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SIGNATURES

 

 

        Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

Date: April 8, 2009		/S/ JOHN M. HEFFNER
		John M. Heffner
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer and
		Chief Accounting Officer)

 

 

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EXHIBIT INDEX

 

Exhibit Number		Description
99.1		Press Release of PriceSmart, Inc. dated April 8, 2009.

 

 

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PriceSmart Announces Second Quarter Results of Operations

March Sales Also Announced

 

San Diego, CA (April 8, 2009) – PriceSmart, Inc. (NASDAQ: PSMT, www.pricesmart.com) today announced its results of operations for the second quarter of fiscal year 2009 which ended on February 28, 2009.

 

For the second quarter of fiscal year 2009, net warehouse sales increased 13.9% to $328.2 million from $288.2 million in the second quarter of fiscal year 2008.  Total revenue for the second quarter was $334.8 million compared to $293.8 million in the prior year.  The Company had 25 clubs in operation as of February 2009 and 2008.

 

The Company recorded operating income in the quarter of $17.5 million, compared to operating income of $10.7 million in the prior year.  Net income was $12.7 million, or $0.43 per diluted share, in the second quarter of fiscal 2009 compared to $9.5 million, or $0.33 per diluted share, in the second quarter of fiscal 2008.

 

For the first six months of fiscal year 2009, net warehouse club sales increased 17.5% to $626.8 million from $533.4 million in the first six months of fiscal year 2008.  Total revenues for the first half of the fiscal year increased 17.6% to $640.0 million from $544.3 million in the same period of the prior year.  For the first six months of fiscal year 2009, the Company recorded operating income of $32.4 million and net income of $23.4 million, or $0.80 per diluted share.  During the same six month period in fiscal year 2008, the Company recorded operating income of $20.9 million and net income of $16.2 million, or $0.56 per share.

 

Included in the results for the second quarter and first six months of fiscal year 2008 were pre-tax charges and income tax benefits related to the Company’s settlement of disputes with PSC, S.A. and related entities which had the effect of reducing reported operating income in both the second quarter and first six months of fiscal 2008 by $3.4 million, and net income by $1.7 million, or $0.06 per diluted share.

The Company also announced that for the month of March 2009 net sales increased 7.0% to $100.7 million from $94.1 million in March a year earlier.  For the seven months ended March 31, 2009, net sales increased 15.9% to $727.5 million from $627.5 million for the seven months ended March 31, 2008.  There were 25 warehouse clubs in operation at the end of March 2009 and 2008.

 

For the four weeks ended March 29, 2009, comparable warehouse sales for the warehouse clubs open at least 12 full months increased 8.5% compared to the same four-week period last year.  For the thirty-week period ended March 29, 2009, comparable ware­house sales increased 13.6% compared to the comparable thirty-week period a year ago.

About PriceSmart

 

PriceSmart, headquartered in San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Central America and the Caribbean, selling high quality merchandise at low prices to PriceSmart members. PriceSmart now operates 25 warehouse clubs in 11 countries and one U.S. territory (four each in Panama and Costa Rica; three each in Guatemala and Trinidad, two each in Dominican Republic, El Salvador and Honduras; and one each in Aruba, Barbados, Jamaica, Nicaragua 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 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’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; 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 own nearly one-half of the Company's voting stock, which may make it difficult to complete some corporate transactions without their support and may impede 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 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 Annual Report on Form 10-K filed pursuant to the Securities Exchange Act of 1934 on November 12, 2008. 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.

 

 

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PRICESMART, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED—AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) 

 

