PriceSmart
Announces May Sales
For the five weeks ended June 4, 2006, comparable
warehouse sales for warehouse clubs open at least 12 full months increased 14.7%
compared to the same five-week period last year. For the thirty-nine weeks ended June 4, 2006,
comparable warehouse sales, for warehouse clubs open at least 12 full months,
increased 16.4% from the same period a year ago. Comparable warehouse sales for the comparable
five- and thirty-nine week periods of 2005 exclude sales from discontinued
operations.
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 substantial net losses in fiscal 2003, 2004 and 2005, and may
continue to incur losses in future periods; if the Company fails to comply with
covenants governing its indebtedness, the lenders may elect to accelerate the
Company’s indebtedness and foreclose on the collateral pledged to secure the
indebtedness; 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 the
Company’s business; although the Company has taken and continues to take steps
to improve significantly 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 faces difficulties in
the shipment of and inherent risks in the importation of merchandise to its
warehouse clubs; 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 compliance 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,
2006. 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 may have been
reclassified to conform to the current period presentation.
For further information, please contact Robert E. Price, Chief Executive Officer (858) 551-2336; or John M. Heffner, Executive Vice President and Chief Financial Officer (858) 404-8826.