Core Insights - Winmark Corporation has launched a new campaign titled "Part of Their Journey," celebrating individuals whose lives have been positively influenced by the company and its resale brands [1][2] - The campaign features stories of various individuals, including professional athletes and community leaders, showcasing Winmark's commitment to providing quality used equipment and clothing [2][3] - Winmark emphasizes its role in supporting sustainable choices and making success more accessible for individuals across different fields [4] Company Overview - Winmark Corporation is a franchisor focused on sustainability and small business formation, operating five resale brands: Play It Again Sports, Once Upon A Child, Plato's Closet, Music Go Round, and Style Encore [5] - As of September 28, 2024, Winmark had 1,343 franchises in operation and over 2,800 available territories, with an additional 82 franchises awarded but not yet opened [5]

Core Insights - Winmark Corporation has launched a new campaign titled "Part of Their Journey," celebrating individuals whose lives have been positively influenced by the company and its resale brands [1][2] - The campaign features stories of various individuals, including professional athletes and community leaders, highlighting Winmark's commitment to providing quality used equipment and clothing [2][3] - Winmark aims to inspire and support individuals in their personal and professional journeys by making quality resources more accessible [4] Company Overview - Winmark Corporation is a franchisor focused on sustainability and small business formation, operating five resale brands: Play It Again Sports®, Once Upon A Child®, Plato's Closet®, Music Go Round®, and Style Encore® [5] - As of September 28, 2024, Winmark had 1,343 franchises in operation and over 2,800 available territories, with an additional 82 franchises awarded but not yet opened [5]

Company Overview - Winmark Corporation is a leader in the circular economy with over 35 years of experience and operates five resale brands: Play It Again Sports, Once Upon A Child, Plato’s Closet, Music Go Round, and Style Encore [1][4] - As of September 28, 2024, Winmark has 1,343 franchises in operation and over 2,800 available territories, with an additional 82 franchises awarded but not yet opened [4] Partnership with Tom Hoge - Winmark announced a four-year partnership extension with PGA Tour member Tom Hoge, who will continue as the brand ambassador and wear Winmark and Play It Again Sports logos during PGA TOUR events [1] - Tom Hoge has been part of the Winmark team since 2022 and is recognized for his professionalism and commitment to sustainability and community engagement, aligning with Winmark's core values [2][3] Strategic Alignment - The partnership emphasizes Winmark's commitment to leveraging sports to promote sustainability and community values, as stated by CEO Brett Heffes [3] - Tom Hoge expressed his honor in extending the relationship, highlighting Winmark's dedication to sustainability and community opportunities [3]

Financial Performance - Net income for Q3 2024 was $11,120,700, or $3.03 per diluted share, compared to $11,149,800, or $3.05 per diluted share in Q3 2023, reflecting a slight decrease[1] - Total revenue for Q3 2024 was $21,510,900, down from $22,317,800 in Q3 2023, representing a decrease of approximately 3.6%[6] - Net income for the nine months ended September 28, 2024, was $30,371,200, slightly down from $30,461,300 for the same period in 2023, representing a decrease of approximately 0.3%[7] - Net cash provided by operating activities decreased to $33,700,000 from $35,231,400, reflecting a decline of about 4.4% year-over-year[7] Revenue and Expenses - Royalties increased to $19,512,500 in Q3 2024 from $19,210,000 in Q3 2023, showing a growth of about 1.6%[6] - Selling, general, and administrative expenses for Q3 2024 were $5,919,800, a decrease from $6,248,200 in Q3 2023[6] - Dividends paid increased to $9,132,100 from $7,997,900, representing an increase of approximately 14.2% year-over-year[7] - Cash paid for interest decreased to $2,149,200 from $2,309,100, reflecting a reduction of about 6.9%[7] - Cash paid for income taxes increased to $8,281,400 from $8,058,100, indicating an increase of approximately 2.8%[7] Assets and Liabilities - Cash and cash equivalents increased significantly to $37,197,000 as of September 28, 2024, compared to $13,361,500 at the end of 2023[4] - Total current assets rose to $40,502,600 from $16,746,500 at the end of 2023, indicating a substantial increase[4] - The company’s total liabilities decreased slightly to $75,145,700 from $77,662,200 at the end of 2023[4] - The company reported a decrease in accounts payable from $427,100 to $118,700, a reduction of approximately 72.1%[7] Investments and Financing - The company’s net investment in leases was reduced to zero as part of its decision to run-off its leasing portfolio[1] - Payments on notes payable remained constant at $3,187,500 for both periods, showing stability in financing obligations[7] - Proceeds from exercises of stock options decreased to $2,715,000 from $3,154,200, a decline of about 13.9%[7] Franchise Operations - The company reported a total of 1,343 franchises in operation as of September 28, 2024, with over 2,800 available territories[2] - Winmark Corporation continues to focus on sustainability and small business formation through its franchise operations[2] Deferred Revenue - The company experienced a significant change in deferred revenue, decreasing from $616,200 to $375,100, a decline of about 39.1%[7]

