PriceSmart Inc. (NASDAQ:PSMT) Q4 2020 Earnings Conference Call - Final Transcript

Oct 30, 2020 • 12:00 pm ET

Previous

PriceSmart Inc. (NASDAQ:PSMT) Q4 2020 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Q & A
Operator
Operator

Thank you. We will now begin the question-and-answer session. [Operator Instructions] Our first question today will come from Jon Braatz of Kansas City Capital. Please go ahead.

Analyst
Jon Braatz

Good morning, Sherry and Mike.

Executive
Sherry S. Bahrambeygui

Good morning.

Executive
Michael McCleary

Good morning.

Analyst
Jon Braatz

Sherry, what are your thoughts on opening new stores, additional stores beyond Bogota in 2021? I know you had some plans and obviously there is still some uncertainty, but they seem to be easing a little bit. Do you think we'll see some additional stores in 2021?

Executive
Sherry S. Bahrambeygui

I can't give you a definitive answer at this point other than the fact that we're -- we already have three locations that we secured the property and we are in a good position to move on them depending on the totality of the circumstances, really what's happening is the unpredictability and volatility of the pandemic does influence our thinking on an ongoing basis. So, I don't want to go out on a limb at this point, but I can tell you that we're well positioned to be able to move quickly on additional clubs, the moment we decide it's the right time.

Analyst
Jon Braatz

Are they the full-size stores, the three locations?

Executive
Sherry S. Bahrambeygui

It's a mix.

Analyst
Jon Braatz

Okay. All right. And Michael, you mentioned that in the fourth quarter, the SG&A costs were, I think you said $1.2 million in severance costs, but Sherry you mentioned that there were also -- you also paid some one-time bonuses sort of recaptured what a repaid what was forgiven in the first two quarters -- first three quarters? What was that sort of net impact of all that on your SG&A costs in the fourth quarter?

Executive
Michael McCleary

So Jon, it's kind of a wash, the waiver was from May 1st to the end of July. So you only got one month in Q3 and two months in Q4 and then we just did a catch-up payment in Q4, so it's really counts to wash for the quarter.

Analyst
Jon Braatz

Okay. But there was an impact the catch-up was in the fourth quarter?

Executive
Michael McCleary

Right, of which two-thirds would have been in the fourth quarter anyway, so it really gets us in the fast in the rounding.

Analyst
Jon Braatz

Okay. And what was the $1.2 million in severance costs?

Executive
Michael McCleary

Just...[Speech Overlap]

Executive
Sherry S. Bahrambeygui

The departure of executives and also there were some furloughed employees who did not return and that was as a part of our process and sort of reforming the appropriate staffing to meet the needs that the Company required at the time.

Analyst
Jon Braatz

Okay. And Sherry, you mentioned that the Aeropost margins were better in the quarter compared to where they have been, what's behind that?

Executive
Sherry S. Bahrambeygui

Volume.

Analyst
Jon Braatz

Volume. Okay.

Executive
Sherry S. Bahrambeygui

Yeah.

Analyst
Jon Braatz

All right. Is that the traditional volume that Aeropost was doing?

Executive
Sherry S. Bahrambeygui

I don't have in front of me, historically, but I can tell you that the demand for online as we saw has increased everywhere as a result of the pandemic. So I do believe that those people that were in a position to be able to acquire things or purchase