SOURCE: PriceSmart, Inc.

May 05, 2005 19:33 ET

PriceSmart Announces April Sales

SAN DIEGO, CA -- (MARKET WIRE) -- May 5, 2005 -- PriceSmart, Inc. (NASDAQ: PSMT) today announced that for the month of April 2005, net sales increased 16.9% to $54.2 million from $46.3 million in April a year earlier. For the eight months ended April 30, 2005, net sales increased 10.4% to $441.8 million from $400.0 million in the same period last year.

For the four weeks ended May 1, 2005, comparable warehouse sales for warehouse clubs open at least 12 full months increased 15.9% compared to the same four-week period last year. For the thirty-four weeks ended May 1, 2005, comparable warehouse sales for stores open at least 12 full months increased 9.8%.

The Company also announced that, due to delays in obtaining the necessary building permits, the Company's fourth warehouse club location planned for San Jose, Costa Rica probably will not open prior to the end of calendar year 2005.

About PriceSmart

PriceSmart, headquartered in San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Central America, the Caribbean, and Asia, selling high-quality merchandise at low prices to PriceSmart members. PriceSmart now operates 26 warehouse clubs in 12 countries and one U.S. territory (four each in Panama and the Philippines; three in Costa Rica; two each in Dominican Republic, El Salvador, Guatemala, Honduras, and Trinidad; 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," "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 had a substantial loss in fiscal 2003 and 2004; the Company has in the past violated, and in the future may fail to comply with, financial covenants governing its outstanding indebtedness and is out of compliance with certain covenants, which gives lenders the right to accelerate the Company's indebtedness; the Company's financial performance is dependent on international operations and is therefore exposed to associated political, legal and economic risks; any failure by the Company to manage its widely dispersed operations could adversely affect its business; although the Company has taken steps to significantly improve its internal controls, there may be material weaknesses or significant deficiencies that the Company has not yet identified; the Company faces significant competition; the Company may encounter difficulties in the shipment of and inherent risks in the importation of merchandise to its warehouse clubs; the success of the Company's business requires effective assistance from local business people, and the Company currently is engaged in a dispute with one of its minority shareholders in the Philippines; the Company is exposed to weather and other risks associated with international operations; declines in the economies of the countries in which the Company operates its warehouse clubs would harm its business; a few of the Company's stockholders have control over the Company's voting stock, which will make it difficult to complete some corporate transactions without their support and may prevent 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; 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; and the Company faces increased costs and compliance risks associated with Section 404 of the Sarbanes-Oxley Act of 2002; as well as the other risks detailed in the Company's SEC reports, including the Company's Form 10-Q filed pursuant to the Securities Exchange Act of 1934 on April 14, 2005. 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. Certain prior period amounts have been reclassified to confirm to the current period presentation.

Contact Information

  • For further information, please contact

    Robert E. Price
    Interim Chief Executive Officer
    (858) 551-2336
    or
    John M. Heffner
    Executive Vice President and Chief Financial Officer
    (858) 404-8826.