Winmark Corporation Announces First Quarter Results

Rhea-AI Summary

Winmark Corporation (Nasdaq: WINA) reported a net income of $9,311,100 or $2.40 per diluted share for the quarter ending March 27, 2021. This reflects an increase from the previous year’s net income of $7,317,000 or $1.87 per share. The company attributes this growth to the strength of its business model and improved franchisee performance. As of March 27, 2021, Winmark operated 1,264 franchises and awarded an additional 32 franchises set to open soon. The press release includes forward-looking statements that highlight potential risks and uncertainties.

Positive

• Net income increased by 27.3% YoY to $9.31 million.
• Earnings per share rose to $2.40, up from $1.87 in 2020.
• Strong franchisee performance contributing to growth.

Negative

• None.

Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended March 27, 2021 of $9,311,100 or $2.40 per share diluted compared to net income of $7,317,000 or $1.87 per share diluted in 2020.

“The resiliency of our business model combined with the improving execution of our franchisees led to exceptional first quarter results,” commented Brett D. Heffes, Chairman and Chief Executive Officer.

Winmark Corporation creates, supports and finances business. At March 27, 2021, there were 1,264 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 32 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)
		March 27, 2021				December 26, 2020
ASSETS
Current Assets:
Cash and cash equivalents		$	7,959,900			$	6,659,000
Restricted cash			25,000				25,000
Receivables, net			2,096,900				1,581,900
Net investment in leases - current			8,156,900				8,687,500
Income tax receivable			—

FAQ

What are Winmark Corporation's recent earnings results?

Winmark Corporation reported a net income of $9,311,100 or $2.40 per diluted share for Q1 2021, up from $7,317,000 or $1.87 per share in 2020.

How many franchises does Winmark operate as of March 2021?

As of March 27, 2021, Winmark operates 1,264 franchises under various brands.

What contributed to Winmark's increased net income in 2021?

The increase in net income is attributed to the resiliency of Winmark's business model and improved execution by franchisees.

What is the significance of the forward-looking statements in Winmark's press release?

The forward-looking statements indicate potential risks and uncertainties that may affect future financial performance and should be factored into shareholder considerations.