Financial Performance - Year-to-date net income is $19,250,400, slightly down from $19,311,500 in the previous year, reflecting a decrease of 0.3%[3] - Total revenue for the six months ended June 29, 2024, is $40,230,200, compared to $40,885,800 for the same period last year, indicating a decline of 1.6%[8] - Royalties revenue increased to $35,043,200 for the six months ended June 29, 2024, up from $33,853,500, representing a growth of 3.5%[8] - Earnings per share (basic) for the six months ended June 29, 2024, is $5.49, compared to $5.57 in the previous year, a decline of 1.4%[8] - For the quarter ended June 29, 2024, Winmark Corporation reported a net income of $10,431,400, or $2.85 per diluted share, compared to a net income of $10,368,800, or $2.85 per diluted share in 2023[12] - For the six months ended June 29, 2024, net income was $19,250,400, or $5.26 per diluted share, compared to $19,311,500, or $5.34 per diluted share for the same period last year[12] Cash Flow and Assets - Cash and cash equivalents at the end of the period are $29,397,400, a decrease from $32,376,500 at the end of the previous year[3] - The company reported a net cash provided by operating activities of $21,586,000, down from $23,152,300 in the previous year, a decrease of 6.8%[3] - The total current assets increased to $32,953,600 from $16,746,500, showing a significant growth of 96.5%[7] Expenses and Liabilities - Selling, general, and administrative expenses increased to $13,059,200 for the six months ended June 29, 2024, compared to $12,446,100 in the previous year, reflecting a rise of 4.9%[8] - The company’s total liabilities decreased from $77,662,200 to $75,459,500, a reduction of 2.8%[7] Franchise Operations - The company has 1,336 franchises in operation and over 2,800 available territories, with an additional 77 franchises awarded but not yet open[6] Strategic Decisions - The results during the quarter were impacted by the Company's decision in May 2021 to run-off its leasing portfolio[12]

Financial Performance - Net income for the quarter ended March 30, 2024, was $8,819,000, or $2.41 per diluted share, compared to $8,942,700, or $2.49 per diluted share in 2023, reflecting a decrease of approximately 1.4% in net income [8]. - Total revenue for the quarter was $20,109,500, a slight decrease from $20,523,600 in the same quarter of the previous year, representing a decline of about 2.0% [4]. - Operating income for the quarter was $12,218,200, slightly down from $12,388,400 in the prior year, reflecting a decrease of about 1.4% [4]. - The company reported a net cash provided by operating activities of $13,364,000, compared to $13,850,500 in the same quarter last year, a decrease of approximately 3.5% [6]. Assets and Liabilities - Cash and cash equivalents increased to $22,872,200 from $13,361,500 at the end of the previous quarter, marking a significant increase of approximately 71.4% [3]. - Total current assets rose to $26,281,400, up from $16,746,500, indicating an increase of about 57.1% [3]. - The total liabilities increased to $76,540,600 from $77,662,200, indicating a decrease of about 1.4% [3]. - The company’s retained earnings improved to a deficit of $(60,903,800) from $(66,924,900), reflecting a positive change of approximately 9.0% [3]. Business Expansion - The company had 1,327 franchises in operation as of March 30, 2024, with over 2,800 available territories, showing continued expansion potential [8]. - The company continues to focus on sustainability and small business formation through its franchise model, which includes brands like Plato's Closet and Once Upon A Child [8].

