SAN DIEGO, CA -- (Marketwire) -- 01/08/09 -- PriceSmart, Inc. (NASDAQ: PSMT)
(www.pricesmart.com) today announced its results of operations for the
first quarter of fiscal year 2009 which ended on November 30, 2008.
For the first quarter of fiscal year 2009, net warehouse sales increased
21.8% to $298.5 million from $245.2 million in the first quarter of fiscal
year 2008. Total revenue for the first quarter was $305.2 million compared
to $250.4 million in the prior year. The Company had 25 clubs in operation
as of November 30, 2008 compared to 24 warehouse clubs in operation as of
November 30, 2007.
The Company recorded operating income in the quarter of $14.9 million,
compared to operating income of $10.2 million in the prior year. Net
income was $10.7 million, or $0.37 per diluted share, in the first quarter
of fiscal 2009 compared to $6.7 million, or $0.23 per diluted share, in the
first quarter of fiscal 2008.
On December 19, 2008, the Company acquired 30,959 square meters of land in
the city of San Fernando, Trinidad upon which the Company plans to
construct and operate a new PriceSmart warehouse club, which will be its
fourth in Trinidad. It is currently anticipated that the new PriceSmart
warehouse club will open in the fall of 2009. The Company also plans to
develop a portion of the site as a commercial retail center, adjacent to
the warehouse club.
The Company also announced that for the month of December 2008, net sales
increased 14.8% to $140.8 million from $122.6 million in December a year
earlier. For the four months ended December 31, 2008, net sales increased
19.4% to $439.3 million from $367.8 million in the same period last year.
There were 25 warehouse clubs in operation at the end of December 2008 and
2007.
For the four weeks ended December 28, 2008, comparable warehouse sales for
the 23 warehouse clubs open at least 12 full months increased 13.8%
compared to the same four-week period last year. For the seventeen-week
period ended December 28, 2008, comparable warehouse sales increased 14.1%
compared to the comparable seventeen-week period a year ago.
About PriceSmart
PriceSmart, headquartered in San Diego, owns and operates U.S.-style
membership shopping warehouse clubs in Central America and the Caribbean,
selling high quality merchandise at low prices to PriceSmart members.
PriceSmart now operates 25 warehouse clubs in 11 countries and one U.S.
territory (four each in Panama and Costa Rica; three each in Guatemala and
Trinidad, two each in Dominican Republic, 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," "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 the Company's business; the
Company faces significant competition; the Company faces difficulties in
the shipment of and inherent risks in the importation of merchandise to its
warehouse clubs; 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 own nearly one-half 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; 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 compliance risks associated with compliance 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 Annual Report on Form 10-K
filed pursuant to the Securities Exchange Act of 1934 on November 12, 2008.
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,
---------------------
2008 2007
--------- ----------
Revenues:
Sales:
Net warehouse club $ 298,518 $ 245,189
Export 836 367
Membership income 4,325 3,742
Other income 1,529 1,113
--------- ----------
Total revenues 305,208 250,411
--------- ----------
Operating expenses:
Cost of goods sold:
Net warehouse club 254,426 208,511
Export 800 349
Selling, general and administrative:
Warehouse club operations 27,280 23,227
General and administrative 7,544 7,316
Preopening expenses -- 772
Asset impairment and closure costs 248 19
Total operating expenses 290,298 240,194
--------- ----------
Operating income 14,910 10,217
Other income (expense):
Interest income 126 410
Interest expense (581) (59)
Other expense, net (20) (47)
--------- ----------
Total other income (expense) (475) 304
--------- ----------
Income from continuing operations before provision
for income taxes, loss of unconsolidated affiliates
and minority interest 14,435 10,521
Provision for income taxes (3,647) (3,715)
Loss of unconsolidated affiliates (5) --
Minority interest (66) (130)
--------- ----------
Income from continuing operations 10,717 6,676
Discontinued operations income (loss), net of tax (19) 18
--------- ----------
Net income $ 10,698 $ 6,694
========= ==========
Basic income per share:
Continuing operations $ 0.37 $ 0.23
Discontinued operations $ -- $ --
--------- ----------
Net income $ 0.37 $ 0.23
========= ==========
Diluted income per share:
Continuing operations $ 0.37 $ 0.23
Discontinued operations $ -- $ --
--------- ----------
Net income $ 0.37 $ 0.23
========= ==========
Shares used in per share computations:
Basic 28,860 28,781
========= ==========
Diluted 29,111 29,494
========= ==========
Dividends per share: $ -- $ --
========= ==========
PRICESMART, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITEDAMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)
November August 31,
30, 2008 2008
---------- ----------
ASSETS
Current Assets:
Cash and cash equivalents $ 24,692 $ 48,121
Short-term restricted cash 533 536
Receivables, net of allowance for doubtful
accounts of $9 and $11 in November and August
of 2008, respectively 3,287 2,455
Merchandise inventories 134,304 113,894
Prepaid expenses and other current assets 18,400 16,669
Notes receivable - short term 2,068 2,104
Assets of discontinued operations 1,340 1,247
---------- ----------
Total current assets 184,624 185,026
Long-term restricted cash 548 673
Property and equipment, net 209,739 199,576
Goodwill 38,836 39,248
Deferred tax assets 21,897 21,928
Other assets 3,756 3,512
Investment in unconsolidated affiliates 7,260 --
---------- ----------
Total Assets $ 466,660 $ 449,963
========== ==========
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Short-term borrowings $ 4,868 $ 3,473
Accounts payable 107,965 96,120
Accrued salaries and benefits 7,575 8,271
Deferred membership income 8,149 7,764
Income taxes payable 4,743 3,695
Common stock subject to put agreement -- 161
Other accrued expenses 11,770 11,877
Dividend payable -- 4,744
Long-term debt, current portion 2,704 2,737
Liabilities of discontinued operations 296 277
---------- ----------
Total current liabilities 148,070 139,119
Deferred tax liability 1,237 1,376
Long-term portion of deferred rent 2,554 2,412
Accrued closure costs 3,664 3,489
Long-term income taxes payable, net of current
portion 4,449 5,553
Long-term debt, net of current portion 22,273 23,028
---------- ----------
Total liabilities 182,247 174,977
Minority interest 550 480
Stockholders Equity:
Common stock, $0.0001 par value, 45,000,000
shares authorized; 30,195,788 shares issued
and 29,608,772 and 29,615,226 shares
outstanding (net of treasury shares),
respectively 3 3
Additional paid-in capital 374,126 373,192
Tax benefit from stock-based compensation 4,565 4,563
Accumulated other comprehensive loss (15,013) (12,897)
Accumulated deficit (66,812) (77,510)
Less: treasury stock at cost; 587,016 shares as
of November 30, 2008 and 580,562 as of August
31, 2008. (13,006) (12,845)
---------- ----------
Total stockholders equity 283,863 274,506
---------- ----------
Total Liabilities and Stockholders Equity $ 466,660 $ 449,963
========== ==========
For further information, please contact
Robert E. Price
Chief Executive Officer
(858) 551-2336
John M. Heffner
Executive Vice President and Chief Financial Officer
(858) 404-8826
