PriceSmart Announces First Quarter Results of Operations and

PriceSmart Announces First Quarter Results of Operations and December
Sales 
SAN DIEGO, CA -- (Marketwire) -- 01/09/13 --  PriceSmart, Inc.
(NASDAQ: PSMT) today announced its results of operations for the
first quarter of fiscal year 2013 which ended on November 30, 2012. 
For the first quarter of fiscal year 2013, net warehouse club sales
increased 11.8% to $523.6 million from $468.2 million in the first
quarter of fiscal year 2012. Total revenues for the first quarter of
fiscal year 2013 was $535.3 million compared to $477.5 million in the
first quarter of the prior year. The Company had 30 clubs in
operation as of November 30, 2012, compared to 29 warehouse clubs in
operation as of November 30, 2011. 
The Company recorded operating income for the first quarter of $29.8
million, compared to operating income of $24.3 million for the first
quarter of the prior year. Net income was $20.0 million, or $0.66 per
diluted share, in the first quarter of fiscal year 2013. Net income
in the first quarter of fiscal year 2012 was $14.0 million, or $0.47
per diluted share. 
For the month of December 2012, net sales increased 11.6% to $253.7
million from $227.4 million in December a year earlier. For the four
months ended December 31, 2012, net sales increased 11.7% to $777.3
million from $695.6 million in the same period last year. There were
30 warehouse clubs in operation at the end of December 2012 compared
to 29 warehouse clubs in operation in December 2011. 
For the four weeks ended December 30, 2012, comparable warehouse
sales for the 29 warehouse clubs open at least 13 1/2 full months
increased 13.7% compared to the same four-week period last year. For
the seventeen-week period ended December 30, 2012, comparable
warehouse sales increased 9.9% compared to the comparable
seventeen-week period a year ago. 
PriceSmart management plans to host a conference call at 12:00 p.m.
Eastern time (9:00 a.m. Pacific time) on Thursday, January 10, 2013,
to discuss the financial results.  
Individuals interested in participating in the conference call may do
so by dialing (888) 359-3624 toll free, and entering participant code
4470837.  
A digital replay will be available through January 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 relay passcode 4470837. 
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 30.4% 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    
                                                         November 30,       
                                                   ------------------------ 
                                                       2012         2011    
                                                   -----------  ----------- 
Revenues:                                                                   
Net warehouse club sales                           $   523,599  $   468,192 
Export sales                                             3,073        2,249 
Membership income                                        7,673        6,331 
Other income                                               941          679 
                                                   -----------  ----------- 
Total revenues                                         535,286      477,451 
                                                   -----------  ----------- 
Operating expenses:                                                         
Cost of goods sold:                                                         
Net warehouse club                                     444,944      399,865 
Export                                                   2,835        2,161 
Selling, general and administrative:                                        
Warehouse club operations                 
              45,842       41,891 
General and administrative                              11,158        9,111 
Pre-opening expenses                                       737          162 
Total operating expenses                               505,516      453,190 
                                                   -----------  ----------- 
Operating income                                        29,770       24,261 
Other income (expense):                                                     
Interest income                                            294          184 
Interest expense                                        (1,218)      (1,254)
Other income (expense), net                                (58)      (1,269)
                                                   -----------  ----------- 
Total other expense                                       (982)      (2,339)
                                                   -----------  ----------- 
Income from continuing operations before provision                          
 for income taxes and income (loss) of                                      
 unconsolidated affiliates                              28,788       21,922 
Provision for income taxes                              (8,779)      (7,933)
Income (loss) of unconsolidated affiliates                  (4)           7 
                                                   -----------  ----------- 
Income from continuing operations                       20,005       13,996 
Income (loss) from discontinued operations, net of                          
 tax                                                        --           (7)
                                                   -----------  ----------- 
Net income                                              20,005       13,989 
                                                   ===========  =========== 
Net income per share available for distribution:                            
Basic net income per share from continuing                                  
 operations                                        $      0.66  $      0.47 
Basic net income (loss) per share from                                      
 discontinued operations, net of tax               $        --  $        -- 
                                                   -----------  ----------- 
Basic net income per share                         $      0.66  $      0.47 
                                                   ===========  =========== 
Diluted net income per share from continuing                                
 operations                                        $      0.66  $      0.47 
Diluted net income (loss) per share from                                    
 discontinued operations, net of tax               $        --  $        -- 
                                                   -----------  ----------- 
Diluted net income per share                       $      0.66  $      0.47 
                                                   ===========  =========== 
Shares used in per share computations:                                      
                                                   ===========  =========== 
Basic                                                   29,592       29,503 
                                                   ===========  =========== 
Diluted                                                 29,604       29,517 
                                                   ===========  =========== 
Dividends per share                                $      0.60  $        -- 
                                                   ===========  =========== 
                                                                            
