MINNEAPOLIS - July 16, 2014 - (BUSINESS WIRE) - Winmark Corporation (Nasdaq:WINA) announced net income for the quarter ended June 28, 2014 of $4,280,800 (or $.82 per share diluted) compared to net income of $4,336,900 (or $.83 per share diluted) in the second quarter of 2013. For the six months ended June 28, 2014, net income was $8,832,700 (or $1.67 per share diluted) compared to net income of $8,394,400 (or $1.61 per share diluted) for the same period last year.
"Our franchising business continued to show steady growth in both royalties and new stores during the second quarter, while expenses increased as we continue to invest in our new Style Encore concept," noted John Morgan, Chairman and Chief Executive Officer. "Profits from our leasing business were lower when compared to last year due to the timing of customer activity in our portfolio, which is unpredictable and will vary from quarter to quarter. Long-term growth in the leasing portfolio is a key indicator of future profits from our leasing business, and our leasing portfolio grew by fifteen percent from the end of last year. Additionally, the increase in debt during the quarter was primarily due to the Company’s repurchase of common stock," Mr. Morgan added.
Winmark Corporation creates, supports and finances business. At June 28, 2014, there were 1,047 franchises in operation under the brands Plato's Closet®, Once Upon A Child®, Play It Again Sports®, Music Go Round® and Style Encore®. An additional 104 retail franchises have been awarded but are not open. In addition, at June 28, 2014, the Company had a lease portfolio equal to $43.2 million.
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.
Brett D. Heffes
Winmark Corporation
763-520-8500
Winmark Corporation is a recognized leader in franchise-owned and operated business opportunities.