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San Diego, CA (July 10, 2019) - PriceSmart, Inc. (NASDAQ: PSMT), operator of 43 warehouse clubs in 12 countries and one U.S. territory, today announced its results of operations for the third quarter of fiscal year 2019 which ended on May 31, 2019.
Total revenues for the third quarter of fiscal year 2019 increased 0.8% to $788.6 million compared to $782.2 million in the third quarter of the prior year. For the third quarter of fiscal year 2019, net merchandise sales increased 0.6% to $755.0 million from $750.5 million in the third quarter of fiscal year 2018. Foreign currency exchange rate fluctuations impacted net merchandise sales negatively by $27.9 million or 3.7% versus the same period in the prior year.
The Company had 42 clubs in operation as of May 31, 2019, compared to 41 warehouse clubs in operation as of May 31, 2018.
Comparable net merchandise sales, for the 40 warehouse clubs that have been open for greater than 13 ½ calendar months, decreased 0.8% for the 13-week period ended June 2, 2019 compared to the same period in the prior year. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by $27.5 million or 3.8% versus the same period in the prior year.
The Company recorded operating income for the third quarter of fiscal year 2019 of $22.0 million, as compared to operating income of $28.4 million in the prior year period. Net income attributable to PriceSmart, Inc. (which excludes results from minority interests in joint ventures), was $14.1 million, or $0.46 per diluted share, in the third quarter of fiscal year 2019 compared to $18.7 million, or $0.61 per diluted share, in the same period last year. The third quarter fiscal 2019 earnings were negatively impacted by $2.9 million or $0.09 per share from costs related to investments to expand our omni-channel capabilities, combined with net operating results of the Aeropost legacy business.
The Company reports comparable net merchandise sales on a “same week” basis with 13 weeks in each quarter beginning on a Monday and ending on a Sunday. The periods are established at the beginning of the fiscal year to provide as close a match as possible to the calendar month and quarter that is used for financial reporting purposes. This approach equalizes the number of weekend days and weekdays in each period for improved sales comparison, as we experience higher merchandise club sales on the weekends. Each of the warehouse clubs used in the calculations was open for at least 13 ½ calendar months before its results for the current period were compared with its results for the prior period.
The term “currency exchange rates” refers to the currency exchange rates we use to convert net merchandise and comparable net merchandise sales for all countries where the functional currency is not the U.S. dollar into U.S. dollars. We calculate the effect of changes in currency exchange rates as the difference between current period activities translated using the current period's currency exchange rates, and current period activities translated using the comparable prior year period's currency exchange rates. The disclosure of the effects of currency exchange rate fluctuations on the Company’s results permits investors to understand better our underlying performance.
PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Thursday, July 11, 2019, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing (855) 209-8211 for domestic callers or (412) 317-5214 for international callers, and asking to join the PriceSmart, Inc. call. A digital replay will be available through July 18, 2019, following the conclusion of the call by dialing (877) 344-7529 for domestic callers, or (412) 317-0088 for international callers, and entering replay access code 10131782.
The following information was filed by Pricesmart Inc (PSMT) on Wednesday, July 10, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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