Contact: John L. Morgan
763/520-8500
FOR IMMEDIATE RELEASE
WINMARK CORPORATION ANNOUNCES
SECOND QUARTER RESULTS
Minneapolis, MN (July 15, 2009) - Winmark Corporation (Nasdaq; WINA) announced today net income for the quarter ended June 27, 2009 of $1,195,300, or $.22 per share diluted, compared to net income of $930,500, or $.17 per share diluted, in 2008. For the six months ended June 27, 2009, net income was $2,609,000, or $.49 per share diluted, compared to net income of $1,867,800, or $.34 per share diluted, for the same period last year.
John L. Morgan, Chairman and Chief Executive Officer, stated, “Our second quarter performance was acceptable in light of the current economic environment. Our franchising and middle market leasing businesses performed well, but we have been negatively impacted by write-offs in our small business leasing portfolio. We fully expect the small business portfolio to continue to perform poorly until there is a broad recovery in the U.S. economy.”
Winmark Corporation creates, supports and finances business. At June 27, 2009, there were 867 franchises in operation under the brands Play It Again Sports®, Once Upon A Child®, Plato's Closet® and Music Go Round® and there were 43 territories in operation under the Wirth Business Credit® brand. An additional 51 retail franchises have been awarded but are not open. In addition, at June 27, 2009, the Company had loans and leases equal to $44.1 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.
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