NET MERCHANDISE SALES GREW 11.6%COMPARABLE NET MERCHANDISE SALES INCREASED 7.8% $1.08 EARNINGS PER DILUTED SHARE SAN DIEGO, July 10, 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 third quarter of 2024, which ended on May 31, 2024. Third Quarter Financial Results Total revenues for the third quarter of fiscal year 2024 increased 12.1% to $1.23 billion compared to $1.10 billion in the comparable period of the prior year. For the third quarter of fiscal year 2024, net merchandise sales increased 11.6% to $1.19 billion from $1.07 billion in the third quarter of fiscal year 2023. Net merchandise sales - constant currency increased 9.1% over the comparable prior year period. Foreign currency exchange rate fluctuations impacted net merchandise sales positively by $27.3 million, or 2.5%, versus the same period in the prior year.   The Company had 54 warehouse clubs in operation as of May 31, 2024 compared to 51 warehouse clubs in operation as of May 31, 2023. Comparable net merchandise sales for the 50 warehouse clubs that have been open for greater than 13 ½ calendar months increased 7.8% for the 13-week period ended June 2, 2024 compared to the comparable 13-week period of the prior year. Comparable net merchandise sales - constant currency for the 13 weeks ended June 2, 2024 increased 5.6%. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales positively by 2.2% versus the same period in the prior year. The Company recorded operating income during the fiscal third quarter of $49.9 million compared to operating income of $43.1 million in the prior year period. Net income increased 9.9% to $32.5 million, or $1.08 per diluted share, in the third quarter of fiscal year 2024 compared to $29.6 million, or $0.94 per diluted share, in the third quarter of fiscal year 2023. Adjusted net income for the third quarter of fiscal year 2024 was $32.5 million, or an adjusted $1.08 per diluted share, compared to adjusted net income of $32.5 million, or an adjusted $1.04 per diluted share, in the comparable prior year period. Adjusted EBITDA for the third quarter of fiscal year 2024 was $71.0 million compared to $63.9 million in the same period last year. Year-to-Date Financial Results Total revenues for the nine months ended May 31, 2024 increased 12.0% to $3.69 billion compared to $3.29 billion in the comparable period of the prior year. For the first nine months of fiscal year 2024, net merchandise sales increased 11.8% to $3.59 billion from $3.21 billion in the comparable prior year period. Net merchandise sales - constant currency increased 8.3% over the comparable prior year period. Foreign currency exchange rate fluctuations impacted net merchandise sales positively by $111.4 million, or 3.5%, versus the same period in the prior year. Comparable net merchandise sales for the 50 warehouse clubs that have been open for greater than 13 ½ calendar months increased 8.2% for the 39-week period ended June 2, 2024 compared to the comparable 39-week period of the prior year. Comparable net merchandise sales - constant currency for the 39 weeks ended June 2, 2024 increased 5.0%. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales positively by 3.2% versus the same period in the prior year. The Company recorded operating income during the first nine months of fiscal year 2024 of $171.7 million compared to operating income of $152.4 million in the prior year period. Net income increased 17.0% to $109.8 million, or $3.62 per diluted share, in the first nine months of fiscal year 2024 compared to $93.8 million, or $3.01 per diluted share, in the first nine months of fiscal year 2023. Adjusted net income for the first nine months of fiscal year 2024 was $109.8 million, or an adjusted $3.62 per diluted share, compared to adjusted net income of $106.1 million, or an adjusted $3.41 per diluted share, in the comparable prior year period. Adjusted EBITDA for the first nine months of fiscal year 2024 was $232.9 million compared to $218.4 million in the same period last year. 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, July 11, 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, July 18, 2024 by dialing (888) 660-6264  for domestic callers, or (646) 517-3975 for international callers, and entering replay passcode 97656#. 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. Once this new club is open, the Company will operate 55 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 PRICESMART, INC.CONSOLIDATED STATEMENTS OF INCOME(UNAUDITED—AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) Three Months Ended Nine Months Ended May 31,2024 May 31,2023 May 31,2024 May 31,2023 Revenues: Net merchandise sales $       1,194,531 $       1,070,263 $       3,590,461 $       3,211,725 Export sales 11,586 6,347 30,106 23,687 Membership income 19,279 16,735 55,566 48,806 Other revenue and income 4,032 3,309 11,720 9,431 Total revenues 1,229,428 1,096,654 3,687,853 3,293,649 Operating expenses: Cost of goods sold: Net merchandise sales 1,008,721 906,613 3,024,134 2,703,143 Export sales 10,935 5,981 28,663 22,533 Selling, general and administrative: Warehouse club and other operations 119,053 106,172 346,792 306,694 General and administrative 40,434 34,343 114,682 100,274 Separation costs associated with Chief Executive Officer departure — — — 7,747 Pre-opening expenses 26 495 970