PriceSmart Inc. Files 2024 Annual Report

TL;DR

PSMT 2024 10-K is in. Full financial picture for the year ending Aug 31.

AI Summary

PriceSmart Inc. filed its 10-K for the fiscal year ending August 31, 2024. The company, headquartered in San Diego, CA, operates in the variety stores retail sector. This filing provides a comprehensive overview of its financial performance, business operations, and risk factors for the period.

Why It Matters

This 10-K filing is crucial for investors and analysts to understand PriceSmart's financial health, strategic direction, and potential risks as of August 31, 2024.

Risk Assessment

Risk Level: medium — As a retail company operating internationally, PriceSmart faces risks related to economic conditions, currency fluctuations, and competition.

Key Players & Entities

• PRICESMART INC (company) — Filer
• 20240831 (date) — Fiscal Year End
• 20241030 (date) — Filing Date
• San Diego, CA (location) — Business Address
• 5331 (number) — Standard Industrial Classification

FAQ

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value PSMT NASDAQ Global Select Mar
• $84.14 — ased on the last reported sale price of $84.14 per share on the NASDAQ Global Select M
• $5 — be warranted. We increased this fee by $5 in all but one market on a staggered ba

Filing Documents

• psmt-20240831.htm (10-K) — 2875KB
• formofrsanoticeandagreement.htm (EX-10.10) — 74KB
• a1011formofrsunoticeandagr.htm (EX-10.11) — 71KB
• a1012formofrsunoticeandagr.htm (EX-10.12) — 58KB
• employmentagreementws.htm (EX-10.26) — 12KB
• insidertradingpolicy.htm (EX-19.1) — 83KB
• psmt-20240831x10xkxexx211.htm (EX-21.1) — 36KB
• psmt-20240831x10kxexx231.htm (EX-23.1) — 3KB
• psmt-20240831x10kxexx311.htm (EX-31.1) — 10KB
• psmt-20240831x10kxexx312.htm (EX-31.2) — 10KB
• psmt-20240831x10kxexx321.htm (EX-32.1) — 5KB
• psmt-20240831x10kxexx322.htm (EX-32.2) — 5KB
• psmtclawbackpolicyfinal120.htm (EX-97.1) — 48KB
• image_0.jpg (GRAPHIC) — 11KB
• image_0a.jpg (GRAPHIC) — 18KB
• image_0b.jpg (GRAPHIC) — 11KB
• 0001041803-24-000044.txt ( ) — 15023KB
• psmt-20240831.xsd (EX-101.SCH) — 108KB
• psmt-20240831_cal.xml (EX-101.CAL) — 130KB
• psmt-20240831_def.xml (EX-101.DEF) — 478KB
• psmt-20240831_lab.xml (EX-101.LAB) — 1112KB
• psmt-20240831_pre.xml (EX-101.PRE) — 816KB
• psmt-20240831_htm.xml (XML) — 2365KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 22 Item 1C. Cybersecurity 22 Item 2.

Properties

Properties 24 Item 3.

Legal Proceedings

Legal Proceedings 25 Item 4. Mine Safety Disclosures 25 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26 Item 6. Reserved 27 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 52 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 56 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 56 Item 9A.

Controls and Procedures

Controls and Procedures 56 Item 9B. Other Information 59 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 59 PART III Item 10. Directors, Executive Officers and Corporate Governance 59 Item 11 .

Executive Compensation

Executive Compensation 59 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 59 Item 13. Certain Relationships and Related Transactions, and Director Independence 59 Item 14. Principal Accounting Fees and Services 60 PART IV Item 15. Exhibits, Financial Statement Schedules 61 Item 16. Form 10-K Summary 64

Signatures

Signatures 66 i Table of Contents

Forward-Looking Statements

Forward-Looking Statements This annual report on Form 10-K contains forward-looking statements concerning PriceSmart, Inc.'s ("PriceSmart", the "Company", "we" or "our") anticipated future revenues and earnings, adequacy of future cash flows, omni-channel initiatives, proposed warehouse club openings, the Company's performance relative to competitors and related matters. These forward-looking statements include, but are not limited to, statements containing the words "expect," "believe," "will," "may," "should," "project," "estimate," "anticipated," "scheduled," "intend," and like expressions, and the negative thereof. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, but not limited to the risks detailed in this Annual Report on Form 10-K under the heading Part I. "Item 1A. Risk Factors." Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements, except as required by law. In addition, these risks are not the only risks that the Company faces. The Company could also be affected by additional factors that apply to all companies operating globally and in the U.S., as well as other risks that are not presently known to the Company or that the Company currently considers to be immaterial. PART I

Business

Item 1. Business General PriceSmart was founded in 1996 by Sol and Robert Price, the creators of Price Club, the original warehouse club operator. The mission of PriceSmart is to operate its warehouse club business in Central America, the Caribbean and Colombia at operating standards as good as, or superior to, warehouse club operations in the United States. As of August 31, 2024 , we had 54 warehouse clubs in operation in Central America, the Caribbean and Colombia. We believe PriceSmart has become one of the most respected and trusted brands in the region. With nearly two million membership accounts and almost four million cardholders, we believe PriceSmart is an essential part of the shopping experience for consumers and small businesses in PriceSmart's markets. PriceSmart sources slightly more than half its merchandise from suppliers within the region, with the balance of merchandise sourced throughout the rest of the world. Product selection includes basic consumable merchandise for consumers and businesses, " Member's Selection " private label merchandise and unique consumable and non-consumable products that are often not otherwise available in our markets. PriceSmart continually focuses on innovation. In recent years, PriceSmart has added optical, audiology, and pharmacy services in many of its locations. PriceSmart provides online shopping to our Members and offers both home delivery and curbside pickup. PriceSmart is making significant investments in technology to both improve the online shopping experience for its Members and to enhance operating efficiencies in its supply chain and the back office. PriceSmart seeks to provide the best working conditions possible for our almost 12,000 employees. We seek to provide safe and pleasant working environments for our employees, along with excellent pay and benefits, including healthcare and retirement benefits. PriceSmart is committed to improving the quality of life for people living in the communities

View Full Filing

View this 10-K filing on SEC EDGAR