WINMARK ANNOUNCES 2002 RESULTS
Minneapolis, MN (February 12, 2003) -- Winmark Corporation announced today net income for the year ended December 28, 2002 of $3,828,900, or $.63 per share diluted, compared to net income of $3,197,500, or $.55 per share, in 2001. The fourth quarter 2002 net income was $970,300, or $.16 per share diluted, compared to net income of $592,000, or $.10 per share diluted, for the same period last year. Revenues for the year were $33,425,100, down from $36,086,900 in 2001.
John L. Morgan, Chairman and Chief Executive Officer, stated, "Revenues were lower due to Franchisees buying direct from suppliers instead of through the Company. Our Company had a good year in improving our franchise systems and making a significant investment in Archiver’s retail stores. We are satisfied with 2002 and look forward to 2003."
Winmark Corporation develops franchises and operates value-oriented retail brands for stores that buy, sell, trade and consign used and new merchandise. At December 28, 2002, there were 828 franchise and retail stores in operation under the Company’s brands and an additional 22 franchises awarded but not open. Of the stores in operation, there were 477 Play It Again Sports?, 221 Once Upon A Child?, 53 Music Go Round? and 77 Plato’s Closet? stores.
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 the strength of the Company’s operating position in the future and future results from operations. 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 results may differ, shareholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements.