SAN DIEGO, CA--(Marketwire - Jan 9, 2013) - PriceSmart, Inc. (
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.
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.
|CONSOLIDATED STATEMENTS OF INCOME|
|(UNAUDITED -- AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)|
|Three Months Ended November 30,|
|Net warehouse club sales||$||523,599||$||468,192|
|Cost of goods sold:|
|Net warehouse club||444,944||399,865|
|Selling, general and administrative:|
|Warehouse club operations||45,842||41,891|
|General and administrative||11,158||9,111|
|Total operating expenses||505,516||453,190|
|Other income (expense):|
|Other income (expense), net||(58||)||(1,269||)|
|Total other expense||(982||)||(2,339||)|
|Income from continuing operations before provision for income taxes and income (loss) of unconsolidated affiliates||28,788||21,922|
|Provision for income taxes||(8,779||)||(7,933||)|
|Income (loss) of unconsolidated affiliates||(4||)||7|
|Income from continuing operations||20,005||13,996|
|Income (loss) from discontinued operations, net of tax||--||(7||)|
|Net income per share available for distribution:|
|Basic net income per share from continuing operations||$||0.66||$||0.47|
|Basic net income (loss) per share from discontinued operations, net of tax||$||--||$||--|
|Basic net income per share||$||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||$||0.47|
|Shares used in per share computations:|
|Dividends per share||$||0.60||$||--|
|CONSOLIDATED BALANCE SHEETS|
|(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)|
|Cash and cash equivalents||$||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||6,085||5,786|
|Deferred tax assets - current||5,941||5,619|
|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|
|Property and equipment, net||307,346||299,567|
|Deferred tax assets - long term||13,515||14,835|
|Other non-current assets||5,395||5,468|
|Investment in unconsolidated affiliates||8,105||7,559|
|LIABILITIES AND EQUITY|
|Accrued salaries and benefits||12,641||14,729|
|Deferred membership income||15,002||13,747|
|Income taxes payable||6,690||8,193|
|Other accrued expenses||13,834||17,516|
|Long-term debt, current portion||7,798||7,237|
|Deferred tax liability - current||173||122|
|Total current liabilities||275,096||234,741|
|Deferred tax liability - long-term||2,351||2,191|
|Long-term portion of deferred rent||4,368||4,336|
|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|
|Common stock, $0.0001 par value, 45,000,000 shares authorized; 30,861,245 and 30,855,651 shares issued and 30,215,819 and 30,210,255 shares outstanding (net of treasury shares) as of November 30 and August 31, 2012, respectively.||3||3|
|Additional paid-in capital||385,977||384,154|
|Tax benefit from stock-based compensation||6,680||6,680|
|Accumulated other comprehensive loss||(34,782||)||(33,182||)|
|Less: treasury stock at cost; 645,426 as of November 30 and August 31, 2012, respectively.||(16,480||)||(16,480||)|
|Total Liabilities and Equity||$||779,904||$||735,712|
- Investment & Company Information
John M. Heffner
Principal Financial Officer and Principal Accounting Officer