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PriceSmart Announces Second Quarter Results of Operations and March Sales


April 9, 2013 - SAN DIEGO, CA

PriceSmart, Inc. (NASDAQ: PSMT) today announced its results of operations for the second quarter of fiscal year 2013 which ended on February 28, 2013.

For the second quarter of fiscal year 2013, net warehouse club sales increased 10.1% to $591.9 million from $537.6 million in the second quarter of fiscal year 2012. Total revenues for the second quarter of fiscal year 2013 were $607.4 million compared to $548.4 million in the comparable period of the prior year. The Company had 30 warehouse clubs in operation as of February 2013 and 29 clubs in operation as of February 2012.

The Company recorded operating income during the quarter of $36.5 million, as compared to operating income of $30.3 million in the prior year. Net income was $24.9 million, or $0.82 per diluted share, in the second quarter of fiscal year 2013 as compared to $20.2 million, or $0.67 per diluted share, in the second quarter of fiscal year 2012.

For the first six months of fiscal year 2013, net warehouse club sales increased 10.9% to $1,115.5 million from $1,005.8 million in the first six months of fiscal year 2012. Total revenues for the first half of fiscal year 2013 increased 11.4% to $1,142.7 million from $1,025.9 million in the same period of the prior year. For the first six months of fiscal year 2013, the Company recorded operating income of $66.2 million and net income of $44.9 million, or $1.48 per diluted share. During the same six month period in fiscal year 2012, the Company recorded operating income of $54.6 million and net income of $34.2 million, or $1.14 per diluted share.

The Company also announced that for the month of March 2013, net warehouse club sales increased 11.5% to $192.3 million, from $172.3 million in March a year earlier. For the seven months ended March 31, 2013, net warehouse club sales increased 11.0% to $1,307.8 million from $1,178.1 million for the seven months ended March 31, 2012. There were 30 warehouse clubs in operation at the end of March 2013 and 29 warehouse clubs in operation at the end of March 2012.

For the four weeks ended March 31, 2013, comparable net warehouse club sales for the 29 warehouse clubs open at least 13 1/2 full months increased 7.9%, compared to the same four-week period last year. For the thirty-week period ended March 31, 2013, comparable net warehouse club sales increased 8.7%, compared to the comparable thirty-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 Wednesday, April 10, 2013, to discuss the financial results.

Individuals interested in participating in the conference call may do so by dialing (888) 364-3109 toll free, and entering participant code 1318246.

A digital replay will be available through April 30, 2013, 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 1318246.

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 Colombia, 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 30.1% 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
(UNAUDITED--AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)

Three Months Ended Six Months Ended
------------------------- -------------------------
February 28, February 29, February 28, February 29,
2013 2012 2013 2012
------------ ------------ ------------ ------------
Revenues:
Net warehouse club sales $ 591,855 $ 537,619 $ 1,115,454 $ 1,005,811
Export sales 6,323 3,459 9,396 5,708
Membership income 8,326 6,393 15,999 12,724
Other income 906 935 1,847 1,614
----------- ----------- ----------- -----------
Total revenues 607,410 548,406 1,142,696 1,025,857
----------- ----------- ----------- -----------
Operating expenses:
Cost of goods sold:
Net warehouse club 504,725 458,508 949,669 858,373
Export 5,986 3,292 8,821 5,453
Selling, general and
administrative:
Warehouse club
operations 48,213 45,762 94,055 87,653
General and
administrative 11,888 10,508 23,046 19,619
Pre-opening expenses 147 (1) 884 161
----------- ----------- ----------- -----------
Total operating expenses 570,959 518,069 1,076,475 971,259
----------- ----------- ----------- -----------
Operating income 36,451 30,337 66,221 54,598
Other income (expense):
Interest income 446 205 740 389
Interest expense (1,306) (1,317) (2,524) (2,571)
Other income (expense),
net (312) 832 (370) (437)
----------- ----------- ----------- -----------
Total other expense (1,172) (280) (2,154) (2,619)
----------- ----------- ----------- -----------
Income from continuing
operations before
provision for income
taxes and income (loss)
of unconsolidated
affiliates 35,279 30,057 64,067 51,979
Provision for income
taxes (10,393) (9,843) (19,172) (17,776)
Income (loss) of
unconsolidated
affiliates (4) 3 (8) 10
----------- ----------- ----------- -----------
Income from continuing
operations 24,882 20,217 44,887 34,213
Income (loss) from
discontinued
operations, net of tax -- 3 -- (4)
----------- ----------- ----------- -----------
Net income $ 24,882 $ 20,220 $ 44,887 $ 34,209
=========== =========== =========== ===========
Net income per share
available for
distribution:
Basic net income per
share from continuing
operations $ 0.82 $ 0.67 $ 1.48 $ 1.14
Basic net income (loss)
per share from
discontinued
operations, net of tax $ -- $ -- $ -- $ --
----------- ----------- ----------- -----------
Basic net income per
share $ 0.82 $ 0.67 $ 1.48 $ 1.14
=========== =========== =========== ===========
Diluted net income per
share from continuing
operations $ 0.82 $ 0.67 $ 1.48 $ 1.14
Diluted net income
(loss) per share from
discontinued
operations, net of tax $ -- $ -- $ -- $ --
----------- ----------- ----------- -----------
Diluted net income per
share $ 0.82 $ 0.67 $ 1.48 $ 1.14
=========== =========== =========== ===========
Shares used in per share
computations:
Basic 29,626 29,541 29,609 29,522
=========== =========== =========== ===========
Diluted 29,636 29,553 29,620 29,535
=========== =========== =========== ===========
Dividends per share $ -- $ 0.60 $ 0.60 $ 0.60
=========== =========== =========== ===========



