PriceSmart Announces January Sales and Property Acquisition for Sixth New Warehouse Club in Costa Rica
SAN DIEGO, CA -- (Marketwire) -- 02/07/13 -- PriceSmart, Inc. (NASDAQ: PSMT) today announced that for the month of January 2013, net sales increased 10.2% to $173.5 million from $157.4 million in January a year earlier. For the four months ended January 31, 2013, net sales increased 11.5% to $950.7 million from $853.0 million in the same period last year. There were 30 warehouse clubs in operation at the end of January 2013 compared to 29 warehouse clubs in operation in January 2012.
For the four weeks ended January 27, 2013, comparable warehouse sales for the 29 warehouse clubs open at least 13 1/2 full months increased 3.9% compared to the same four-week period last year. Due to the timing of New Year's Day, the four-week period ending January 27, 2013 had one fewer sales day than the comparable four-week period last year. The loss of one sales day in the January 2013 four-week period caused comparable sales to be approximately 3.7 percentage points lower than if the two four-week periods had the same number of sales days. For the twenty-one-week period ended January 27, 2013, comparable warehouse sales increased 8.8% compared to the comparable twenty-one-week period a year ago.
Additionally, the Company announced that on February 4th, 2013 it acquired approximately 20,370 square meters of land located in La Union, Cartago, Costa Rica, upon which PriceSmart plans to construct its sixth Membership Warehouse Club in Costa Rica. PriceSmart currently anticipates opening the Cartago Club in the fall of 2013. PriceSmart entered the Costa Rica market thirteen years ago and is currently operating five PriceSmart Membership Warehouse Clubs in Costa Rica, pending the opening of this planned sixth Club.
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 30 warehouse clubs in 12 countries and one U.S. territory (five in Costa Rica; four each in Panama and Trinidad; three each in Guatemala and the Dominican Republic; two each in Colombia, 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," "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: 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 its business; the Company faces significant competition; future sales growth could be dependent upon the Company acquiring suitable sites for additional warehouse clubs; the Company faces difficulties in the shipment of, and risks inherent in the acquisition and importation of, merchandise to its warehouse clubs; the Company is exposed to weather and other natural disaster risks; general economic conditions could adversely impact the Company's business in various respects; the Company is subject to changes in relationships and agreements with third parties with which the Company does business; a few of the Company's stockholders own nearly 30.4% 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 rates; 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; although the Company takes steps to continuously review, enhance, and implement improvements to its internal controls, there may be material weaknesses or significant deficiencies that the Company has not yet identified; 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 for the fiscal year ended August 31, 2012, filed pursuant to the Securities Exchange Act of 1934 on October 30, 2012. 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
John M. Heffner
Principal Financial Officer and Principal Accounting Officer