SOURCE: PriceSmart, Inc.

PriceSmart, Inc.

October 30, 2012 15:31 ET

PriceSmart Announces Fourth Quarter and Fiscal Year Results of Operations; Opening of a New Warehouse Club in Colombia Also Announced

SAN DIEGO, CA--(Marketwire - Oct 30, 2012) -  PriceSmart, Inc. (NASDAQ: PSMT) today announced its results of operations for the fourth quarter and fiscal year 2012 which ended on August 31, 2012.

For the fourth quarter of fiscal year 2012, net warehouse club sales were $499.0 million, compared to $436.0 million in the fourth quarter of fiscal year 2011. Total revenue for the fourth quarter was $515.5 million, compared to $447.4 million in the prior year. The Company had 29 warehouse clubs in operation as of the end of fiscal years 2012 and 2011.

Operating income in the fourth quarter of fiscal year 2012 was $27.9 million, compared to operating income of $17.7 million in the fourth quarter of fiscal year 2011.

The Company recorded net income for the fourth quarter of $17.7 million or $0.58 per diluted share, compared to net income of $12.7 million or $0.42 per diluted share in the fourth quarter of fiscal year 2011.

Net warehouse club sales increased 19.4% to $2.0 billion during fiscal year 2012, compared to $1.68 billion in the prior year, and total revenue for fiscal year 2012 increased 19.6% to $2.05 billion from $1.71 billion in fiscal year 2011. 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. For fiscal year 2011, the Company recorded operating income of $88.6 million and net income of $61.8 million or $2.07 per diluted share.

The Company filed its Form 10-K for the year ended August 31, 2012 on October 30, 2012.

PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00a.m. Pacific time) on Wednesday, October 31, 2012, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing (888) 438-5525 toll free, and entering participant code 7308094. A digital replay will be available through November 30, 2012, 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 7308094.

PriceSmart also announced that on October 19, 2012 the Company successfully opened its second warehouse club in Colombia. This warehouse club, located in the city of Cali, brings to 30 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 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 El Salvador, Honduras, and Colombia; 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 29.8% 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. 

   
   
PRICESMART, INC.  
CONSOLIDATED STATEMENTS OF INCOME  
(amounts in thousands, except per share data)  
   
    Three Months Ended
August 31,
    Twelve Months Ended
August 31,
 
    2012     2011     2012     2011  
Revenues:                                
Net warehouse club sales   $ 499,003     $ 436,016     $ 2,000,046     $ 1,675,247  
Export sales     6,844       3,660       15,320       8,831  
Membership income     7,289       5,992       26,957       22,817  
Other income     2,318       1,742       8,422       7,352  
Total revenues     515,454       447,410       2,050,745       1,714,247  
Operating expenses:                                
Cost of goods sold:                                
Net warehouse club     422,825       372,374       1,704,131       1,424,656  
Export     6,574       3,466       14,649       8,372  
Selling, general and administrative:                                
Warehouse club operations     47,311       43,628       182,401       154,819  
General and administrative     10,462       9,459       41,021       36,436  
Pre-opening expenses     362       736       617       1,408  
Asset impairment and closure costs (income)     --       --       --       --  
Total operating expenses     487,534       429,663       1,942,819       1,625,691  
Operating income     27,920       17,747       107,926       88,556  
Other income (expense):                                
Interest income     240       184       908       852  
Interest expense     (1,368 )     (905 )     (5,283 )     (3,916 )
Other income (expense), net     138       971       (837 )     3,864  
Total other income (expense)     (990 )     250       (5,212 )     800  
Income from continuing operations before provision for income taxes and loss of unconsolidated affiliates     26,930       17,997       102,714       89,356  
Provision for income taxes     (9,199 )     (5,375 )     (35,053 )     (27,468 )
Income (loss) of unconsolidated affiliates     (6 )     (7 )     (15 )     (52 )
Income from continuing operations     17,725       12,615       67,646       61,836  
Income (loss) from discontinued operations, net of tax     (19 )     75       (25 )     (86 )
Net income   $ 17,706     $ 12,690     $ 67,621     $ 61,750  
Net income per share available for distribution:                                
Basic net income per share from continuing operations   $ 0.58     $ 0.42     $ 2.24     $ 2.07  
Basic net income per share from discontinued operations, net of tax     --       --       --       --  
Basic net income per share   $ 0.58     $ 0.42     $ 2.24     $ 2.07  
                                 
Diluted net income per share from continuing operations   $ 0.58     $ 0.42     $ 2.24     $ 2.07  
Diluted net income per share from discontinued operations, net of tax     --       --       --       --  
Diluted net income per share   $ 0.58     $ 0.42     $ 2.24     $ 2.07  
Shares used in per share computations:                                
Basic     29,589       29,498       29,554       29,441  
Diluted     29,600       29,509       29,566       29,450  
Dividends per share   $ 0.30     $ 0.30     $ 0.60     $ 0.60  
                                 
                                 
PRICESMART, INC.
CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
 
    August 31,
    2012   2011
ASSETS            
Current Assets:            
Cash and cash equivalents   $ 91,248   $ 76,817
Short-term restricted cash     1,241     1,240
Receivables, net of allowance for doubtful accounts of $1 and $5 as of August 31, 2012 and 2011, respectively     6,231     3,655
Merchandise inventories     201,043     177,232
Deferred tax assets - current     5,619     4,252
Prepaid expenses and other current assets     31,232     29,117
Assets of discontinued operations     --     464
Total current assets     336,614     292,777
Long-term restricted cash     36,505     22,626
Property and equipment, net     297,845     281,111
Goodwill     36,886     37,361
Deferred tax assets - long term     14,835     17,000
Other non-current assets     5,468     5,390
Investment in unconsolidated affiliates     7,559     8,063
Total Assets   $ 735,712   $ 664,328
LIABILITIES AND EQUITY            
Current Liabilities:            
Short-term borrowings   $ --   $ 2,259
Accounts payable     173,198     163,432
Accrued salaries and benefits     14,729     11,681
Deferred membership income     13,747     11,416
Income taxes payable     8,578     7,655
Other accrued expenses     17,130     12,556
Long-term debt, current portion     7,237     7,771
Deferred tax liability - current     122     533
Liabilities of discontinued operations     --     40
Total current liabilities     234,741     217,343
Deferred tax liability - long-term     2,191     1,888
Long-term portion of deferred rent     4,336     4,143
Long-term income taxes payable, net of current portion     2,512     3,310
Long-term debt, net of current portion     71,422     60,451
Other long-term liabilities (includes $1.2 million and $884 for the fair value of derivative instruments and $396 and $471 for the defined benefit plans as of August 31, 2012 and 2011, respectively)     1,596     1,355
Total liabilities     316,798     288,490
Equity:            
           
PRICESMART, INC.
CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
         
Common stock, $0.0001 par value, 45,000,000 shares authorized; 30,855,651 and 30,695,933 shares issued and 30,210,225 and 29,900,030 shares outstanding (net of treasury shares) as of August 31, 2012 and 2011, respectively.     3       3
Additional paid-in capital     384,154       383,549
Tax benefit from stock-based compensation     6,680       5,242
Accumulated other comprehensive loss     (33,182 )     (22,915)
Retained earnings     77,739       28,238
Less: treasury stock at cost; 645,426 and 795,903 shares as of August 31, 2012 and 2011, respectively.     (16,480 )     (18,279)
Total equity     418,914       375,838
Total Liabilities and Equity   $ 735,712     $ 664,328
               
               

Contact Information

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