8-K: Winmark Corporation Announces Year-End Results: Net Income Slightly Down, Revenue Declines Due to Leasing Portfolio Run-Off

Winmark Corporation reports a slight decrease in net income and revenue for the year ended December 28, 2024, primarily due to the decision to run-off its leasing portfolio.

Summary

• Winmark Corporation announced its year-end results for the period ending December 28, 2024.
• Net income decreased slightly to $39,954,200, or $10.89 per share diluted, compared to $40,178,100, or $11.04 per share diluted, in 2023.
• Fourth-quarter net income was $9,583,100, or $2.60 per share diluted, compared to $9,716,800, or $2.64 per share diluted, for the same period last year.
• Revenues for the year decreased to $81,289,100 from $83,243,500 in 2023.
• The company's decision in May 2021 to run-off its leasing portfolio impacted the 2024 results.
• As of December 28, 2024, Winmark had 1,350 franchises in operation and over 2,800 available territories, with an additional 79 franchises awarded but not yet open.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly negative due to the decrease in net income and revenue, offset by the company's continued franchise growth and focus on sustainability.

Positives

• Winmark maintains a strong franchise network with 1,350 locations in operation.
• The company has a significant number of available territories (over 2,800) for future franchise expansion.
• Winmark continues to focus on sustainability and small business formation through its resale franchise model.

Negatives

• Net income decreased slightly year-over-year, from $40,178,100 to $39,954,200.
• Revenue decreased from $83,243,500 in 2023 to $81,289,100 in 2024.
• The run-off of the leasing portfolio negatively impacted the company's financial results.

Risks

• The company's forward-looking statements are subject to risks and uncertainties, and actual results could differ materially.
• The continued run-off of the leasing portfolio may further impact revenue in the short term.

Future Outlook

The press release contains forward-looking statements regarding future events and financial performance, which are subject to risks and uncertainties.

Industry Context

Winmark operates in the resale and franchising industry, focusing on sustainability and small business formation. The company's performance is influenced by consumer spending patterns, franchise expansion, and the overall economic environment.

Comparison to Industry Standards

• Without specific competitor data, it's difficult to provide a detailed comparison.
• However, franchise companies like H&R Block and Anytime Fitness are comparable in terms of franchise business model.
• Winmark's focus on resale and sustainability differentiates it from some other franchise businesses.

Stakeholder Impact

• Shareholders may be concerned about the slight decrease in net income and revenue.
• Franchisees may be interested in the continued expansion opportunities.
• Customers benefit from the company's focus on sustainability and resale options.

Key Dates

Keywords

Winmark Corporation, financial results, year-end results, franchise, resale, net income, revenue, leasing portfolio, sustainability, small business