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Winmark Corporation Announces Third Quarter Results

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Winmark (Nasdaq: WINA) reported its financial results for the third quarter ended September 28, 2024. The company's net income for the quarter was $11,120,700 or $3.03 per share diluted, compared to $11,149,800 or $3.05 per share diluted in 2023. For the nine months ended September 28, 2024, net income was $30,371,200 or $8.29 per share diluted, compared to $30,461,300 or $8.40 per share diluted for the same period last year.

Winmark, known as 'the Resale Company®', is a franchisor focused on sustainability and small business formation. It operates five resale franchise brands: Plato's Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore®, and Music Go Round®. As of September 28, 2024, Winmark had 1,343 franchises in operation and over 2,800 available territories. An additional 82 franchises have been awarded but are not yet open.

Winmark (Nasdaq: WINA) ha riportato i risultati finanziari per il terzo trimestre conclusosi il 28 settembre 2024. L'utile netto dell'azienda per il trimestre è stato di $11.120.700, ossia $3.03 per azione diluita, rispetto a $11.149.800 o $3.05 per azione diluita nel 2023. Nei nove mesi conclusisi il 28 settembre 2024, l'utile netto è stato di $30.371.200, ossia $8.29 per azione diluita, contro $30.461.300 o $8.40 per azione diluita per lo stesso periodo dell'anno scorso.

Winmark, conosciuta come 'la Resale Company®', è un franchisor focalizzato sulla sostenibilità e sulla formazione di piccole imprese. Gestisce cinque marchi di franchising di rivendita: Plato's Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® e Music Go Round®. Al 28 settembre 2024, Winmark aveva 1.343 franchising in operazione e oltre 2.800 territori disponibili. Ulteriori 82 franchising sono stati assegnati ma non sono ancora aperti.

Winmark (Nasdaq: WINA) reportó sus resultados financieros para el tercer trimestre que finalizó el 28 de septiembre de 2024. La utilidad neta de la compañía para el trimestre fue de $11,120,700 o $3.03 por acción diluida, en comparación con $11,149,800 o $3.05 por acción diluida en 2023. Para los nueve meses que finalizaron el 28 de septiembre de 2024, la utilidad neta fue de $30,371,200 o $8.29 por acción diluida, en comparación con $30,461,300 o $8.40 por acción diluida para el mismo período del año anterior.

Winmark, conocida como 'la Resale Company®', es un franquiciador enfocado en la sostenibilidad y la formación de pequeñas empresas. Opera cinco marcas de franquicia de reventa: Plato's Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® y Music Go Round®. Al 28 de septiembre de 2024, Winmark tenía 1,343 franquicias en operación y más de 2,800 territorios disponibles. Se han otorgado 82 franquicias adicionales, pero aún no están abiertas.

Winmark (Nasdaq: WINA)는 2024년 9월 28일로 종료된 3분기 재무 실적을 발표했습니다. 해당 분기의 순이익은 $11,120,700 또는 $3.03의 희석 주당순이익으로, 2023년의 $11,149,800 또는 $3.05의 희석 주당순이익과 비교되었습니다. 2024년 9월 28일로 종료된 9개월 동안의 순이익은 $30,371,200 또는 $8.29의 희석 주당순이익으로, 작년 같은 기간의 $30,461,300 또는 $8.40의 희석 주당순이익과 비교되었습니다.

'리세일 컴퍼니®'로 알려진 Winmark는 지속 가능성과 소기업 형성에 초점을 맞춘 프랜차이저입니다. 이 회사는 다섯 개의 리세일 프랜차이즈 브랜드인 Plato's Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® 및 Music Go Round®를 운영합니다. 2024년 9월 28일 기준으로 Winmark는 1,343개의 프랜차이즈를 운영 중이며 2,800개 이상의 사용 가능한 지역이 있습니다. 추가로 82개의 프랜차이즈가 부여되었지만 아직 오픈하지 않았습니다.

Winmark (Nasdaq: WINA) a annoncé ses résultats financiers pour le troisième trimestre se terminant le 28 septembre 2024. Le bénéfice net de l'entreprise pour le trimestre était de $11,120,700 ou $3.03 par action diluée, contre $11,149,800 ou $3.05 par action diluée en 2023. Pour les neuf mois se terminant le 28 septembre 2024, le bénéfice net était de $30,371,200 ou $8.29 par action diluée, contre $30,461,300 ou $8.40 par action diluée pour la même période l'année dernière.

