PriceSmart
Announces Fourth Quarter and Fiscal Year Results of Operation
For
the fourth quarter of fiscal year 2007 net warehouse sales were $224.8 million,
compared to $182.7 million in the fourth quarter of fiscal year 2006.
Total revenue for the fourth quarter was $230.1 million, compared to
$186.8 million in the prior year. The
Company had 23 warehouse clubs in operation as of the end of fiscal year 2007
and fiscal year 2006.
Operating
income in the fourth quarter of fiscal year 2007 was $2.1 million compared to
operating income of $4.3 million in the fourth quarter of fiscal year
2006. Fourth quarter 2007 results
included asset impairment and closure costs of $819,000 and a reserve of $5.5
million related to a potential settlement of pending litigation. Asset impairment and closure costs were $1.7
million in the fourth quarter of fiscal year 2006.
The
Company recorded a net loss attributable to common stockholders for the fourth
quarter of $2.9 million or ($0.10) per diluted share compared to net income of
$3.4 million or $0.12 per diluted share in the fourth quarter of fiscal year
2006. The net loss in the current period
included a previously disclosed non-cash charge of $2.6 million ($0.09 per
diluted share) related to the write-down of the Company’s investment in PSMT
Mexico. In the fourth quarter of fiscal
year 2006, net income included $3.0 million of income, net of tax, primarily
associated with the collection of a previously fully reserved loan from the
Company’s former Philippine subsidiary.
Total
revenue for fiscal 2007 increased 21.0% to $888.8 million from $734.7 million
in fiscal year 2006 and net warehouse sales increased 20.8% to $869.1 million
during that same period from $719.6 million in the prior year. For fiscal year 2007 the Company recorded
operating income of $28.0 million and net income attributable to common
stockholders of $12.9 million or $0.44 per diluted share. For fiscal year 2006 the Company recorded net
income attributable to common stockholders of $11.9 million or $0.43 per diluted
share.
The
Company will file today its Annual Report on Form 10-K for the year ended
August 31, 2007.
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 OPERATIONS
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)