NET MERCHANDISE SALES GREW
9.5%
COMPARABLE NET MERCHANDISE SALES INCREASED
6.2%
$0.94 EARNINGS PER DILUTED
SHARE
SAN
DIEGO, Oct. 30, 2024 /PRNewswire/ -- PriceSmart,
Inc. ("PriceSmart" or the "Company") (NASDAQ: PSMT), operator of
54 warehouse clubs in 12 countries and one U.S.
territory, today announced results for the fiscal fourth quarter of
2024, which ended on August 31, 2024.
Fourth Quarter Financial Results
Total revenues for the fourth quarter of fiscal year 2024
increased 9.6% to $1.23 billion compared to $1.12 billion in the same period of the prior
year. For the fourth quarter of fiscal year 2024, net merchandise
sales increased 9.5% to $1.19
billion from $1.09
billion in the fourth quarter of fiscal year 2023. Net
merchandise sales - constant currency increased 9.3% over the same
prior year period. Foreign currency exchange rate fluctuations
impacted net merchandise sales positively by $2.7 million, or 0.2%, versus the same
period in the prior year.
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 6.2% for the 13-week period ended September 1,
2024 compared to the comparable 13-week period of the prior year.
Comparable net merchandise sales - constant currency for the 13
weeks ended September 1, 2024 increased 6.0% compared to the
comparable period of the prior year. Foreign currency exchange rate
fluctuations impacted comparable net merchandise sales positively
by 0.2% versus the comparable period in the prior year.
The Company recorded operating income of $49.2 million during the fourth quarter of
fiscal year 2024 compared to operating income of $32.1 million in the fourth quarter of fiscal
year 2023, which included a $9.2
million charge to settle minimum tax litigation in one of
our markets and a $5.7 million asset
impairment charge and related closure costs, in the prior year
period.
Net income increased 89.0% to $29.1 million, or
$0.94 per diluted share, in the
fourth quarter of fiscal year 2024 compared to $15.4 million, or $0.49 per diluted share, in the fourth quarter of
fiscal year 2023, which included of a negative impact of
$0.30 per diluted share related to
the settlement of minimum tax litigation and $0.18 per diluted share for an asset impairment
charge and related closure costs, in the fourth quarter of fiscal
year 2023.
Adjusted net income for the fourth quarter of fiscal year 2024
was $29.1 million, or an
adjusted $0.94 per diluted share,
compared to adjusted net income of $20.4 million, or an adjusted $0.65 per diluted share in the prior year period,
which included of a negative impact of $0.30 per diluted share for costs related to the
reserve for the minimum tax settlement in the comparable prior year
period.
Adjusted EBITDA for the fourth quarter of fiscal year 2024 was
$70.7 million compared to
$57.2 million, inclusive of the
$9.2 million minimum tax settlement,
in the same period last year.
Year-to-Date Financial Results
Total revenues for the fiscal year ended August 31,
2024 increased 11.4% to $4.91
billion compared to $4.41
billion in the prior year. For fiscal year 2024, net
merchandise sales increased 11.2% to $4.78 billion from $4.30
billion in the prior year. Net merchandise sales - constant
currency increased 8.6% over the prior year. Foreign currency
exchange rate fluctuations impacted net merchandise sales
positively by $114.1 million,
or 2.6%, versus the prior year.
Comparable net merchandise sales for the 51 warehouse clubs that
have been open for greater than 13 ½ calendar months increased 7.7%
for the 52-week period ended September 1, 2024 compared to the
comparable 52-week period of the prior year. Comparable net
merchandise sales - constant currency for the 52 weeks ended
September 1, 2024 increased 5.2% compared to the comparable
period in the prior year. Foreign currency exchange rate
fluctuations impacted comparable net merchandise sales positively
by 2.5% versus the comparable period in the prior year.
The Company recorded operating income during fiscal year 2024 of
$220.9 million compared to operating
income of $184.5 million, which
includes a $9.2 million charge to
settle minimum tax litigation in one of our markets and a
$5.7 million asset impairment charge
and related closure costs, in the prior year.
Net income increased 27.2% to $138.9
million, or $4.57 per diluted
share, in fiscal year 2024 compared to $109.2 million, or $3.50 per diluted share, inclusive of a negative
impact of $0.30 per diluted share
related to the settlement of minimum tax litigation and
$0.18 per diluted share for an asset
impairment charge and related closure costs, in fiscal year
2023.
Adjusted net income for fiscal year 2024 was $138.9 million, or an adjusted $4.57 per diluted share, compared to adjusted net
income of $126.5 million, or an
adjusted $4.06 per diluted share,
inclusive of a negative impact of $0.30 per diluted share for costs related to the
reserve for the minimum tax settlement, in the prior year.
Adjusted EBITDA for fiscal year 2024 was $303.6 million compared to $275.7 million, inclusive of the
$9.2 million minimum tax settlement,
in fiscal year 2023.
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
Guatemala, located in
Quetzaltenango, approximately 122 miles west from the nearest club
in the capital of Guatemala City.
This club will be built on a four-acre property and is anticipated
to open in the summer of 2025. Once this new club is open,
PriceSmart will operate 56 warehouse clubs in total.
