PART I - FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Presents PriceSmart, Inc.'s unaudited consolidated financial statements for the three and nine months ended May 31, 2023 [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Consolidated Balance Sheet Highlights (in thousands) | Account | May 31, 2023 (Unaudited) | August 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$1,933,346** | **$1,808,400** | | Total Current Assets | $847,190 | $773,579 | | Merchandise Inventories | $442,580 | $464,411 | | **Total Liabilities** | **$843,653** | **$817,327** | | Total Current Liabilities | $587,265 | $579,456 | | **Total Stockholders' Equity** | **$1,089,693** | **$991,073** | [Consolidated Statements of Income](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Income Statement Summary (in thousands, except per share data) | Metric | Three Months Ended May 31, 2023 | Three Months Ended May 31, 2022 | Nine Months Ended May 31, 2023 | Nine Months Ended May 31, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Merchandise Sales | $1,070,263 | $999,011 | $3,211,725 | $2,954,950 | | Total Revenues | $1,096,654 | $1,030,810 | $3,293,649 | $3,044,723 | | Operating Income | $43,052 | $33,762 | $152,379 | $128,101 | | Net Income Attributable to PriceSmart, Inc. | $29,572 | $19,258 | $93,824 | $81,230 | | Diluted EPS | $0.94 | $0.62 | $3.01 | $2.63 | [Consolidated Statements of Comprehensive Income](index=10&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) - For the nine months ended May 31, 2023, comprehensive income attributable to PriceSmart was **$119.8 million**, a significant increase from **$70.6 million** in the prior-year period. This was driven by higher net income and a positive foreign currency translation adjustment of **$26.6 million**, compared to a negative adjustment of **$15.1 million** in the same period last year[21](index=21&type=chunk) [Consolidated Statements of Equity](index=11&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20EQUITY) - Total stockholders' equity increased from **$991.1 million** at August 31, 2022, to **$1.09 billion** at May 31, 2023. The increase was primarily driven by net income of **$93.8 million** and other comprehensive income of **$26.0 million**, partially offset by dividends paid and treasury stock purchases[26](index=26&type=chunk) [Consolidated Statements of Cash Flows](index=13&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Cash Flow Summary for Nine Months Ended May 31 (in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $184,681 | $64,311 | | Net cash used in investing activities | ($197,814) | ($61,404) | | Net cash provided by (used in) financing activities | ($13,051) | $11,365 | | Effect of exchange rate changes on cash | $11,183 | ($7,034) | | **Net (decrease) increase in cash** | **($15,001)** | **$7,238** | [Notes to Consolidated Financial Statements](index=16&type=section&id=NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) - As of May 31, 2023, the Company operated **51 warehouse clubs** and plans to open **three more**: one in Medellín, Colombia (August 2023), one in Escuintla, Guatemala (fall 2023), and one in Santa Ana, El Salvador (early 2024), which will bring the total to **54 clubs**[33](index=33&type=chunk) - The company faces challenges with tax receivables. In one country, a **$2.3 million** VAT receivable was written off in Q3 FY2023 after an unfavorable court ruling. In two other countries, minimum tax rules based on sales have led to significant income tax receivables totaling **$11.3 million** as of May 31, 2023, which management believes are recoverable[50](index=50&type=chunk)[49](index=49&type=chunk) - In connection with the resignation of CEO Sherry Bahrambeygui, the company recognized a one-time separation charge of approximately **$7.7 million** in Q2 FY2023[84](index=84&type=chunk) - The company is involved in a legal dispute with Click USA Inc. regarding the sale of Aeropost. PriceSmart has determined a settlement is probable and has written off a related receivable of approximately **$0.75 million**[126](index=126&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=39&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses Q3 and YTD FY2023 financial performance, focusing on revenue growth, margin improvements, and currency impacts [Overview and Business Strategy](index=39&type=section&id=Overview%20and%20Business%20Strategy) - PriceSmart operates **51 warehouse clubs** in **12 countries** and one U.S. territory, with plans to open **three new clubs** in Colombia, Guatemala, and El Salvador by early 2024[171](index=171&type=chunk)[182](index=182&type=chunk) - The company's growth strategy is focused on three main drivers: - Investing in remodeling existing clubs, adding new locations, and opening more distribution centers - Increasing membership value through expanded services (e.g., optical, audiology), and growing the private label 'Member's Selection' brand - Driving incremental sales via PriceSmart.com and enhancing digital and technological capabilities[195](index=195&type=chunk) [Results of Operations](index=48&type=section&id=Results%20of%20Operations) Net Merchandise Sales Growth by Segment (Q3 FY2023 vs Q3 FY2022) | Segment | Q3 2023 Sales (in thousands) | % of Sales | % Change from Prior Year | | :--- | :--- | :--- | :--- | | Central America | $656,719 | 61.4% | +11.8% | | Caribbean | $311,578 | 29.1% | +7.3% | | Colombia | $101,966 | 9.5% | -15.7% | | **Total** | **$1,070,263** | **100.0%** | **+7.1%** | - For Q3 FY2023, currency fluctuations had a net positive impact of **$14.9 million (1.5%)** on consolidated net merchandise sales. This was driven by appreciation in Costa Rica, offset by a significant devaluation of the Colombian peso, which had a **negative 16.3% impact** on that segment's sales[218](index=218&type=chunk)[220](index=220&type=chunk)[222](index=222&type=chunk) - Comparable net merchandise sales for the 13 weeks ended June 4, 2023, increased by **5.8%**. On a constant currency