WINA Winmark Corporation

Winmark Corporation (Nasdaq: WINA) announced today net income for the year ended December 28, 2024 of $39,954,200 or $10.89 per share diluted compared to net income of $40,178,100 or $11.04 per share diluted in 2023. The fourth quarter 2024 net income was $9,583,100 or $2.60 per share diluted compared to net income of $9,716,800 or $2.64 per share diluted for the same period last year. Revenues for the year ended December 28, 2024 were $81,289,100, down from $83,243,500 in 2023. 2024 results were impacted by the Company’s decision in May 2021 to run-off its leasing portfolio.

Winmark − the Resale 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 28, 2024, there were 1,350 franchises in operation and over 2,800 available territories. An additional 79 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)

 

 

 

 

 

 

 

December 28, 2024

 

December 30, 2023

ASSETS

Current Assets:

 

 

 

 

 

Cash and cash equivalents

$

12,189,800

 

 

$

13,361,500

 

Restricted cash

 

140,000

 

 

 

25,000

 

Receivables, net

 

1,336,400

 

 

 

1,475,300

 

Net investment in leases - current

 

—

 

 

 

75,100

 

Income tax receivable

 

96,400

 

 

 

31,400

 

Inventories

 

397,600

 

 

 

386,100

 

Prepaid expenses

 

1,205,400

 

 

 

1,392,100

 

Total current assets

 

15,365,600

 

 

 

16,746,500

 

 

 

 

 

 

 

Property and equipment, net

 

1,419,400

 

 

 

1,669,800

 

Operating lease right of use asset

 

2,108,700

 

 

 

2,425,900

 

Intangible assets, net

 

2,640,300

 

 

 

2,994,300

 

Goodwill

 

607,500

 

 

 

607,500

 

Other assets

 

491,200

 

 

 

471,300

 

Deferred income taxes

 

4,211,800

 

 

 

4,052,400

 

 

$

26,844,500

 

 

$

28,967,700

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)

Current Liabilities:

 

 

 

 

 

Notes payable, net

$

—

 

 

$

4,217,900

 

Accounts payable

 

1,562,000

 

 

 

1,719,400

 

Accrued liabilities

 

1,866,200

 

 

 

2,858,200

 

Deferred revenue

 

1,659,700

 

 

 

1,666,100

 

Total current liabilities

 

5,087,900

 

 

 

10,461,600

 

Long-Term Liabilities:

 

 

 

 

 

Line of credit/Term loan

 

30,000,000

 

 

 

30,000,000

 

Notes payable, net

 

29,942,800

 

 

 

34,848,800

 

Deferred revenue

 

8,027,600

 

 

 

7,657,500

 

Operating lease liabilities

 

3,092,800

 

 

 

3,715,800

 

Other liabilities

 

1,739,500

 

 

 

1,440,100

 

Total long-term liabilities

 

72,802,700

 

 

 

77,662,200

 

Shareholders’ Equity (Deficit):

 

 

 

 

 

Common stock, no par, 10,000,000 shares authorized, 3,539,744 and 3,496,977 shares issued and outstanding

 

14,790,500

 

 

 

7,768,800

 

Retained earnings (accumulated deficit)

 

(65,836,600

)

 

 

(66,924,900

)

Total shareholders’ equity (deficit)

 

(51,046,100

)

 

 

(59,156,100

)

 

$

26,844,500

 

 

$

28,967,700

 

 

WINMARK CORPORATION

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

Fiscal Year Ended

 

 

December 28, 2024

 

December 30, 2023

December 28, 2024

December 30, 2023

Revenue:

 

 

 

 

 

 

 

 

 

 

Royalties

 

$

17,642,800

 

 

$

17,167,200

 

$

72,198,500

 

$

70,230,700

 

Leasing income

 

 

134,500

 

 

 

817,600

 

 

1,811,800

 

 

4,766,200

 

Merchandise sales

 

 

862,900

 

 

 

1,159,200

 

 

3,601,300

 

 

4,761,100

 

Franchise fees

 

 

362,800

 

 

 

378,600

 

 

1,545,600

 

 

1,512,000

 

Other

 

 

545,100

 

 

 

517,300

 

 

2,131,900

 

 

1,973,500

 

Total revenue

 

 

19,548,100

 

 

 

20,039,900

 

 

81,289,100

 

 

83,243,500

 

Cost of merchandise sold

 

 

816,700

 

 

 

1,091,100

 

 

3,379,200

 

 

4,461,500

 

Leasing expense

 

 

—

 

 

 

16,600

 

 

36,600

 

 

398,300

 

Provision for credit losses

 

 

—

 

 

 

(1,000

)

 

(1,500

)

 

(5,600

)