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

February 28,
2013 August 31,
(Unaudited) 2012
------------ ----------
ASSETS
Current Assets:
Cash and cash equivalents $ 101,202 $ 91,248
Short-term restricted cash 4,367 1,241
Receivables, net of allowance for doubtful accounts
of $0 and $1 as of February 28, 2013 and August 31,
2012, respectively 3,447 5,786
Merchandise inventories 219,454 201,043
Deferred tax assets - current 6,042 5,619
Prepaid expenses and other current assets 33,049 29,955
----------- ---------
Total current assets 367,561 334,892
Long-term restricted cash 34,565 36,505
Property and equipment, net 326,636 299,567
Goodwill 36,699 36,886
Deferred tax assets - long term 13,399 14,835
Other non-current assets 5,765 5,468
Investment in unconsolidated affiliates 8,100 7,559
----------- ---------
Total Assets $ 792,725 $ 735,712
=========== =========
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable $ 196,171 $ 173,197
Accrued salaries and benefits 13,028 14,729
Deferred membership income 16,723 13,747
Income taxes payable 7,735 8,193
Other accrued expenses 16,365 17,516
Dividends payable 9,065 --
Long-term debt, current portion 7,791 7,237
Deferred tax liability - current 180 122
----------- ---------
Total current liabilities 267,058 234,741
Deferred tax liability - long-term 2,322 2,191
Long-term portion of deferred rent 4,400 4,336
Long-term income taxes payable, net of current
portion 2,147 2,512
Long-term debt, net of current portion 71,389 71,422
Other long-term liabilities (includes $1.8 million
and $1.2 million for the fair value of derivative
instruments and $444 and $396 for the defined
benefit plans as of February 28, 2013 and August
31, 2012, respectively) 2,228 1,596
----------- ---------
Total liabilities 349,544 316,798
Equity:
Common stock, $0.0001 par value, 45,000,000 shares
authorized; 30,870,305 and 30,855,651 shares issued
and 30,183,105 and 30,210,255 shares outstanding
(net of treasury shares) as of February 28, 2013
and August 31, 2012, respectively 3 3
Additional paid-in capital 387,692 384,154
Tax benefit from stock-based compensation 7,509 6,680
Accumulated other comprehensive loss (36,804) (33,182)
Retained earnings 104,496 77,739
Less: treasury stock at cost; 687,200 and 645,426 as
of February 28, 2013 and August 31, 2012,
respectively (19,715) (16,480)
----------- ---------
Total equity 443,181 418,914
----------- ---------
Total Liabilities and Equity $ 792,725 $ 735,712
=========== =========


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

MarketWire

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