NASDAQ$WINA

Winmark Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

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

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.

Headline financials

Total Revenue

$12.4M

Previous: $17.4M-28.8%
EPS (adj)

$1.33

Previous: $1.79-25.7%
Capital Expenditures

-$33.7K

Previous: -$153K+78.0%
Free Cash Flow

$5.02M

Previous: $7.15M-29.8%
Net Income

$5.06M

Previous: $7.3M-30.8%
Operating Income

$6.68M

Previous: $9.85M-32.2%
Gross Profit

$12.4M

Previous: $17.4M-28.8%
Cash & Equivalents

$1.29M

Previous: $1.1M+17.0%
Total Assets

$31.6M

Previous: $46.2M-31.5%
Stock-Based Comp

$398K

Previous: $517K-23.0%

Revenue & EPS history

Winmark · Revenue · Quarterly

$12.4M

Q2 2020-28.8%vs Q2 2019
Beat estimate in 0 of 1 quarters(0%)
ActualEstimate

Revenue by segment

Winmark · $8.21M total across 2 segments · Q2 2020

  • Royalties
    $7.81M-38.3%
  • Other Revenue
    $406K

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+1.0%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+1.6%

Avg return

30 days after

63%

40 / 64 earnings

Positive

+6.6%

Q3 2021

Best reaction

-8.3%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-8.3%-7.1%-15.7%
Q3 2025+3.7%-1.7%-3.0%
Q2 2025+3.3%+9.8%+31.2%
Q1 2025+2.4%+7.8%+30.3%
Q4 2024-1.5%-11.0%-14.4%
Q3 2024+3.8%+5.1%+5.6%
Q2 2024-5.7%-3.6%-12.2%
Q1 2024+3.8%+7.2%+5.5%
Q4 2023-2.1%-4.4%-13.3%
Q3 2023+4.6%+0.4%+9.3%
Q2 2023+4.9%+3.6%+2.6%
Q1 2023+2.4%+4.0%+0.4%
Q4 2022+1.5%-0.2%+9.7%
Q3 2022+3.0%+5.1%+12.7%
Q2 2022+1.3%+1.8%+16.4%
Q1 2022+3.0%+4.3%-3.3%
Q4 2021+6.3%+4.4%+4.5%
Q3 2021+6.6%+6.8%+26.8%
Q2 2021+6.3%+6.4%+3.8%
Q1 2021+2.5%+7.7%+6.4%
Q4 2020-0.2%+1.3%+4.5%
Q3 2020-5.7%-7.1%-2.2%
Q2 2020+3.3%+2.2%+4.6%
Q1 2020+1.3%+10.4%-10.9%
Q4 2019-1.3%-0.7%-35.3%
Q3 2019+0.3%+1.8%+0.1%
Q2 2019-2.0%-4.2%-5.7%
Q1 2019-1.5%+0.2%-4.0%
Q4 2018+4.0%+1.9%+12.2%
Q3 2018-1.1%-2.3%-5.5%
Q2 2018+0.9%-0.0%+2.4%
Q1 2018-0.5%-0.8%+2.9%
Q4 2017+0.2%+1.2%-0.0%
Q3 2017-0.9%-4.9%-9.5%
Q2 2017+2.0%+0.3%-0.3%
Q1 2017-0.2%+1.1%+5.1%
Q4 2016-0.7%-1.9%-0.4%
Q3 2016-1.3%+0.6%+0.4%
Q2 2016+0.2%+1.2%+1.3%
Q1 2016-0.4%
Q4 2015+1.6%
Q3 2015+0.8%
Q2 2015-2.7%
Q1 2015+5.7%
Q4 2014+1.0%
Q3 2014-1.5%
Q2 2014-0.4%
Q1 2014+2.1%
Q4 2013-2.3%
Q3 2013+0.7%
Q2 2013+6.0%
Q1 2013+0.1%
Q4 2012-0.2%
Q3 2012+0.1%
Q2 2012+1.5%
Q1 2011+6.4%
Q1 2012+0.7%
Q4 2011+1.7%
Q3 2010+4.3%
Q3 2011+4.3%
Q2 2010-2.4%
Q4 2010-2.4%
Q2 2011-2.4%
Q1 2010+1.8%

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