Selling, general and administrative expenses

 

 

5,965,200

 

 

 

6,414,400

 

 

24,944,200

 

 

25,108,700

 

Income from operations

 

 

12,766,200

 

 

 

12,518,800

 

 

52,930,600

 

 

53,280,600

 

Interest expense

 

 

(693,600

)

 

 

(751,100

)

 

(2,856,900

)

 

(3,091,000

)

Interest and other income

 

 

295,100

 

 

 

368,300

 

 

1,150,300

 

 

1,171,700

 

Income before income taxes

 

 

12,367,700

 

 

 

12,136,000

 

 

51,224,000

 

 

51,361,300

 

Provision for income taxes

 

 

(2,784,600

)

 

 

(2,419,200

)

 

(11,269,800

)

 

(11,183,200

)

Net income

 

$

9,583,100

 

 

$

9,716,800

 

$

39,954,200

 

$

40,178,100

 

Earnings per share - basic

 

$

2.71

 

 

$

2.78

 

$

11.36

 

$

11.55

 

Earnings per share - diluted

 

$

2.60

 

 

$

2.64

 

$

10.89

 

$

11.04

 

Weighted average shares outstanding - basic

 

 

3,533,107

 

 

 

3,494,544

 

 

3,516,122

 

 

3,479,936

 

Weighted average shares outstanding - diluted

 

 

3,679,992

 

 

 

3,679,444

 

 

3,667,479

 

 

3,640,524

 

 

WINMARK CORPORATION

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

 

 

Year Ended

 

 

December 28, 2024

 

December 30, 2023

OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

39,954,200

 

 

$

40,178,100

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation of property and equipment

 

 

445,300

 

 

 

418,700

 

Amortization of intangible assets

 

 

354,000

 

 

 

354,000

 

Provision for credit losses

 

 

(1,500

)

 

 

(5,600

)

Compensation expense related to stock options

 

 

1,988,000

 

 

 

1,952,400

 

Deferred income taxes

 

 

(159,400

)

 

 

(512,000

)

Operating lease right of use asset amortization

 

 

317,100

 

 

 

290,100

 

Tax benefits on exercised stock options

 

 

1,307,700

 

 

 

1,138,500

 

Change in operating assets and liabilities:

 

 

 

 

 

 

Receivables

 

 

138,900

 

 

 

(36,700

)

Principal collections on lease receivables

 

 

104,700

 

 

 

556,000

 

Income tax receivable/payable

 

 

(1,372,800

)

 

 

(611,200

)

Inventories

 

 

(11,500

)

 

 

384,500

 

Prepaid expenses

 

 

186,700

 

 

 

(81,700

)

Other assets

 

 

(19,900

)

 

 

(41,600

)

Accounts payable

 

 

(157,400

)

 

 

(402,600

)

Accrued and other liabilities

 

 

(1,251,900

)

 

 

(16,900

)

Rents received in advance and security deposits

 

 

(28,000

)

 

 

(275,200

)

Deferred revenue

 

 

363,700

 

 

 

705,500

 

Net cash provided by operating activities

 

 

42,157,900

 

 

 

43,994,300

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(194,900

)

 

 

(383,900

)

Net cash used for investing activities

 

 

(194,900

)

 

 

(383,900

)

FINANCING ACTIVITIES:

 

 

 

 

 

 

Payments on notes payable

 

 

(9,187,500

)

 

 

(4,250,000

)

Proceeds from exercises of stock options

 

 

5,033,700

 

 

 

4,009,700

 

Dividends paid

 

 

(38,865,900

)

 

 

(43,664,200

)

Net cash used for financing activities

 

 

(43,019,700

)

 

 

(43,904,500

)

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

 

 

(1,056,700

)

 

 

(294,100

)

Cash, cash equivalents and restricted cash, beginning of period

 

 

13,386,500

 

 

 

13,680,600

 

Cash, cash equivalents and restricted cash, end of period

 

$

12,329,800

 

 

$

13,386,500

 

SUPPLEMENTAL DISCLOSURES:

 

 

 

 

 

 

Cash paid for interest

 

$

2,851,000

 

 

$

3,049,400

 

Cash paid for income taxes

 

$

11,168,700

 

 

$

10,874,300

 

 

 

 

 

 

 

 

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Balance Sheets to the total of the same amounts shown above:

 

 

 

Year Ended

 

 

December 28, 2024

 

December 30, 2023

Cash and cash equivalents

 

$

12,189,800

 

 

$

13,361,500

 

Restricted cash

 

 

140,000

 

 

 

25,000

 

Total cash, cash equivalents and restricted cash

 

$

12,329,800

 

 

$

13,386,500

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250218640607/en/

Anthony D. Ishaug 763/520-8500