PRICESMART ANNOUNCES FISCAL 2024 FOURTH QUARTER OPERATING RESULTS AND PLANS FOR SEVENTH WAREHOUSE CLUB IN GUATEMALA
PriceSmart (NASDAQ: PSMT) reported strong fiscal Q4 2024 results with total revenues increasing 9.6% to $1.23 billion. Net merchandise sales grew 9.5% to $1.19 billion, while comparable sales rose 6.2%. Net income surged 89.0% to $29.1 million, or $0.94 per diluted share. For the full fiscal year 2024, total revenues increased 11.4% to $4.91 billion, with net income up 27.2% to $138.9 million ($4.57 per diluted share). The company announced plans to build its seventh warehouse club in Quetzaltenango, Guatemala, expected to open in summer 2025.
PriceSmart (NASDAQ: PSMT) ha riportato risultati forti per il quarto trimestre fiscale del 2024, con ricavi totali aumentati del 9,6% a 1,23 miliardi di dollari. Le vendite nette di merce sono cresciute del 9,5% a 1,19 miliardi di dollari, mentre le vendite comparabili sono aumentate del 6,2%. L'utile netto è esploso dell'89,0% a 29,1 milioni di dollari, ovvero 0,94 dollari per azione diluita. Per l'intero anno fiscale 2024, i ricavi totali sono aumentati dell'11,4% a 4,91 miliardi di dollari, con l'utile netto in aumento del 27,2% a 138,9 milioni di dollari (4,57 dollari per azione diluita). L'azienda ha annunciato piani per costruire il settimo club di magazzino a Quetzaltenango, in Guatemala, previsto per aprire nell'estate del 2025.
PriceSmart (NASDAQ: PSMT) reportó resultados sólidos para el cuarto trimestre fiscal de 2024, con ingresos totales que aumentaron un 9.6% a 1.23 mil millones de dólares. Las ventas netas de mercancía crecieron un 9.5% a 1.19 mil millones de dólares, mientras que las ventas comparables aumentaron un 6.2%. El ingreso neto se disparó un 89.0% a 29.1 millones de dólares, o 0.94 dólares por acción diluida. Para todo el año fiscal 2024, los ingresos totales aumentaron un 11.4% a 4.91 mil millones de dólares, con el ingreso neto subiendo un 27.2% a 138.9 millones de dólares (4.57 dólares por acción diluida). La empresa anunció planes para construir su séptimo club de almacén en Quetzaltenango, Guatemala, que se espera que abra en el verano de 2025.
PriceSmart (NASDAQ: PSMT)는 2024 회계연도 4분기 강력한 실적을 보고했으며, 총 수익이 9.6% 증가하여 12억 3천만 달러에 이릅니다. 순상품 판매는 9.5% 증가하여 11억 9천만 달러에 달하고, 동종매장 매출은 6.2% 상승했습니다. 순이익은 89.0% 폭증하여 2천9백만 달러, 또는 희석주당 0.94달러에 이릅니다. 2024 회계연도 전체로 보면, 총 수익은 11.4% 증가하여 49억 1천만 달러가 되었고, 순이익은 27.2% 증가하여 1억 3천8백9십만 달러(희석주당 4.57달러)로 기록되었습니다. 회사는 과테말라 케첼텐안고에 일곱 번째 창고 클럽을 건설할 계획을 발표했으며, 2025년 여름에 개장할 예정입니다.
PriceSmart (NASDAQ: PSMT) a annoncé de solides résultats pour le quatrième trimestre de l'exercice 2024, avec un chiffre d'affaires total en hausse de 9,6 % à 1,23 milliard de dollars. Les ventes nettes de marchandises ont augmenté de 9,5 % pour atteindre 1,19 milliard de dollars, tandis que les ventes comparables ont progressé de 6,2 %. Le bénéfice net a bondi de 89,0 % pour atteindre 29,1 millions de dollars, soit 0,94 dollar par action diluée. Pour l'ensemble de l'exercice 2024, le chiffre d'affaires total a augmenté de 11,4 % pour atteindre 4,91 milliards de dollars, avec un bénéfice net en hausse de 27,2 % à 138,9 millions de dollars (4,57 dollars par action diluée). L'entreprise a annoncé son intention de construire son septième entrepôt club à Quetzaltenango, au Guatemala, dont l'ouverture est prévue pour l'été 2025.
