PriceSmart Inc. (NASDAQ:PSMT) Q3 2019 Earnings Conference Call Transcript

Jul 10, 2019 • 08:00 pm ET

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PriceSmart Inc. (NASDAQ:PSMT) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, everyone, and welcome to the PriceSmart, Inc. Earnings Release Conference Call for the Third Quarter of Fiscal Year 2019, the three- and nine-month period ending on May 31, 2019.

During today's conference, all participants will be in listen-only mode. After remarks from our company representatives, Sherry Bahrambeygui, Chief Executive Officer; and Maarten Jager, Executive Vice President and Chief Financial Officer, you will be given an opportunity to ask questions as time permits. (Operator Instructions) As a reminder, this conference is being recorded today, Thursday, July 11, 2019. A digital replay will be available through July 18, 2019, following the conclusion of the call by dialing 1 (877) 344-7529 for domestic callers or 1 (412) 317-0088 for international callers, and entering replay access code 10131782.

At this time, I would like to turn the conference over to Maarten Jager. Please proceed, sir.

Executive
Maarten O. Jager

Thank you, Chris. Thank you, and welcome to our earnings call for the third quarter of fiscal year 2019. We will be discussing the information that we provided in our earnings press release and our 10-Q, both of which we released yesterday afternoon, July 10, 2019. You can find both the press release and the 10-Q filing on our website at www.pricesmart.com.

As a reminder, all statements made on this conference call other than statements of historical fact are forward-looking statements concerning the company's anticipated future plans, revenues and related matters. All forward-looking statements are based on current expectations and assumptions as of today, July 11, 2019, but are not limited to statements containing the words expect, believe, will, may, should, estimate and similar expressions. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including the risks detailed in the company's Annual Report on Form 10-K for the fiscal year ended August 31, 2018, as filed with the Securities and Exchange Commission on October 25, 2018. The company undertakes no obligation to update forward-looking statements made during this call.

Now, I will turn it over to Sherry Bahrambeygui, PriceSmart's Chief Executive Officer.

Executive
Sherry S. Bahrambeygui

Thank you, Maarten. Good morning, everyone, and thank you for joining us today. Since our last call, we've been quite busy with club openings both of which are our new smaller format designs. The first is PriceSmart Veraguas, Panama, which opened on May 1st. It's our first smaller format club of approximately 38,000 square feet of sales floor. And although it's still early, we're pleased with the reception of this club as indicated by strong membership sign-up.

I'd like to mention some things about Club Veraguas. It's located in a more agricultural rural area of Santiago de Veraguas, Panama, about a 120 miles or about three hours from our nearest clubs there. This club has been specifically built in merchandise with the local market characteristics in mind. We're watching it closely, because if it performs as we expect we believe this broadens our opportunities for healthy growth in secondary locations within our existing market.

The second club opening was