Welcome!

News Feed Item

PriceSmart Announces First Quarter Results of Operations and December Sales; and Property Acquisition for New Warehouse Club in Colombia

SAN DIEGO, CA -- (Marketwired) -- 01/09/14 -- PriceSmart, Inc. (NASDAQ: PSMT) today announced its results of operations for the first quarter of fiscal year 2014 which ended on November 30, 2013.

For the first quarter of fiscal year 2014, net warehouse club sales increased 12.6% to $589.7 million from $523.6 million in the first quarter of fiscal year 2013. Total revenues for the first quarter of fiscal year 2014 was $605.6 million compared to $535.3 million in the first quarter of the prior year. The Company had 32 clubs in operation as of November 30, 2013, compared to 30 warehouse clubs in operation as of November 30, 2012.

The Company recorded operating income for the first quarter of $32.4 million, compared to operating income of $29.7 million for the first quarter of the prior year. Net income was $21.4 million, or $0.71 per diluted share, in the first quarter of fiscal year 2014. Net income in the first quarter of fiscal year 2013 was $20.0 million, or $0.66 per diluted share.

For the month of December 2013, net sales increased 10.7% to $280.8 million from $253.7 million in December a year earlier. For the four months ended December 31, 2013, net sales increased 12.0% to $870.5 million from $777.3 million in the same period last year. There were 32 warehouse clubs in operation at the end of December 2013 compared to 30 warehouse clubs in operation in December 2012.

For the four weeks ended December 29, 2013, comparable warehouse sales for the 29 warehouse clubs open at least 13 1/2 full months increased 6.7% compared to the same four-week period last year. For the seventeen-week period ended December 29, 2013, comparable warehouse sales increased 7.5% compared to the comparable seventeen-week period a year ago.

PriceSmart Inc. also announced that on January 8, 2014, it acquired approximately 128,600 usable square feet (11,947 usable square meters) of land in the southern area of Pereira, Colombia, upon which the Company plans to construct a new warehouse club that is currently planned to open in November 2014. This additional club will be the fourth PriceSmart warehouse club operating in Colombia.

PriceSmart management plans to host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Friday, January 10, 2014, to discuss the financial results.

Individuals interested in participating in the conference call may do so by dialing (877) 627-6581 toll free, or (719) 325-4893 for international callers, and entering participant code 8610355.

A digital replay will be available through January 31, 2014, following the conclusion of the call by dialing (888) 203-1112 for domestic callers, or (719) 457-0820 for international callers, and entering relay passcode 8610355.

About PriceSmart

PriceSmart, headquartered in San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean, selling high quality merchandise at low prices to PriceSmart members. PriceSmart now operates 32 warehouse clubs in 12 countries and one U.S. territory (six in Costa Rica; four each in Panama and Trinidad; three each in Guatemala, the Dominican Republic and Colombia; two each in El Salvador and Honduras; and one each in Aruba, Barbados, Jamaica, Nicaragua and the United States Virgin Islands).

This press release may contain forward-looking statements concerning the Company's anticipated future revenues and earnings, adequacy of future cash flow and related matters. These forward-looking statements include, but are not limited to, statements containing the words "expect," "believe," "will," "may," "should," "project," "estimate," "anticipated," "scheduled," and like expressions, and the negative thereof. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including the following risks: the Company's financial performance is dependent on international operations, which exposes the Company to various risks; any failure by the Company to manage its widely dispersed operations could adversely affect its business; the Company faces significant competition; future sales growth depends, in part, on the Company's ability to successfully open new warehouse clubs; the Company might not identify in a timely manner or effectively respond to changes in consumer trends and changes in consumer preferences for merchandise and shopping modalities, which could adversely affect its relationship with members, demand for its products and market share; the Company faces difficulties in the shipment of, and risks inherent in the importation of, merchandise to its warehouse clubs; the Company is exposed to weather and other natural disaster risks; general economic conditions could adversely impact the Company's business in various respects; the Company is subject to changes in relationships and agreements with third parties with which the Company does business and/or from which the Company acquires merchandise; the Company relies extensively on computer systems to process transactions, summarize results and manage its business and a failure to adequately maintain the Company's systems and disruptions in its systems could harm its business and adversely affect its results of operations; the Company could be subject to additional tax liabilities; a few of the Company's stockholders own approximately 28.3% of the Company's voting stock, which may make it difficult to complete some corporate transactions without their support and may impede a change in control; the loss of key personnel could harm the Company's business; the Company is subject to volatility in foreign currency exchange rates; the Company faces the risk of exposure to product liability claims, a product recall and adverse publicity; potential future impairments of long lived assets could adversely affect the Company's future results of operations and financial position; write-offs of goodwill and other intangible assets could adversely affect the Company's future results of operations and financial position; the Company faces increased public company compliance risks and compliance risks related to the Company's international operations; the Company faces increased compliance risks associated with compliance with Section 404 of the Sarbanes-Oxley Act of 2002; if remediation costs or hazardous substance contamination levels at certain properties for which the Company maintains financial responsibility exceed management's current expectations, the Company's financial condition and results of operations could be adversely impacted. The risks described above as well as the other risks detailed in the Company's U.S. Securities and Exchange Commission ("SEC") reports, including the Company's Annual Report on Form 10-K filed for the fiscal year ended August 31, 2013 filed on October 30, 2013 pursuant to the Securities Exchange Act of 1934. We assume no obligation and expressly disclaim any duty to update any forward-looking statement to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events.

