Q3 2024 PriceSmart Inc Earnings Call Transcript
Key Points
- Net merchandise sales increased by 11.6% year-over-year, reaching almost $1.2 billion for the quarter.
- Membership accounts grew by 4.8% to almost 1.9 million, with a strong 12-month renewal rate of 88.1%.
- Gross margin as a percentage of net merchandise sales increased by 30 basis points to 15.6%.
- Adjusted EBITDA for the third quarter was $71 million, up from $63.9 million in the same period last year.
- The company continues to expand its footprint, with plans to open a ninth warehouse club in Costa Rica and ongoing remodeling of high-volume clubs.
- Total SG&A expenses increased to 13% of total revenues, up from 12.9% in the same quarter last year.
- General and administrative expenses increased to 3.3% of total revenue, primarily due to higher compensation and professional fees.
- The effective tax rate for the third quarter increased to 30.8% from 28.9% a year ago.
- Net cash provided by operating activities decreased to $165.8 million for the first nine months, down from $184.7 million in the same period last year.
- The company recorded a $2.9 million net loss in total other expense, compared to a $1.5 million net loss in the same period last year.
Good afternoon, everyone, and welcome to PriceSmart Inc's earnings release conference call for the third quarter of fiscal year 2024, which ended on May 31st, 2024. After remarks from our company's representatives, Robert Price, Interim Chief Executive Officer, and Michael McCleary, Chief Financial Officer, uou will be given an opportunity to ask questions as time permits. As a reminder, this conference call is limited to one hour and is being recorded today, Thursday, July 11th, 2024. (Operator Instructions)
For opening remarks, I would like to turn the call over to PriceSmart's Chief Financial Officer, Michael McCleary, please go ahead.
Yes, thank you, operator, and welcome to PriceSmart Inc's earnings call for the third quarter of fiscal year 2024, which ended on May 31st 2024, we will be discussing the information that we provided in our earnings press release and our 10 Q, which have both released yesterday afternoon, July 10th, 2024 Also in these remarks, we refer to non-GAAP financial measures.
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