SAN DIEGO, CA -- (Marketwired) -- 07/10/13 -- PriceSmart, Inc. (NASDAQ: PSMT) today announced its results of operations for the third quarter of fiscal year 2013 which ended on May 31, 2013.
For the third quarter of fiscal year 2013, net warehouse club sales increased 12.3% to $555.8 million from $494.7 million in the third quarter of fiscal year 2012. Total revenues for the third quarter of fiscal year 2013 were $571.7 million compared to $505.3 million in the comparable period of the prior year. The Company had 31 warehouse clubs in operation as of May 2013 compared to 29 warehouse clubs in operation as of May 2012.
The Company recorded operating income during the quarter of $28.7 million, as compared to operating income of $25.4 million in the prior year. Net income was $18.5 million, or $0.61 per diluted share, in the third quarter of fiscal year 2013 as compared to $15.7 million, or $0.52 per diluted share, in the third quarter of fiscal year 2012.
For the first nine months of fiscal year 2013, net warehouse club sales increased 11.4% to $1,671.3 million from $1,500.6 million in the first nine months of fiscal year 2012. Total revenues for the first nine months of the fiscal year 2013 increased 12.0% to $1,714.4 million from $1,531.2 million in the same period of the prior year. For the first nine months of fiscal year 2013, the Company recorded operating income of $95.0 million and net income of $63.4 million, or $2.09 per diluted share. During the nine month period in fiscal year 2012, the Company recorded operating income of $80.0 million and net income of $49.9 million, or $1.66 per diluted share.
The Company also announced that for the month of June 2013, net warehouse club sales increased 14.2% to $186.9 million, from $163.7 million in June a year earlier. For the ten months ended June 30, 2013, net warehouse club sales increased 11.7% to $1,858.1 million, from $1,664.2 million for the ten months ended June 30, 2012. There were 31 warehouse clubs in operation at the end of June 2013 and 29 warehouse clubs in operation at the end of June 2012.
For the four weeks ended June 30, 2013, comparable warehouse sales for the 29 warehouse clubs open at least 13 1/2 full months increased 9.7%, compared to the same four-week period last year. For the forty-three week period ended June 30, 2013, comparable warehouse sales increased 9.0%, compared to the comparable forty-three week period a year ago.
PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Thursday, July 11, 2013, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing (888) 455-2260 toll free, or (719) 457-2628 for international callers and entering participant code 9596291. A digital replay will be available through July 31, 2013, 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 9596291.
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 31 warehouse clubs in 12 countries and one U.S. territory (five 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 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 29.7% 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; 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 BALANCE SHEETS
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)
May 31,
2013 August 31,
(Unaudited) 2012
----------- -----------
ASSETS
Current Assets:
Cash and cash equivalents $ 92,408 $ 91,248
Short-term restricted cash 4,386 1,241
Receivables, net of allowance for doubtful
accounts of $5 and $1 as of May 31, 2013 and
August 31, 2012, respectively 3,352 3,361
Merchandise inventories 220,923 201,043
Deferred tax assets - current 6,265 5,619
Prepaid expenses and other current assets 22,853 19,067
----------- -----------
Total current assets 350,187 321,579
Long-term restricted cash 34,576 36,505
Property and equipment, net 329,914 299,567
Goodwill 36,622 36,886
Deferred tax assets - long term 13,657 14,835
Other non-current assets (includes $987 as of May
31, 2013 for the fair value of derivative
instruments) 19,431 18,781
Investment in unconsolidated affiliates 8,107 7,559
----------- -----------
Total Assets $ 792,494 $ 735,712
=========== ===========
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable $ 175,037 $ 173,198
Accrued salaries and benefits 16,267 14,729
Deferred membership income 16,568 13,747
Income taxes payable 7,208 8,193
Other accrued expenses 18,877 17,515
Dividends payable 9,065 --
