SAN DIEGO, CA--(Marketwired - Apr 9, 2013) - PriceSmart,

SAN DIEGO, CA--(Marketwired - Apr 9, 2013) - PriceSmart, Inc. (NASDAQ: PSMT) today announced its results of operations for the second quarter of fiscal year 2013 which ended on February 28, 2013. For the second quarter of fiscal year 2013, net warehouse club sales increased 10.1% to $591.9 million from $537.6 million in the second quarter of fiscal year 2012. Total revenues for the second quarter of fiscal year 2013 were $607.4 million compared to $548.4 million in the comparable period of the prior year. The Company had 30 warehouse clubs in operation as of February 2013 and 29 clubs in operation as of February 2012. The Company recorded operating income during the quarter of $36.5 million, as compared to operating income of $30.3 million in the prior year. Net income was $24.9 million, or $0.82 per diluted share, in the second quarter of fiscal year 2013 as compared to $20.2 million, or $0.67 per diluted share, in the second quarter of fiscal year 2012. For the first six months of fiscal year 2013, net warehouse club sales increased 10.9% to $1,115.5 million from $1,005.8 million in the first six months of fiscal year 2012. Total revenues for the first half of fiscal year 2013 increased 11.4% to $1,142.7 million from $1,025.9 million in the same period of the prior year. For the first six months of fiscal year 2013, the Company recorded operating income of $66.2 million and net income of $44.9 million, or $1.48 per diluted share. During the same six month period in fiscal year 2012, the Company recorded operating income of $54.6 million and net income of $34.2 million, or $1.14 per diluted share. The Company also announced that for the month of March 2013, net warehouse club sales increased 11.5% to $192.3 million, from $172.3 million in March a year earlier. For the seven months ended March 31, 2013, net warehouse club sales increased 11.0% to $1,307.8 million from $1,178.1 million for the seven months ended March 31, 2012. There were 30 warehouse clubs in operation at the end of March 2013 and 29 warehouse clubs in operation at the end of March 2012. For the four weeks ended March 31, 2013, comparable net warehouse club sales for the 29 warehouse clubs open at least 13 1/2 full months increased 7.9%, compared to the same four-week period last year. For the thirty-week period ended March 31, 2013, comparable net warehouse club sales increased 8.7%, compared to the comparable thirty-week period a year ago. PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Wednesday, April 10, 2013, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing (888) 364-3109 toll free, and entering participant code 1318246. A digital replay will be available through April 30, 2013, following the conclusion of the call by dialing (888) 203-1112 for domestic callers, or (719) 457-0820 for international callers, and entering relay passcode 1318246. 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 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 30.1% 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.     PRICESMART, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED--AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)       Three Months Ended   Six Months Ended     February 28, 2013   February 29, 2012   February 28, 2013   February 29, 2012 Revenues:                                 Net warehouse club sales   $ 591,855     $ 537,619     $ 1,115,454     $ 1,005,811   Export sales     6,323       3,459       9,396       5,708   Membership income     8,326       6,393       15,999       12,724   Other income     906       935       1,847       1,614   Total revenues     607,410       548,406       1,142,696       1,025,857   Operating expenses:                                 Cost of goods sold:                                 Net warehouse club     504,725       458,508       949,669       858,373   Export     5,986       3,292       8,821       5,453   Selling, general and administrative:                                 Warehouse club operations     48,213       45,762       94,055       87,653   General and administrative     11,888       10,508       23,046       19,619   Pre-opening expenses     147       (1 )     884       161   Total operating expenses     570,959       518,069       1,076,475       971,259   Operating income     36,451       30,337       66,221       54,598   Other income (expense):                                 Interest income     446       205       740       389   Interest expense     (1,306 )     (1,317 )     (2,524 )     (2,571 ) Other income (expense), net     (312 )     832       (370 )     (437 ) Total other expense     (1,172 )     (280 )     (2,154 )     (2,619 ) Income from continuing operations before provision for income taxes and income (loss) of unconsolidated affiliates     35,279       30,057       64,067       51,979   Provision for income taxes     (10,393 )     (9,843 )     (19,172 )     (17,776 ) Income (loss) of unconsolidated affiliates     (4 )     3       (8 )     10   Income from continuing operations     24,882       20,217       44,887       34,213   Income (loss) from discontinued operations, net of tax     --       3       --       (4 ) Net income   $ 24,882     $ 20,220     $ 44,887     $ 34,209   Net income per share available for distribution:                                 Basic net income per share from continuing operations   $ 0.82     $ 0.67     $ 1.48     $ 1.14   Basic net income (loss) per share from discontinued operations, net of tax   $ --     $ --     $ --     $ --   Basic net income per share   $ 0.82     $ 0.67     $ 1.48     $ 1.14   Diluted net income per share from continuing operations   $ 0.82     $ 0.67     $ 1.48     $ 1.14   Diluted net income (loss) per share from discontinued operations, net of tax   $ --     $ --     $ --     $ --   Diluted net income per share   $ 0.82     $ 0.67     $ 1.48     $ 1.14   Shares used in per share computations:                                 Basic     29,626       29,541       29,609       29,522   Diluted     29,636       29,553       29,620       29,535   Dividends per share   $ --     $ 0.60     $ 0.60     $ 0.60                                         PRICESMART, INC. CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)           February 28, 2013 (Unaudited)     August 31, 2012 ASSETS                 Current Assets:                 Cash and cash equivalents   $ 101,202     $ 91,248   Short-term restricted cash     4,367       1,241   Receivables, net of allowance for doubtful accounts of $0 and $1 as of February 28, 2013 and August 31, 2012, respectively     3,447       5,786   Merchandise inventories     219,454       201,043   Deferred tax assets - current     6,042       5,619   Prepaid expenses and other current assets     33,049       29,955   Total current assets     367,561       334,892   Long-term restricted cash     34,565       36,505   Property and equipment, net     326,636       299,567   Goodwill     36,699       36,886   Deferred tax assets - long term     13,399       14,835   Other non-current assets     5,765       5,468   Investment in unconsolidated affiliates     8,100       7,559   Total Assets   $ 792,725     $ 735,712   LIABILITIES AND EQUITY                 Current Liabilities:                 Accounts payable   $ 196,171     $ 173,197   Accrued salaries and benefits     13,028       14,729   Deferred membership income     16,723       13,747   Income taxes payable     7,735       8,193   Other accrued expenses     16,365       17,516   Dividends payable     9,065       --   Long-term debt, current portion     7,791       7,237   Deferred tax liability - current     180       122   Total current liabilities     267,058       234,741   Deferred tax liability - long-term     2,322       2,191   Long-term portion of deferred rent     4,400       4,336   Long-term income taxes payable, net of current portion     2,147       2,512   Long-term debt, net of current portion     71,389       71,422   Other long-term liabilities (includes $1.8 million and $1.2 million for the fair value of derivative instruments and $444 and $396 for the defined benefit plans as of February 28, 2013 and August 31, 2012, respectively)     2,228       1,596   Total liabilities     349,544       316,798   Equity:                 Common stock, $0.0001 par value, 45,000,000 shares authorized; 30,870,305 and 30,855,651 shares issued and 30,183,105 and 30,210,255 shares outstanding (net of treasury shares) as of February 28, 2013 and August 31, 2012, respectively     3       3   Additional paid-in capital     387,692       384,154   Tax benefit from stock-based compensation     7,509       6,680   Accumulated other comprehensive loss     (36,804 )     (33,182 ) Retained earnings     104,496       77,739   Less: treasury stock at cost; 687,200 and 645,426 as of February 28, 2013 and August 31, 2012, respectively     (19,715 )     (16,480 ) Total equity     443,181       418,914   Total Liabilities and Equity   $ 792,725     $ 735,712                                       For further information, please contact John M. Heffner Principal Financial Officer and Principal Accounting Officer (858) 404-8826

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