PriceSmart (PSMT) 8-K PriceSmart Announces First Quarter Results of Operations; New Trinidad Club and December Sales

Exhibit 99.1

PriceSmart Announces First Quarter Results of Operations; New Trinidad Club and December Sales

San Diego, California (January 9, 2008) – PriceSmart, Inc. (NASDAQ: PSMT) today announced its results of operations for the first quarter of fiscal year 2008 which ended on November 30, 2007.

For the first quarter of fiscal year 2008, net warehouse sales increased 23.8% to $245.2 million from $198.1 million in the first quarter of fiscal year 2007. Total revenue for the first quarter was $250.4 million compared to $202.5 million in the prior year. The Company had 24 warehouse clubs in operation as of November 30, 2007 compared to 23 warehouse clubs in operation as of November 30, 2006.

The Company recorded operating income in the quarter of $10.2 million, compared to operating income of $7.2 million in the prior year. Net income was $6.7 million, or $0.23 per diluted share, in the first quarter of fiscal 2008 compared to $4.1 million, or $0.14 per diluted share, in the first quarter of fiscal 2007.

On December 13, 2007, the Company successfully opened its third warehouse club in Trinidad. This brings to 25 the number of warehouse clubs in operation for the Company.

The Company also announced that for the month of December 2007, net sales increased 25.3% to $122.6 million from $97.8 million in December a year earlier. For the four months ended December 31, 2007, net sales increased 24.3% to $367.8 million from $296.0 million in the same period last year. There were 25 warehouse clubs in operation at the end of December 2007 compared to 23 warehouse clubs in operation in December 2006.

For the four weeks ended December 30, 2007, comparable warehouse sales for warehouse clubs open at least 12 full months increased 19.8% compared to the same four-week period last year. For the seventeen-week period ended December 30, 2007, comparable warehouse sales increased 21.6% compared to the comparable seventeen-week period a year ago.

About PriceSmart

PriceSmart, headquartered in San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Central America and the Caribbean, selling high quality merchandise at low prices to PriceSmart members. PriceSmart now operates 25 warehouse clubs in 11 countries and one U.S. territory (four each in Panama and Costa Rica; three each in Guatemala and Trinidad, two each in Dominican Republic, El Salvador and Honduras; and one each in Aruba, Barbados, Jamaica, Nicaragua and the United States Virgin Islands).

This press release may contain forward-looking statements concerning the Company’s anticipated future revenues and earnings, adequacy of future cash flow and related matters. These forward-looking statements include, but are not limited to, statements containing the words “expect,” “believe,” “will,” “may,” “should,” “project,” “estimate,” “scheduled,” and like expressions, and the negative thereof. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including the following risks: the Company’s financial performance is dependent on international operations which exposes the Company to various risks; any failure by the Company to manage its widely dispersed operations could adversely affect the Company’s business; the Company faces significant competition; the Company faces difficulties in the shipment of and inherent risks in the importation of merchandise to its warehouse clubs; the Company is exposed to weather and other risks associated with international operations;

declines in the economies of the countries in which the Company operates its warehouse clubs would harm its business; a few of the Company’s stockholders have control over the Company’s voting stock, which will make it difficult to complete some corporate transactions without their support and may prevent a change in control; the loss of key personnel could harm the Company’s business; the Company is subject to volatility in foreign currency exchange; the Company faces the risk of exposure to product liability claims, a product recall and adverse publicity; a determination that the Company’s long-lived or intangible assets have been impaired could adversely affect the Company’s future results of operations and financial position; and the Company faces increased compliance risks associated with compliance with Section 404 of the Sarbanes-Oxley Act of 2002; as well as the other risks detailed in the Company’s SEC reports, including the Company’s Annual Report on Form 10-K filed pursuant to the Securities Exchange Act of 1934 on November 29, 2007. We assume no obligation and expressly disclaim any duty to update any forward-looking statement to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events.

For further information, please contact Robert E. Price, Chief Executive Officer (858) 551-2336; or John M. Heffner, Executive Vice President and Chief Financial Officer (858) 404-8826.

