Winmark Corporation (Nasdaq: WINA) has announced the approval of a quarterly cash dividend of $0.80 per share to its shareholders, to be paid on March 1, 2024. This announcement came as the company reported its second-quarter financial results. At December 30, 2023, there were 1,319 franchises in operation and over 2,800 available territories, with an additional 71 franchises awarded but not yet open.
Anthony D. Ishaug, CEO of Winmark Corporation, stated, "We are pleased to continue our dividend program as we believe it reflects the ongoing strength of our business model and the confidence we have in our ability to generate cash flow. Our focus on sustainability and small business formation aligns with our goal of guiding entrepreneurs interested in our resale franchises, and we remain committed to creating value for our shareholders."
The company's shares have experienced a -1.2% movement, currently trading at $367.32.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $72,511 | $73,299 | $66,062 | $78,216 | $81,411 | $84,329 |
| Revenue Growth | n/a | 1.09% | -9.87% | 18.4% | 4.08% | 3.58% |
| Operating Margins | 57% | 59% | 61% | 66% | 66% | 64% |
| Net Margins | 42% | 44% | 45% | 51% | 48% | 48% |
| Net Income (k) | $30,126 | $32,149 | $29,823 | $39,920 | $39,425 | $40,638 |
| Net Interest Expense (k) | $2,448 | $1,731 | $1,738 | $1,454 | $2,915 | $3,209 |
| Depreciation & Amort. (k) | $314 | $400 | $485 | $431 | $603 | $693 |
| Earnings Per Share | $7.26 | $7.84 | $7.72 | $10.48 | $10.97 | $11.24 |
| EPS Growth | n/a | 7.99% | -1.53% | 35.75% | 4.68% | 2.46% |
| Diluted Shares (k) | 4,150 | 4,101 | 3,863 | 3,810 | 3,592 | 3,654 |
| Free Cash Flow (k) | $34,244 | $50,478 | $43,176 | $48,272 | $43,650 | $44,462 |
| Capital Expenditures | $694 | $169 | $45 | $75 | $139 | $354 |
| Current Ratio | 1.94 | 3.45 | 1.61 | 1.75 | 1.71 | 3.77 |
Winmark has strong operating margins with a stable trend, an excellent current ratio, and positive EPS growth. However, the firm has weak revenue growth and decreasing reinvestment in the business. Finally, we note that Winmark has positive and stable cash flows.
