SOURCE: PriceSmart, Inc.

PriceSmart, Inc.

October 29, 2015 16:00 ET

PriceSmart Announces Fourth Quarter and Fiscal Year Results of Operations

SAN DIEGO, CA--(Marketwired - Oct 29, 2015) - PriceSmart, Inc. (NASDAQ: PSMT) today announced its results of operations for the fourth quarter and the twelve months of fiscal year 2015 which ended on August 31, 2015.

For the fourth quarter of fiscal year 2015, net warehouse club sales increased 13.0% to $677.3 million from $599.6 million in the fourth quarter of fiscal year 2014. Total revenues for the fourth quarter of fiscal year 2015 were $699.2 million compared to $622.6 million in the comparable period of the prior year. The Company had 37 warehouse clubs in operation as of August 2015 compared to 33 warehouse clubs in operation as of August 2014.

The Company recorded operating income during the quarter of $34.9 million, as compared to operating income of $33.8 million in the prior year. Net income was $22.4 million, or $0.75 per diluted share, in the fourth quarter of fiscal year 2015 as compared to $21.9 million, or $0.73 per diluted share, in the fourth quarter of fiscal year 2014.

For the twelve months ended August 31, 2015, net warehouse club sales increased 11.3% to $2.7 billion from $2.4 billion for the twelve months ended August 31, 2014. Total revenues for the twelve months ended August 31, 2015 increased 11.3% to $2.8 billion from $2.5 billion in the same period of the prior year. For the twelve months ended August 31, 2015, the Company recorded operating income of $146.4 million and net income of $89.1 million, or $2.95 per diluted share. During the twelve months ended August 31, 2014, the Company recorded operating income of $136.7 million and net income of $92.9 million, or $3.07 per diluted share.

The Company plans to file its Annual Report on Form 10-K for the year ended August 31, 2015 on October 29, 2015.

PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Friday, October 30, 2015, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing (888) 471-3840 toll free, or (719) 325-2204 for international callers and entering participant code 7637863. A digital replay will be available through November 30, 2015, following the conclusion of the call by dialing (888) 203-1112 for domestic callers, or (719) 457-0820 for international callers, and entering replay passcode 7637863.

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 37 warehouse clubs in 12 countries and one U.S. territory (six each in Costa Rica, and Colombia; five in Panama, four in Trinidad; three each in Guatemala, the Dominican Republic, and Honduras; two in El Salvador; 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, proposed warehouse club openings, the Company's performance relative to competitors, the outcome of tax proceedings 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 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: our financial performance is dependent on international operations, which exposes us to various risks; any failure by us to manage our widely dispersed operations could adversely affect our business; we face significant competition; future sales growth depends, in part, on our ability to successfully open new warehouse clubs and grow sales in our existing locations; we might not identify in a timely manner or effectively respond to changes in consumer preferences for merchandise, which could adversely affect our relationship with members, demand for our products and market share; although we have begun to offer limited online shopping to our members, our sales could be adversely affected if one or more major international online retailers were to enter our markets or if other competitors were to offer a superior online experience; our profitability is vulnerable to cost increases; we face difficulties in the shipment of and inherent risks in the importation of, merchandise to our warehouse clubs; we are exposed to weather and other natural disaster risks; general economic conditions could adversely impact our business in various respects; we are subject to risks associated with possible changes in our relationships with third parties with which we do business, as well as the performance of such third parties; we rely extensively on computer systems to process transactions, summarize results and manage our business; failure to adequately maintain our systems and disruptions in our systems could harm our business and adversely affect our results of operations; we could be subject to additional tax liabilities; a few of our stockholders own approximately 27.8% of our voting stock as of August 31, 2014, which may make it difficult to complete some corporate transactions without their support and may impede a change in control; failure to attract and retain qualified employees, increases in wage and benefit costs, changes in laws and other labor issues could materially adversely affect our financial performance; we are subject to volatility in foreign currency exchange rates; we face the risk of exposure to product liability claims, a product recall and adverse publicity; any failure to maintain the security of the information relating to our company, members, employees and vendors that we hold, whether as a result of cybersecurity attacks on our information systems, failure of internal controls, employee negligence or malfeasance or otherwise, could damage our reputation with members, employees, vendors and others, could cause us to incur substantial additional costs and to become subject to litigation and could materially adversely affect our operating results; we are subject to payment related risks; changes in accounting standards and assumptions, estimates and judgments by management related to complex accounting matters could significantly affect our financial condition and results of operations; we face increased public company compliance risks and compliance risks related to our international operations; if remediation costs or hazardous substance contamination levels at certain properties for which we maintain financial responsibility exceed management's current expectations, our 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, 2015 filed on October 29, 2015 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,  
    2015     2014     2015     2014  
Revenues:                        
Net warehouse club sales   $ 677,282     $ 599,568     $ 2,721,132     $ 2,444,314  
Export sales     9,154       12,217       33,279       31,279  
Membership income     11,471       9,762       43,673       38,063  
Other income     1,275       1,008       4,519       3,911  
Total revenues     699,182       622,555       2,802,603       2,517,567  
Operating expenses:                                
Cost of goods sold:                                
Net warehouse club     577,302       508,310       2,321,074       2,083,933  
Export     8,812       11,621       31,765       29,731  
Selling, general and administrative:                                
Warehouse club operations     62,279       53,884       241,285       212,476  
General and administrative     14,690       12,879       56,371       49,944  
Pre-opening expenses     326       1,392       3,737       3,331  
Loss/(gain) on disposal of assets     918       699       2,005       1,445  
Total operating expenses     664,327       588,785       2,656,237       2,380,860  
Operating income     34,855       33,770       146,366       136,707  
Other income (expense):                                
Interest income     245       277       1,058       853  
Interest expense     (1,681 )     (1,328 )     (6,440 )     (4,295 )
Other income (expense), net     214       (528 )     (4,388 )     984  
Total other income (expense)     (1,222 )     (1,579 )     (9,770 )     (2,458 )
Income from operations before provision for income taxes and income/(loss) of unconsolidated affiliates     33,633       32,191       136,596       134,249  
Provision for income taxes     (11,188 )     (10,337 )     (47,566 )     (41,372 )
Income/(loss) of unconsolidated affiliates     2       2       94       9  
Net income   $ 22,447     $ 21,856     $ 89,124     $ 92,886  
Net income per share:                                
Basic net income per share   $ 0.75     $ 0.73     $ 2.95     $ 3.07  
Diluted net income per share   $ 0.75     $ 0.73     $ 2.95     $ 3.07  
Shares used in per share computations:                                
Basic     29,888       29,788       29,848       29,747  
Diluted     29,895       29,796       29,855       29,757  
Dividends per share   $ 0.35     $ 0.35     $ 0.70     $ 0.70  
                                 
