Winmark(WINA) - 2024 Q3 - Quarterly Results

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]