Winmark Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Winmark Corp. has submitted its 2023 10-K filing, detailing financial performance and corporate governance for the fiscal year ending December 30, 2023.</b>

AI Summary

WINMARK CORP (WINA) filed a Annual Report (10-K) with the SEC on February 28, 2024. Winmark Corp. filed its 10-K report for the fiscal year ending December 30, 2023. The filing covers the period from January 1, 2023, to December 30, 2023. Key financial data points such as total assets and retained earnings for 2023 are included. Information regarding stock option plans, including the 2020 plan, is detailed. The report references various agreements, including the Private Shelf Agreement with Prudential.

Why It Matters

For investors and stakeholders tracking WINMARK CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Winmark Corp.'s financial health, operational performance, and strategic initiatives for the fiscal year 2023, crucial for investors to assess the company's current standing and future prospects. The detailed financial statements and disclosures within the 10-K allow stakeholders to understand the company's revenue streams, asset base, debt obligations, and equity structure, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — WINMARK CORP shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report. While it contains detailed financial information, it does not indicate any immediate or severe risks beyond those typically associated with a publicly traded company in the retail sector.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand Winmark Corp.'s performance and potential challenges for the upcoming fiscal year.

Revenue Breakdown

Key Numbers

• 2023-12-30 — Fiscal Year End (Reporting period)
• 2024-02-28 — Filing Date (Date of submission)

Key Players & Entities

• WINMARK CORP (company) — Filer name
• WINA (company) — Ticker symbol
• 2023-12-30 (date) — Fiscal year end
• 2024-02-28 (date) — Filing date
• Prudential (company) — Party to agreements

FAQ

Risk Factors

• Financial Agreements [medium — financial]: The company has entered into various financial agreements, including a Private Shelf Agreement with Prudential and a Note Agreement with Prudential.

Key Dates

• 2023-12-30: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-28: Filing Date — Date the 10-K was officially submitted to the SEC.

Key Financial Figures

• $6.8 m — 2023, 2022 and 2021 were approximately $6.8 million, $6.4 million and $4.9 million, r
• $6.4 million — d 2021 were approximately $6.8 million, $6.4 million and $4.9 million, respectively. For add
• $4.9 m — ximately $6.8 million, $6.4 million and $4.9 million, respectively. For additional fin
• $25,000 — 3, the franchise fee for all brands was $25,000 for an initial store in the U.S. and $3
• $34,000 — 00 for an initial store in the U.S. and $34,000CAD for an initial store in Canada. Once
• $15,000 — ional stores, in any brand, by paying a $15,000 franchise fee for a store in the U.S. a
• $20,500 — anchise fee for a store in the U.S. and $20,500CAD for a store in Canada, provided an a
• $33,200 — for an initial store in Canada will be $33,200CAD, and an additional store in Canada w
• $20,000 — d an additional store in Canada will be $20,000CAD . Typically, the franchisee's initia
• $1,500 — ed to pay us an annual marketing fee of $1,500, and is required to spend 5% of its gro

Filing Documents

• wina-20231230x10k.htm (10-K) — 1920KB
• wina-20231230xex23d1.htm (EX-23.1) — 4KB
• wina-20231230xex31d1.htm (EX-31.1) — 15KB
• wina-20231230xex31d2.htm (EX-31.2) — 15KB
• wina-20231230xex32d1.htm (EX-32.1) — 9KB
• wina-20231230xex32d2.htm (EX-32.2) — 9KB
• wina-20231230xex97.htm (EX-97) — 92KB
• wina-20231230x10k004.jpg (GRAPHIC) — 43KB
• wina-20231230xex97001.jpg (GRAPHIC) — 2KB
• 0000908315-24-000010.txt (&nbsp;) — 8595KB
• wina-20231230.xsd (EX-101.SCH) — 61KB
• wina-20231230_cal.xml (EX-101.CAL) — 87KB
• wina-20231230_def.xml (EX-101.DEF) — 169KB
• wina-20231230_lab.xml (EX-101.LAB) — 572KB
• wina-20231230_pre.xml (EX-101.PRE) — 383KB
• wina-20231230x10k_htm.xml (XML) — 1443KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 8 Item 1B. Unresolved Staff Comments 11 Item 1C. Cybersecurity 11 Item 2.

