Jun. 28, 2014 |
Repurchase of Common Stock | ||||||
Treasury Stock, Shares, Acquired | 875,000 | |||||
Value of shares repurchased | $ 74,261,500 | $ 7,186,800 | ||||
Dividends | ||||||
Cash dividend approved by Board of Directors (in dollars per share) | $ 0.07 | $ 0.06 | ||||
Tender Offer | ||||||
Repurchase of Common Stock | ||||||
Number of shares authorized | $ 875,000 | |||||
Purchase Of Stock Price Per Share | $ 84.72 | |||||
Treasury Stock, Shares, Acquired | 875,000 | |||||
Common Stock Repurchase Program | ||||||
Repurchase of Common Stock | ||||||
Number of additional shares that can be repurchased | 166,700 |
Shareholders' Equity (Deficit34
Shareholders' Equity (Deficit): (Details 2) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | Dec. 27, 2014 | |
Weighted Average Remaining Contractual Life (years) | |||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 6 years 7 months 28 days | 6 years 11 months 5 days | |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 6 years 7 months 28 days | 6 years 11 months 5 days | |
Exercisable at the end of the period | 5 years 6 months 11 days | ||
Stock options | |||
Number of Shares | |||
Outstanding at the beginning of the period (in shares) | 597,700 | ||
Granted (in shares) | 39,700 | ||
Exercised (in shares) | (5,106) | ||
Outstanding at the end of the period (in shares) | 632,294 | 597,700 | |
Exercisable at the end of the period (in shares) | 397,392 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 48.50 | ||
Granted (in dollars per share) | 91.93 | ||
Exercised (in dollars per share) | 40.52 | ||
Outstanding at the end of the period (in dollars per share) | 51.29 | $ 48.50 | |
Exercisable at the end of the period (in dollars per share) | $ 38.58 | ||
Intrinsic Value | |||
Outstanding at the beginning of the period | $ 20,973,700 | ||
Outstanding at the end of the period | 31,146,400 | $ 20,973,700 | |
Exercisable at the end of the period | $ 24,624,500 | ||
Weighted average assumptions and results used in estimation of fair value of options granted | |||
Risk free interest rate (as a percent) | 1.68% | 1.80% | |
Expected life (years) | 6 years | 6 years | |
Expected volatility (as a percent) | 30.80% | 34.10% | |
Dividend yield (as a percent) | 1.34% | 1.80% | |
Option fair value (in dollars per share) | $ 25.48 | $ 19.23 | |
2001 Plan | Stock options | |||
Stock option plans | |||
Number of shares authorized for issuance | 750,000 | ||
2010 Plan | Stock options | |||
Stock option plans | |||
Number of shares authorized for issuance | 500,000 | ||
Nonemployee Directors Plan | Stock options | |||
Stock option plans | |||
Number of shares authorized for issuance | 350,000 |
Shareholders' Equity (Deficit35
Shareholders' Equity (Deficit): (Details 3) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Additional disclosures | ||||
Shares of previously owned common stock surrendered as payment for option shares exercised | 587 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE, December 27, 2014 | $ 21,609,500 | |||
BALANCE, December 27, 2014 (in shares) | 4,998,512 | |||
Repurchase of common stock | $ (74,261,500) | |||
Repurchase of common stock (in shares) | (875,000) | |||
Stock options exercised and related tax benefits | $ 175,600 | |||
Stock options exercised and related tax benefits (in shares) | 4,519 | |||
Compensation expense relating to stock options | $ 820,400 | |||
Cash dividends | (650,100) | |||
Comprehensive income | $ 4,745,100 | $ 4,291,500 | 10,828,200 | $ 8,833,600 |
