PriceSmart Announces
Third Quarter Results of Operations
For the
third quarter of fiscal year 2007, net warehouse club sales increased 21.4% to
$219.5 million from $180.8 million in the third quarter of fiscal year
2006. Total revenues for the third
quarter increased 21.5% to $224.3 million, compared to $184.6 million in the
prior year. The Company had 23 warehouse
clubs in operation as of May 31, 2007 and 2006.
The Company
recorded operating income in the third quarter of $9.0 million, compared to
operating income of $4.6 million in the third quarter of the prior year. Net income was $5.2 million, or $0.18 per
diluted share, in the third quarter of fiscal 2007 compared to $3.2 million, or $0.11 per diluted share in the third quarter of
fiscal 2006.
For the
first nine months of fiscal 2007, net warehouse club sales increased 20.0% to
$644.3 million from $536.9 million in the first nine months of fiscal
2006. Total revenues for the first nine
months of the fiscal year increased 20.2% to $658.7 million from $547.9 million
in the same period of the prior year.
For the first nine months of fiscal 2007, the Company recorded operating
income of $25.9 million, and net income of $15.8 million, or $0.54 per diluted
share. During the same nine month period
in fiscal 2006, the Company recorded operating income of $13.8 million, and net
income of $8.5 million, or $0.31 per diluted share.
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
not be able to sustain the profitability it achieved in fiscal 2006 in future
periods; 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-K filed
pursuant to the Securities Exchange Act of 1934 on November 13, 2006, as
amended by Amendment No.1 on Form 10K/A filed on December 19, 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.
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.
PRICESMART, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(AMOUNTS IN
THOUSANDS, EXCEPT PER SHARE DATA)
|
|
|
Three
Months Ended |
|
Nine Months
Ended |
|
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|
|
|
May 31, |
|
May 31, |
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|
|
|
2007 |
|
|
2006 |
|
2007 |
|
|
2006 |
|
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|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
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Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net warehouse club |
$ |
219,515 |
|
|
$ |
180,781 |
|
$ |
644,337 |
|
|
$ |
536,856 |
|
||
|
Export |
|
190 |
|
|
|
9 |
|
|
456 |
|
|
|
20 |
|
||
|
Membership income |
|
3,559 |
|
|
|
2,961 |
|
|
10,221 |
|
|
|
8,423 |
|
||
|
Other income |
|
1,048 |
|
|
|
886 |
|
|
3,652 |
|
|
|
2,570 |
|
||
|
Total revenues |
|
224,312 |
|
|
|
184,637 |
|
|
658,666 |
|
|
|
547,869 |
|
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|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Cost of goods sold: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Net warehouse club |
|
185,762 |
|
|
|
153,619 |
|
|
547,220 |
|
|
|
458,309 |
|
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|
Export |
|
172 |
|
|
|
7 |
|
|
432 |
|
|
|
23 |
|
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Selling, general and administrative: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Warehouse club operations |
|
22,252 |
|
|
|
20,068 |
|
|
64,294 |
|
|
|
57,556 |
|
||
|
General and administrative |
|
7,024 |
|
|
|
6,312 |
|
|
19,869 |
|
|
|
17,691 |
|
||
|
Preopening expenses |
|
1 |
|
|
|
— |
|
|
256 |
|
|
|
336 |
|
||
|
Asset impairment and closure costs |
|
68 |
|
|
|
59 |
|
|
731 |
|
|
|
172 |
|
||
|
Total operating expenses |
|
215,279 |
|
|
|
180,065 |
|
|
632,802 |
|
|
|
534,087 |
|
||
|
Operating income |
|
9,033 |
|
|
|
4,572 |
|
|
25,864 |
|
|
|
13,782 |
|
||
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Interest income |
|
395 |
|
|
|
624 |
|
|
1,238 |
|
|
|
1,348 |
|
||
|
Interest expense |
|
(129) |
|
|
|
(708) |
|
|
(574) |
|
|
|
(2,258) |
|
||
|
Other income (expense), net |
|
(100) |
|
|
|
(71) |
|
|
(122) |
|
|
|
(46) |
|
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|
Total other income (expense) |
|
166 |
|
|
|
(155) |
|
|
542 |
|
|
|
(956) |
|
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|
Income from continuing operations before provision |
|
9,199 |
|
|
|
4,417 |
|
|
26,406 |
|
|
|
12,826 |
|
||
|
Provision for income taxes |
|
(3,819) |
|
|
|
(1,192) |
|
|
(10,011) |
|
|
|
(4,686) |
|
||
|
Loss of unconsolidated
affiliate |
|
(99) |
|
|
|
(12) |
|
|
(282) |
|
|
|
(56) |
|
||
|
Minority interest |
|
(75) |
|
|
|
(88) |
|
|
(337) |
|
|
|
(261) |
|
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|
Income from continuing
operations |
|
5,206 |
|
|
|
3,125 |
|
|
15,776 |
|
|
|
7,823 |
|
||
|
Discontinued operations, net
of tax |
|
25 |
|
|
|
103 |
|
|
71 |
|
|
|
650 |
|
||
|
Net income |
$ |
5,231 |
|
|
$ |
3,228 |
|
$ |
15,847 |
|
|
$ |
8,473 |
|
||
|
Basic income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Continuing operations |
$ |
0.18 |
|
|
$ |
0.11 |
|
$ |
0.55 |
|
|
$ |
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