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These excerpts taken from the WINA 10-K filed Mar 13, 2009. Winmark Capital Corporation
Winmark Capital Corporation focuses on middle-market transactions that generally have terms from two to five years and are with large organizations. We target businesses with annual revenue of $25 million or more. Such transactions are generally larger than $250,000 and include high-technology equipment and/or business essential equipment, including computers, telecommunications equipment, point-of-sale systems and other business-essential equipment. The leases are retained in our portfolio to accommodate equipment additions and upgrades to meet customers’ changing needs.
Winmark Capital Corporation
Winmark Capital
These excerpts taken from the WINA 10-K filed Mar 18, 2008. Winmark Capital Corporation
Winmark Capital Corporation focuses on middle-market transactions that generally have terms from two to five years and are with large organizations. We target businesses with annual revenue of $25,000,000 or more. Such transactions are generally larger than $250,000 and include high-technology equipment and/or business essential equipment, including computers, telecommunications equipment, point-of-sale systems and other business-essential equipment. The leases are retained in our portfolio to accommodate equipment additions and upgrades to meet customers’ changing needs.
Industry
The high-technology equipment industry has been characterized by rapid and continuous advancements permitting broadened user applications and reductions in processing costs. The introduction of new equipment generally does not cause existing equipment to become obsolete but usually does cause the market value of existing equipment to decrease to reflect the improved performance per dollar cost of the new equipment. Users frequently replace equipment as their existing equipment becomes inappropriate for their needs or as increased data processing capacity is required, creating a secondary market in used equipment.
Generally, high-technology equipment, such as data processing equipment, does not suffer from material physical deterioration if properly maintained. Our leased equipment is kept under continual maintenance, in accordance with the manufacturer’s specifications, most often provided by the manufacturer. The economic life and residual value of data processing equipment is subject to, among other things, the development of technological improvements and changes in sale and maintenance terms initiated by the manufacturer.
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Business Strategy
Our business strategy allows us to differentiate ourselves from our competitors in the leasing industry. Key elements of this strategy include:
· Relationship Focus. We maintain a focused, long-term, customer-service approach to our business.
· Full Service. We can service the equipment leasing needs of large organizations through our middle-market operations and small organizations through our small-ticket operations. Our enterprise-wide capabilities allow us to service the needs of a large company and its many small business affiliates.
· Asset Ownership. We typically retain ownership of our leases and the underlying equipment.
Winmark Capital Corporation
Winmark Capital
Industry
The high-technology
Generally,
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Business Strategy
Our business strategy
· Relationship Focus. We maintain a focused, long-term,
· Full Service. We can service the equipment leasing needs of
· Asset Ownership. We typically retain ownership of our leases
This excerpt taken from the WINA 10-K filed Mar 20, 2007. Winmark Capital Corporation Winmark Capital Corporation focuses on middle-market transactions that generally have terms from two to five years and are with large organizations. We target businesses with revenue of $25,000,000 or more. Such transactions are generally larger than $250,000 and, cover high-technology equipment, including computers, telecommunications equipment, point-of-sale systems and other business-essential equipment. The leases are flexible in structure to accommodate equipment additions and upgrades to meet customers’ changing needs. These leases are retained in our portfolio. This excerpt taken from the WINA 10-K filed Mar 28, 2006. Winmark Capital Corporation
Our middle-market operation focuses on middle-market transactions generally have terms from two to five years and are with large organizations. We target businesses with revenue of $50,000,000 or more. Such transactions are generally larger than $250,000 and, cover high-technology equipment, including computers, telecommunications equipment, point-of-sale systems and other business-essential equipment. The leases are flexible in structure to accommodate equipment additions and upgrades to meet customers’ changing needs. These leases are retained in our portfolio.
We have also developed a lease product designed to meet the needs of the large corporations with influence over multiple business entities, such as franchisors. By being able to provide solutions for an entire enterprise, we fulfill a different role than most middle-market and small-ticket leasing companies.
Industry
The high-technology equipment industry has been characterized by rapid and continuous advancements permitting broadened user applications and reductions in processing costs. The introduction of new equipment generally does not cause existing equipment to become obsolete but usually does cause the market value of existing equipment to decrease to reflect the improved performance per dollar cost of the new equipment. Users frequently replace equipment as their existing equipment becomes inappropriate for their needs or as increased data processing capacity is required, creating a secondary market in used equipment.
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Generally, high-technology equipment, such as data processing equipment, does not suffer from material physical deterioration if properly maintained. Our leased equipment is kept under continual maintenance obtained directly from the manufacturer or, in some cases, other service organizations. The economic life and residual value of data processing equipment is subject to, among other things, the development of technological improvements and changes in sale and lease terms initiated by the manufacturer.
Business Strategy
Our business strategy allows us to differentiate ourselves from our competitors in the leasing industry. Key elements of this strategy include:
• Relationship Focus. We maintain a focused, long-term, customer-service approach to our business. • Full Service. We can service the equipment leasing needs of large organizations through our middle-market operations and small organizations through our small-ticket operations. Our enterprise-wide capabilities allows us to service the needs of a large company and its many small business affiliates. • Asset Ownership. We typically retain ownership of our leases and the underlying equipment.
Leasing and Sales Activities
Our middle-market lease products are marketed nationally through our principal office in Golden Valley, Minnesota and our satellite offices in Boulder, Colorado and Charlotte, North Carolina.
We market our leasing services directly to end-users and indirectly through business alliances, and through vendors of equipment, software, value-added services and consulting services. Our sales representatives attend trade shows and directly market to customers and prospects by telephone canvassing. We may also advertise in magazines or other periodicals in targeted industries.
We generally lease high-technology and other business-essential equipment for terms ranging from two to five years. Our standard lease agreements, entered into with each customer, are noncancelable “net” leases which contain “hell-or-high water” provisions under which the customer, upon acceptance of the equipment, must make all lease payments regardless of any defects or performance of the equipment, and which require the customer to maintain and service the equipment, insure the equipment against casualty loss and pay all property, sales and other taxes related to the equipment. We typically retain ownership of the equipment we lease and, in the event of default by the customer, we or the financial institution to whom the lease payment has been assigned may declare the customer in default, accelerate all lease payments due under the lease and pursue other available remedies, including repossession of the equipment. Upon expiration of the initial term or extended lease term, depending on the structure of the lease, the customer may:
• return the equipment to us; • renew the lease for an additional term; or • purchase the equipment.
If the equipment is returned to us, it will be either re-leased to another customer or sold into the secondary-user marketplace.
Additionally, we may lease operating system and application software to our customers, but typically only with a hardware lease.
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