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PriceSmart, Inc.,(PSMT) a leading warehouse club operator, has announced its financial results for the six months ended February 28, 2023. The company reported a net income of $64.3 million during this period, reflecting steady growth in its operations. Additionally, PriceSmart achieved revenues totaling over $2.1 billion, showcasing its strong performance in the retail industry. The following sections provide a detailed analysis of the company's financial statements and key highlights.**
PriceSmart, Inc. recorded total assets of $1.89 billion as of February 28, 2023, compared to $1.81 billion as of August 31, 2022. The company's current assets, including cash and cash equivalents, short-term investments, and receivables, stood at $836.8 million. PriceSmart also maintained long-term assets, such as property and equipment, goodwill, and investment in unconsolidated affiliates. On the liabilities and equity side, the company reported total liabilities of $842.3 million. This figure includes current liabilities of $586.6 million, consisting of short-term borrowings, accounts payable, and accrued expenses. PriceSmart's stockholders' equity amounted to $1.04 billion, reflecting the company's solid financial position.
PriceSmart achieved robust revenue growth, with net merchandise sales reaching $2.14 billion in the six months ended February 2023. This represents an increase from $1.96 billion during the same period in the previous year. The company's membership income and other revenue streams also contributed to the overall revenue, amounting to $32.1 million and $6.1 million, respectively.
Operating expenses for PriceSmart amounted to $2.09 billion, driven by cost of goods sold, selling, general, and administrative expenses. Despite these expenditures, the company recorded operating income of $109.3 million, highlighting its ability to effectively manage costs.
PriceSmart's net income for the six months ended February 2023 was $64.3 million. This compares favorably to the net income of $62.0 million reported in the same period last year. The company's earnings per share available for distribution remained stable at $2.07 on a basic and diluted basis.
In addition to net income, PriceSmart reported comprehensive income of $76.1 million for the six months ended February 2023. This includes other comprehensive income of $11.9 million, primarily driven by foreign currency translation adjustments and gains/losses on derivative instruments.
PriceSmart generated positive cash flow from its operating activities, amounting to $116.7 million in the six months ended February 2023. The company's cash flow was supported by net income, adjustments for depreciation and amortization, and changes in operating assets and liabilities.
The investing activities of PriceSmart primarily involved capital expenditures, short-term investments, and divestiture of assets. The company invested $53.0 million in property and equipment and realized proceeds from settlements of short-term and long-term investments. PriceSmart's financing activities included proceeds from long-term and short-term bank borrowings, dividend payments, and the purchase of treasury stock. Although the company experienced a net decrease of $3.1 million in financing activities, it remains well-positioned to meet its capital requirements.
PriceSmart, Inc. has demonstrated solid financial performance in the six months ended February 2023, reporting a notable net income of $64.3 million and surpassing $2.1 billion in revenue. With its strong balance sheet, the company is poised to continue its growth and deliver value to its shareholders and customers in the highly competitive retail market.