WINMARK CORPORATION ANNOUNCES SECOND QUARTER RESULTS
Minneapolis, MN (July 20, 2006) - Winmark Corporation (Nasdaq; WINA) announced today net income for the quarter ended July 1, 2006 of $650,400, or $.11 per share diluted, compared to net income of $542,600, or $.08 per share diluted, in 2005. For the six months ended July 1, 2006, net income was $1,763,700, or $.29 per share diluted, compared to net income of $1,242,500, or $.19 per share diluted, for the same period last year.
John L. Morgan, Chairman and Chief Executive Officer, stated, “During the second quarter the franchising business continued its modest growth and our leasing businesses added assets at an acceptable level. We launched a $50 million subordinated debt offering which, when combined with our bank line of credit and cash flow from operations will allow us to finance our growth for the foreseeable future.”
Winmark Corporation provides financial services and develops franchises for retail stores that buy, sell, trade and consign used and new merchandise. At July 1, 2006, there were 819 franchise stores in operation under the Company’s brands and an additional 44 franchises awarded but not open. Of the stores in operation, there were 394 Play It Again Sports®, 208 Once Upon A Child®, 171 Plato’s Closet®, 41 Music Go Round® and 5 Wirth Business Credit® franchises. In addition, at July 1, 2006, the Company had an equipment leasing portfolio equal to $13.3 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.