BALANCE, June 27, 2015 | $ (41,477,900) | $ (41,477,900) | ||
BALANCE, June 27, 2015 (in shares) | 4,128,031 | 4,128,031 | ||
Stock options | ||||
Additional disclosures | ||||
Granted (in shares) | 39,700 | |||
Compensation expense | $ 820,400 | $ 670,000 | ||
Total unrecognized compensation expense | $ 4,000,000 | $ 4,000,000 | ||
Weighted average period for recognition of unrecognized compensation expense | 2 years 7 months 6 days |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Apr. 14, 2015 | Apr. 13, 2015 | Apr. 30, 2015 | Jun. 27, 2015 |
Line of Credit Facility [Line Items] | ||||
Leverage ratio amendment term | 2 years | |||
Private Bank, Trust Company and BMO Harris Bank N A [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Proposed maximum line of credit as part of tender offer | $ 60 | $ 35 | ||
Debt instrument term from the effective date of the amendment | 4 years | |||
Amount of term note available borrowing upon tender offer effective date | $ 30 | |||
Borrowings outstanding | $ 49.1 | |||
Line of credit available for additional borrowings | $ 10.9 | |||
Minimum | Private Bank, Trust Company and BMO Harris Bank N A [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate | 2.44% | |||
Maximum | Private Bank, Trust Company and BMO Harris Bank N A [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate | 3.25% |
Debt (Details 2)
Debt (Details 2) - USD ($) | 1 Months Ended | 6 Months Ended |
May. 31, 2015 | Jun. 27, 2015 | |
Debt Instrument [Line Items] | ||
Proceeds from the Note Agreement | $ 25,000,000 | |
Term of Notes Payable | 10 years | |
Notes Payable, Other Payables [Member] | Prudential Investment Management, Inc [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable amount | $ 25,000,000 | |
Proceeds from the Note Agreement | $ 25,000,000 | |
Interest | 5.50% | |
Quarterly principal payment, first five year | $ 500,000 | |
Quarterly principal payment, thereafter | 750,000 | |
Minimum prepayment | 1,000,000 | |
Debt issuance costs | $ 112,800 |
Discounted Lease Rentals_ (Deta
Discounted Lease Rentals: (Details) | Jun. 27, 2015 |
Discounted Lease Rentals: | |
Weighted average interest rate on a non-recourse basis (as a percent) | 3.26% |
Segment Reporting_ (Details)
Segment Reporting: (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2015USD ($) | Jun. 28, 2014USD ($) | Jun. 27, 2015USD ($)item | Jun. 28, 2014USD ($) | Dec. 27, 2014USD ($) | |
Segment Reporting | |||||
Number of reportable business segments | item | 2 | ||||
Total revenue | $ 15,476,700 | $ 14,038,900 | $ 36,500,800 | $ 28,591,500 | |
Total operating income | 8,084,200 | 7,092,600 | 18,058,300 | 14,527,100 | |
Total depreciation | 106,600 | 97,100 | 214,200 | 202,400 | |
Total identifiable assets | 45,289,800 | 45,289,800 | $ 54,727,800 | ||
Operating | Franchising | |||||
Segment Reporting | |||||
Total revenue | 11,813,400 | 10,881,300 | 22,827,900 | 21,058,300 | |
Total operating income | 6,214,700 | 5,311,200 | 11,851,500 | 10,012,400 | |
Total depreciation | 84,600 | 76,600 | 169,900 | 159,700 | |
Total identifiable assets | 2,836,700 | 2,836,700 | 3,258,300 | ||
Operating | Leasing | |||||
Segment Reporting | |||||
Total revenue | 3,663,300 | 3,157,600 | 13,672,900 | 7,533,200 | |
Total operating income | 1,869,500 | 1,781,400 | 6,206,800 | 4,514,700 | |
Total depreciation | 22,000 | $ 20,500 | 44,300 | $ 42,700 | |
Total identifiable assets | 39,457,500 | 39,457,500 | 44,870,800 | ||
Unallocated | |||||
Segment Reporting | |||||
Total identifiable assets | $ 2,995,600 | $ 2,995,600 | $ 6,598,700 |