By San Diego, CA (January 9, 2013) - PriceSmart, Inc. (NASDAQ: PSMT) today announced its results of operations for the first quarter of fiscal year 2013 which ended on November 30, 2012.
For the first quarter of fiscal year 2013, net warehouse club sales increased 11.8% to $523.6 million from $468.2 million in the first quarter of fiscal year 2012. Total revenues for the first quarter of fiscal year 2013 was $535.3 million compared to $477.5 million in the first quarter of the prior year. The Company had 30 clubs in operation as of November 30, 2012, compared to 29 warehouse clubs in operation as of November 30, 2011.
The Company recorded operating income for the first quarter of $29.8 million, compared to operating income of
$24.3 million for the first quarter of the prior year. Net income was $20.0 million, or $0.66 per diluted share, in the first quarter of fiscal year 2013. Net income in the first quarter of fiscal year 2012 was $14.0 million, or $0.47 per
diluted share.
For the month of December 2012, net sales increased 11.6% to $253.7 million from $227.4 million in December a year earlier. For the four months ended December 31, 2012, net sales increased 11.7% to $777.3 million from
$695.6 million in the same period last year. There were 30 warehouse clubs in operation at the end of December
2012 compared to 29 warehouse clubs in operation in December 2011.
For the four weeks ended December 30, 2012, comparable warehouse sales for the 29 warehouse clubs open at least
13 1/2 full months increased 13.7% compared to the same four-week period last year. For the seventeen-week period ended December 30, 2012, comparable warehouse sales increased 9.9% compared to the comparable
seventeen-week period a year ago.
PriceSmart management plans to host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on
Thursday, January 10, 2013, to discuss the financial results.
Individuals interested in participating in the conference call may do so by dialing (888) 359-3624 toll free, and entering participant code 4470837.
A digital replay will be available through January 31, 2013, 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 4470837.
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 30 warehouse clubs in 12 countries and one U.S. territory (five in Costa Rica; four each in Panama and Trinidad; three each in Guatemala and the Dominican Republic; two each in Colombia, 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 could be dependent upon the Company acquiring suitable sites for additional warehouse clubs; the Company faces difficulties in the shipment of, and risks inherent in the acquisition and 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; a few of the Company's stockholders own nearly 30.4% 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; a determination that the Company's long-lived or intangible assets have been impaired could adversely affect the Company's future results of operations and financial position; although the Company takes steps to continuously review, enhance, and implement improvements to its internal controls, there may be material weaknesses or significant deficiencies that the Company has not yet identified; 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 for the fiscal year ended August 31, 2012, filed pursuant to the Securities Exchange Act of
1934 on October 30, 2012. 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.
For further information, please contact John M. Heffner, Principal Financial Officer and Principal Accounting
Officer (858) 404-8826.
PRICESMART, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED-AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)Revenues:
Three Months Ended November 30,Net warehouse club sales | $ | 523,599 | $ | 468,192 |
Export sales 3,073 2,249
Other income 941 679
Total revenues 535,286 477,451
Operating expenses:
Cost of goods sold: |
Net warehouse club 444,944 399,865
Export 2,835 2,161
Selling, general and administrative:
Warehouse club operations 45,842 41,891
General and administrative 11,158 9,111
Total operating expenses 505,516 453,190
Operating income | 29,770 | 24,261 |
Other income (expense):
Interest income 294 184
Interest expense (1,218 ) (1,254 )
Other income (expense), net | (58 | ) | (1,269 | ) |
Total other expense (982 ) (2,339 )
Provision for income taxes (8,779 ) (7,933 )
Income (loss) of unconsolidated affiliates | (4 | ) | 7 |
Income from continuing operations 20,005 13,996
Net income 20,005 13,989
Net income per share available for distribution: |
Basic net income per share from continuing operations $ 0.66 $ 0.47
Basic net income per share $ 0.66 $ 0.47
Diluted net income per share from continuing operations | $ | 0.66 | $ | 0.47 |
Diluted net income (loss) per share from discontinued operations, net of tax $ - $ - Diluted net income per share $ 0.66 $ 0.47
Shares used in per share computations:
Basic | 29,592 | 29,503 |
Diluted 29,604 29,517
Dividends per share | $ | 0.60 | $ | - |
Current Assets:
PRICESMART, INC. CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA) November 30, 2012 (Unaudited) August 31, 2012Cash and cash equivalents | $ | 84,350 | $ | 91,248 |
Short-term restricted cash 1,220 1,241
Receivables, net of allowance for doubtful accounts of $1 as of November 30 and August 31, 2012, respectively | |||||||
Receivables, net of allowance for doubtful accounts of $1 as of November 30 and August 31, 2012, respectively | 6,085 | 5,786 |
Merchandise inventories 239,978 201,043
Prepaid expenses and other current assets 34,628 29,955
Total current assets | 372,202 | 334,892 |
Long-term restricted cash 36,520 36,505
Goodwill 36,821 36,886
Other non-current assets 5,395 5,468
Investment in unconsolidated affiliates | 8,105 | 7,559 |
Total Assets $ 779,904 $ 735,712
Current Liabilities:
Accrued salaries and benefits 12,641 14,729
Income taxes payable 6,690 8,193
Dividends payable 18,129 - Deferred tax liability - current 173 122
Deferred tax liability - long-term 2,351 2,191
Long-term income taxes payable, net of current portion 2,108 2,512
Long-term debt, net of current portion | 73,165 | 71,422 |
Other long-term liabilities (includes $1.4 million and $1.2 million for the fair value of derivative instruments and $419 and $396 for the defined benefit plans as of November 30
and August 31, 2012, respectively) 1,803 1,596
Equity:
Additional paid-in capital 385,977 384,154
Accumulated other comprehensive loss (34,782 ) (33,182 ) Less: treasury stock at cost; 645,426 as of November 30 and August 31, 2012, respectively. (16,480 ) (16,480 )
Total equity | 421,013 | 418,914 |
Total Liabilities and Equity $ 779,904 $ 735,712
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