SAN DIEGO, CA -- (Marketwired) -- 10/28/14 -- PriceSmart, Inc. (NASDAQ: PSMT) today announced its results of operations for the fourth quarter and the twelve months of fiscal year 2014 which ended on August 31, 2014.
For the fourth quarter of fiscal year 2014, net warehouse club sales increased 5.6% to $599.6 million from $568.0 million in the fourth quarter of fiscal year 2013. Total revenues for the fourth quarter of fiscal year 2014 were $622.6 million compared to $585.4 million in the comparable period of the prior year. The Company had 33 warehouse clubs in operation as of August 2014 compared to 31 warehouse clubs in operation as of August 2013.
The Company recorded operating income during the quarter of $33.8 million, as compared to operating income of $32.4 million in the prior year. Net income was $21.9 million, or $0.73 per diluted share, in the fourth quarter of fiscal year 2014 as compared to $20.8 million, or $0.69 per diluted share, in the fourth quarter of fiscal year 2013.
For the twelve months ended August 31, 2014, net warehouse club sales increased 9.2% to $2.4 billion from $2.2 billion for the twelve months ended August 31, 2013. Total revenues for the twelve months ended August 31, 2014 increased 9.5% to $2.5 billion from $2.3 billion in the same period of the prior year. For the twelve months ended August 31, 2014, the Company recorded operating income of $136.7 million and net income of $92.9 million, or $3.07 per diluted share. During the twelve months ended August 31, 2013, the Company recorded operating income of $127.0 million and net income of $84.3 million, or $2.78 per diluted share.
The Company plans to file its Annual Report on Form 10-K for the year ended August 31, 2014 on October 30, 2014.
PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00a.m. Pacific time) on Wednesday, October 29, 2014, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing (877) 627-6590 toll free, or (719) 325-4865 for international callers and entering participant code 9101656. A digital replay will be available through November 30, 2014, 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 9101656.
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 33 warehouse clubs in 12 countries and one U.S. territory (six in Costa Rica; four each in Panama and Trinidad; three each in Guatemala, the Dominican Republic, Colombia and Honduras; two in El Salvador; 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: our financial performance is dependent on international operations, which exposes us to various risks; any failure by us to manage our widely dispersed operations could adversely affect our business; we face significant competition; future sales growth depends, in part, on our ability to successfully open new warehouse clubs; we might not identify in a timely manner or effectively respond to changes in consumer preferences for merchandise, which could adversely affect our relationship with members, demand for our products and market share; although we have begun to offer limited online shopping to our members, our sales could be adversely affected if one or more major international online retailers were to enter our markets or if other competitors were to offer a superior online experience; we face difficulties in the shipment of, and inherent risks in the importation of, merchandise to our warehouse clubs; we are exposed to weather and other natural disaster risks; general economic conditions could adversely impact our business in various respects; we are subject to risks associated with possible changes in our relationships with third parties with which we do business, as well as the performance of such third parties; we rely extensively on computer systems to process transactions, summarize results and manage our business, and failure to adequately maintain our systems and disruptions in our systems could harm our business and adversely affect our results of operations; we could be subject to additional tax liabilities; a few of our stockholders own approximately 28.1% of our voting stock as of August 31, 2014,which may make it difficult to complete some corporate transactions without their support and may impede a change in control; our inability to develop and retain existing key personnel or to attract highly qualified employees could adversely impact our business, financial condition and results of operations; we are subject to volatility in foreign currency exchange rates; we face the risk of exposure to product liability claims, a product recall and adverse publicity; if we do not maintain the privacy and security of confidential information, we could damage our reputation, incur substantial additional costs and become subject to litigation; we are subject to payment related risks; changes in accounting standards and assumptions, estimates and judgments by management related to complex accounting matters could significantly affect our financial condition and results of operations; we face increased public company compliance risks and compliance risks related to our international operations; we face increased compliance risks associated with compliance with Section 404 of the Sarbanes-Oxley Act of 2002; if remediation costs or hazardous substance contamination levels at certain properties for which we maintain financial responsibility exceed management's current expectations, our financial condition and results of operations could be adversely impacted. In addition to the risks described above, these statements are also subject to 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 filed for the fiscal year ended August 31, 2013 filed on October 30, 2013 pursuant to the Securities Exchange Act of 1934. 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,
