Exhibit 99.1

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Contact:Brett D. Heffes

763/520-8500

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FOR IMMEDIATE RELEASE

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WINMARK CORPORATION ANNOUNCES

FIRST QUARTER RESULTS

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Minneapolis, MN (April 13, 2022)  -  Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended March 26, 2022 of $9,852,500 or $2.65 per share diluted compared to net income of $9,311,100 or $2.40 per share diluted in 2021.  

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Winmark - the Resale Company®, is a nationally recognized franchising business focused on sustainability and small-business formation.  We champion and guide entrepreneurs interested in operating one of our award winning resale franchises: Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® and Music Go Round®.  At March 26, 2022, there were 1,276 franchises in operation and over 2,800 available territories.  An additional 44 franchises have been awarded but are not open.  

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This press release contains forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to future events or the future financial performance of the Company.  Such forward-looking statements are only predictions or statements of intention subject to risks and uncertainties and actual events or results could differ materially from those anticipated.  Because actual result may differ, shareholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements.

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WINMARK CORPORATION

CONDENSED BALANCE SHEETS

(Unaudited)

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​	​	​	​	​	​	​
​		March 26, 2022			December 25, 2021
ASSETS
Current Assets:	​	​		​	​	​
Cash and cash equivalents	​	$	287,500	​	$	11,407,000
Restricted cash	​	​	55,000	​	​	30,000
Receivables, net	​	​	1,473,300	​	​	1,103,400
Net investment in leases - current	​	​	2,593,000	​	​	2,890,600
Income tax receivable	​	​	—	​	​	667,500
Inventories	​	​	492,300	​	​	325,200
Prepaid expenses	​	​	985,100	​	​	1,008,600
Total current assets	​	​	5,886,200	​	​	17,432,300
​	​	​	​	​	​	​
Net investment in leases – long-term	​	​	165,000	​	​	229,300
Property and equipment, net	​	​	1,895,900	​	​	1,976,900
Operating lease right of use asset	​	​	2,921,700	​	​	2,982,000
Goodwill	​	​	607,500	​	​	607,500
Other assets	​	​	428,700	​	​	418,300
Deferred income taxes	​	​	3,365,900	​	​	3,252,700
​	​	$	15,270,900	​	$	26,899,000
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LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current Liabilities:	​	​	​	​	​	​
Notes payable, net	​	$	4,232,600	​	$	4,232,600
Accounts payable	​	​	1,896,000	​	​	2,099,000
Income tax payable	​	​	2,374,300	​	​	—
Accrued liabilities	​	​	2,515,400	​	​	2,001,000
Deferred revenue	​	​	1,634,400	​	​	1,645,000
Total current liabilities	​	​	12,652,700	​	​	9,977,600
Long-Term Liabilities:	​	​	​	​	​	​
Line of Credit	​	​	13,600,000	​	​	—
Notes payable, net	​	​	42,318,200	​	​	43,376,400
Deferred revenue	​	​	6,831,000	​	​	6,863,500
Operating lease liabilities	​	​	4,686,700	​	​	4,810,100
Other liabilities	​	​	950,000	​	​	954,800
Total long-term liabilities	​	​	68,385,900	​	​	56,004,800
Shareholders’ Equity (Deficit):	​	​	​	​	​	​
Common stock, no par, 10,000,000 shares authorized, 3,480,376 and 3,635,806 shares issued and outstanding	​	​	—	​	​	—
Retained earnings (accumulated deficit)	​	​	(65,767,700)	​	​	(39,083,400)
Total shareholders’ equity (deficit)	​	​	(65,767,700)	​	​	(39,083,400)
​	​	$	15,270,900	​	$	26,899,000

