Exhibit 99.1

Contact: | Brett D. Heffes |
| 763/520-8500 |
FOR IMMEDIATE RELEASE
WINMARK CORPORATION ANNOUNCES
FIRST QUARTER RESULTS
Minneapolis, MN (April 16, 2014) — Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended March 29, 2014 of $4,551,900 (or $.86 per share diluted) compared to net income of $4,057,500 (or $.78 per share diluted) in the first quarter of 2013.
Earnings growth during the first quarter was driven by an increase in customer activity within the Company’s lease portfolio as well as increased royalties in the franchising business. John Morgan, Chairman and CEO, commented, “We experienced solid growth in our lease portfolio during the quarter, and when coupled with the continued growth in new signed franchise agreements positions us well for long-term success.”
Winmark Corporation creates, supports and finances business. At March 29, 2014, there were 1,021 franchises in operation under the brands Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Music Go Round® and Style Encore®. An additional 117 retail franchises have been awarded but are not open. In addition, at March 29, 2014, the Company had a lease portfolio equal to $40.0 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. 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.
WINMARK CORPORATION
CONDENSED BALANCE SHEETS
(unaudited)
| | March 29, 2014 | | December 28, 2013 | |
ASSETS | | | | | |
Current Assets: | | | | | |
Cash and cash equivalents | | $ | 2,411,800 | | $ | 10,642,600 | |
Marketable securities | | 791,600 | | 736,500 | |
Receivables, net | | 1,047,800 | | 1,205,500 | |
Net investment in leases - current | | 17,174,700 | | 17,239,900 | |
Income tax receivable | | — | | 166,500 | |
Inventories | | 96,700 | | 96,700 | |
Prepaid expenses | | 581,700 | | 587,300 | |
Total current assets | | 22,104,300 | | 30,675,000 | |
Net investment in leases — long-term | | 22,841,900 | | 20,301,400 | |
Property and equipment, net | | 1,405,200 | | 1,382,200 | |
Other assets | | 677,500 | | 677,500 | |
| | $ | 47,028,900 | | $ | 53,036,100 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | |
Current Liabilities: | | | | | |
Line of credit | | $ | 14,000,000 | | $ | — | |
Accounts payable | | 1,616,700 | | 2,441,400 | |
Income tax payable | | 1,829,200 | | — | |
Accrued liabilities | | 2,126,400 | | 1,233,100 | |
Discounted lease rentals | | 378,900 | | 424,900 | |
Deferred revenue | | 2,288,800 | | 2,199,900 | |
Deferred income taxes | | 4,208,200 | | 4,208,200 | |
Total current liabilities | | 26,448,200 | | 10,507,500 | |
Long-Term Liabilities: | | | | | |
| | | | | |
Discounted lease rentals | | 204,300 | | 277,400 | |
Deferred revenue | | 1,238,700 | | 1,180,700 | |
Other liabilities | | 1,480,500 | | 1,489,000 | |
Deferred income taxes | | 1,436,800 | | 1,436,800 | |
Total long-term liabilities | | 4,360,300 | | 4,383,900 | |
Shareholders’ Equity: | | | | | |
Common stock, no par, 10,000,000 shares authorized, 5,144,589 and 5,143,530 shares issued and outstanding | | 2,506,500 | | 2,949,500 | |
Accumulated other comprehensive loss | | (13,900 | ) | (4,100 | ) |
Retained earnings | | 13,727,800 | | 35,199,300 | |
Total shareholders’ equity | | 16,220,400 | | 38,144,700 | |
| | $ | 47,028,900 | | $ | 53,036,100 | |
WINMARK CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
| | Three Months Ended | |
| | March 29, 2014 | | March 30, 2013 | |
REVENUE: | | | | | |
Royalties | | $ | 8,810,000 | | $ | 8,474,900 | |
Leasing income | | 4,375,600 | | 3,407,800 | |
Merchandise sales | | 788,000 | | 665,700 | |
Franchise fees | | 349,000 | | 414,600 | |
Other | | 230,000 | | 185,400 | |
Total revenue | | 14,552,600 | | 13,148,400 | |
COST OF MERCHANDISE SOLD | | 754,700 | | 641,100 | |
LEASING EXPENSE | | 306,600 | | 279,700 | |
PROVISION FOR CREDIT LOSSES | | 38,900 | | 13,800 | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | | 6,017,900 | | 5,537,900 | |
Income from operations | | 7,434,500 | | 6,675,900 | |
INTEREST EXPENSE | | (62,100 | ) | (89,500 | ) |
INTEREST AND OTHER INCOME (EXPENSE) | | 100 | | (10,200 | ) |
Income before income taxes | | 7,372,500 | | 6,576,200 | |
PROVISION FOR INCOME TAXES | | (2,820,600 | ) | (2,518,700 | ) |
NET INCOME | | $ | 4,551,900 | | $ | 4,057,500 | |
| | | | | |
EARNINGS PER SHARE - BASIC | | $ | .88 | | $ | .81 | |
| | | | | |
EARNINGS PER SHARE - DILUTED | | $ | .86 | | $ | .78 | |
| | | | | |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC | | 5,148,519 | | 4,997,322 | |
| | | | | |
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED | | 5,307,946 | | 5,202,696 | |