Franchise Operations - As of December 30, 2023, Winmark operates 1,319 franchises across the United States and Canada, with 2,800 available territories[16]. - The company had a net store growth of 39 new stores in 2023, with a renewal rate of 99% across all franchises[26]. - Winmark has 71 signed franchise agreements as of December 30, 2023, with most expected to open in 2024[33]. - Over the past three years, the company has renewed over 99% of franchise agreements up for renewal, indicating strong franchisee retention[51]. - The company has 146 franchise agreements expiring in 2024, 120 in 2025, and 116 in 2026, highlighting the importance of renewals for financial performance[73]. Financial Performance - System-wide sales for 2023 reached $1,589 million, a 3.6% increase from $1,534.3 million in 2022[24]. - Total revenue for the year ended December 30, 2023, was $83.2 million, a 2.3% increase from $81.4 million in 2022[116]. - Net income for the fiscal year ended December 30, 2023, was $40,178,100, compared to $39,424,900 in the prior year, reflecting a growth of 1.9%[157]. - The franchising segment's operating income increased by $0.4 million, or 0.8%, to $49.4 million in 2023 from $49.0 million in 2022[129]. - Royalties from franchisees increased by $3.1 million, or 4.6%, compared to 2022, indicating a positive trend in franchise performance[108]. Revenue Streams - Total royalties and franchise fees for 2023 amounted to $71.7 million, representing 86.2% of consolidated revenue, up from 84.4% in 2022[26]. - Revenues from Canadian franchisees in 2023 were approximately $6.8 million, an increase from $6.4 million in 2022[18]. - The Plato's Closet brand generated system-wide sales of $647.6 million in 2023, up from $638.8 million in 2022[24]. - Merchandise sales rose to $4.8 million in 2023 from $3.9 million in 2022, marking a 23.1% increase attributed to higher technology purchases by franchisees[120]. Expenses and Costs - Selling, general and administrative expenses rose by $2.0 million, or 8.4%, compared to the same period last year, highlighting increased operational costs[109]. - Selling, general and administrative expenses increased by 8.4% to $25.1 million in 2023 from $23.2 million in 2022, driven by increased conference and advertising expenses[123]. - Cash paid for interest increased to $3,049,400 from $2,722,500 in the previous year[165]. - Advertising costs increased to $700,000 in fiscal year 2023 from $500,000 in fiscal year 2022[185]. Cash Flow and Liquidity - Cash flow from operating activities provided $44.0 million in 2023, compared to $43.8 million in 2022[132]. - As of December 30, 2023, the company had $13.4 million in cash and cash equivalents, a slight decrease from $13.7 million at the end of 2022[132]. - The company expects to fund its operations through cash flows from franchising and leasing businesses, along with available credit facilities[143]. - The company maintains cash assets that may exceed FDIC insurance limits, posing a risk to liquidity and financial condition[82]. Leasing Operations - The company has ceased soliciting new leasing customers and is pursuing an orderly run-off of its leasing portfolio, anticipating a decrease in leasing revenues[59]. - Leasing income net of leasing expense decreased to $4.4 million in 2023 from $6.0 million in 2022, reflecting the decision to run off the middle-market leasing portfolio[114]. - The company's leasing portfolio (net investment in leases) was $0.1 million at December 30, 2023, down from $0.3 million at the end of 2022, indicating a continued decline in leasing operations[114]. - Leasing income for the year ended December 30, 2023, was $4.77 million, down from $6.94 million in 2022 and $11.15 million in 2021[211]. Risk Factors - The company faces competition from established retailers and online marketplaces, which may impact franchisee sales and market share[52][80]. - Franchisees depend on a reliable supply of used merchandise, which may be affected by federal and state regulations[78]. - The company may incur additional charges if it is unable to collect accounts receivable from franchisees, impacting financial results[79]. - The company is subject to financial covenants under its line of credit and term loan facilities, and as of December 30, 2023, it was in compliance with all covenants[83]. Diversity and Workforce - As of December 30, 2023, the company employs 83 individuals, with 55% of the workforce identifying as female, reflecting a commitment to diversity[65][67]. Future Projections - Future performance and ability to meet debt service obligations may be affected by various financial and economic factors, emphasizing the importance of cash flow management[85]. - Future amortization expenses for reacquired franchise rights are projected to be $354,000 annually from 2024 to 2028[215].