PriceSmart (NASDAQ: PSMT) hat starke Ergebnisse für das vierte Quartal des Geschäftsjahres 2024 veröffentlicht, mit einem Anstieg der Gesamterlöse um 9,6% auf 1,23 Milliarden Dollar. Der Nettoumsatz stieg um 9,5% auf 1,19 Milliarden Dollar, während die vergleichbaren Verkaufszahlen um 6,2% zulegten. Der Nettogewinn sprunghaft um 89,0% auf 29,1 Millionen Dollar oder 0,94 Dollar pro verwässerter Aktie. Für das gesamte Geschäftsjahr 2024 stiegen die Gesamterlöse um 11,4% auf 4,91 Milliarden Dollar, während der Nettogewinn um 27,2% auf 138,9 Millionen Dollar (4,57 Dollar pro verwässerter Aktie) zulegte. Das Unternehmen kündigte Pläne an, seinen siebten Lagerclub in Quetzaltenango, Guatemala, zu errichten, der voraussichtlich im Sommer 2025 eröffnet wird.
- Total revenues increased 9.6% to $1.23 billion in Q4 2024
- Net income grew 89.0% to $29.1 million in Q4 2024
- Comparable net merchandise sales increased 6.2%
- Operating income rose to $49.2 million from $32.1 million
- Full-year revenues up 11.4% to $4.91 billion
- Warehouse club count increased to 54 from 51 year-over-year
- None.
Insights
PriceSmart's Q4 FY2024 results show robust growth with
Net income nearly doubled, increasing
The expansion into Quetzaltenango, Guatemala represents a strategic move into secondary markets, indicating market saturation in primary cities and potential for growth in underserved areas. The
The company's membership-based model continues to show resilience in Latin American markets, with consistent growth across multiple territories. The planned expansion suggests confidence in Guatemala's retail market potential, particularly in regions outside the capital, marking a shift in regional development strategy.
NET MERCHANDISE SALES GREW 9.5%
COMPARABLE NET MERCHANDISE SALES INCREASED
Fourth Quarter Financial Results
Total revenues for the fourth quarter of fiscal year 2024 increased
The Company had 54 warehouse clubs in operation as of August 31, 2024 compared to 51 warehouse clubs in operation as of August 31, 2023.
Comparable net merchandise sales for the 51 warehouse clubs that have been open for greater than 13 ½ calendar months increased
The Company recorded operating income of
Net income increased
Adjusted net income for the fourth quarter of fiscal year 2024 was
Adjusted EBITDA for the fourth quarter of fiscal year 2024 was
Year-to-Date Financial Results
Total revenues for the fiscal year ended August 31, 2024 increased
Comparable net merchandise sales for the 51 warehouse clubs that have been open for greater than 13 ½ calendar months increased
The Company recorded operating income during fiscal year 2024 of
Net income increased
Adjusted net income for fiscal year 2024 was
Adjusted EBITDA for fiscal year 2024 was
New Club Growth
The Company expects to formalize a land lease in the first quarter of fiscal year 2025 and build its seventh warehouse club in
Note Regarding Non-GAAP (Generally Accepted Accounting Principles) Financial Measures
The foregoing discussion of the Company's operating results includes references to adjusted net income, adjusted net income per diluted share, adjusted EBITDA, net merchandise sales - constant currency and comparable net merchandise sales - constant currency, which are non-GAAP financial measures. We believe these supplemental measures are useful to investors and analysts because they exclude items that we do not believe are indicative of our core operating performance. These non-GAAP financial measures are defined and reconciled to the most comparable GAAP measures later in this document.
Conference Call Information
PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Thursday, October 31, 2024, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing toll free (800) 549-8228 or (646) 564-2877 for international callers and asking to join the PriceSmart earnings call. A digital replay will be available shortly following the conclusion of the call through Thursday, November 7, 2024 by dialing (888) 660-6264 for domestic callers, or (646) 517-3975 for international callers, and entering replay passcode 28615#.