		Three Months Ended								Six Months Ended
		February 28,				February 29,				February 28,				February 29,
		2009				2008				2009				2008
Revenues:
Sales:
Net warehouse club		$	328,240			$	288,216			$	626,758			$	533,405
Export			905				340				1,742				707
Membership income			4,425				3,975				8,749				7,717
Other income			1,223				1,313				2,753				2,426
Total revenues			334,793				293,844				640,002				544,255
Operating expenses:
Cost of goods sold:
Net warehouse club			279,993				245,333				534,419				453,844
Export			861				320				1,661				669
Selling, general and administrative:
Warehouse club operations			28,544				26,024				55,829				49,251
General and administrative			7,812				7,870				15,352				15,186
Preopening expenses			99				215				99				987
Asset impairment and closure costs			16				14				264				33
Provision for settlement of litigation, including changes in fair market value of put agreement			—				3,386				—				3,386
Total operating expenses			317,325				283,162				607,624				523,356
Operating income			17,468				10,682				32,378				20,899
Other income (expense):
Interest income			115				364				241				774
Interest expense			(609	)			(470	)			(1,190	)			(529	)
Other income (expense), net			(42	)			(37	)			(62	)			(84	)
Total other income (expense)			(536	)			(143	)			(1,011	)			161
Income from continuing operations before provision for income taxes, loss of unconsolidated affiliate and minority interest			16,932				10,539				31,367				21,060
Provision for income taxes			(4,090	)			(890	)			(7,737	)			(4,605	)
Loss of unconsolidated affiliate			(7	)			—				(12	)			—
Minority interest			(85	)			(160	)			(150	)			(290	)
Income from continuing operations			12,750				9,489				23,468				16,165
Income (loss) from discontinued operations, net of tax			(63	)			27				(81	)			45
Net income		$	12,687			$	9,516			$	23,387			$	16,210
Basic income per share:
Continuing operations		$	0.44			$	0.33			$	0.81			$	0.56
Discontinued operations, net of tax		$	—			$	—			$	—			$	—
Net income		$	0.44			$	0.33			$	0.81			$	0.56
Diluted income per share:
Continuing operations		$	0.43			$	0.33			$	0.80			$	0.56
Discontinued operations, net of tax		$	—			$	—			$	—			$	—
Net income		$	0.43			$	0.33			$	0.80			$	0.56
Shares used in per share computations:
Basic			28,916				28,848				28,888				28,815
Diluted			29,179				29,233				29,145				29,207
Dividends per share		$	0.50			$	0.32			$	0.50			$	0.32

 

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PRICESMART, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED—AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

 

		February 28, 2009				August 31, 2008
ASSETS
Current Assets:
Cash and cash equivalents		$	29,888			$	48,121
Short-term restricted cash			9,500				536
Receivables, net of allowance for doubtful accounts of $6 and $11 in February 2009 and August 2008, respectively			3,765				2,455
Merchandise inventories			120,753				113,894
Deferred tax asset – current			2,083				2,179
Prepaid expenses and other current assets			18,931				16,669
Notes receivable – short term			2,006				2,104
Assets of discontinued operations			882				1,247
Total current assets			187,808				187,205
Long-term restricted cash			583				673
Property and equipment, net			217,934				199,576
Goodwill			37,902				39,248
Deferred tax assets – long term			19,984				21,198
Other assets			3,805				3,512
Investment in unconsolidated affiliates			7,610				—
Total Assets		$	475,626			$	451,412
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-term borrowings			3,659				3,473
Accounts payable			102,430				96,120
Accrued salaries and benefits			7,466				8,271
Deferred membership income			8,707				7,764
Income taxes payable			6,055				3,695
Common stock subject to put agreement			—				161
Other accrued expenses			13,626				11,877
Dividend payable			7,392				4,744
Long-term debt, current portion			3,616				2,737
Liabilities of discontinued operations			249				277
Deferred tax liability – current			114				486
Total current liabilities			153,314				139,605
Deferred tax liability – long term			1,339				2,339
Long-term portion of deferred rent			2,695				2,412
Accrued closure costs			3,611				3,489
Long-term income taxes payable, net of current portion			3,471				5,553
Long-term debt, net of current portion			30,101				23,028
Total liabilities			194,531				176,426
Minority interest			636				480
Stockholders’ Equity:
Common stock, 0.0001 par value, 45,000,000 shares authorized; 30,244,086 and 30,195,788 shares issued, respectively, and 29,591,125 and 29,615,226 shares outstanding (net of treasury shares), respectively			3				3
Additional paid-in capital			375,120				373,192
Tax benefit from stock-based compensation			4,420				4,563
Accumulated other comprehensive loss			(16,096	)			(12,897	)
Accumulated deficit			(68,907	)			(77,510	)
Less: treasury stock at cost; 652,961 shares as of February 28, 2009 and 580,562 shares as of August 31, 2008			(14,081	)			(12,845	)
Total stockholders’ equity			280,459				274,506
Total Liabilities and Stockholders’ Equity		$	475,626			$	451,412