On this page of StockholderLetter.com we present the 12/19/2023 shareholder letter from PRICESMART INC — ticker symbol PSMT. Reading current and past PSMT letters to shareholders can bring important insights into the investment thesis.

December 19, 2023 Chairman letter Dear Stockholders, Congratulations to our management team and employees in San Diego, Miami, and the countries where we operate for another strong performance in fiscal year 2023. We achieved another record year in revenues--$4.4 billion--along with record earnings of $109 million, or $3.50 per diluted share, despite non-recurring charges during the year of $24 million. Our financial metrics remained strong with operating cash flow of $257 million, a current ratio of 138%, total thirdparty year-ending debt of $148 million, and $1.1 billion of total stockholder equity. During fiscal year 2023, we opened a new club in San Miguel, El Salvador, and on September 1 we opened another club in Medellin, Colombia. We are now well into the fiscal year 2024. We recently opened our sixth location in Guatemala, in the city of Escuintla, which is located in the south of the country. In February 2024, we plan to open our fourth location in El Salvador in the city of Santa Ana in the northwest part of the country. After the Santa Ana club opening, we will operate 54 clubs. Although most of you have probably never visited a PriceSmart location, you would feel right at home shopping in any of our locations, including Escuintla and Santa Ana. Similar to Costco, PriceSmart has a wide assortment of private label products, our Member s Selection brand. Our locations are about one-half the size of a typical Costco. We carry a similar range of products, although with a much more limited selection of clothing and furniture. Another difference between PriceSmart and Costco is that we import a much larger proportion of products, because the countries where we operate generally have small economies and limited manufacturing. In addition, our imports differentiate us from our competitors and are an important part of the experience we aim to offer our Members. Our mission in operating our business is to, as nearly as possible, offer our Members a U.S. shopping experience in terms of value and quality. Our goal is clear: to continue to strengthen the member value proposition in terms of pricing and range of offerings in both merchandise and services. PriceSmart is doing much more than running a warehouse club business. I want to highlight for our stockholders that PriceSmart is the only U.S. membership warehouse club doing business in our markets. We are making a significant positive difference in the markets where we operate. PriceSmart is an important wholesale supplier for small businesses, a large purchaser of locally produced products, a major employer paying excellent wages and benefits and a significant taxpayer providing important revenues to local governments. Through the PriceSmart Foundation and Aprender y Crecer, PriceSmart has a robust philanthropic presence in our markets, providing school supplies and eyeglasses to thousands of children in public schools and investing in workforce development to provide meaningful jobs to men and women entering the workforce. At PriceSmart, we pride ourselves on being the most trusted and respected brand in the countries where we operate. Our aim is to deepen this trust and become an even more integral part of our Members' lives. To achieve this, we are enhancing our supply chain efficiencies through technology to support our workforce, coupled with strategic investments in distribution centers to reduce costs and to shorten supply lines. Additionally, recognizing the significant impact of traffic and urban density on our Members in Latin American cities, we are continuously upgrading our digital channels. This enhancement offers more accessible and convenient online shopping options, enabling our Members to purchase our merchandise and services online and offline. We remain committed to introducing new products and services tailored to our Members' needs, as evidenced by the recent introduction of pharmacies in our Costa Rica and Panama PriceSmart clubs. As a stockholder myself, I and our board are focused on strengthening the value of stock ownership for our investors. First and foremost, I believe excellence in operating our business is the foundation for enhancing investor value. In addition to the day-to-day operations of the business, our board and I will continue to address the best and most creative ways to enhance investor value. We recently completed a $75 million stock buyback program and will continue to consider all alternatives for enhancing stockholder value. In conclusion, I would like to thank our employees for their commitment to PriceSmart. Every one of our employees, from the most senior executives to the sheet cake decorators, is amazing. We are so lucky to have such a wonderful group of people working in our offices, distribution centers and at our PriceSmart clubs. On behalf of myself and our board, best wishes for a joyous holiday and a healthy and prosperous new year. Sincerely, Robert E. Price
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PRICESMART, INC. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND OTHER INFORMATION August 31, 2023 Selected Financial Data Management s Discussion and Analysis of Financial Condition and Results of Operations Report of Independent Registered Public Accounting Firm Consolidated Balance Sheets as of August 31, 2023, and 2022 Consolidated Statements of Income for each of the three years in the period ended August 31, 2023 Consolidated Statements of Comprehensive Income for each of the three years in the period ended August 31, 2023 Consolidated Statements of Equity for each of the three years in the period ended August 31, 2023 Consolidated Statements of Cash Flows for each of the three years in the period ended August 31, 2023 Notes to Consolidated Financial Statements Market for Registrant s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Additional Information Directors & Officers of PriceSmart, Inc. i Page 1 3 31 33 35 36 37 38 40 79 83 84
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PSMT 12/19/2023 Shareholder/Stockholder Letter Transcript:



