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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