                                                                            
                                                                            
                              PRICESMART, INC.                              
                        CONSOLIDATED BALANCE SHEETS                         
                 (AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)                  
                                                                            
                                                                            
                                                 November 30,   August 31,  
                                                      2012          2012    
                                                  (Unaudited)               
                                                 -------------  ----------- 
ASSETS                                                                      
Current Assets:                                                             
Cash and cash equivalents                        $      84,350  $    91,248 
Short-term restricted cash                               1,220        1,241 
Receivables, net of allowance for doubtful                                  
 accounts of $1 as of November 30 and August 31,                            
 2012, respectively                                      6,085        5,786 
Merchandise inventories                                239,978      201,043 
Deferred tax assets - current                            5,941        5,619 
Prepaid expenses and other current assets               34,628       29,955 
                                                 -------------  ----------- 
Total current assets                                   372,202      334,892 
Long-term restricted cash                               36,520       36,505 
Property and equipment, net                            307,346      299,567 
Goodwill                                                36,821       36,886 
Deferred tax assets - long term                         13,515       14,835 
Other non-current assets                                 5,395        5,468 
Investment in unconsolidated affiliates                  8,105        7,559 
                                                 -------------  ----------- 
Total Assets                                     $     779,904  $   735,712 
                                                 =============  =========== 
LIABILITIES AND EQUITY                                                      
Current Liabilities:                                                        
Accounts payable                                 $     200,829  $   173,197 
Accrued salaries and benefits                           12,641       14,729 
Deferred membership income                              15,002       13,747 
Income taxes payable                                     6,690        8,193 
Other accrued expenses                                  13,834       17,516 
Dividends payable                                       18,129           -- 
Long-term debt, current portion                          7,798        7,237 
Deferred tax liability - current                           173          122 
                                                 -------------  ----------- 
Total current liabilities                              275,096      234,741 
Deferred tax liability - long-term                       2,351        2,191 
Long-term portion of deferred rent                       4,368        4,336 
Long-term income taxes payable, net of current                              
 portion                                                 2,108        2,51
2 
Long-term debt, net of current portion                  73,165       71,422 
Other long-term liabilities (includes $1.4                                  
 million and $1.2 million for the fair value of                             
 derivative instruments and $419 and $396 for                               
 the defined benefit plans as of November 30 and                            
 August 31, 2012, respectively)                          1,803        1,596 
                                                 -------------  ----------- 
Total liabilities                                      358,891      316,798 
Equity:                                                                     
Common stock, $0.0001 par value, 45,000,000                                 
 shares authorized; 30,861,245 and 30,855,651                               
 shares issued and 30,215,819 and 30,210,255                                
 shares outstanding (net of treasury shares) as                             
 of November 30 and August 31, 2012,                                        
 respectively.                                               3            3 
Additional paid-in capital                             385,977      384,154 
Tax benefit from stock-based compensation                6,680        6,680 
Accumulated other comprehensive loss                   (34,782)     (33,182)
Retained earnings                                       79,615       77,739 
Less: treasury stock at cost; 645,426 as of                                 
 November 30 and August 31, 2012, respectively.        (16,480)     (16,480)
                                                 -------------  ----------- 
Total equity                                           421,013      418,914 
                                                 -------------  ----------- 
Total Liabilities and Equity                     $     779,904  $   735,712 
                                                 =============  =========== 

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