MINNEAPOLIS -- (Business Wire)
Winmark Corporation (Nasdaq: WINA) announced today that it recorded
impairment charges relating to its’ investments in (i) Tomsten, Inc.
(d/b/a Archiver’s) and (ii) BridgeFunds, LLC. The impact to Winmark’s
financial statements includes:
A $1.8 million reduction to the carrying value of Winmark’s investment
A $0.7 million reduction to the carrying value of Winmark’s investment
in BridgeFunds, LLC;
A reduction of Winmark’s equity of $2.5 million;
A reduction of pre-tax income of $2.5 million for the quarter ended
December 29, 2012. The charges will negatively impact earnings per
share by approximately $0.47 per share for the quarter.
After these non-cash impairment charges, Winmark no longer has any
carrying value for either of these investments.
Winmark plans to announce its fourth quarter and year-end results on
February 27, 2013.
Winmark Corporation creates, supports and finances business. At December
29, 2012, there were 968 franchises in operation under the brands
Plato's Closet®, Play It Again Sports®, Once Upon A Child®, and Music Go
Round®. An additional 65 retail franchises have been awarded but are not
open. In addition, at September 29, 2012, the Company had a lease
portfolio of $34.1 million.
This press release contains forward-looking statements within the
meaning of the safe harbor provisions of Section 21E of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), relating to
future events or the future financial performance of the Company
including statements with respect to our ability to finance the growth
of our leasing and franchising businesses for the foreseeable future.Such forward-looking statements are only predictions or statements of
intention subject to risks and uncertainties and actual events or
results could differ materially from those anticipated.Because
actual result may differ, shareholders and prospective investors are
cautioned not to place undue reliance on such forward-looking statements.
John L. Morgan, 763-520-8500
Source: Winmark Corporation