basis, the increase was **4.3%**[199](index=199&type=chunk)[230](index=230&type=chunk) - Membership income increased **8.4%** in Q3 FY2023 to **$16.7 million**, driven by a **2.2% increase** in total member accounts to nearly **1.8 million**. The trailing twelve-month renewal rate was **87.1%**[235](index=235&type=chunk)[236](index=236&type=chunk)[239](index=239&type=chunk) - Total gross margin as a percent of net merchandise sales was **15.3%** for Q3 FY2023, an increase of **110 basis points** from the prior year, primarily due to significant markdowns taken in Q3 FY2022 on slow-moving inventory[247](index=247&type=chunk) - Selling, general, and administrative (SG&A) expenses increased **10.7%** in Q3 FY2023 compared to the prior year, driven by higher compensation, travel, professional fees, and a **$2.3 million** VAT receivable write-off[199](index=199&type=chunk)[251](index=251&type=chunk)[296](index=296&type=chunk) [Liquidity and Capital Resources](index=63&type=section&id=Liquidity%20and%20Capital%20Resources) - Net cash provided by operating activities for the nine months ended May 31, 2023, was **$184.7 million**, a significant increase from **$64.3 million** in the prior-year period, mainly due to favorable changes in working capital[277](index=277&type=chunk) - The company faces U.S. dollar illiquidity in certain markets. In Trinidad, the balance of Trinidad dollar-denominated cash and investments was **$13.5 million** as of May 31, 2023. In Honduras, the central bank began limiting U.S. dollar conversions in Q3 FY2023, affecting the company's ability to convert approximately **$15.9 million** in local currency[190](index=190&type=chunk)[191](index=191&type=chunk)[276](index=276&type=chunk) - On February 3, 2023, the company declared a semi-annual dividend of **$0.46 per share**, payable on August 31, 2023, resulting in a total annual dividend of **$0.92 per share** for fiscal 2023[280](index=280&type=chunk) [Critical Accounting Estimates](index=66&type=section&id=Critical%20Accounting%20Estimates) - Management identifies several critical accounting estimates requiring significant judgment, including Income Taxes, Tax Receivables (VAT and income tax), impairment of Long-lived Assets, and Goodwill[289](index=289&type=chunk)[293](index=293&type=chunk)[300](index=300&type=chunk)[301](index=301&type=chunk) - The company wrote off a **$2.3 million** VAT receivable in Q3 FY2023 following unfavorable court rulings in one country. However, it has not placed an allowance on other significant tax receivables, believing it is more likely than not they will be recovered[296](index=296&type=chunk)[297](index=297&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) No material changes in market risk factors since FY2022, with ongoing U.S. dollar illiquidity in Trinidad and new limitations in Honduras - There have been no material changes in market risk factors since the fiscal year 2022 Form 10-K[303](index=303&type=chunk) - The company continues to experience U.S. dollar illiquidity in Trinidad and began facing similar issues in Honduras during Q3 FY2023, which impedes the ability to convert local currencies to U.S. dollars[304](index=304&type=chunk) [Controls and Procedures](index=69&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls were effective as of May 31, 2023, with no material changes to internal controls over financial reporting - The Principal Executive Officer and Principal Financial Officer concluded that the Company's disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period[308](index=308&type=chunk) - There has been no change in internal control over financial reporting during the most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, internal controls[309](index=309&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=71&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Ongoing legal claims from ordinary business are not expected to materially affect the company's financial condition or operations - The company states that ongoing legal claims from the ordinary course of business are not expected to have a material adverse effect[313](index=313&type=chunk) [Risk Factors](index=71&type=section&id=ITEM%201A.%20RISK%20FACTORS) Supplements 2022 risk factors with a new risk concerning the CEO transition, highlighting potential disruption and adverse financial impact - A new risk factor was added regarding the transition associated with the resignation of the Chief Executive Officer, effective February 3, 2023[315](index=315&type=chunk) - The company warns that an inadequate leadership transition could cause disruption, loss of institutional knowledge, and adversely affect financial performance and strategic plans[317](index=317&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) Details Q3 FY2023 share repurchases for tax withholding, noting no activity under the $75 million stock buyback program - In Q3 FY2023, the Company repurchased **2,394 shares** to cover employees' tax withholding obligations related to vesting of restricted stock[320](index=320&type=chunk)[321](index=321&type=chunk) - No repurchases were made under the authorized **$75 million** Stock Buyback Program during the quarter ended May 31, 2023[321](index=321&type=chunk) [Defaults Upon Senior Securities](index=72&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) None - None reported[322](index=322&type=chunk) [Mine Safety Disclosures](index=72&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) Not applicable - Not applicable[323](index=323&type=chunk) [Other Information](index=72&type=section&id=ITEM%205.%20OTHER%20INFORMATION) None - None reported[324](index=324&type=chunk) [Exhibits](index=73&type=section&id=ITEM%206.%20EXHIBITS) Lists exhibits filed with the Form 10-Q, including corporate governance documents, a separation agreement, and required certifications - Lists exhibits filed with the report, including CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and Inline XBRL documents[326](index=326&type=chunk)