Winmark, connue sous le nom de 'la Resale Company®', est un franchiseur axé sur la durabilité et la création de petites entreprises. Elle opère cinq marques de franchises de revente : Plato's Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® et Music Go Round®. Au 28 septembre 2024, Winmark comptait 1,343 franchises en activité et plus de 2,800 territoires disponibles. 82 franchises supplémentaires ont été attribuées mais ne sont pas encore ouvertes.

Winmark (Nasdaq: WINA) hat seine finanziellen Ergebnisse für das dritte Quartal, das am 28. September 2024 endete, veröffentlicht. Der Nettogewinn des Unternehmens für das Quartal betrug $11,120,700 oder $3.03 pro verwässerter Aktie, im Vergleich zu $11,149,800 oder $3.05 pro verwässerter Aktie im Jahr 2023. Für die neun Monate bis zum 28. September 2024 betrug der Nettogewinn $30,371,200 oder $8.29 pro verwässerter Aktie, im Vergleich zu $30,461,300 oder $8.40 pro verwässerter Aktie im gleichen Zeitraum des Vorjahres.

Winmark, bekannt als 'die Resale Company®', ist ein Franchisegeber, der sich auf Nachhaltigkeit und die Gründung von Kleinunternehmen konzentriert. Es betreibt fünf Resale-Franchisemarken: Plato's Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® und Music Go Round®. Zum 28. September 2024 hatte Winmark 1.343 Betriebe und über 2.800 verfügbare Gebiete. Darüber hinaus wurden 82 Franchises vergeben, die jedoch noch nicht eröffnet sind.

Positive
  • Stable quarterly net income of $11,120,700
  • Earnings per share of $3.03 for Q3 2024
  • Nine-month net income of $30,371,200
  • Strong franchise network with 1,343 operating franchises
  • Expansion potential with over 2,800 available territories
Negative
  • Slight decrease in quarterly net income compared to 2023
  • Marginal decline in earnings per share from $3.05 to $3.03 year-over-year
  • Nine-month net income slightly lower than the same period last year

Insights

Winmark 's Q3 2024 results show a slight decline in net income and earnings per share compared to the same period in 2023. Net income decreased by $29,100 to $11,120,700, while diluted EPS dropped by $0.02 to $3.03. For the nine-month period, net income fell by $90,100 to $30,371,200, with diluted EPS decreasing by $0.11 to $8.29.

The company's franchise-based business model appears stable, with 1,343 franchises in operation and 82 more awarded but not yet open. This indicates potential for future growth. However, the ongoing run-off of the leasing portfolio, initiated in May 2021, continues to impact financial results.

Despite the slight decline, Winmark's performance remains strong, with a focus on sustainability and small business formation through its resale franchise brands. The company's extensive network and available territories (over 2,800) suggest room for expansion, which could drive future revenue growth.

Winmark's business model, centered on resale franchises, aligns well with growing consumer trends towards sustainability and value shopping. The company's five brands (Plato's Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® and Music Go Round®) cater to diverse market segments, providing a hedge against fluctuations in any single retail category.

The slight decline in financial performance should be viewed in the context of the company's strategic decision to run off its leasing portfolio. This move may impact short-term results but could lead to a more focused and potentially more profitable business model in the long term.

With 1,343 franchises in operation and 82 more in the pipeline, Winmark demonstrates steady growth. The 2,800 available territories represent significant untapped potential, which could drive future expansion and revenue growth. However, investors should monitor the rate of new franchise openings and same-store sales growth to gauge the health of the existing franchise network.

MINNEAPOLIS--(BUSINESS WIRE)-- Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended September 28, 2024 of $11,120,700 or $3.03 per share diluted compared to net income of $11,149,800 or $3.05 per share diluted in 2023. For the nine months ended September 28, 2024, net income was $30,371,200 or $8.29 per share diluted compared to net income of $30,461,300 or $8.40 per share diluted for the same period last year. Results during the quarter and nine months 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 September 28, 2024, there were 1,343 franchises in operation and over 2,800 available territories. An additional 82 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 28, 2024

 

December 30, 2023

ASSETS

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

37,197,000

 

 

$

13,361,500

 

Restricted cash

 

 

90,000

 

 

 

25,000

 

Receivables, net

 

 

1,602,200

 

 

 

1,475,300

 

Net investment in leases - current

 

 

 

 

 

75,100

 

Income tax receivable

 

 

 

 

 

31,400

 

Inventories

 

 

441,800

 

 

 

386,100

 

Prepaid expenses

 

 

1,171,600

 

 

 

1,392,100

 

Total current assets

 

 

40,502,600

 

 

 

16,746,500

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

1,519,000

 

