Contact: John L. Morgan
763/520-8500
FOR IMMEDIATE RELEASE
WINMARK CORPORATION ANNOUNCES YEAR END RESULTS
Minneapolis, MN (February 22, 2008) -- Winmark Corporation (Nasdaq: WINA) announced today net income for the year ended December 29, 2007 of $3,044,800 or $.54 per share diluted, compared to net income of $3,338,200 or $.56 per share diluted, in 2006. The fourth quarter 2007 net income was $853,000, or $.15 per share diluted, compared to $817,800, or $.14 per share diluted, for the same period last year. Revenues for the year were $31,165,200, up from $27,370,500 in 2006.
John Morgan, Chairman and Chief Executive Officer, stated, “Our franchise business continues to perform to expectations due to the efforts of our outstanding group of franchisees and dedicated employees. While our leasing business did not grow as fast as we had planned, we are confident that we have the potential for solid growth in the future. As previously announced, our year end results were impacted by the change in accounting for our investment in Tomsten, Inc. (d/b/a Archiver’s).”
Winmark Corporation creates, supports and finances business. At December 29, 2007, there were 851 franchises in operation under the brands Play It Again Sports®, Once Upon A Child®, Plato's Closet®, Music Go Round® and there were 41 territories in operation under the Wirth Business Credit® brand. An additional 53 retail franchises have been awarded but are not open. In addition, at December 29, 2007, the Company had loans and leases equal to $43.9 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 including statements with respect to our ability to finance the growth of our leasing and franchising businesses for the foreseeable future. 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.
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