                              PRICESMART, INC.
                      CONSOLIDATED STATEMENTS OF INCOME
         (UNAUDITED -- AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)


                                                   Three Months Ended
                                                      November 30,
                                             ------------------------------
                                                  2013            2012
                                             --------------  --------------
Revenues:
Net warehouse club sales                     $      589,694  $      523,599
Export sales                                          5,721           3,073
Membership income                                     9,268           7,673
Other income                                            918             941
                                             --------------  --------------
Total revenues                                      605,601         535,286
                                             --------------  --------------
Operating expenses:
Cost of goods sold:
Net warehouse club                                  504,287         444,944
Export                                                5,441           2,835
Selling, general and administrative:
Warehouse club operations                            51,772          45,842
General and administrative                           11,184          11,158
Pre-opening expenses                                    474             737
Loss/(gain) on disposal of assets                        84              57
                                             --------------  --------------
Total operating expenses                            573,242         505,573
                                             --------------  --------------
Operating income                                     32,359          29,713
Other income (expense):
Interest income                                         181             294
Interest expense                                     (1,038)         (1,218)
Other income (expense), net                             311              (1)
                                             --------------  --------------
Total other expense                                    (546)           (925)
                                             --------------  --------------
Income before provision for income taxes and
 income (loss) of unconsolidated affiliates          31,813          28,788
Provision for income taxes                          (10,385)         (8,779)
Income (loss) of unconsolidated affiliates                4              (4)
                                             --------------  --------------
Net income                                   $       21,432  $       20,005
                                             ==============  ==============
Net income per share available for
 distribution:
Basic net income per share                   $         0.71  $         0.66
                                             ==============  ==============
Diluted net income per share                 $         0.71  $         0.66
                                             ==============  ==============
Shares used in per share computations:
Basic                                                29,690          29,592
                                             ==============  ==============
Diluted                                              29,702          29,604
                                             ==============  ==============
Dividends per share                          $           --  $         0.60
                                             ==============  ==============



                              PRICESMART, INC.
                         CONSOLIDATED BALANCE SHEETS
                  (AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)


                                              November 30,
                                                  2013         August 31,
                                               (Unaudited)        2013
                                             --------------  --------------
ASSETS
Current Assets:
Cash and cash equivalents                    $       77,226  $      121,874
Short-term restricted cash                            3,100           5,984
Receivables, net of allowance for doubtful
 accounts of $7 and $0 as of November 30,
 2013 and August 31, 2013, respectively               3,481           3,130
Merchandise inventories                             298,721         217,413
Deferred tax assets - current                         7,126           6,290
Prepaid expenses and other current assets            30,717          20,890
                                             --------------  --------------
Total current assets                                420,371         375,581
Long-term restricted cash                            26,759          34,775
Property and equipment, net                         351,210         338,478
Goodwill                                             36,289          36,364
Deferred tax assets - long term                      12,038          12,871
Other non-current assets (includes $1,324
 and $1,505 as of November 30, 2013 and
 August 31, 2013, respectively, for the fair
 value of derivative instruments)                    25,787          19,866
Investment in unconsolidated affiliates               8,108           8,104
                                             --------------  --------------
Total Assets                                 $      880,562  $      826,039
                                             ==============  ==============
LIABILITIES AND EQUITY
Current Liabilities:
Short-term borrowings                        $       13,000  $           --
Accounts payable                                    230,890         199,425
Accrued salaries and benefits                        16,171          17,862
Deferred membership income                           17,231          16,528
Income taxes payable                                  7,455           8,059
Other accrued expenses                               17,646          20,136
Long-term debt, current portion                      16,375          12,757
Deferred tax liability - current                        128             111
                                             --------------  --------------
Total current liabilities                           318,896         274,878
Deferred tax liability - long-term                    2,603           2,622
Long-term portion of deferred rent                    4,452           4,440
Long-term income taxes payable, net of
 current portion                                      2,014           2,184
Long-term debt, net of current portion               46,907          60,263
Other long-term liabilities (includes $9 and
 $14 for the fair value of derivative
 instruments and $621 and $589 for the
 defined benefit plans as of November 30,
 2013 and August 31, 2013, respectively)                630             603
                                             --------------  --------------
Total liabilities                                   375,502         344,990
Equity:
Common stock, $0.0001 par value, 45,000,000
 shares authorized; 30,923,393 and
 30,924,392 shares issued and 30,233,507 and
 30,234,506 shares outstanding (net of
 treasury shares) as of November 30, 2013
 and August 31, 2013, respectively                        3               3
Additional paid-in capital                          392,011         390,581
Tax benefit from stock-based compensation             8,016           8,016
Accumulated other comprehensive loss                (40,326)        (41,475)
Retained earnings                                   165,303         143,871
Less: treasury stock at cost; 689,886 shares
 as of November 30, 2013 and August 31,
 2013, respectively                                 (19,947)        (19,947)
                                             --------------  --------------
Total equity                                        505,060         481,049
                                             --------------  --------------
Total Liabilities and Equity                 $      880,562  $      826,039
                                             ==============  ==============

For further information, please contact
John M. Heffner
Principal Financial Officer and Principal Accounting Officer
(858) 404-8826

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
For years the world's most security-focused and distributed organizations - banks, military/defense agencies, global enterprises - have sought to adopt cloud technologies that can reduce costs, future-proof against data growth, and improve user productivity. The challenges of cloud transformation for these kinds of secure organizations have centered around data security, migration from legacy systems, and performance. In our presentation, we will discuss the notion that cloud computing, properl...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
SYS-CON Events announced today that IoT Global Network has been named “Media Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. The IoT Global Network is a platform where you can connect with industry experts and network across the IoT community to build the successful IoT business of the future.
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DXWorldEXPO LLC announced today that Telecom Reseller has been named "Media Sponsor" of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.