About PriceSmart
PriceSmart, headquartered in
This press release may contain forward-looking statements concerning PriceSmart, Inc.'s ("PriceSmart", the "Company" or "we") anticipated future revenues and earnings, adequacy of future cash flows, future dividends, omni-channel initiatives, proposed warehouse club openings, the Company's performance relative to competitors 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," "intend," and like expressions, and the negative thereof. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, but not limited to: various political, economic and compliance risks associated with our international operations, adverse changes in economic conditions in our markets, natural disasters, volatility in currency exchange rates and illiquidity of certain local currencies in our markets, competition, consumer and small business spending patterns, political instability, increased costs associated with the integration of online commerce with our traditional business, whether the Company can successfully execute strategic initiatives, our reliance on third party service providers, including those who support transaction and payment processing, data security and other technology services, cybersecurity breaches that could cause disruptions in our systems or jeopardize the security of Member, employee or business information, cost increases from product and service providers, interruption of supply chains, novel coronavirus (COVID-19) related factors and challenges, exposure to product liability claims and product recalls, recoverability of moneys owed to PriceSmart from governments, and other important factors discussed in the Risk Factors section of the Company's most recent Annual Report on Form 10-K, and other factors discussed from time to time in other filings with the SEC, which are accessible on the SEC's website at www.sec.gov, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements speak only as of the date that they are made, and the Company does not undertake to update them, except as required by law. In addition, these risks are not the only risks that the Company faces. The Company could also be affected by additional factors that apply to all companies operating globally and in the
For further information, please contact Michael L. McCleary, EVP, Chief Financial Officer and Principal Accounting Officer (858) 404-8826 or send an email to ir@pricesmart.com.
PRICESMART, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED—AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) | |||||||
Three Months Ended | Years Ended | ||||||
August 31, | August 31, | August 31, | August 31, | ||||
Revenues: | |||||||
Net merchandise sales | $ 1,192,658 | $ 1,088,981 | $ 4,783,119 | $ 4,300,706 | |||
Export sales | 9,332 | 8,054 | 39,438 | 31,741 | |||
Membership income | 19,674 | 17,242 | 75,240 | 66,048 | |||
Other revenue and income | 4,381 | 3,916 | 16,101 | 13,347 | |||
Total revenues | 1,226,045 | 1,118,193 | 4,913,898 | 4,411,842 | |||
Operating expenses: | |||||||
Cost of goods sold: | |||||||
Net merchandise sales | 1,005,356 | 919,211 | 4,029,490 | 3,622,354 | |||
Export sales | 8,821 | 7,624 | 37,484 | 30,157 | |||
Selling, general and administrative: | |||||||
Warehouse club and other operations | 119,665 | 110,578 | 466,457 | 417,272 | |||
General and administrative | 41,703 | 34,509 | 156,385 | 134,783 | |||
Reserve for AMT settlement | — | 7,179 | — | 7,179 | |||
Separation costs associated with Chief Executive Officer departure | — | — | — | 7,747 | |||
Pre-opening expenses | — | 848 | 970 | 1,432 | |||
Asset impairment and closure costs | — | 5,658 | — | 5,658 | |||
Loss on disposal of assets | 1,296 | 449 | 2,168 | 744 | |||
Total operating expenses | 1,176,841 | 1,086,056 | 4,692,954 | 4,227,326 | |||
Operating income | 49,204 | 32,137 | 220,944 | 184,516 | |||
Other expense: | |||||||
Interest income | 2,437 | 3,611 | 11,049 | 9,871 | |||
Interest expense | (3,271) | (2,710) | (12,959) | (11,020) | |||
Other expense, net | (6,563) | (2,361) | (17,607) | (14,156) | |||
Total other expense | (7,397) | (1,460) | (19,517) | (15,305) | |||
Income before provision for income taxes and income (loss) of unconsolidated affiliates | 41,807 | 30,677 | 201,427 | 169,211 | |||
Provision for income taxes | (12,723) | (15,304) | (62,618) | (59,951) | |||
Income (loss) of unconsolidated affiliates | (16) | 8 | 66 | (55) | |||
