SYS-CON MEDIA Authors: Liz McMillan, Xenia von Wedel, Peter Silva, Glenn Rossman, Ava Smith

News Feed Item

PriceSmart Announces First Quarter Results of Operations and December Sales; and Property Acquisition for New Warehouse Club in Colombia

SAN DIEGO, CA -- (Marketwired) -- 01/09/14 -- PriceSmart, Inc. (NASDAQ: PSMT) today announced its results of operations for the first quarter of fiscal year 2014 which ended on November 30, 2013.

For the first quarter of fiscal year 2014, net warehouse club sales increased 12.6% to $589.7 million from $523.6 million in the first quarter of fiscal year 2013. Total revenues for the first quarter of fiscal year 2014 was $605.6 million compared to $535.3 million in the first quarter of the prior year. The Company had 32 clubs in operation as of November 30, 2013, compared to 30 warehouse clubs in operation as of November 30, 2012.

The Company recorded operating income for the first quarter of $32.4 million, compared to operating income of $29.7 million for the first quarter of the prior year. Net income was $21.4 million, or $0.71 per diluted share, in the first quarter of fiscal year 2014. Net income in the first quarter of fiscal year 2013 was $20.0 million, or $0.66 per diluted share.

For the month of December 2013, net sales increased 10.7% to $280.8 million from $253.7 million in December a year earlier. For the four months ended December 31, 2013, net sales increased 12.0% to $870.5 million from $777.3 million in the same period last year. There were 32 warehouse clubs in operation at the end of December 2013 compared to 30 warehouse clubs in operation in December 2012.

For the four weeks ended December 29, 2013, comparable warehouse sales for the 29 warehouse clubs open at least 13 1/2 full months increased 6.7% compared to the same four-week period last year. For the seventeen-week period ended December 29, 2013, comparable warehouse sales increased 7.5% compared to the comparable seventeen-week period a year ago.

PriceSmart Inc. also announced that on January 8, 2014, it acquired approximately 128,600 usable square feet (11,947 usable square meters) of land in the southern area of Pereira, Colombia, upon which the Company plans to construct a new warehouse club that is currently planned to open in November 2014. This additional club will be the fourth PriceSmart warehouse club operating in Colombia.

PriceSmart management plans to host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Friday, January 10, 2014, to discuss the financial results.

Individuals interested in participating in the conference call may do so by dialing (877) 627-6581 toll free, or (719) 325-4893 for international callers, and entering participant code 8610355.

A digital replay will be available through January 31, 2014, 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 8610355.

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 and a 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 28.3% 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
         (UNAUDITED -- AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)


                                                   Three Months Ended
                                                      November 30,
                                             ------------------------------
                                                  2013            2012
                                             --------------  --------------
Revenues:
Net warehouse club sales                     $      589,694  $      523,599
Export sales                                          5,721           3,073
Membership income                                     9,268           7,673
Other income                                            918             941
                                             --------------  --------------
Total revenues                                      605,601         535,286
                                             --------------  --------------
Operating expenses:
Cost of goods sold:
Net warehouse club                                  504,287         444,944
Export                                                5,441           2,835
Selling, general and administrative:
Warehouse club operations                            51,772          45,842
General and administrative                           11,184          11,158
Pre-opening expenses                                    474             737
Loss/(gain) on disposal of assets                        84              57
                                             --------------  --------------
Total operating expenses                            573,242         505,573
                                             --------------  --------------
Operating income                                     32,359          29,713
Other income (expense):
Interest income                                         181             294
Interest expense                                     (1,038)         (1,218)
Other income (expense), net                             311              (1)
                                             --------------  --------------
Total other expense                                    (546)           (925)
                                             --------------  --------------
Income before provision for income taxes and
 income (loss) of unconsolidated affiliates          31,813          28,788
Provision for income taxes                          (10,385)         (8,779)
Income (loss) of unconsolidated affiliates                4              (4)
                                             --------------  --------------
Net income                                   $       21,432  $       20,005
                                             ==============  ==============
Net income per share available for
 distribution:
Basic net income per share                   $         0.71  $         0.66
                                             ==============  ==============
Diluted net income per share                 $         0.71  $         0.66
                                             ==============  ==============
Shares used in per share computations:
Basic                                                29,690          29,592
                                             ==============  ==============
Diluted                                              29,702          29,604
                                             ==============  ==============
Dividends per share                          $           --  $         0.60
                                             ==============  ==============



                              PRICESMART, INC.
                         CONSOLIDATED BALANCE SHEETS
                  (AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)