December 19, 2023
Chairman letter
Dear Stockholders,
Congratulations to our management team and employees in San Diego, Miami, and the countries where we operate for
another strong performance in fiscal year 2023. We achieved another record year in revenues--$4.4 billion--along with record
earnings of $109 million, or $3.50 per diluted share, despite non-recurring charges during the year of $24 million.
Our financial metrics remained strong with operating cash flow of $257 million, a current ratio of 138%, total thirdparty year-ending debt of $148 million, and $1.1 billion of total stockholder equity. During fiscal year 2023, we opened a new
club in San Miguel, El Salvador, and on September 1 we opened another club in Medellin, Colombia.
We are now well into the fiscal year 2024. We recently opened our sixth location in Guatemala, in the city of Escuintla,
which is located in the south of the country. In February 2024, we plan to open our fourth location in El Salvador in the city of
Santa Ana in the northwest part of the country. After the Santa Ana club opening, we will operate 54 clubs. Although most of you
have probably never visited a PriceSmart location, you would feel right at home shopping in any of our locations, including
Escuintla and Santa Ana. Similar to Costco, PriceSmart has a wide assortment of private label products, our    Member   s
Selection      brand. Our locations are about one-half the size of a typical Costco. We carry a similar range of products, although
with a much more limited selection of clothing and furniture. Another difference between PriceSmart and Costco is that we import
a much larger proportion of products, because the countries where we operate generally have small economies and limited
manufacturing. In addition, our imports differentiate us from our competitors and are an important part of the experience we aim
to offer our Members. Our mission in operating our business is to, as nearly as possible, offer our Members a    U.S.    shopping
experience in terms of value and quality. Our goal is clear: to continue to strengthen the member value proposition in terms of
pricing and range of offerings in both merchandise and services.
PriceSmart is doing much more than running a warehouse club business. I want to highlight for our stockholders that
PriceSmart is the only U.S. membership warehouse club doing business in our markets. We are making a significant positive
difference in the markets where we operate. PriceSmart is an important wholesale supplier for small businesses, a large purchaser
of locally produced products, a major employer paying excellent wages and benefits and a significant taxpayer providing
important revenues to local governments. Through the PriceSmart Foundation and Aprender y Crecer, PriceSmart has a robust
philanthropic presence in our markets, providing school supplies and eyeglasses to thousands of children in public schools and
investing in workforce development to provide meaningful jobs to men and women entering the workforce.
At PriceSmart, we pride ourselves on being the most trusted and respected brand in the countries where we operate.
Our aim is to deepen this trust and become an even more integral part of our Members' lives. To achieve this, we are enhancing
our supply chain efficiencies through technology to support our workforce, coupled with strategic investments in distribution
centers to reduce costs and to shorten supply lines. Additionally, recognizing the significant impact of traffic and urban density
on our Members in Latin American cities, we are continuously upgrading our digital channels. This enhancement offers more
accessible and convenient online shopping options, enabling our Members to purchase our merchandise and services online and
offline. We remain committed to introducing new products and services tailored to our Members' needs, as evidenced by the
recent introduction of pharmacies in our Costa Rica and Panama PriceSmart clubs.
As a stockholder myself, I and our board are focused on strengthening the value of stock ownership for our investors.
First and foremost, I believe excellence in operating our business is the foundation for enhancing investor value. In addition to
the day-to-day operations of the business, our board and I will continue to address the best and most creative ways to enhance
investor value. We recently completed a $75 million stock buyback program and will continue to consider all alternatives for
enhancing stockholder value.
In conclusion, I would like to thank our employees for their commitment to PriceSmart. Every one of our employees,
from the most senior executives to the sheet cake decorators, is amazing. We are so lucky to have such a wonderful group of
people working in our offices, distribution centers and at our PriceSmart clubs.
On behalf of myself and our board, best wishes for a joyous holiday and a healthy and prosperous new year.
Sincerely,
Robert E. Price

[THIS PAGE INTENTIONALLY LEFT BLANK]

PRICESMART, INC.
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND
OTHER INFORMATION
August 31, 2023
Selected Financial Data
Management   s Discussion and Analysis of Financial Condition and Results of Operations
Report of Independent Registered Public Accounting Firm
Consolidated Balance Sheets as of August 31, 2023, and 2022
Consolidated Statements of Income for each of the three years in the period ended August 31, 2023
Consolidated Statements of Comprehensive Income for each of the three years in the period ended August 31, 2023
Consolidated Statements of Equity for each of the three years in the period ended August 31, 2023
Consolidated Statements of Cash Flows for each of the three years in the period ended August 31, 2023
Notes to Consolidated Financial Statements
Market for Registrant   s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Additional Information
Directors & Officers of PriceSmart, Inc.
i
Page
1
3
31
33
35
36
37
38
40
79
83
84


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