Winmark (WINA) Q4 2024 earnings summary

Executive summary

• Net income for 2023 was $40.2 million ($11.04 per diluted share), up from $39.4 million ($10.97 per diluted share) in 2022.

• Fourth quarter 2023 net income was $9.7 million ($2.64 per diluted share), down from $10.2 million ($2.86 per diluted share) in Q4 2022.

• Revenues for 2023 reached $83.2 million, an increase from $81.4 million in 2022.

• Franchise network grew to 1,319 operating franchises with 71 awarded but not yet open.

Financial highlights

• Royalties for 2023 were $70.2 million, up from $67.1 million year-over-year.

• Merchandise sales totaled $4.8 million, up from $3.9 million in 2022.

• Operating income for 2023 was $53.3 million, slightly down from $53.6 million in 2022.

• Cash and cash equivalents at year-end were $13.4 million, nearly flat year-over-year.

• Net cash provided by operating activities was $44.0 million for 2023.

Outlook and guidance

• Management noted positive franchise partner performance but slower growth in the second half of 2023.

• Forward-looking statements caution about risks and uncertainties affecting future results.