Long-term debt, current portion 7,784 7,237
Deferred tax liability - current 188 122
----------- -----------
Total current liabilities 250,994 234,741
Deferred tax liability - long-term 2,465 2,191
Long-term portion of deferred rent 4,423 4,336
Long-term income taxes payable, net of current
portion 2,166 2,512
Long-term debt, net of current portion 68,068 71,422
Other long-term liabilities (includes $212 and
$1,200 for the fair value of derivative
instruments and $466 and $396 for the defined
benefit plans as of May 31, 2013 and August 31,
2012, respectively) 678 1,596
----------- -----------
Total liabilities 328,794 316,798
Equity:
Common stock, $0.0001 par value, 45,000,000 shares
authorized; 30,920,998 and 30,855,651 shares
issued and 30,233,138 and 30,210,255 shares
outstanding (net of treasury shares) as of May
31, 2013 and August 31, 2012, respectively 3 3
Additional paid-in capital 389,133 384,154
Tax benefit from stock-based compensation 7,951 6,680
Accumulated other comprehensive loss (36,656) (33,182)
Retained earnings 123,035 77,739
Less: treasury stock at cost; 687,860 and 645,426
as of May 31, 2013 and August 31, 2012,
respectively (19,766) (16,480)
----------- -----------
Total equity 463,700 418,914
----------- -----------
Total Liabilities and Equity $ 792,494 $ 735,712
=========== ===========
PRICESMART, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED--AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended Nine Months Ended
May 31, May 31,
2013 2012 2013 2012
---------- ---------- ---------- ----------
Revenues:
Net warehouse club sales $ 555,815 $ 494,747 $1,671,269 $1,500,558
Export sales 6,224 2,768 15,620 8,476
Membership income 8,774 6,944 24,773 19,668
Other income 909 869 2,756 2,483
---------- ---------- ---------- ----------
Total revenues 571,722 505,328 1,714,418 1,531,185
---------- ---------- ---------- ----------
Operating expenses:
Cost of goods sold:
Net warehouse club 475,727 420,724 1,425,396 1,279,097
Export 5,907 2,622 14,728 8,075
Selling, general and
administrative:
Warehouse club operations 49,421 45,540 143,476 133,193
General and administrative 11,404 10,940 34,450 30,559
Pre-opening expenses 525 94 1,409 255
---------- ---------- ---------- ----------
Total operating expenses 542,984 479,920 1,619,459 1,451,179
---------- ---------- ---------- ----------
Operating income 28,738 25,408 94,959 80,006
Other income (expense):
Interest income 338 279 1,078 668
Interest expense (427) (1,344) (2,951) (3,915)
Other income (expense), net (1,034) (538) (1,404) (975)
---------- ---------- ---------- ----------
Total other expense (1,123) (1,603) (3,277) (4,222)
---------- ---------- ---------- ----------
Income from continuing
operations before provision
for income taxes and income
(loss) of unconsolidated
affiliates 27,615 23,805 91,682 75,784
Provision for income taxes (9,082) (8,078) (28,254) (25,854)
Income (loss) of
unconsolidated affiliates 6 (19) (2) (9)
---------- ---------- ---------- ----------
Income from continuing
operations 18,539 15,708 63,426 49,921
Income (loss) from
discontinued operations,
net of tax -- (2) -- (6)
---------- ---------- ---------- ----------
Net income $ 18,539 $ 15,706 $ 63,426 $ 49,915
========== ========== ========== ==========
Net income per share
available for distribution:
Basic net income per share
from continuing operations $ 0.61 $ 0.52 $ 2.09 $ 1.66
Basic net income (loss) per
share from discontinued
operations, net of tax $ -- $ -- $ -- $ --
---------- ---------- ---------- ----------
Basic net income per share $ 0.61 $ 0.52 $ 2.09 $ 1.66
========== ========== ========== ==========
Diluted net income per share
from continuing operations $ 0.61 $ 0.52 $ 2.09 $ 1.66
Diluted net income (loss)
per share from discontinued
operations, net of tax $ -- $ -- $ -- $ --
---------- ---------- ---------- ----------
Diluted net income per share $ 0.61 $ 0.52 $ 2.09 $ 1.66
========== ========== ========== ==========
Shares used in per share
computations:
Basic 29,683 29,584 29,634 29,543
========== ========== ========== ==========
Diluted 29,692 29,595 29,644 29,555
========== ========== ========== ==========
Dividends per share $ -- $ -- $ 0.60 $ 0.60
========== ========== ========== ==========
For further information, please contact
John M. Heffner
Principal Financial Officer and Principal Accounting Officer
(858) 404-8826