                                              November 30,
                                                  2013         August 31,
                                               (Unaudited)        2013
                                             --------------  --------------
ASSETS
Current Assets:
Cash and cash equivalents                    $       77,226  $      121,874
Short-term restricted cash                            3,100           5,984
Receivables, net of allowance for doubtful
 accounts of $7 and $0 as of November 30,
 2013 and August 31, 2013, respectively               3,481           3,130
Merchandise inventories                             298,721         217,413
Deferred tax assets - current                         7,126           6,290
Prepaid expenses and other current assets            30,717          20,890
                                             --------------  --------------
Total current assets                                420,371         375,581
Long-term restricted cash                            26,759          34,775
Property and equipment, net                         351,210         338,478
Goodwill                                             36,289          36,364
Deferred tax assets - long term                      12,038          12,871
Other non-current assets (includes $1,324
 and $1,505 as of November 30, 2013 and
 August 31, 2013, respectively, for the fair
 value of derivative instruments)                    25,787          19,866
Investment in unconsolidated affiliates               8,108           8,104
                                             --------------  --------------
Total Assets                                 $      880,562  $      826,039
                                             ==============  ==============
LIABILITIES AND EQUITY
Current Liabilities:
Short-term borrowings                        $       13,000  $           --
Accounts payable                                    230,890         199,425
Accrued salaries and benefits                        16,171          17,862
Deferred membership income                           17,231          16,528
Income taxes payable                                  7,455           8,059
Other accrued expenses                               17,646          20,136
Long-term debt, current portion                      16,375          12,757
Deferred tax liability - current                        128             111
                                             --------------  --------------
Total current liabilities                           318,896         274,878
Deferred tax liability - long-term                    2,603           2,622
Long-term portion of deferred rent                    4,452           4,440
Long-term income taxes payable, net of
 current portion                                      2,014           2,184
Long-term debt, net of current portion               46,907          60,263
Other long-term liabilities (includes $9 and
 $14 for the fair value of derivative
 instruments and $621 and $589 for the
 defined benefit plans as of November 30,
 2013 and August 31, 2013, respectively)                630             603
                                             --------------  --------------
Total liabilities                                   375,502         344,990
Equity:
Common stock, $0.0001 par value, 45,000,000
 shares authorized; 30,923,393 and
 30,924,392 shares issued and 30,233,507 and
 30,234,506 shares outstanding (net of
 treasury shares) as of November 30, 2013
 and August 31, 2013, respectively                        3               3
Additional paid-in capital                          392,011         390,581
Tax benefit from stock-based compensation             8,016           8,016
Accumulated other comprehensive loss                (40,326)        (41,475)
Retained earnings                                   165,303         143,871
Less: treasury stock at cost; 689,886 shares
 as of November 30, 2013 and August 31,
 2013, respectively                                 (19,947)        (19,947)
                                             --------------  --------------
Total equity                                        505,060         481,049
                                             --------------  --------------
Total Liabilities and Equity                 $      880,562  $      826,039
                                             ==============  ==============

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

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. Acco...
"Cloud consumption is something we envision at Solgenia. That is trying to let the cloud spread to the user as a consumption, as utility computing. We want to allow the people to just pay for what they use, not a subscription model," explained Ermanno Bonifazi, CEO & Founder of Solgenia, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using ...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
The term culture has had a polarizing effect among DevOps supporters. Some propose that culture change is critical for success with DevOps, but are remiss to define culture. Some talk about a DevOps culture but then reference activities that could lead to culture change and there are those that talk about culture change as a set of behaviors that need to be adopted by those in IT. There is no question that businesses successful in adopting a DevOps mindset have seen departmental culture change, ...
High-performing enterprise Software Quality Assurance (SQA) teams validate systems that are ready for use - getting most actively involved as components integrate and form complete systems. These teams catch and report on defects, making sure the customer gets the best software possible. SQA teams have leveraged automation and virtualization to execute more thorough testing in less time - bringing Dev and Ops together, ensuring production readiness. Does the emergence of DevOps mean the end of E...
"For the past 4 years we have been working mainly to export. For the last 3 or 4 years the main market was Russia. In the past year we have been working to expand our footprint in Europe and the United States," explained Andris Gailitis, CEO of DEAC, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"Verizon offers public cloud, virtual private cloud as well as private cloud on-premises - many different alternatives. Verizon's deep knowledge in applications and the fact that we are responsible for applications that make call outs to other systems. Those systems and those resources may not be in Verizon Cloud, we understand at the end of the day it's going to be federated," explained Anne Plese, Senior Consultant, Cloud Product Marketing at Verizon Enterprise, in this SYS-CON.tv interview at...
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps,...
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect...
SYS-CON Media announced that Centrify, a provider of unified identity management across cloud, mobile and data center environments that delivers single sign-on (SSO) for users and a simplified identity infrastructure for IT, has launched an ad campaign on Cloud Computing Journal. The ads focus on security: how an organization can successfully control privilege for all of the organization’s identities to mitigate identity-related risk without slowing down the business, and how Centrify provides ...
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...
"SAP had made a big transition into the cloud as we believe it has significant value for our customers, drives innovation and is easy to consume. When you look at the SAP portfolio, SAP HANA is the underlying platform and it powers all of our platforms and all of our analytics," explained Thorsten Leiduck, VP ISVs & Digital Commerce at SAP, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"We help companies that are using a lot of Software as a Service. We help companies manage and gain visibility into what people are using inside the company and decide to secure them or use standards to lock down or to embrace the adoption of SaaS inside the company," explained Scott Kriz, Co-founder and CEO of Bitium, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Ar...