PRICESMART, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED—AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)

	Three Months Ended November 30,
	2007			2006
Revenues:
Sales:
Net warehouse club	$	245,189		$	198,100
Export		367			95
Membership income		3,742			3,241
Other income		1,113			1,061
Total revenues		250,411			202,497
Operating expenses:
Cost of goods sold:
Net warehouse club		208,511			168,498
Export		349			92
Selling, general and administrative:
Warehouse club operations		23,227			20,293
General and administrative		7,316			5,968
Preopening expenses		772			232
Asset impairment and closure costs		19			191
Total operating expenses		240,194			195,274
Operating income		10,217			7,223
Other income (expense):
Interest income		410			364
Interest expense		(59	)		(355	)
Other income (expense), net		(47	)		14
Total other income		304			23
Income from continuing operations before provision for income taxes, loss of unconsolidated affiliate and minority interest		10,521			7,246
Provision for income taxes		(3,715	)		(2,973	)
Loss of unconsolidated affiliate		—			(85	)
Minority interest		(130	)		(134	)
Income from continuing operations		6,676			4,054
Discontinued operations, net of tax		18			18
Net income	$	6,694		$	4,072
Basic income per share:
Continuing operations	$	0.23		$	0.14
Discontinued operations, net of tax	$	—		$	—
Net income	$	0.23		$	0.14
Diluted income per share:
Continuing operations	$	0.23		$	0.14
Discontinued operations, net of tax	$	—		$	—
Net income	$	0.23		$	0.14
Shares used in per share computations:
Basic		28,781			28,429
Diluted		29,494			29,105

PRICESMART, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED—AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

	November 30, 2007			August 31, 2007
ASSETS
Current Assets:
Cash and cash equivalents	$	19,269		$	32,065
Short-term restricted cash		8,155			8,046
Receivables, net of allowance for doubtful accounts of $8 and $3 in 2007 and 2006, respectively		2,429			2,705
Merchandise inventories		120,872			95,979
Prepaid expenses and other current assets		16,907			15,777
Assets of discontinued operations		1,491			1,380
Total current assets		169,123			155,952
Long-term restricted cash		457			477
Notes receivable		2,085			2,086
Property and equipment, net		197,479			179,985
Goodwill		31,594			31,652
Deferred tax assets		19,396			19,535
Other assets		3,615			3,732
Investment in unconsolidated affiliate		—			2,000
Total Assets	$	423,749		$	395,419
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-term borrowings	$	3,884		$	3,301
Accounts payable		98,784			80,633
Accrued salaries and benefits		6,507			6,962
Deferred membership income		7,286			6,634
Income taxes payable		2,580			4,593
Accrued reserve for settlement of pending litigation		5,500			5,500
Other accrued expenses		11,246			18,564
Dividend payable		—			4,678
Long-term debt, current portion		2,307			1,411
Liabilities of discontinued operations		145			151
Total current liabilities		138,239			132,427
Deferred tax liability		1,438			1,474
Deferred rent		1,779			1,977
Accrued closure costs		3,033			3,072
Long-term income taxes payable		7,686			—
Long-term debt, net of current portion		15,838			8,008
Total liabilities		168,013			146,958
Minority interest		3,270			3,145
Stockholders’ Equity:
Common stock, $0.0001 par value, 45,000,000 shares authorized; 29,832,435 and 29,815,435 shares issued and 29,356,211 and 29,339,211 shares outstanding (net of treasury shares), respectively		3			3
Additional paid-in capital		370,565			369,848
Tax benefit from stock-based compensation		3,974			3,970
Accumulated other comprehensive loss		(12,608	)		(12,343	)
Accumulated deficit		(99,393	)		(106,087	)
Less: treasury stock at cost; 476,224 shares as of November 30, 2007 and August 31, 2007, respectively		(10,075	)		(10,075	)
Total stockholders’ equity		252,466			245,316
Total Liabilities and Stockholders’ Equity	$	423,749		$	395,419