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Winmark Corporation

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

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​	​	​	​	​	​	​	​	​
​	​	Three Months Ended					​	​
​	​	March 26, 2022		​	March 27, 2021		​	​
Revenue:		​	​		​	​
Royalties	​	$	15,390,100	​	$	14,048,800	​	​
Leasing income	​	​	2,871,700	​	​	3,237,000	​	​
Merchandise sales	​	​	914,300	​	​	592,400	​	​
Franchise fees	​	​	420,600	​	​	359,000	​	​
Other	​	​	453,100	​	​	421,700	​	​
Total revenue	​	​	20,049,800	​	​	18,658,900	​	​
Cost of merchandise sold	​	​	864,500	​	​	558,800	​	​
Leasing expense	​	​	216,000	​	​	389,500	​	​
Provision for credit losses	​	​	(8,900)	​	​	(48,700)	​	​
Selling, general and administrative expenses	​	​	5,540,000	​	​	5,102,300	​	​
Income from operations	​	​	13,438,200	​	​	12,657,000	​	​
Interest expense	​	​	(513,100)	​	​	(318,100)	​	​
Interest and other income (expense)	​	​	(900)	​	​	6,800	​	​
Income before income taxes	​	​	12,924,200	​	​	12,345,700	​	​
Provision for income taxes	​	​	(3,071,700)	​	​	(3,034,600)	​	​
Net income	​	$	9,852,500	​	$	9,311,100	​	​
Earnings per share - basic	​	$	2.74	​	$	2.49	​	​
Earnings per share - diluted	​	$	2.65	​	$	2.40	​	​
Weighted average shares outstanding - basic	​	​	3,597,926	​	​	3,736,676	​	​
Weighted average shares outstanding - diluted	​	​	3,716,322	​	​	3,874,227	​	​

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Winmark Corporation

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

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​	​	​	​	​	​	​	​
​	​	Three Months Ended					​
​		March 26, 2022			March 27, 2021
OPERATING ACTIVITIES:	​	​	​	​	​	​	​
Net income	​	$	9,852,500	​	$	9,311,100	​
Adjustments to reconcile net income to net cash provided by operating activities:	​	​	​	​	​	​	​
Depreciation and amortization	​		102,500	​		113,800	​
Provision for credit losses	​		(8,900)	​		(48,700)	​
Compensation expense related to stock options	​		421,600	​		385,200	​
Deferred income taxes	​		(113,200)	​		(439,900)	​
Deferred initial direct costs	​		—	​		(1,500)	​
Amortization of deferred initial direct costs	​		—	​		10,500	​
Operating lease right of use asset amortization	​	​	60,300	​	​	54,200	​
Tax benefits on exercised stock options	​		95,300	​		47,100	​
Change in operating assets and liabilities:	​	​	​	​	​	​	​
Receivables	​		(369,900)	​		(515,000)	​
Principal collections on lease receivables	​	​	530,500	​	​	2,268,700	​
Income tax receivable/payable	​		2,946,500	​		3,333,300	​
Inventories	​		(167,100)	​		(3,600)	​
Prepaid expenses	​		23,500	​		155,300	​
Other assets	​	​	(10,400)	​	​	(2,600)	​
Accounts payable	​		(203,000)	​		(370,300)	​
Accrued and other liabilities	​		390,500	​		(532,300)	​
Rents received in advance and security deposits	​		(159,700)	​		(95,400)	​
Deferred revenue	​		(43,100)	​		(84,900)	​
Net cash provided by operating activities	​		13,347,900	​		13,585,000	​
INVESTING ACTIVITIES:	​	​	​	​	​	​	​
Purchase of property and equipment	​		(21,500)	​		(34,300)	​
Purchase of equipment for lease contracts	​		—	​		(65,500)	​
Net cash used for investing activities	​		(21,500)	​		(99,800)	​
FINANCING ACTIVITIES:	​	​	​	​	​	​	​
Proceeds from borrowings on line of credit	​		15,600,000	​		—	​
Payments on line of credit	​		(2,000,000)	​		—	​
Payments on notes payable	​	​	(1,062,500)	​	​	(1,062,500)	​
Repurchases of common stock	​		(36,591,400)	​		(10,455,200)	​
Proceeds from exercises of stock options	​		1,258,300	​		268,800	​
Dividends paid	​		(1,625,300)	​		(935,400)	​
Net cash used for financing activities	​		(24,420,900)	​		(12,184,300)	​
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	​		(11,094,500)	​		1,300,900	​
Cash, cash equivalents and restricted cash, beginning of period	​		11,437,000	​		6,684,000	​
Cash, cash equivalents and restricted cash, end of period	​	$	342,500	​	$	7,984,900	​
SUPPLEMENTAL DISCLOSURES:	​	​	​	​	​	​	​
Cash paid for interest	​	$	490,500	​	$	309,200	​
Cash paid for income taxes	​	$	143,100	​	$	94,100	​
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The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Balance Sheets to the total of the same amounts shown above:
​	​	Three Months Ended					​
​		March 26, 2022			March 27, 2021
Cash and cash equivalents	​	$	287,500	​	$	7,959,900	​
Restricted cash	​		55,000	​		25,000	​
Total cash, cash equivalents and restricted cash	​	$	342,500	​	$	7,984,900	​

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