WINMARK CORPORATION ANNOUNCES SECOND QUARTER RESULTS
Minneapolis, MN (July 13, 2004) - Winmark Corporation (Nasdaq; WINA) announced today net income for the quarter ended June 26, 2004 of $726,300, or $.11 per share diluted, compared to net income of $756,400, or $.12 per share diluted, in 2003. For the six months ended June 26, 2004, net income was $2,086,600, or $.32 per share diluted, compared to net income of $1,878,600, or $.30 per share diluted, for the same period last year.
Chairman and Chief Executive Officer John Morgan commented, “Our second quarter saw increases in store level sales in our franchise brands. This was due to an improvement in the economy and the hard work of our franchisees and employees. We started our leasing business in the second quarter, and we will continue to invest time and capital to build for future growth.”
Winmark Corporation provides financial services and develops franchises for retail stores that buy, sell, trade and consign used and new merchandise. At June 26, 2004, there were 810 franchise and retail stores in operation under the Company’s brands and an additional 33 franchises awarded but not open. Of the stores in operation, there were 441 Play It Again Sports®, 211 Once Upon A Child®, 115 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 the future performance and growth of our franchise and leasing operations and the future of franchise store sales. Such forwardlooking statements are only predictions or statements of intention subject to risks and uncertainties and actual events or results from such activities 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.