PriceSmart (PSMT) Feb, Net Sales Increase 6.6%

PriceSmart, Inc. (NASDAQ: PSMT) today announced that for the month of February 2018, net sales increased 6.6% to $228.9 million from $214.6 million in February a year earlier. For the six months ended February 28, 2018, net sales increased 4.9% to $1,562.0 million from $1,488.4 million in the same period last year. There were 40 warehouse clubs in operation at the end of February 2018 compared to 39 warehouse clubs in operation in February 2017.

For the five weeks ended March 4, 2018, comparable warehouse sales for the 39 warehouse clubs open at least 13 1/2 full months increased 4.4% compared to the same five-week period last year. For the twenty-six-week period ended March 4, 2018, comparable warehouse sales increased 3.2% compared to the comparable twenty-six-week period a year ago.

As a result of the Tax Cuts and Jobs Act of 2017 ("Tax Reform"), PriceSmart made a provisional estimate of the one-time transitional repatriation tax on unremitted foreign earnings ("Transition Tax") of approximately $13.4 million, which will be recorded as an income tax expense in the second quarter of fiscal 2018. The cash amounts due for the Transition Tax will be offset by foreign tax credits expected to exceed $10.0 million, with the remainder to be paid over 8 years. Additionally, as a result of Tax Reform, PriceSmart re-measured certain U.S. deferred tax assets and liabilities based on the reduction in US corporate income tax rates from 35% to 21%, and will record a non-cash income tax charge of approximately $600,000 related to this re-measurement in the second quarter of fiscal 2018. These estimated impacts to PriceSmart's income tax provision are based on PriceSmart's current knowledge, assumptions and interpretations of the impact of Tax Reform. The actual impact could be different from estimated provisions based upon a number of additional considerations, including, but not limited to, the issuance of final regulations, refinements in interpretation of Tax Reform provisions, and the extent that future results differ from currently available projections.

PriceSmart also announced that it plans to release second quarter fiscal year 2018 financial results on Thursday, April 5, 2018, after the market closes. PriceSmart management plans to host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Friday, April 6, 2018, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing (855) 209-8211 for domestic callers or (412) 317-5214 for international callers, and asking to join the PriceSmart, Inc. call. A digital replay will be available through April 13, 2018, following the conclusion of the call by dialing (877) 344-7529 for domestic callers, or (412) 317-0088 for international callers, and entering replay access code 10117031.

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