PriceSmart, Inc. (NASDAQ:PSMT) Q4 2019 Earnings Conference Call October 30, 2019 12:00 PM ET Company Participants Maarten Jager - CFO, EVP & Principal Accounting Officer Sherry Bahrambeygui - CEO & Director Conference Call Participants Jonathan Braatz - Kansas City Capital Associates Rodrigo Echagaray - Scotiabank Operator Good day, everyone, and welcome to PriceSmart, Inc. Earnings Release Conference Call for the Fourth Quarter of Fiscal Year 2019 ending on August 31, 2019. [Operator Instructions]. After r ...

Financial Data and Key Metrics Changes - Total revenues for Q3 were $788.6 million, an increase of 0.8% year-over-year [17] - Net income for Q3 was $14.1 million or $0.46 per share, down from $18.7 million or $0.61 per share in the prior year [19] - Merchandise margins decreased to 13.9% from 14.6% a year ago, while total gross margins decreased to 16.1% from 16.6% [28] Business Line Data and Key Metrics Changes - Central American segment saw a 1.2% decrease in total merchandise sales and a 1.8% decrease in comparable sales [20] - Caribbean segment reported total merchandise sales growth of 6.5% with comparable sales growth of 2.9% [21] - Colombia experienced a 3.9% decrease in total merchandise sales with a comparable sales decline of 4.5% [22] Market Data and Key Metrics Changes - Membership count increased to approximately 1.6 million, a 2.4% increase year-to-date [24] - Comparable net merchandise sales for June increased by 1.9%, despite a negative FX impact of 3.1% [25] Company Strategy and Development Direction - The company is focusing on opening smaller format clubs to broaden growth opportunities in secondary locations [7][11] - There is an ongoing effort to develop an omnichannel member experience, integrating digital capabilities with physical stores [13] - The company aims to improve supply chain efficiency and reduce out-of-stock situations [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model despite headwinds from currency fluctuations and political instability in certain markets [34] - The company is optimistic about the performance of new club formats and their potential to drive growth in underserved markets [46] - Management is committed to enhancing margins and addressing competitive dynamics [40] Other Important Information - The company is investing in green initiatives, including biodegradable packaging and solar power in new club openings [9] - The effective tax rate for the quarter was 34.7%, up from 30.3% in the same quarter last year, largely due to U.S. tax reform impacts [30] Q&A Session Summary Question: Concerns about gross margins and competitive conditions - Management does not expect the current margin levels to be the new normal and is focused on improving margins [37][40] Question: Impact of one-time items on margins - Markdowns in nonfoods contributed approximately 30 to 35 basis points to margin reduction [42] Question: Potential for expansion into new markets - Management is evaluating opportunities in additional countries, leveraging digital capabilities [59] Question: Real estate challenges in Colombia - Management is actively pursuing real estate opportunities in Colombia and believes in the market's potential despite currency challenges [52] Question: Tax rate concerns - The tax liability is primarily generated in the markets where the company operates, with ongoing evaluations for optimization [84]

PriceSmart, Inc. May 2018 Forward Looking Statements This presentation may contain forward-looking statements concerning the Company's anticipated future revenues and earnings, adequacy of future cash flow, proposed warehouse club openings, the Company's performance relative to competitors, the outcome of tax proceedings and related matters. These forward-looking statements include, but are not limited to, statements containing the words "expect," "believe," "will," "may," "should," "project," "estimate," " ...

Start Time: 12:00 January 1, 0000 12:49 PM ET PriceSmart, Inc. (NASDAQ:PSMT) Q2 2019 Earnings Conference Call April 10, 2019, 12:00 PM ET Company Participants Sherry Bahrambeygui - CEO Maarten Jager - EVP and CFO Conference Call Participants Jon Braatz - Kansas City Capital Ronald Bookbinder - IFS Securities Donatas Uzkurelis - LGM Investments Operator Good day, and welcome to PriceSmart Incorporated Earnings Release Conference Call for the Second Quarter of Fiscal Year 2019, the three and six-month period ...

Financial Data and Key Metrics Changes - Total revenues for Q1 2019 were $779.6 million, an increase of 1.6% year-over-year, including a $9.2 million contribution from the acquired Aeropost business [22][24] - Net merchandising sales were $747.4 million, a slight increase of 0.3% year-over-year, with currency fluctuations negatively impacting sales by 2.6% [23][24] - Net income for Q1 2019 was $14.6 million, or $0.48 per share, down from $22.5 million, or $0.74 per share, in the prior year, impacted by costs associated with the CEO departure and Aeropost [24][25] Business Line Data and Key Metrics Changes - The Central American region experienced a 3% decrease in total merchandise sales and a 4.5% decrease in comparable sales, influenced by economic weakness and currency impacts [26][27] - The Caribbean region saw total merchandise sales growth of 4.8%, with comparable sales slightly negative at -2.2%, driven by strong sales in the US Virgin Islands [28][29] - Colombia reported a 5.8% growth year-over-year in total merchandise sales, with comparable sales growth of 5.4%, despite currency impacts [30] Market Data and Key Metrics Changes - Membership accounts increased by 3.4% to approximately 1.6 million, with membership income up by 2.9% and a renewal rate of 85% [31] - The Central American segment faced a 2.6% decrease in comparable sales due to economic conditions in Costa Rica, Panama, Guatemala, and Nicaragua [27] - The Caribbean segment's currency impact on total and comparable sales was negative 1.4% and -1.2%, respectively [29] Company Strategy and Development Direction - The company aims to drive same-store sales growth by improving core business operations and adhering to the Six Rights of merchandising [20][21] - There is a focus on accelerating digital transformation to adapt to the evolving omnichannel retail environment [21] - The company is exploring new market opportunities and reenergizing a culture of performance and accountability [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged external challenges, including economic, social, and political factors affecting several markets, particularly Nicaragua and Costa Rica [33][81] - The company is optimistic about improving member value through better purchasing strategies and operational efficiencies [34] - The effective tax rate is expected to rise to 37% due to CEO departure impacts and U.S. tax reform timing [46] Other Important Information - The company ended the quarter with cash and cash equivalents of $88.4 million, a decrease of $8.5 million, but cash provided by operating activities improved significantly [52] - Merchandise margins decreased slightly to 14.2%, while total gross margins increased to 16.2% due to higher margins from non-merchandise revenue [40] Q&A Session Summary Question: Has there been traction with Aeropost in December? - Management noted early signs of sales on pricesmart.com and the ability to renew memberships online, indicating progress in integrating Aeropost capabilities [61][62] Question: What is the outlook for Aeropost spending? - Management indicated a measured approach to investments in Aeropost, with plans for additional investments as evaluations continue [65][67] Question: What were the weaker merchandise categories? - Hardlines were identified as a challenging category, with efforts underway to improve vendor relations and logistics [89] Question: What is the impact of the NICA Act on operations in Nicaragua? - Management is closely monitoring the situation in Nicaragua, emphasizing the safety of members and employees as a priority [82] Question: What is the timeline for new club openings? - Management is focused on a new format concept that requires less real estate, with potential openings in late spring [108][109]