---------------------- ------------------------
2014 2013 2014 2013
---------- ---------- ----------- -----------
Revenues:
Net warehouse club sales $ 599,568 $ 567,997 $ 2,444,314 $ 2,239,266
Export sales 12,217 7,439 31,279 23,059
Membership income 9,762 9,047 38,063 33,820
Other income 1,008 911 3,911 3,667
---------- ---------- ----------- -----------
Total revenues 622,555 585,394 2,517,567 2,299,812
---------- ---------- ----------- -----------
Operating expenses:
Cost of goods sold:
Net warehouse club 508,310 482,236 2,083,933 1,907,632
Export 11,621 7,068 29,731 21,796
Selling, general and
administrative:
Warehouse club operations 53,884 50,664 212,476 194,140
General and administrative 12,879 12,334 49,944 46,784
Pre-opening expenses 1,392 116 3,331 1,525
Loss/(gain) on disposal of
assets 699 536 1,445 889
---------- ---------- ----------- -----------
Total operating expenses 588,785 552,954 2,380,860 2,172,766
---------- ---------- ----------- -----------
Operating income 33,770 32,440 136,707 127,046
Other income (expense):
Interest income 277 257 853 1,335
Interest expense (1,328) (1,265) (4,295) (4,216)
Other income (expense),
net (528) 97 984 (954)
---------- ---------- ----------- -----------
Total other income
(expense) (1,579) (911) (2,458) (3,835)
---------- ---------- ----------- -----------
Income from continuing
operations before
provision for income
taxes and loss of
unconsolidated affiliates 32,191 31,529 134,249 123,211
Provision for income taxes (10,337) (10,688) (41,372) (38,942)
Income (loss) of
unconsolidated affiliates 2 (2) 9 (4)
---------- ---------- ----------- -----------
Income from continuing
operations 21,856 20,839 92,886 84,265
---------- ---------- ----------- -----------
Net income $ 21,856 $ 20,839 $ 92,886 $ 84,265
========== ========== =========== ===========
Net income per share:
Basic net income per share
from continuing
operations $ 0.73 $ 0.69 $ 3.07 $ 2.78
Basic net income per share
from discontinued
operations, net of tax -- -- -- --
---------- ---------- ----------- -----------
Basic net income per share $ 0.73 $ 0.69 $ 3.07 $ 2.78
========== ========== =========== ===========
Diluted net income per
share from continuing
operations $ 0.73 $ 0.69 $ 3.07 $ 2.78
Diluted net income per
share from discontinued
operations, net of tax $ -- $ -- $ -- $ --
---------- ---------- ----------- -----------
Diluted net income per
share $ 0.73 $ 0.69 $ 3.07 $ 2.78
========== ========== =========== ===========
Shares used in per share
computations:
Basic 29,788 29,687 29,747 29,647
========== ========== =========== ===========
Diluted 29,796 29,697 29,757 29,657
========== ========== =========== ===========
Dividends per share $ -- $ -- $ 0.70 $ 0.60
========== ========== =========== ===========
PRICESMART, INC.
CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
August 31,
----------------------
2014 2013
---------- ----------
ASSETS
Current Assets:
Cash and cash equivalents $ 137,098 $ 121,874
Short-term restricted cash 2,353 5,984
Receivables, net of allowance for doubtful accounts
of $0 and $0 as of August 31, 2014 and August 31,
2013, respectively 7,910 3,130
Merchandise inventories 226,383 217,413
Deferred tax assets - current, net 6,177 6,290
Prepaid expenses and other current assets (includes
$495 and $0 as of August 31, 2014 and August 31,
2013, respectively, for the fair value of
derivative instruments) 22,570 20,890
---------- ----------
Total current assets 402,491 375,581
---------- ----------
Long-term restricted cash 27,013 34,775
Property and equipment, net 426,325 338,478
Goodwill 36,108 36,364
Deferred tax assets - long term 11,825 12,871
Other non-current assets (includes $1,095 and $1,505
as of August 31, 2014 and August 31, 2013,
respectively, for the fair value of derivative
instruments) 27,593 19,866
Investment in unconsolidated affiliates 8,863 8,104
---------- ----------
Total Assets $ 940,218 $ 826,039
========== ==========
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable 225,761 199,425
Accrued salaries and benefits 17,799 17,862
Deferred membership income 17,932 16,528
Income taxes payable 7,664 8,059
Other accrued expenses 21,030 20,136
Long-term debt, current portion 11,848 12,757
Deferred tax liability - current 157 111
---------- ----------
Total current liabilities 302,191 274,878
Deferred tax liability - long-term 2,290 2,622
Long-term portion of deferred rent 5,591 4,440
Long-term income taxes payable, net of current
portion 1,918 2,184
Long-term debt, net of current portion 79,591 60,263
Other long-term liabilities (includes $0 and $14 for
the fair value of derivative instruments and $372
and $589 for the defined benefit plan as of August
31, 2014 and August 31, 2013, respectively) 372 603
---------- ----------
Total liabilities 391,953 344,990
Equity:
Common stock, $0.0001 par value, 45,000,000 shares
authorized; 30,950,701 and 30,924,392 shares issued
and 30,209,917 and 30,234,506 shares outstanding
(net of treasury shares) as of August 31, 2014 and
August 31, 2013, respectively 3 3
Additional paid-in capital 397,150 390,581
Tax benefit from stock-based compensation 9,505 8,016
Accumulated other comprehensive loss (49,286) (41,475)
Retained earnings 215,613 143,871
Less: treasury stock at cost; 740,784 and 689,886
shares as of August 31, 2014 and August 31, 2013,
respectively (24,720) (19,947)
---------- ----------
Total equity 548,265 481,049
---------- ----------
Total Liabilities and Equity $ 940,218 $ 826,039
========== ==========
For further information, please contact
John M. Heffner
Principal Financial Officer and Principal Accounting Officer
(858) 404-8826