 

 

1,669,800

 

Operating lease right of use asset

 

 

2,197,600

 

 

 

2,425,900

 

Intangible assets, net

 

 

2,728,800

 

 

 

2,994,300

 

Goodwill

 

 

607,500

 

 

 

607,500

 

Other assets

 

 

478,400

 

 

 

471,300

 

Deferred income taxes

 

 

3,917,300

 

 

 

4,052,400

 

 

 

$

51,951,200

 

 

$

28,967,700

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)

Current Liabilities:

 

 

 

 

 

 

Notes payable, net

 

$

3,472,100

 

 

$

4,217,900

 

Accounts payable

 

 

1,600,700

 

 

 

1,719,400

 

Income tax payable

 

 

30,400

 

 

 

 

Accrued liabilities

 

 

3,776,100

 

 

 

2,858,200

 

Deferred revenue

 

 

1,670,100

 

 

 

1,666,100

 

Total current liabilities

 

 

10,549,400

 

 

 

10,461,600

 

Long-Term Liabilities:

 

 

 

 

 

 

Line of credit/Term loan

 

 

30,000,000

 

 

 

30,000,000

 

Notes payable, net

 

 

32,431,200

 

 

 

34,848,800

 

Deferred revenue

 

 

8,028,600

 

 

 

7,657,500

 

Operating lease liabilities

 

 

3,260,100

 

 

 

3,715,800

 

Other liabilities

 

 

1,425,800

 

 

 

1,440,100

 

Total long-term liabilities

 

 

75,145,700

 

 

 

77,662,200

 

Shareholders’ Equity (Deficit):

 

 

 

 

 

 

Common stock, no par, 10,000,000 shares authorized,
3,520,402 and 3,496,977 shares issued and outstanding

 

 

11,941,900

 

 

 

7,768,800

 

Retained earnings (accumulated deficit)

 

 

(45,685,800

)

 

 

(66,924,900

)

Total shareholders’ equity (deficit)

 

 

(33,743,900

)

 

 

(59,156,100

)

 

 

$

51,951,200

 

 

$

28,967,700

 

WINMARK CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 28, 2024

 

September 30, 2023

 

September 28, 2024

 

September 30, 2023

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Royalties

 

$

19,512,500

 

 

$

19,210,000

 

 

$

54,555,700

 

 

$

53,063,400

 

 

Leasing income

 

 

316,200

 

 

 

1,291,900

 

 

 

1,677,400

 

 

 

3,948,700

 

 

Merchandise sales

 

 

702,500

 

 

 

997,800

 

 

 

2,738,500

 

 

 

3,601,900

 

 

Franchise fees

 

 

451,200

 

 

 

334,400

 

 

 

1,182,700

 

 

 

1,133,400

 

 

Other

 

 

528,500

 

 

 

483,700

 

 

 

1,586,800

 

 

 

1,456,200

 

 

Total revenue

 

 

21,510,900

 

 

 

22,317,800

 

 

 

61,741,100

 

 

 

63,203,600

 

 

Cost of merchandise sold

 

 

662,500

 

 

 

935,400

 

 

 

2,562,600

 

 

 

3,370,500

 

 

Leasing expense

 

 

 

 

 

11,000

 

 

 

36,600

 

 

 

381,700

 

 

Provision for credit losses

 

 

 

 

 

700

 

 

 

(1,500

)

 

 

(4,600

)

 

Selling, general and administrative expenses

 

 

5,919,800

 

 

 

6,248,200

 

 

 

18,979,000

 

 

 

18,694,300

 

 

Income from operations

 

 

14,928,600

 

 

 

15,122,500

 

 

 

40,164,400

 

 

 

40,761,700

 

 

Interest expense

 

 

(704,100

)

 

 

(763,100

)

 

 

(2,163,300

)

 

 

(2,339,800

)

 

Interest and other income

 

 

386,400

 

 

 

385,400

 

 

 

855,200

 

 

 

803,400

 

 

Income before income taxes

 

 

14,610,900

 

 

 

14,744,800

 

 

 

38,856,300

 

 

 

39,225,300

 

 

Provision for income taxes

 

 

(3,490,200

)

 

 

(3,595,000

)

 

 

(8,485,100

)

 

 

(8,764,000

)

 

Net income

 

$

11,120,700

 

 

$

11,149,800

 

 

$

30,371,200

 

 

$

30,461,300

 

 

Earnings per share - basic

 

$

3.16

 

 

$

3.20

 

 

$

8.65

 

 

$

8.77

 

 

