Winmark Q2 2020 Earnings Report

Winmark's net income decreased in the second quarter of 2020 due to the impact of the COVID-19 pandemic.

Key Takeaways

Winmark Corporation reported a decrease in net income for the quarter ended June 27, 2020, compared to the same period in 2019. The results were impacted by the COVID-19 pandemic, which led to a decrease in royalty revenues. However, the company experienced sequential monthly improvement in royalties during the quarter as franchised stores reopened and repaid borrowings under its revolving credit facility.

Net income for the quarter ended June 27, 2020, was $5,055,200, or $1.33 per share diluted, compared to $7,301,900, or $1.79 per share diluted, in the second quarter of 2019.

Royalty revenues were 38% lower than the second quarter of 2019 due to the COVID-19 pandemic.

The Company experienced sequential monthly improvement in royalties during the second quarter as franchised stores reopened.

The Company repaid $40.0 million in borrowings under its revolving credit facility, ending the quarter with no revolver borrowings and $1.3 million of cash.

Total Revenue

$12.4M

Previous year: $17.4M

Previous year: $16.4M

-29.5%