WINMARK CORPORATION ANNOUNCES YEAR END RESULTS
Minneapolis, MN (February 9, 2005) -- Winmark Corporation (Nasdaq: WINA) announced today net income for the year ended December 25, 2004 of $4,082,000 or $.63 per share diluted, compared to net income of $4,013,100 or $.63 per share, in 2003. The fourth quarter 2004 net income was $980,100, or $.15 per share diluted, compared to net income of $1,030,400, or $.16 per share diluted, for the same period last year. Revenues for the year were $27,201,900, down from $31,243,400 in 2003.
John Morgan, Chairman and Chief Executive Officer, stated, “In 2004, we saw an increase in royalties and franchise fees as a result of the hard work of our franchisee partners and the performance of our brands. Our results have and will continue to be challenged by start-up expenses associated with the launch of our equipment leasing business.”
Winmark Corporation develops franchises that buy, sell, trade used and new merchandise and provides equipment lease financing to a wide variety of customers. At December 25, 2004, there were 792 franchise and retail stores in operation under the Company’s brands and an additional 30 franchises awarded but not open. Of the stores in operation, there were 412 Play It Again Sports
®, 209 Once Upon A Child ®, 129 Plato’s Closet® and 42 Music Go Round® 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 start of our equipment leasing business. 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.