PriceSmart Announces April
San Diego, CA, May 5, 2005 –
PriceSmart, Inc. (NASDAQ:PSMT) today announced that for the month of April 2005,
net sales increased 16.9% to $54.2 million from $46.3 million in April a year
earlier. For the eight months ended
For the four weeks ended
The Company also announced that, due
to delays in obtaining the necessary building permits, the Company’s fourth
warehouse club location planned for
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 has in the past violated,
and in the future may fail 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 and is therefore
exposed to associated political, legal and economic risks; 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, and the Company currently is engaged in a dispute with one of
its minority shareholders in the Philippines; 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
April 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. Certain prior period amounts
have been reclassified to confirm to the current period presentation.
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.