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 San
Diego, owns and operates U.S.-style membership shopping
warehouse clubs in Latin America
and the Caribbean, selling high
quality merchandise and services at low prices to PriceSmart
Members. PriceSmart operates 54 warehouse clubs in 12 countries and
one U.S. territory (ten in Colombia; eight in Costa Rica; seven in Panama; six in Guatemala; five in Dominican Republic; four each in Trinidad and El
Salvador; three in Honduras; two each in Nicaragua and Jamaica; and one each in Aruba, Barbados and the United States Virgin Islands). In addition,
the Company plans to open one warehouse club in Cartago, Costa
Rica in the spring of 2025 and one warehouse club in
Quetzaltenango, Guatemala in the
summer of 2025. Once these two new clubs are open, the Company will
operate 56 warehouse clubs.
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 U.S., as
well as other risks that are not presently known to the Company or
that the Company considers to be immaterial.
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,
2024
|
|
August 31,
2023
|
|
August 31,
2024
|
|
August 31,
2023
|
|
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,
2024
|
|
August 31,
2023
|
|
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 $52 as of August 31, 2024 and $67 as
of August 31, 2023, respectively
|
18,847
|
|
17,904
|
|
Merchandise
inventories
|
528,678
|
|
471,407
|
|
Prepaid expenses and
other current assets (includes $4,480 and $0 as of August 31, 2024
and August 31, 2023,
respectively, for the fair value of derivative
instruments)
|
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 $1,482 and $7,817 as of August 31, 2024 and August
31, 2023, respectively, for the
fair value of derivative instruments)
|
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 $1,179 and $1,913 as of
August 31, 2024 and
August 31, 2023, respectively, for the fair value of
derivative instruments)
|
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 $2,100 and $3,321 for the fair value of
derivative instruments and $12,742 and $12,105 for
post-employment plans as of August 31, 2024 and August 31, 2023,
respectively)
|
14,842
|
|
15,425
|
|
Total
Liabilities
|
899,729
|
|
898,565
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
Common stock $0.0001
par value, 45,000,000 shares authorized; 32,570,858 and 31,934,900
shares issued and 30,635,556
and 30,976,941 shares outstanding (net of treasury shares) as of
August 31, 2024 and August 31, 2023, respectively
|
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 Trinidad sustainable packaging plant, the gain
on the acquisition of a building, and the tax impact of the
foregoing adjustments on net income. We define adjusted net income
per diluted share as adjusted net income divided by the
weighted-average diluted shares outstanding.
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,
2024
|
|
August 31,
2023
|
|
August 31,
2024
|
|
August 31,
2023
|
|
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
$7.7 million of separation costs associated with the departure
of our former Chief Executive Officer in February 2023.
|
|
(2)
|
Reflects $2.1 million
of Aeropost-related write-offs in the first quarter of fiscal
year 2023 and $660,000 of a receivable written-off in connection
with the settlement in the third quarter of fiscal year 2023 of a
claim for indemnification from the buyer of the Aeropost
business.
|
|
(3)
|
Reflects $2.3 million
of VAT receivables deemed not recoverable and written-off in the
third quarter of fiscal year 2023 following unfavorable court
rulings.
|
|
(4)
|
Reflects $5.7 million
of 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 Trinidad sustainable packaging
plant.
|
|
(5)
|
Reflects a $950,000
gain related to a building we acquired upon the early termination
of a lease in which we were the lessor of the land on which the
building was constructed by and abandoned by one of our
tenants.
|
|
(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,
2024
|
|
August 31,
2023
|
|
August 31,
2024
|
|
August 31,
2023
|
|
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 U.S. dollars). This line item
includes a gain of $950,000 associated with the acquisition of a
building upon a lease termination in the fourth quarter of fiscal
year 2023.
|
|
(2)
|
Reflects
$7.7 million of separation costs associated with the departure
of our former Chief Executive Officer in February 2023.
|
|
(3)
|
Reflects $2.1 million
of Aeropost-related write-offs in the first quarter of fiscal year
2023 and $660,000 of a receivable written-off in connection with
the settlement in the third quarter of fiscal year 2023 of a claim
for indemnification from the buyer of the Aeropost
business.
|
|
(4)
|
Reflects $2.3 million
of VAT receivables related to prior periods deemed not recoverable
and written-off in the third quarter of fiscal year 2023 following
unfavorable court rulings.
|
|
(5)
|
Reflects $5.7 million
of 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 Trinidad sustainable packaging
plant.
|
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 U.S.
dollars is sensitive to changes in foreign currency exchange rates
and can have a significant impact on our reported financial
results. We believe that constant currency is a useful measure,
indicating the actual growth of our operations. When we use the
term "net merchandise sales - constant currency," it means that we
have translated current year net merchandise sales at prior year
monthly average exchanges rates. Net merchandise sales - constant
currency results exclude the effects of foreign currency
translation. Similarly, when we use the term "comparable net
merchandise sales - constant currency," it means that we have
translated current year comparable net merchandise sales at prior
year monthly average exchanges rates. Comparable net merchandise
sales - constant currency results exclude the effects of foreign
currency translation.
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
Merchandise
Sales
|
|
%
Growth
|
|
Net
Merchandise
Sales
|
|
%
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.