WINMARK CORPORATION ANNOUNCES THIRD QUARTER RESULTS
Minneapolis, MN (October 14, 2003) -- Winmark Corporation (Nasdaq: WINA) today reported net income for the third quarter ended September 27, 2003 of $1,104,100, or $.17 per share diluted, compared to net income of $1,058,700, or $.17 per share diluted, in the third quarter of 2002. For the nine months ended September 27, 2003, net income was $2,982,700, or $.48 per share diluted, compared to net income of $2,858,600, or $.47 per share diluted, for the same period last year.
John L. Morgan, Chairman and Chief Executive Officer, stated, “We are continuing to make progress in advancing our long-term strategy of providing solutions for our franchisees and other small businesses. As previously announced, we acquired a 20% stake in eFrame, LLC during the third quarter. This investment will be accounted for using the equity method, and therefore we recorded our pro rata share of eFrame’s net loss for the period.”
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 27, 2003, the Company had 816 stores in operation and an additional 24 franchises awarded but not open. Of the stores in operation, there were 458 Play It Again Sports®, 216 Once Upon A Child®, 96 Plato’s Closet® and 46 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. 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.