Properties

Properties 11 Item 3.

Legal Proceedings

Legal Proceedings 11 Item 4. Mine Safety Disclosures 11 PART II PAGE Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 12 Item 6. [Reserved] 13 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 13 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 18 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 18 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 41 Item 9A.

Controls and Procedures

Controls and Procedures 41 Item 9B. Other Information 41 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 41 PART III PAGE Item 10. Directors, Executive Officers and Corporate Governance 42 Item 11.

Executive Compensation

Executive Compensation 42 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 42 Item 13. Certain Relationships and Related Transactions, and Director Independence 42 Item 14. Principal Accountant Fees and Services 42 PART IV PAGE Item 15. Exhibits and Financial Statement Schedules 42 Item 16. Form 10-K Summary 45

SIGNATURES

SIGNATURES 46 Table of Contents

FORWARD LOOKING STATEMENTS OR INFORMATION

FORWARD LOOKING STATEMENTS OR INFORMATION The statements contained in this Form 10-K Item 1 "Business", Item 1A "Risk Factors", Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations," and in Item 8 "Financial Statements and Supplemental Data" that are not strictly historical fact, including without limitation, the Company's statements relating to growth opportunities, its ability to open new franchises, its ability to manage costs in the future, the number of franchises it believes will open, performance of its lease portfolio, its future cash requirements, its future effective tax rate and its belief that it will have adequate capital and reserves to meet its current and contingent obligations and operating needs, as well as its disclosures regarding market rate risk, and other statements in which we use words or phrases such as "will," "may," "should," "could," "expects," "believes," "anticipates," "plans," "estimates," "intends," and similar words are all forward looking statements made under the safe harbor provision of the Private Securities Litigation Reform Act. Such statements are based on management's current expectations as of the date of this report but involve risks, uncertainties and other factors which may cause actual results to differ materially from those contemplated by such forward looking statements. Investors are cautioned to consider these forward looking statements in light of important factors which may result in material variations between results contemplated by such forward looking statements and actual results and conditions including, but not limited to, the risk factors discussed in Section 1A of this report. You should not place undue reliance on these forward-looking statements, which speak only as of the date they were made. The Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason. Winmark qualifies as a "Smaller Reporting Company" under

: BUSINESS

ITEM 1: BUSINESS Background Winmark – the Resale Company (Winmark Corporation, Winmark or the Company), is a nationally recognized franchisor focused on sustainability and small business formation. We champion and guide entrepreneurs interested in operating one of our award winning resale franchises: Plato's Closet, Once Upon A Child, Play It Again Sports, Style Encore and Music Go Round. At December 30, 2023, there were 1,319 franchises in operation in the United States and Canada and over 2,800 available territories. Our mission is to provide Resale for Everyone. Each of our resale brands emphasizes consumer value by offering high-quality used merchandise at substantial savings from the price of new merchandise and by purchasing customers' used goods that have been outgrown or are no longer used. Our concepts also offer a limited amount of new merchandise to customers. For over 30 years, we have offered a sustainable solution for consumers to recycle their gently used clothing, toys, sporting goods and musical instruments. We estimate that, since 2010, stores in our resale brands have extended the lives of over 1.7 billion items. W e continue to enhance our franchise model and provide our franchisees with the technology, tools and training to profitably expand their operations and evolve towards being a multi-channel retailer. Our significant assets are located within the United States, and we generate the majority of revenues from United States operations. Revenues from Canadian franchisees in 2023, 2022 and 2021 were approximately $6.8 million, $6.4 million and $4.9 million, respectively. For additional financial information, please see Item 8 — Financial Statements and Supplementary Data. We were incorporated in Minnesota in 1988. 1 Table of Contents Operations We currently franchise five brands: Plato's Closet We began franchising the Plato's Closet brand in 1999. Plato's Closet franchisees buy and sell gently used clothing and accessories g

View Full Filing

View this 10-K filing on SEC EDGAR