Net income | $ 29,068 | $ 15,381 | $ 138,875 | $ 109,205 | |||
Net income per share available for distribution: | |||||||
Basic | $ 0.94 | $ 0.49 | $ 4.57 | $ 3.51 | |||
Diluted | $ 0.94 | $ 0.49 | $ 4.57 | $ 3.50 | |||
Shares used in per share computations: | |||||||
Basic | 29,972 | 30,796 | 30,032 | 30,763 | |||
Diluted | 29,972 | 30,832 | 30,032 | 30,786 | |||
PRICESMART, INC. CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA) | |||
August 31, | August 31, | ||
ASSETS | |||
Current Assets: | |||
Cash and cash equivalents | $ 125,364 | $ 239,984 | |
Short-term restricted cash | 1,383 | 2,865 | |
Short-term investments | 100,165 | 91,081 | |
Receivables, net of allowance for credit losses of | 18,847 | 17,904 | |
Merchandise inventories | 528,678 | 471,407 | |
Prepaid expenses and other current assets (includes | 57,910 | 53,866 | |
Total current assets | 832,347 | 877,107 | |
Long-term restricted cash | 9,564 | 9,353 | |
Property and equipment, net | 936,108 | 850,328 | |
Operating lease right-of-use assets, net | 96,415 | 114,201 | |
Goodwill | 43,197 | 43,110 | |
Deferred tax assets | 36,618 | 32,039 | |
Other non-current assets (includes | 61,563 | 68,991 | |
Investment in unconsolidated affiliates | 6,882 | 10,479 | |
Total Assets | $ 2,022,694 | $ 2,005,608 | |
LIABILITIES AND EQUITY | |||
Current Liabilities: | |||
Short-term borrowings | $ 8,007 | $ 8,679 | |
Accounts payable | 485,961 | 453,229 | |
Accrued salaries and benefits | 48,263 | 45,441 | |
Deferred income | 38,079 | 32,613 | |
Income taxes payable | 6,516 | 9,428 | |
Other accrued expenses and other current liabilities (includes | 50,035 | 57,273 | |
Operating lease liabilities, current portion | 7,370 | 7,621 | |
Long-term debt, current portion | 35,917 | 20,193 | |
Total current liabilities | 680,148 | 634,477 | |
Deferred tax liability | 1,644 | 1,936 | |
Long-term income taxes payable, net of current portion | 4,762 | 5,045 | |
Long-term operating lease liabilities | 103,890 | 122,195 | |
Long-term debt, net of current portion | 94,443 | 119,487 | |
Other long-term liabilities (includes | 14,842 | 15,425 | |
Total Liabilities | 899,729 | 898,565 | |
Stockholders' Equity: | |||
Common stock | 3 | 3 | |
Additional paid-in capital | 514,542 | 497,434 | |
Accumulated other comprehensive loss | (164,590) | (163,992) | |
Retained earnings | 890,272 | 817,559 | |
Less: treasury stock at cost, 1,935,302 shares as of August 31, 2024 and 957,959 shares as of August 31, 2023 | (117,262) | (43,961) | |
Total Stockholders' Equity | 1,122,965 | 1,107,043 | |
Total Liabilities and Equity | $ 2,022,694 | $ 2,005,608 | |
Reconciliation of Non-GAAP Financial Measures
The following tables calculate the Company's adjusted net income, adjusted net income per diluted share, adjusted EBITDA, net merchandise sales - constant currency and comparable net merchandise sales - constant currency, all of which are considered non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. These measures are customary for our industry and commonly used by competitors. However, these non-GAAP financial measures should not be reviewed in isolation or considered as an alternative to any other performance measure derived in accordance with GAAP and may not be comparable to similarly titled measures used by other companies in our industry or across different industries.
Adjusted net income and adjusted net income per diluted share are important measures used by management to compare the performance of our core operations between periods. We define adjusted net income as net income, as reported, adjusted for: separation costs associated with the departure of our former Chief Executive Officer, the write-off of certain Aeropost receivables, the write-off of certain VAT receivables following unfavorable court rulings, impairment charges primarily related to the write down of assets in connection with our decision in the fourth quarter of fiscal year 2023 to seek to sell our
We believe adjusted net income and adjusted net income per diluted share are useful metrics to investors and analysts because they present more accurate year-over-year comparisons for our net income and net income per diluted share because adjusted items are not the result of our normal operations. We note that no adjustments to net income or net income per diluted share have been made for the three-month and twelve-month periods ended August 31, 2024.