                                 
 
PRICESMART, INC.
CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
 
    August 31,
    2015   2014
ASSETS        
Current Assets:        
Cash and cash equivalents   $ 157,072   $ 137,098
Short-term restricted cash     61     2,353
Receivables, net of allowance for doubtful accounts of $0 as of August 31, 2015 and August 31, 2014, respectively     9,662     7,910
Merchandise inventories     267,175     226,383
Deferred tax assets - current, net     7,849     6,177
Prepaid expenses and other current assets (includes $0 and $495 as of August 31, 2015 and August 31, 2014, respectively, for the fair value of derivative instruments)     22,535     17,260
Total current assets     464,354     397,181
Long-term restricted cash     1,464     27,013
Property and equipment, net     433,040     426,325
Goodwill     35,871     36,108
Deferred tax assets - long term     7,464     11,825
Other non-current assets (includes $4,129 and $1,095 as of August 31, 2015 and August 31, 2014, respectively, for the fair value of derivative instruments)     39,182     30,755
Investment in unconsolidated affiliates     10,317     8,863
Total Assets   $ 991,692   $ 938,070
             
             
   
PRICESMART, INC.  
CONSOLIDATED BALANCE SHEETS  
(amounts in thousands, except share data)  
   
    August 31,  
    2015     2014  
LIABILITIES AND EQUITY            
Current Liabilities:            
Short-term borrowings   $ 6,606     $ --  
Accounts payable     241,978       223,559  
Accrued salaries and benefits     17,977       16,614  
Deferred membership income     20,184       17,932  
Income taxes payable     9,595       7,718  
Other accrued expenses (includes $66 and $14 as of August 31, 2015 and August 31, 2014, respectively, for the fair value of foreign currency forward contracts)     23,558       21,030  
Long-term debt, current portion     17,169       11,848  
Deferred tax liability - current     30       157  
Total current liabilities     337,097       298,858  
Deferred tax liability - long-term     2,193       2,290  
Long-term portion of deferred rent     6,595       5,591  
Long-term income taxes payable, net of current portion     1,402       1,918  
Long-term debt, net of current portion     73,365       79,591  
Other long-term liabilities (includes $1,699 and $0 for the fair value of derivative instruments and $2,757 and $1,557 for post employment plans as of August 31, 2015 and August 31, 2014, respectively)     4,456       1,557  
Total liabilities     425,108       389,805  
Equity:                
Common stock, $0.0001 par value, 45,000,000 shares authorized; 30,977,764 and 30,950,701 shares issued and 30,184,584 and 30,209,917 shares outstanding (net of treasury shares) as of August 31, 2015 and August 31, 2014, respectively     3       3  
Additional paid-in capital     403,168       397,150  
Tax benefit from stock-based compensation     10,711       9,505  
Accumulated other comprehensive loss     (101,512 )     (49,286 )
Retained earnings     283,611       215,613  
Less: treasury stock at cost; 793,180 and 740,784 shares as of August 31, 2015 and August 31, 2014, respectively     (29,397 )     (24,720 )
Total equity     566,584       548,265  
Total Liabilities and Equity   $ 991,692     $ 938,070  
                 

Contact Information

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