PriceSmart, Inc. (NASDAQ:PSMT) Q2 2023 Earnings Conference Call April 11, 2023 12:00 PM ET Company Participants Michael McCleary - Executive Vice President and Chief Financial Officer Robert Price - Interim Chief Executive Officer and Chairman Conference Call Participants Hector Maya - Scotiabank Jon Braatz - Kansas City Capital Operator Good afternoon, everyone, and welcome to PriceSmart, Inc.'s Earnings Release Conference Call for the Second Quarter of Fiscal Year 2023, which ended on February 28, 2023. A ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 28, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to COMMISSION FILE NUMBER 000-22793 PriceSmart, Inc. (Exact name of registrant as specified in its charter) Delaware 33-0628530 (State or ot ...

PriceSmart, Inc. (NASDAQ:PSMT) Q1 2023 Earnings Conference Call January 10, 2023 12:00 PM ET Company Participants Michael McCleary - CFO Robert Price - Chairman Conference Call Participants Jon Braatz - Kansas City Capital Hector Maya - Scotiabank Operator Good afternoon, everyone, and welcome to PriceSmart, Inc.'s Earnings Release Conference Call for the First Quarter of Fiscal Year 2023, which ended on November 30th, 2022. After remarks from our Company's representatives Robert Price, Chairman, and Michae ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2022 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to COMMISSION FILE NUMBER 000-22793 PriceSmart, Inc. (Exact name of registrant as specified in its charter) Delaware 33-0628530 (State or other jurisdiction o ...

PriceSmart, Inc. (NASDAQ:PSMT) Q4 2022 Earnings Conference Call November 1, 2022 12:00 PM ET Company Participants Sherry Bahrambeygui - CEO Michael McCleary - CFO Conference Call Participants Jon Braatz - Kansas City Capital Operator Good morning or afternoon, everyone, and welcome to PriceSmart, Incorporated's Earnings Release Conference Call for the Fourth Quarter of Fiscal Year 2022, which ended on August 31, 2022. After remarks from our company's representatives, Sherry Bahrambeygui, Chief Executive Off ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended August 31, 2022 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to COMMISSION FILE NUMBER 000-22793 PriceSmart, Inc. (Exact name of registrant as specified in its charter) Delaware 33-0628530 (State or other jurisdiction of incorpora ...

PriceSmart, Inc. (NASDAQ:PSMT) Q3 2022 Earnings Conference Call July 12, 2022 12:00 PM ET Company Participants Sherry Bahrambeygui - CEO Michael McCleary - CFO Conference Call Participants Rodrigo Echagaray - Scotiabank Operator Good afternoon, everyone, and welcome to PriceSmart, Incorporated's Earnings Release Conference Call for the Third Quarter of Fiscal Year 2022, which ended on May 31, 2022. After remarks from our company's representatives, Ms. Sherry Bahrambeygui, Chief Executive Officer; and Michae ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2022 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to COMMISSION FILE NUMBER 000-22793 PriceSmart, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organi ...

PriceSmart, Inc. (NASDAQ:PSMT) Q2 2022 Earnings Conference Call April 8, 2022 12:00 PM ET Company Participants Sherry Bahrambeygui - CEO Michael McCleary - CFO Conference Call Participants Jon Braatz - Kansas City Capital Associates Rodrigo Echagaray - Scotiabank Operator Good afternoon, everyone, and welcome to PriceSmart, Inc.'s Earnings Release Conference Call for the Second Quarter of Fiscal Year 2022, which ended on February 28, 2022. After remarks from our company's representatives, Ms. Sherry Bahramb ...