PSMT
$92.65
Pricesmart
$1.35
1.48%
Earnings Details
1st Quarter November 2016
Thursday, January 05, 2017 4:00:09 PM
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Summary

Pricesmart (PSMT) Recent Earnings

Pricesmart (PSMT) reported 1st Quarter November 2016 earnings of $0.82 per share on revenue of $739.6 million. The consensus earnings estimate was $0.78 per share on revenue of $736.7 million. Revenue grew 3.9% on a year-over-year basis.

Pricesmart Inc Pricesmart Inc, through its subsidiaries, is engaged in the ownership and operation of membership shopping warehouse clubs under the trade name PriceSmart in Central America and the Caribbean.

Results
Reported Earnings
$0.82
Earnings Whisper
-
Consensus Estimate
$0.78
Reported Revenue
$739.6 Mil
Revenue Estimate
$736.7 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

PriceSmart Announces First Quarter Results of Operations for Fiscal Year 2017

SAN DIEGO, CA--(Marketwired - Jan 5, 2017) - PriceSmart, Inc. (PSMT) today announced its results of operations for the first quarter of fiscal year 2017 which ended on November 30, 2016.

For the first quarter of fiscal year 2017, net warehouse club sales increased 3.7% to $716.1 million from $690.8 million in the first quarter of fiscal year 2016. Total revenues for the first quarter of fiscal year 2017 were $739.6 million compared to $711.9 million in the first quarter of the prior year. The Company had 39 clubs in operation as of November 30, 2016, compared to 38 warehouse clubs in operation as of November 30, 2015.

The Company recorded operating income for the first quarter of $38.4 million, compared to operating income of $37.3 million for the first quarter of the prior year. Net income was $24.9 million, or $0.82 per diluted share, in the first quarter of fiscal year 2017. Net income in the first quarter of fiscal year 2016 was $23.7 million, or $0.78 per diluted share.

PriceSmart management plans to host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Friday, January 6, 2017, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing (877) 675-4756 toll free, or (719) 325-4810 for international callers, and entering participant code 5691450. A digital replay will be available through January 31, 2017, following the conclusion of the call by dialing (888) 203-1112 for domestic callers, or (719) 457-0820 for international callers, and entering relay passcode 5691450.

About PriceSmart

PriceSmart, headquartered in San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean, selling high quality merchandise at low prices to PriceSmart members. PriceSmart now operates 39 warehouse clubs in 12 countries and one U.S. territory (seven in Colombia; six in Costa Rica; five in Panama; four in Trinidad; three each in Guatemala, the Dominican Republic and Honduras; two each in El Salvador and Nicaragua; and one each in Aruba, Barbados, Jamaica and the United States Virgin Islands).

This press release may contain forward-looking statements concerning the Company’s anticipated future revenues and earnings, adequacy of future cash flow, proposed warehouse club openings, the Company’s performance relative to competitors, the outcome of tax proceedings and related matters. These forward-looking statements include, but are not limited to, statements containing the words "expect," "believe," "will," "may," "should," "project," "estimate," "anticipated," "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: our financial performance is dependent on international operations, which exposes us to various risks; any failure by us to manage our widely dispersed operations could adversely affect our business; we face significant competition; future sales growth depends, in part, on our ability to successfully open new warehouse clubs and grow sales in our existing locations; we might not identify in a timely manner or effectively respond to changes in consumer preferences for merchandise, which could adversely affect our relationship with members, demand for our products and market share; although we have begun to offer limited online shopping to our members, our sales could be adversely affected if one or more major international online retailers were to enter our markets or if other competitors were to offer a superior online experience; our profitability is vulnerable to cost increases; we face difficulties in the shipment of and risks inherent in the importation of, merchandise to our warehouse clubs; we are exposed to weather and other natural disaster risks that might not be adequately compensated by insurance; general economic conditions could adversely impact our business in various respects; our failure to maintain our brand and reputation could adversely affect our results of operations; we are subject to risks associated with possible changes in our relationships with third parties with which we do business, as well as the performance of such third parties; we rely extensively on computer systems to process transactions, summarize results and manage our business, and failure to adequately maintain our systems and disruptions in our systems could harm our business and adversely affect our results of operations; we could be subject to additional tax liabilities or subject to reserves on the recoverability of tax receivables; a few of our stockholders own approximately 25.3% of our voting stock as of August 31, 2016, which may make it difficult to complete some corporate transactions without their support and may impede a change in control; failure to attract and retain qualified employees, increases in wage and benefit costs, changes in laws and other labor issues could materially adversely affect our financial performance; we face the possibility of operational interruptions related to union work stoppages; we are subject to volatility in foreign currency exchange rates and limits on our ability to convert foreign currencies into U.S. dollars; we face the risk of exposure to product liability claims, a product recall and adverse publicity; any failure to maintain the security of the information relating to our company, members, employees and vendors that we hold, whether as a result of cybersecurity attacks on our information systems, failure of internal controls, employee negligence or malfeasance or otherwise, could damage our reputation with members, employees, vendors and others, could disrupt our operations, could cause us to incur substantial additional costs and to become subject to litigation and could materially adversely affect our operating results; we are subject to payment related risks; changes in accounting standards and assumptions, projections, estimates and judgments by management related to complex accounting matters could significantly affect our financial condition and results of operations; we face compliance risks related to our international operations; if remediation costs or hazardous substance contamination levels at certain properties for which we maintain financial responsibility exceed management’s current expectations, our financial condition and results of operations could be adversely impacted. The risks described above as well as the other risks detailed in the Company’s U.S. Securities and Exchange Commission ("SEC") reports, including the Company’s Annual Report on Form 10-K filed for the fiscal year ended August 31, 2016 filed on October 27, 2016 pursuant to the Securities Exchange Act of 1934. 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.

