WINMARK CORPORATION ANNOUNCES THIRD QUARTER RESULTS
Minneapolis, MN (October 12, 2004) -- Winmark Corporation (Nasdaq: WINA) today reported net income for the third quarter ended September 25, 2004 of $1,015,300, or $.15 per share diluted, compared to net income of $1,104,100, or $.17 per share diluted, in the third quarter of 2003. For the nine months ended September 25, 2004, net income was $3,101,900, or $.48 per share diluted, compared to net income of $2,982,700, or $.48 per share diluted, for the same period last year.
John L. Morgan, Chairman and Chief Executive Officer, stated, “Our third quarter saw an increase in revenues from royalties, as our franchisee partners continue to improve despite an unpredictable retail environment.” Mr. Morgan also added, “We continue to build our infrastructure in our small ticket and middle-market leasing businesses.”
Winmark Corporation develops franchises, provides business services and operates value-oriented retail concepts for stores that buy, sell, trade and consign used and new merchandise. At September 25, 2004, the Company had 811 stores in operation and an additional 34 franchises awarded but not open. Of the stores in operation, there were 434 Play It Again Sports®, 210 Once Upon A Child®, 124 Plato’s Closet® and 43 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 our long-term strategy of providing solutions for our franchisees and other small businesses and growing our 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.