MINNEAPOLIS--(BUSINESS WIRE)--Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended September 26, 2020 of $9,358,800 (or $2.43 per share diluted) compared to net income of $9,113,800 (or $2.24 per share diluted) in the third quarter of 2019. For the nine months ended September 26, 2020, net income was $21,731,000 (or $5.63 per share diluted) compared to net income of $23,687,900 (or $5.76 per share diluted) for the same period last year. Winmark Corporation creates, supports and finances business. At September 26, 2020, there were 1,262 franchises in operation under the brands Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® and Music Go Round®. An additional 35 retail franchises have been awarded but are not open. 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. 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. WINMARK CORPORATION CONDENSED BALANCE SHEETS (unaudited)                   September 26, 2020   December 28, 2019 ASSETS Current Assets:             Cash and cash equivalents   $ 8,267,400     $ 25,130,300 Restricted cash     50,000       50,000 Receivables, net     1,947,600       1,669,500 Net investment in leases - current     10,514,200       12,800,100 Income tax receivable     —       497,900 Inventories     85,100       86,000 Prepaid expenses     1,158,800       968,100 Total current assets     22,023,100       41,201,900               Net investment in leases – long-term     5,090,800       12,505,500 Property and equipment, net     2,439,100       2,772,600 Operating lease right of use asset     3,301,800       3,595,200 Goodwill     607,500       607,500 Other assets     458,300       492,500 Deferred income taxes     1,918,000       667,000     $ 35,838,600     $ 61,842,200               LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) Current Liabilities:             Notes payable, net   $ 4,236,100     $ 3,736,100 Accounts payable     1,272,700       1,015,000 Income tax payable     472,500       — Accrued liabilities     2,478,000       2,783,100 Discounted lease rentals     1,522,500       2,680,700 Deferred revenue     1,675,200       1,717,000 Total current liabilities     11,657,000       11,931,900 Long-Term Liabilities:             Notes payable, net   $ 18,691,700     $ 21,868,800 Discounted lease rentals     763,000       836,900 Deferred revenue     7,270,000       7,858,500 Operating lease liabilities     5,417,500       5,846,100 Other liabilities     873,100       1,051,700 Total long-term liabilities     33,015,300       37,462,000 Shareholders’ Equity (Deficit):             Common stock, no par, 10,000,000 shares authorized, 3,735,437 and 3,947,858 shares issued and outstanding     7,717,800       11,929,300 Retained earnings (accumulated deficit)     (16,551,500 )     519,000 Total shareholders’ equity (deficit)     (8,833,700 )     12,448,300     $ 35,838,600     $ 61,842,200 WINMARK CORPORATION CONDENSED STATEMENTS OF OPERATIONS (Unaudited)                                 Quarter Ended   Nine Months Ended     September 26, 2020   September 28, 2019   September 26, 2020   September 28, 2019 Revenue:                         Royalties   $ 14,210,000     $ 13,808,800     $ 33,188,300     $ 38,223,400   Leasing income     2,695,800       4,375,500       12,040,800       12,733,800   Merchandise sales     631,200       704,500       1,746,800       2,037,300   Franchise fees     335,400       377,400       1,064,900       1,183,100   Other     404,600       414,700       1,225,700       1,238,700   Total revenue     18,277,000       19,680,900       49,266,500       55,416,300   Cost of merchandise sold     598,200       671,700       1,662,000       1,924,400   Leasing expense     510,900       572,400       2,443,700       1,642,000   Provision for credit losses     (339,600 )     (55,500 )     164,300       23,900   Selling, general and administrative expenses     5,009,700       6,217,600       15,719,100       19,637,900   Income from operations     12,497,800       12,274,700       29,277,400       32,188,100   Interest expense     (345,700 )     (406,200 )     (1,409,600 )     (1,348,700 ) Interest and other income (expense)     9,200       500       27,700       (5,900 ) Income before income taxes     12,161,300       11,869,000       27,895,500       30,833,500   Provision for income taxes     (2,802,500 )     (2,755,200 )     (6,164,500 )     (7,145,600 ) Net income   $ 9,358,800     $ 9,113,800     $ 21,731,000     $ 23,687,900   Earnings per share - basic   $ 2.51     $ 2.39     $ 5.86     $ 6.19   Earnings per share - diluted   $ 2.43     $ 2.24     $ 5.63     $ 5.76   Weighted average shares outstanding - basic     3,730,490       3,808,863       3,710,112       3,829,329   Weighted average shares outstanding - diluted     3,857,702       4,065,301       3,857,754       4,112,318