PriceSmart Announces March
San Diego, CA, April 7, 2005 –
PriceSmart, Inc. (NASDAQ:PSMT) today announced that for the month of March 2005,
net sales increased 17.0% to $55.7 million from $47.6 million in March a year
earlier. For the seven months ended
For the four weeks ended
The Company has historically
experienced increased warehouse sales associated with the Easter holiday in the
countries in which it operates. This
year, the Easter holiday was in March.
Last year, the Easter holiday was in the month of April.
About PriceSmart
PriceSmart, headquartered
in
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," "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
had a substantial loss in fiscal 2003 and 2004; the Company is required to
comply with financial covenants governing its outstanding indebtedness and is
out of compliance with certain covenants, which gives lenders the right to
accelerate the Company’s indebtedness; the Company’s financial performance is
dependent on international operations; any failure by the Company to manage its
widely dispersed operations could adversely affect its business; although the
Company has taken steps to significantly improve its internal controls, there
may be material weaknesses or significant deficiencies that the Company has not
yet identified; the Company faces significant competition; the Company may
encounter difficulties in the shipment of and inherent risks in the importation
of merchandise to its warehouse clubs; the success of the Company’s business
requires effective assistance from local business people; the Company is
exposed to weather and other risks associated with international operations;
declines in the economies of the countries in which the Company operates its
warehouse clubs would harm its business; a few of the Company’s stockholders
have control over the Company's voting stock, which will make it difficult to
complete some corporate transactions without their support and may prevent 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; 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; and the Company faces increased costs and
compliance risks associated with Section 404 of the Sarbanes-Oxley Act of 2002;
as well as the other risks detailed in the Company's SEC reports, including the
Company's Form 10-Q filed pursuant to the Securities Exchange Act of 1934 on
January 14, 2005. 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.
For further information, please contact Robert E.
Price, Interim Chief Executive Officer (858) 551-2336; or John M. Heffner,
Executive Vice President and Chief Financial Officer (858) 404-8826.