PriceSmart Announces Fourth Quarter and Fiscal Year Results of Operations and Conference Call; Opening of a New Warehouse Club in Costa Rica Also Announced

Marketwired

SAN DIEGO, CA--(Marketwired - Oct 30, 2013) - PriceSmart, Inc. (NASDAQ: PSMT) today announced its results of operations for the fourth quarter and fiscal year 2013 which ended on August 31, 2013.

For the fourth quarter of fiscal year 2013, net warehouse club sales were $568.0 million, compared to $498.8 million in the fourth quarter of fiscal year 2012. Total revenues for the fourth quarter was $585.4 million, compared to $514.0 million in the prior year. The Company had 31 warehouse clubs in operation at the end of fiscal year 2013 and 29 warehouse clubs in operation as of the end of fiscal year 2012.

Operating income in the fourth quarter of fiscal year 2013 was $33.0 million, compared to operating income of $27.9 million in the fourth quarter of fiscal year 2012.

The Company recorded net income for the fourth quarter of fiscal year 2013 of $20.8 million or $0.69 per diluted share, compared to net income of $17.7 million or $0.58 per diluted share in the fourth quarter of fiscal year 2012.

Net warehouse club sales increased 12.0% to $2.2 billion during fiscal year 2013, compared to $2.0 billion in the prior year, and total revenues for fiscal year 2013 increased 12.5% to $2.3 billion from $2.0 billion in fiscal year 2012. For fiscal year 2013, the Company recorded operating income of $127.9 million and net income of $84.3 million, or $2.78 per diluted share. For fiscal year 2012, the Company recorded operating income of $107.9 million and net income of $67.6 million or $2.24 per diluted share.

The Company filed its Form 10-K for the year ended August 31, 2013 on October 30, 2013.

PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00a.m. Pacific time) on Thursday, October 31, 2013, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing (800) 730-9234 toll free, or (719) 325-4836 for international callers, and entering participant code 5817132. A digital replay will be available through November 30, 2013, following the conclusion of the call by dialing (888) 203-1112 for domestic callers and (719) 457-0820 for international callers, and entering replay passcode 5817132.

PricesSmart also announced that on October 18, 2013 the Company successfully opened its sixth warehouse club in Costa Rica. This warehouse club, located in La Union, Cartago, brings to 32 the total number of warehouse clubs in operation by the Company.

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. 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 29.7% 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  
(amounts in thousands, except per share data)  
   
    Three Months Ended     Twelve Months Ended  
    August 31,     August 31,  
    2013     2012     2013     2012  
Revenues:                                
Net warehouse club sales   $ 567,997     $ 498,806     $ 2,239,266     $ 1,999,364  
Export sales     7,439       6,844       23,059       15,320  
Membership income     9,047       7,289       33,820       26,957  
Other income     911       1,039       3,667       3,522  
Total revenues     585,394       513,978       2,299,812       2,045,163  
Operating expenses:                                
Cost of goods sold:                                
Net warehouse club     482,236       422,236       1,907,632       1,701,332  
Export     7,068       6,574       21,796       14,649  
Selling, general and administrative:                                
Warehouse club operations     50,664       46,424       194,140       179,618  
General and administrative     12,334       10,462       46,784       41,021  
Pre-opening expenses     116       362       1,525       617  
Total operating expenses     552,418       486,058       2,171,877       1,937,237  
Operating income     32,976       27,920       127,935       107,926  
Other income (expense):                                
Interest income     257       240       1,335       908  
Interest expense     (1,265 )     (1,368 )     (4,216 )     (5,283 )
Other income (expense), net     (439 )     138       (1,843 )     (837 )
Total other income (expense)     (1,447 )     (990 )     (4,724 )     (5,212 )
Income from continuing operations before provision for income taxes and loss of unconsolidated affiliates     31,529       26,930       123,211       102,714  
Provision for income taxes     (10,688 )     (9,199 )     (38,942 )     (35,053 )
Income (loss) of unconsolidated affiliates     (2 )     (6 )     (4 )     (15 )
Income from continuing operations     20,839       17,725       84,265       67,646  
Income (loss) from discontinued operations, net of tax     --       (19 )     --       (25 )
Net income   $ 20,839     $ 17,706     $ 84,265     $ 67,621  
Net income per share available for distribution:                                
Basic net income per share from continuing operations   $ 0.69     $ 0.58     $ 2.78     $ 2.24  
Basic net income per share from discontinued operations, net of tax     --       --       --       --  
Basic net income per share   $ 0.69     $ 0.58     $ 2.78     $ 2.24  
Diluted net income per share from continuing operations   $ 0.69     $ 0.58     $ 2.78     $ 2.24  
Diluted net income per share from discontinued operations, net of tax     --       --       --       --  
Diluted net income per share   $ 0.69     $ 0.58     $ 2.78     $ 2.24  
Shares used in per share computations:                                
Basic     29,687       29,584       29,647       29,554  
Diluted     29,722       29,595       29,681       29,582  
Dividends per share   $ --     $ --     $ 0.60     $ 0.60  
                                 