The following table shows the Company's reconciliation of net income to adjusted net income and adjusted net income per diluted share for the periods indicated:
Three Months Ended | Years Ended | ||||||
(Amounts in thousands, except per share data) | August 31, | August 31, | August 31, | August 31, | |||
Net income as reported | $ 29,068 | $ 15,381 | $ 138,875 | $ 109,205 | |||
Adjustments: | |||||||
Separation costs associated with Chief Executive Officer departure (1) | — | — | — | 7,747 | |||
Aeropost-related write-offs (2) | — | — | — | 2,786 | |||
VAT receivable write-off (3) | — | — | — | 2,309 | |||
Asset impairment and closure costs (4) | — | 5,658 | — | 5,658 | |||
Gain on acquisition of building (5) | — | (948) | — | (948) | |||
Tax impact of adjustments to net income (6) | — | 266 | — | (284) | |||
Adjusted net income | $ 29,068 | $ 20,357 | $ 138,875 | $ 126,473 | |||
Net income per diluted share | $ 0.94 | $ 0.49 | $ 4.57 | $ 3.50 | |||
Separation costs associated with Chief Executive Officer departure | — | — | — | 0.23 | |||
Aeropost-related write-offs | — | — | — | 0.09 | |||
VAT receivable write-off | — | — | — | 0.08 | |||
Asset impairment and closure costs | — | 0.18 | — | 0.18 | |||
Gain on acquisition of building | — | (0.02) | — | (0.02) | |||
Adjusted net income per diluted share | $ 0.94 | $ 0.65 | $ 4.57 | $ 4.06 | |||
(1) | Reflects |
(2) | Reflects |
(3) | Reflects |
(4) | Reflects |
(5) | Reflects a |
(6) | Reflects the tax effect of the above-mentioned adjustments. |
Adjusted EBITDA
Adjusted EBITDA is defined as net income before interest expense, net, provision for income taxes and depreciation and amortization, adjusted for the impact of certain other items, including interest income; other income (expense), net; separation costs associated with Chief Executive Officer departure; asset impairment and closure costs; Aeropost write-offs; and the write-off of certain VAT receivables following unfavorable court rulings. The following is a reconciliation of our Net income to Adjusted EBITDA for the periods presented:
Three Months Ended | Years Ended | ||||||
(Amounts in thousands) | August 31, | August 31, | August 31, | August 31, | |||
Net income as reported | $ 29,068 | $ 15,381 | $ 138,875 | $ 109,205 | |||
Adjustments: | |||||||
Interest expense | 3,271 | 2,710 | 12,959 | 11,020 | |||
Provision for income taxes | 12,723 | 15,304 | 62,618 | 59,951 | |||
Depreciation and amortization | 21,497 | 19,434 | 82,611 | 72,698 | |||
Interest income | (2,437) | (3,611) | (11,049) | (9,871) | |||
Other expense, net (1) | 6,563 | 2,361 | 17,607 | 14,156 | |||
Separation costs associated with Chief Executive Officer departure (2) | — | — | — | 7,747 | |||
Aeropost-related write-offs (3) | — | — | — | 2,786 | |||
VAT receivable write-off (4) | — | — | — | 2,309 | |||
Asset impairment and closure costs (5) | — | 5,658 | — | 5,658 | |||
Adjusted EBITDA | $ 70,685 | $ 57,237 | $ 303,621 | $ 275,659 | |||
(1) | Primarily consists of foreign currency losses or gains due to the revaluation of monetary assets and liabilities (primarily |
(2) | Reflects |
(3) | Reflects |
(4) | Reflects |
(5) | Reflects |
Net Merchandise Sales - Constant Currency and Comparable Net Merchandise Sales – Constant Currency
As a multinational enterprise, we are exposed to changes in foreign currency exchange rates. The translation of the operations of our foreign-based entities from their local currencies into
Net merchandise sales growth rate on a net merchandise sales - constant currency basis is calculated as follows:
August 31, 2024 | |||||||
Three Months Ended | Year Ended | ||||||
(Amounts in thousands, except % growth) | Net | % Growth | Net | % Growth | |||
Net merchandise sales | $ 1,192,658 | 9.5 % | $ 4,783,119 | 11.2 % | |||
Favorable impact of foreign currency exchange | 2,700 | 0.2 % | 114,121 | 2.6 % | |||
Net merchandise sales on a constant-currency basis | $ 1,189,958 | 9.3 % | $ 4,668,998 | 8.6 % | |||
Comparable net merchandise sales growth rate on a net merchandise sales - constant currency basis is calculated as follows:
September 1, 2024 | |||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||
% Growth | % Growth | ||
Comparable net merchandise sales | 6.2 % | 7.7 % | |
Favorable impact of foreign currency exchange | 0.2 % | 2.5 % | |
Comparable net merchandise sales on a constant-currency basis | 6.0 % | 5.2 % | |
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SOURCE PriceSmart, Inc.
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