Contact: John L. Morgan
763/520-8500
FOR IMMEDIATE RELEASE
WINMARK CORPORATION ANNOUNCES YEAR END RESULTS
Minneapolis, MN (February 23, 2007) -- Winmark Corporation (Nasdaq: WINA) announced today net income for the year ended December 30, 2006 of $3,421,300 or $.57 per share diluted, compared to net income of $2,100,000 or $.33 per share diluted, in 2005. The fourth quarter 2006 net income was $819,400, or $.14 per share diluted, compared to net loss of ($68,600), or ($.01) per share diluted, for the same period last year. Revenues for the year were $27,370,500, up from $26,599,800 in 2005.
John Morgan, Chairman and Chief Executive Officer, stated, “The results of 2006 were held down by the continued expense of organically growing our two leasing companies: Wirth Business Credit™ and Winmark Capital®. We fully expect these two entities to grow and contribute in future years. Our franchise business has, as always, been the foundation of our company thanks to the hard work of our franchisees and employees.”
Winmark Corporation creates, supports and finances business. At December 30, 2006, there were 836 franchises in operation under the brands Play It Again Sports®, Once Upon A Child®, Plato's Closet®, Music Go Round® and Wirth Business Credit™. An additional 55 franchises have been awarded but are not open. In addition, at December 30, 2006, the Company had loans and leases equal to $22.3 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.