Wed, Oct 16, 3:34 PM (276 days ago)
Winmark Corporation (WINA) reported its Q3 2024 results, indicating a slight decrease in total revenue to $21.5 million from $22.3 million in Q3 2023. The primary revenue source, royalties, rose by 1.6% to $19.5 million, driven by an increase in franchise locations. However, leasing income plummeted to $0.3 million from $1.3 million due to the ongoing run-off of the leasing portfolio initiated in May 2021. Net income for the quarter was $11.1 million, consistent with the prior year's $11.1 million, while profit margins improved slightly. Selling, general, and administrative expenses decreased by 5.3%, contributing to an operating income rise to $14.9 million. Cash flow from operations was robust at $33.7 million year-to-date, although overall cash reserves declined to $37.3 million from $40.6 million year-on-year. The company remains compliant with its debt covenants, with $30 million in delayed draw term loans outstanding. Looking forward, Winmark anticipates continued revenue stability from its franchising model, despite uncertainties surrounding the leasing segment. The recent approval of a special cash dividend of $7.50 per share reflects confidence in cash flow sustainability.