                                 
   
PRICESMART, INC.  
CONSOLIDATED BALANCE SHEETS  
(amounts in thousands, except per share data)  
   
    August 31,  
    2013     2012  
ASSETS                
Current Assets:                
Cash and cash equivalents   $ 121,874     $ 91,248  
Short-term restricted cash     5,984       1,241  
Receivables, net of allowance for doubtful accounts of $0 and $1 as of August 31, 2013 and August 31, 2012, respectively     3,130       3,361  
Merchandise inventories     217,413       201,043  
Deferred tax assets - current, net     6,290       5,619  
Prepaid expenses and other current assets     20,890       19,067  
Total current assets     375,581       321,579  
Long-term restricted cash     34,775       36,505  
Property and equipment, net     338,478       299,567  
Goodwill     36,364       36,886  
Deferred tax assets - long term     12,871       14,835  
Other non-current assets (includes $1,505 as of August 31, 2013 for the fair value of derivative instruments)     19,866       18,781  
Investment in unconsolidated affiliates     8,104       7,559  
Total Assets   $ 826,039     $ 735,712  
LIABILITIES AND EQUITY                
Current Liabilities:                
Accounts payable   $ 199,425     $ 173,198  
Accrued salaries and benefits     17,862       14,729  
Deferred membership income     16,528       13,747  
Income taxes payable     8,059       8,193  
Other accrued expenses     20,136       17,515  
Long-term debt, current portion     12,757       7,237  
Deferred tax liability - current     111       122  
Total current liabilities     274,878       234,741  
Deferred tax liability - long-term     2,622       2,191  
Long-term portion of deferred rent     4,440       4,336  
Long-term income taxes payable, net of current portion     2,184       2,512  
Long-term debt, net of current portion     60,263       71,422  
Other long-term liabilities (includes $14 and $1,199 for the fair value of derivative instruments and $589 and $396 for the defined benefit plans as of August 31, 2013 and August 31, 2012, respectively)     603       1,596  
Total liabilities     344,990       316,798  
Equity:                
Common stock, $0.0001 par value, 45,000,000 shares authorized; 30,924,392 and 30,855,651 shares issued and 30,234,506 and 30,210,255 shares outstanding (net of treasury shares) as of August 31, 2013 and August 31, 2012, respectively     3       3  
Additional paid-in capital     390,581       384,154  
Tax benefit from stock-based compensation     8,016       6,680  
Accumulated other comprehensive loss     (41,475 )     (33,182 )
Retained earnings     143,871       77,739  
Less: treasury stock at cost; 689,886 and 645,426 shares as of August 31, 2013 and August 31, 2012, respectively     (19,947 )     (16,480 )
Total equity     481,049       418,914  
Total Liabilities and Equity   $ 826,039     $ 735,712  
                 
                 
Contact:
For further information, please contact
John M. Heffner
Principal Financial Officer and Principal Accounting Officer
(858) 404-8826

Rates

View Comments (0)