Wed, Jul 17, 3:21 PM (52 days ago)
Winmark Corporation's Q2 2024 financial performance shows a stable revenue stream with a slight decrease from $20.4 million in Q2 2023 to $20.1 million. Key highlights include a 3.9% increase in royalties to $17.8 million due to more franchise stores and higher franchisee retail sales. Leasing income fell significantly from $1.0 million to $0.5 million, reflecting a strategic shift away from new leasing customers. Merchandise sales also dropped to $0.9 million from $1.3 million, impacting cost of goods sold, which decreased proportionately. Operating income remained steady at $13.0 million. The company improved its cash position to $29.4 million and maintained compliance with financial covenants. Future liquidity seems secure, supported by cash flows, credit facilities, and conservative financial management.