Exhibit 99.1 Contact: Anthony D. Ishaug 763/520-8500 FOR IMMEDIATE RELEASE WINMARK CORPORATION ANNOUNCES YEAR END RESULTS Minneapolis, MN (February 21, 2024) - Winmark Corporation (Nasdaq: WINA) announced today net income for the year ended December 30, 2023 of $40,178,100 or $11.04 per share diluted compared to net income of $39,424,900 or $10.97 per share diluted in 2022. The fourth quarter 2023 net income was $9,716,800 or $2.64 per share diluted, compared to net income of $10,176,600 or $2.86 per share ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 (I.R.S. Employer Identification No.) WINMARK CORPORATION (Exact name of registrant as specified in its charter) or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Minnesota 41-1622691 Commission ...

Franchise Operations - As of December 31, 2022, Winmark operated 1,295 franchises across the United States and Canada, with over 2,800 available territories[20] - The franchisee renewal rate for 2022 was 100% across all brands, with 144 renewals completed[33] - Winmark has signed 57 new franchise agreements, with the majority expected to open in 2023[40] - The company renewed 99% of franchise agreements up for renewal in the past three years, indicating strong franchisee retention[59] - A total of 180 franchise agreements will expire in 2023 across five brands, highlighting the importance of renewals for financial performance[83] Financial Performance - Total revenue for the year ended December 31, 2022, was $81.4 million, an increase of 4.1% compared to $78.2 million in 2021[119] - Net income for the fiscal year ended December 31, 2022, was $39,424,900, compared to $39,919,900 in the prior year, reflecting a slight decrease of 1.2%[165] - Earnings per share (EPS) for basic shares was $11.30 for the fiscal year ended December 31, 2022, up from $10.87 in the previous year, representing an increase of 3.9%[165] - The company reported royalties of $67,148,100 for the fiscal year ended December 31, 2022, an increase of 10.5% from $60,779,300 in the previous year[165] - The franchising segment's operating income rose by $4.2 million, or 9.3%, to $49.0 million in 2022 from $44.8 million in 2021[133] Revenue Sources - System-wide sales for 2022 reached $1.534 billion, representing a growth of approximately 9.1% from $1.406 billion in 2021[30] - The total royalties and franchise fees for 2022 amounted to $68.7 million, which is 84.4% of consolidated revenue, up from 79.6% in 2021[33] - Winmark's Canadian franchise revenues were approximately $6.4 million, an increase from $4.9 million in 2021[23] - Total revenue increased to $81.4 million in 2022 from $78.2 million in 2021, with franchising revenue contributing $74.5 million[131] Expenses and Liabilities - Selling, general and administrative expenses rose by $0.9 million, or 3.9%, in 2022 compared to the previous year[110] - Interest expense increased by 100.5% in 2022 compared to the previous year, reflecting higher borrowing costs[118] - Total liabilities increased to $92,087,800 as of December 31, 2022, from $65,982,400 in the previous year, reflecting a significant rise of 39.8%[163] - The company’s total long-term liabilities increased to $81,492,300 as of December 31, 2022, from $56,004,800 in the previous year, representing an increase of 45.7%[163] Cash Flow and Assets - Cash flow from operating activities provided $43.8 million in 2022, down from $48.3 million in 2021, primarily due to decreased principal collections on lease receivables[136] - As of December 31, 2022, the company had $13.7 million in cash, cash equivalents, and restricted cash, compared to $11.4 million at the end of 2021[136] - Total current assets rose to $18,103,800 as of December 31, 2022, compared to $17,432,300 in the previous year, indicating an increase of 3.8%[162] Market and Competition - The company faces competition from various retailers, including large chains and online marketplaces, impacting franchisee sales[60] - Franchisees depend on a reliable supply of used merchandise, which may be affected by public demand and regulatory requirements[87] Operational Changes - The company has ceased operations in its small-ticket financing business, selling the remaining portfolio for approximately $0.7 million[67] - The middle-market leasing business is in a run-off phase, with expected declines in leasing revenues and cash flows[68] Diversity and Inclusion - Approximately 50% of the company's employees identify as female, reflecting a commitment to diversity and inclusion[77] Advertising and Marketing - The company emphasizes a minimum advertising spend of 5% of gross sales for franchisees to promote their stores[50] - Franchisees must spend 5% of gross sales on advertising, with the potential to increase this to 6%[55] - Advertising costs rose to $491,900 in fiscal year 2022, up from $348,200 in fiscal year 2021, marking an increase of 41.1%[193]