WINMARK CORPORATION ANNOUNCES FIRST QUARTER RESULTS
Minneapolis, MN (April 20, 2006) -- Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended April 1, 2006 of $1,113,300 (or $.18 per share diluted) compared to net income of $699,900 (or $.11 per share diluted) in the first quarter of 2005.
John L. Morgan, Chairman and Chief Executive Officer, stated “The first quarter was very good due to the performance of our franchisees and a $360,000 non-operating gain included in interest and other income. Leasing continues to grow at acceptable levels, but the key to our first quarter was solid performance from our franchising businesses.”
Winmark Corporation provides financial services and develops franchises for retail stores that buy, sell, trade and consign used and new merchandise. At April 1, 2006, the Company had 806 stores in operation and an additional 43 franchises awarded but not open. Of the stores in operation, there were 395 Play It Again Sports®, 206 Once Upon A Child®, 164 Plato’s Closet® and 41 Music Go Round® stores. In addition, at April 1, 2006, the Company had an equipment leasing portfolio equal to $9.1 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 growing our leasing and franchising 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.