PriceSmart Announces Fourth Quarter and Fiscal Year Results of
PriceSmart Announces Fourth Quarter and Fiscal Year Results of Operations; Opening of a New Warehouse Club in Colombia Also Announced
SAN DIEGO, CA -- (Marketwire) -- 10/30/12 -- 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 Twelve Months Ended
August 31, 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
========== ==========
For further information, please contact John M. Heffner Principal Financial Officer and Principal Accounting Officer (858) 404-8826
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