PriceSmart Announces Fourth Quarter and Fiscal Year Results of Operations
/EINPresswire.com/ -- SAN DIEGO, CA -- (Marketwired) -- 10/29/15 -- PriceSmart, Inc. (NASDAQ: PSMT) today announced its results of operations for the fourth quarter and the twelve months of fiscal year 2015 which ended on August 31, 2015.
For the fourth quarter of fiscal year 2015, net warehouse club sales increased 13.0% to $677.3 million from $599.6 million in the fourth quarter of fiscal year 2014. Total revenues for the fourth quarter of fiscal year 2015 were $699.2 million compared to $622.6 million in the comparable period of the prior year. The Company had 37 warehouse clubs in operation as of August 2015 compared to 33 warehouse clubs in operation as of August 2014.
The Company recorded operating income during the quarter of $34.9 million, as compared to operating income of $33.8 million in the prior year. Net income was $22.4 million, or $0.75 per diluted share, in the fourth quarter of fiscal year 2015 as compared to $21.9 million, or $0.73 per diluted share, in the fourth quarter of fiscal year 2014.
For the twelve months ended August 31, 2015, net warehouse club sales increased 11.3% to $2.7 billion from $2.4 billion for the twelve months ended August 31, 2014. Total revenues for the twelve months ended August 31, 2015 increased 11.3% to $2.8 billion from $2.5 billion in the same period of the prior year. For the twelve months ended August 31, 2015, the Company recorded operating income of $146.4 million and net income of $89.1 million, or $2.95 per diluted share. During the twelve months ended August 31, 2014, the Company recorded operating income of $136.7 million and net income of $92.9 million, or $3.07 per diluted share.
The Company plans to file its Annual Report on Form 10-K for the year ended August 31, 2015 on October 29, 2015.
PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Friday, October 30, 2015, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing (888) 471-3840 toll free, or (719) 325-2204 for international callers and entering participant code 7637863. A digital replay will be available through November 30, 2015, following the conclusion of the call by dialing (888) 203-1112 for domestic callers, or (719) 457-0820 for international callers, and entering replay passcode 7637863.
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 37 warehouse clubs in 12 countries and one U.S. territory (six each in Costa Rica, and Colombia; five in Panama, four in Trinidad; three each in Guatemala, the Dominican Republic, and Honduras; two in El Salvador; 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, 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 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 inherent risks in the importation of, merchandise to our warehouse clubs; we are exposed to weather and other natural disaster risks; general economic conditions could adversely impact our business in various respects; 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; 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; a few of our stockholders own approximately 27.8% of our voting stock as of August 31, 2014, 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 are subject to volatility in foreign currency exchange rates; 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 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, estimates and judgments by management related to complex accounting matters could significantly affect our financial condition and results of operations; we face increased public company compliance risks and 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, 2015 filed on October 29, 2015 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
(amounts in thousands, except per share data)
Three Months Ended Twelve Months Ended
August 31, August 31,
---------------------- ----------------------
2015 2014 2015 2014
---------- ---------- ---------- ----------
Revenues:
Net warehouse club sales $ 677,282 $ 599,568 $2,721,132 $2,444,314
Export sales 9,154 12,217 33,279 31,279
Membership income 11,471 9,762 43,673 38,063
Other income 1,275 1,008 4,519 3,911
---------- ---------- ---------- ----------
Total revenues 699,182 622,555 2,802,603 2,517,567
---------- ---------- ---------- ----------
Operating expenses:
Cost of goods sold:
Net warehouse club 577,302 508,310 2,321,074 2,083,933
Export 8,812 11,621 31,765 29,731
Selling, general and
administrative:
Warehouse club operations 62,279 53,884 241,285 212,476
General and administrative 14,690 12,879 56,371 49,944
Pre-opening expenses 326 1,392 3,737 3,331
Loss/(gain) on disposal of
assets 918 699 2,005 1,445
---------- ---------- ---------- ----------
Total operating expenses 664,327 588,785 2,656,237 2,380,860
---------- ---------- ---------- ----------
Operating income 34,855 33,770 146,366 136,707
Other income (expense):
Interest income 245 277 1,058 853
Interest expense (1,681) (1,328) (6,440) (4,295)
Other income (expense), net 214 (528) (4,388) 984
---------- ---------- ---------- ----------
Total other income (expense) (1,222) (1,579) (9,770) (2,458)
---------- ---------- ---------- ----------
Income from operations
before provision for income
taxes and income/(loss) of
unconsolidated affiliates 33,633 32,191 136,596 134,249
Provision for income taxes (11,188) (10,337) (47,566) (41,372)
Income/(loss) of
unconsolidated affiliates 2 2 94 9
---------- ---------- ---------- ----------
Net income $ 22,447 $ 21,856 $ 89,124 $ 92,886
========== ========== ========== ==========
Net income per share:
Basic net income per share $ 0.75 $ 0.73 $ 2.95 $ 3.07
========== ========== ========== ==========
Diluted net income per share $ 0.75 $ 0.73 $ 2.95 $ 3.07
========== ========== ========== ==========
Shares used in per share
computations:
Basic 29,888 29,788 29,848 29,747
========== ========== ========== ==========
Diluted 29,895 29,796 29,855 29,757
========== ========== ========== ==========
Dividends per share $ 0.35 $ 0.35 $ 0.70 $ 0.70
========== ========== ========== ==========
PRICESMART, INC.
CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
August 31,
-------------------
2015 2014
--------- ---------
ASSETS
Current Assets:
Cash and cash equivalents $ 157,072 $ 137,098
Short-term restricted cash 61 2,353
Receivables, net of allowance for doubtful accounts of
$0 as of August 31, 2015 and August 31, 2014,
respectively 9,662 7,910
Merchandise inventories 267,175 226,383
Deferred tax assets - current, net 7,849 6,177
Prepaid expenses and other current assets (includes $0
and $495 as of August 31, 2015 and August 31, 2014,
respectively, for the fair value of derivative
instruments) 22,535 17,260
--------- ---------
Total current assets 464,354 397,181
--------- ---------
Long-term restricted cash 1,464 27,013
Property and equipment, net 433,040 426,325
Goodwill 35,871 36,108
Deferred tax assets - long term 7,464 11,825
Other non-current assets (includes $4,129 and $1,095 as
of August 31, 2015 and August 31, 2014, respectively,
for the fair value of derivative instruments) 39,182 30,755
Investment in unconsolidated affiliates 10,317 8,863
--------- ---------
Total Assets $ 991,692 $ 938,070
========= =========
PRICESMART, INC.
CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
August 31,
--------------------
2015 2014
--------- ---------
LIABILITIES AND EQUITY
Current Liabilities:
Short-term borrowings $ 6,606 $ --
Accounts payable 241,978 223,559
Accrued salaries and benefits 17,977 16,614
Deferred membership income 20,184 17,932
Income taxes payable 9,595 7,718
Other accrued expenses (includes $66 and $14 as of
August 31, 2015 and August 31, 2014, respectively,
for the fair value of foreign currency forward
contracts) 23,558 21,030
Long-term debt, current portion 17,169 11,848
Deferred tax liability - current 30 157
--------- ---------
Total current liabilities 337,097 298,858
Deferred tax liability - long-term 2,193 2,290
Long-term portion of deferred rent 6,595 5,591
Long-term income taxes payable, net of current portion 1,402 1,918
Long-term debt, net of current portion 73,365 79,591
Other long-term liabilities (includes $1,699 and $0
for the fair value of derivative instruments and
$2,757 and $1,557 for post employment plans as of
August 31, 2015 and August 31, 2014, respectively) 4,456 1,557
--------- ---------
Total liabilities 425,108 389,805
Equity:
Common stock, $0.0001 par value, 45,000,000 shares
authorized; 30,977,764 and 30,950,701 shares issued
and 30,184,584 and 30,209,917 shares outstanding (net
of treasury shares) as of August 31, 2015 and August
31, 2014, respectively 3 3
Additional paid-in capital 403,168 397,150
Tax benefit from stock-based compensation 10,711 9,505
Accumulated other comprehensive loss (101,512) (49,286)
Retained earnings 283,611 215,613
Less: treasury stock at cost; 793,180 and 740,784
shares as of August 31, 2015 and August 31, 2014,
respectively (29,397) (24,720)
--------- ---------
Total equity 566,584 548,265
--------- ---------
Total Liabilities and Equity $ 991,692 $ 938,070
========= =========
For further information, please contact
John M. Heffner
Principal Financial Officer and Principal Accounting Officer
(858) 404-8826
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