Earnings per share - diluted

 

$

3.03

 

 

$

3.05

 

 

$

8.29

 

 

$

8.40

 

 

Weighted average shares outstanding - basic

 

 

3,520,334

 

 

 

3,485,852

 

 

 

3,510,461

 

 

 

3,475,066

 

 

Weighted average shares outstanding - diluted

 

 

3,671,121

 

 

 

3,653,730

 

 

 

3,663,309

 

 

 

3,627,550

 

 

WINMARK CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

September 28, 2024

 

September 30, 2023

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Net income

 

$

30,371,200

 

 

$

30,461,300

 

 

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

 

 

 

 

 

 

 

Depreciation of property and equipment

 

 

345,600

 

 

 

313,400

 

 

Amortization of intangible assets

 

 

265,500

 

 

 

265,500

 

 

Provision for credit losses

 

 

(1,500

)

 

 

(4,600

)

 

Compensation expense related to stock options

 

 

1,458,200

 

 

 

1,451,000

 

 

Deferred income taxes

 

 

135,100

 

 

 

148,400

 

 

Operating lease right of use asset amortization

 

 

228,200

 

 

 

206,000

 

 

Tax benefits on exercised stock options

 

 

943,300

 

 

 

839,000

 

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

Receivables

 

 

(126,900

)

 

 

(265,400

)

 

Principal collections on lease receivables

 

 

104,700

 

 

 

485,200

 

 

Income tax receivable/payable

 

 

(881,600

)

 

 

(281,500

)

 

Inventories

 

 

(55,700

)

 

 

479,700

 

 

Prepaid expenses

 

 

220,500

 

 

 

215,300

 

 

Other assets

 

 

(7,200

)

 

 

(38,000

)

 

Accounts payable

 

 

(118,700

)

 

 

(427,100

)

 

Accrued and other liabilities

 

 

472,200

 

 

 

1,021,600

 

 

Rents received in advance and security deposits

 

 

(28,000

)

 

 

(254,600

)

 

Deferred revenue

 

 

375,100

 

 

 

616,200

 

 

Net cash provided by operating activities

 

 

33,700,000

 

 

 

35,231,400

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(194,900

)

 

 

(284,700

)

 

Net cash used for investing activities

 

 

(194,900

)

 

 

(284,700

)

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Payments on notes payable

 

 

(3,187,500

)

 

 

(3,187,500

)

 

Proceeds from exercises of stock options

 

 

2,715,000

 

 

 

3,154,200

 

 

Dividends paid

 

 

(9,132,100

)

 

 

(7,997,900

)

 

Net cash used for financing activities

 

 

(9,604,600

)

 

 

(8,031,200

)

 

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

 

 

23,900,500

 

 

 

26,915,500

 

 

Cash, cash equivalents and restricted cash, beginning of period

 

 

13,386,500

 

 

 

13,680,600

 

 

Cash, cash equivalents and restricted cash, end of period

 

$

37,287,000

 

 

$

40,596,100

 

 

SUPPLEMENTAL DISCLOSURES:

 

 

 

 

 

 

 

Cash paid for interest

 

$

2,149,200

 

 

$

2,309,100

 

 

Cash paid for income taxes

 

$

8,281,400

 

 

$

8,058,100

 

 

 

 

 

 

 

 

 

 

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:

 

 

Nine Months Ended

 

 

 

September 28, 2024

 

September 30, 2023

 

Cash and cash equivalents

 

$

37,197,000

 

 

$

40,556,100

 

 

Restricted cash

 

 

90,000

 

 

 

40,000

 

 

Total cash, cash equivalents and restricted cash

 

$

37,287,000

 

 

$

40,596,100

 

 

 

Anthony D. Ishaug

763/520-8500

Source: Winmark Corporation

FAQ

What was Winmark 's (WINA) net income for Q3 2024?

Winmark 's net income for the third quarter of 2024 was $11,120,700 or $3.03 per share diluted.

How many franchises does Winmark (WINA) have in operation as of September 28, 2024?

As of September 28, 2024, Winmark had 1,343 franchises in operation.

What are the resale franchise brands operated by Winmark (WINA)?

Winmark operates five resale franchise brands: Plato's Closet, Once Upon A Child, Play It Again Sports, Style Encore, and Music Go Round.

How did Winmark 's (WINA) Q3 2024 results compare to Q3 2023?

Winmark's Q3 2024 net income was slightly lower at $11,120,700 or $3.03 per share diluted, compared to $11,149,800 or $3.05 per share diluted in Q3 2023.

Winmark Corp

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