 
 
PRICESMART, INC.
 
CONSOLIDATED STATEMENTS OF INCOME
 
(UNAUDITED--AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
November 30,
 
 
November 30,
 
 
2016
 
 
2015
 
Revenues:
 
 
 
 
 
 
 
Net warehouse club sales
$
716,079
 
 
$
690,831
 
Export sales
 
10,734
 
 
 
8,232
 
Membership income
 
11,710
 
 
 
11,466
 
Other income
 
1,049
 
 
 
1,402
 
Total revenues
 
739,572
 
 
 
711,931
 
Operating expenses:
 
 
 
 
 
 
 
Cost of goods sold:
 
 
 
 
 
 
 
Net warehouse club
 
608,490
 
 
 
590,183
 
Export
 
10,181
 
 
 
7,832
 
Selling, general and administrative:
 
 
 
 
 
 
 
Warehouse club operations
 
65,426
 
 
 
60,840
 
General and administrative
 
16,802
 
 
 
15,463
 
Pre-opening expenses
 
(113
)
 
 
305
 
Loss/(gain) on disposal of assets
 
407
 
 
 
13
 
Total operating expenses
 
701,193
 
 
 
674,636
 
Operating income
 
38,379
 
 
 
37,295
 
Other income (expense):
 
 
 
 
 
 
 
Interest income
 
502
 
 
 
178
 
Interest expense
 
(1,654
)
 
 
(1,373
)
Other income (expense), net
 
(928
)
 
 
(244
)
Total other income (expense)
 
(2,080
)
 
 
(1,439
)
Income before provision for income taxes and income (loss) of unconsolidated affiliates  
36,299
 
 
 
35,856
 
Provision for income taxes
 
(11,437
)
 
 
(12,130
)
Income (loss) of unconsolidated affiliates
 
7
 
 
 
(54
)
Net income
$
24,869
 
 
 
23,672
 
Net income per share available for distribution:
 
 
 
 
 
 
 
Basic net income per share
$
0.82
 
 
$
0.78
 
Diluted net income per share
$
0.82
 
 
$
0.78
 
Shares used in per share computations:
 
 
 
 
 
 
 
Basic
 
29,982
 
 
 
29,890
 
Diluted
 
29,987
 
 
 
29,896
 
Dividends per share
$
--
 
 
$
--
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PRICESMART, INC.
 
CONSOLIDATED BALANCE SHEETS
 
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)
 
 
 
     
 
 
 
     
 
 
November 30,
     
 
 
2016
    August 31,
 
 
(Unaudited)
    2016
 
ASSETS
   
       
 
Current Assets:
   
       
 
Cash and cash equivalents
$
175,402
    $
199,522
 
Short-term restricted cash
  517
      518
 
Receivables, net of allowance for doubtful accounts of $7 as of November 30, 2016 and August 31, 2016, respectively
  7,761
      7,464
 
Merchandise inventories
  326,989
      282,907
 
Prepaid expenses and other current assets
  24,194
      22,143
 
Total current assets
  534,863
      512,554
 
Long-term restricted cash
  2,735
      2,676
 
Property and equipment, net
  469,423
      473,045
 
Goodwill
  35,603
      35,637
 
Deferred tax assets
  11,783
      12,258
 
Other non-current assets (includes $4,163 and $3,224 as of November 30, 2016 and August 31, 2016, respectively, for the fair value of derivative instruments)
  52,690
      49,798
 
Investment in unconsolidated affiliates
  10,773
      10,767
 
Total Assets
$
1,117,870     $
1,096,735  
LIABILITIES AND EQUITY
   
       
 
Current Liabilities:
   
       
 
Short-term borrowings
$
12,211
    $
16,534
 
Accounts payable
  280,601
      267,173
 
Accrued salaries and benefits
  17,645
      19,606
 
Deferred membership income
  20,905
      20,920
 
Income taxes payable
  4,892
      4,226
 
Other accrued expenses (includes $153 and $110 as of November 30, 2016 and August 31, 2016, respectively, for the fair value of foreign currency forward contracts)
  25,450
      24,880
 
Long-term debt, current portion
  14,664
      14,565
 
Total current liabilities
  376,368
      367,904
 
Deferred tax liability
  1,647
      1,760
 
Long-term portion of deferred rent
  8,759
      8,961
 
Long-term income taxes payable, net of current portion
  883
      970
 
Long-term debt, net of current portion
  69,788
      73,542
 
Other long-term liabilities (includes $1,030 and $1,514 for the fair value of derivative instruments and $4,394 and $4,013 for post employment plans as of November 30, 2016 and August 31, 2016, respectively)
  5,424
      5,527
 
Total Liabilities
  462,869
      458,664
 
 
   
       
 
Equity:
   
       
 
Common stock $0.0001 par value, 45,000,000 shares authorized; 31,242,784 and 31,237,658 shares issued and 30,406,433 and 30,401,307 shares outstanding (net of treasury shares) as of November 30, 2016 and August 31, 2016, respectively   3
      3
 
Additional paid-in capital
  414,811
      412,369
 
Tax benefit from stock-based compensation
  11,321
      11,321
 
Accumulated other comprehensive loss
  (114,332
)
    (103,951
)
Retained earnings
  375,929
      351,060
 
Less: treasury stock at cost, 836,351 shares as of November 30, 2016 and August 31, 2016, respectively
  (32,731
)
    (32,731
)
Total Equity
  655,001
      638,071
 
Total Liabilities and Equity
$
1,117,870     $
1,096,735  
 
   
       
 

For further information, please contact John M. Heffner Principal Financial Officer and Principal Accounting Officer (858) 404-8826