This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.
$PSMT Pricesmart Earnings Call notes
“The second quarter of this year in the countries where we have presence [Latin America]…the months of January and February are transition months to new seasons of business in the different countries, from carnival celebrations that occur in some Caribbean countries and Barranquilla, Colombia and also (indiscernible) celebrations that happened to be at the end of March this year, but a lot of momentum for those sales starts in the first two months of the calendar year”
“Total active accounts for the end of the quarter were more than 1,030,000, showing an increase of 12% over prior year. Our renewal rate for the 12 months period ended on February 28, 2013 was 85% compared to 88% a year ago.”
“it has been a challenge definitely to find the good sites in Colombia….Probably the biggest challenge once you find the site…is the fact that you have to go through permitting and very complicated and slow permitting process.”
“If we find a site and the permitting process goes well, we don’t have anything else that will limit, I mean we have the people, we have the construction, resources, we have everything that we need to put in place to open as fast as we can, but it will definitely depend on how soon we close on a site and how soon we get the permitting to get that construction up and running.”
“Colombia is very regulated”[on challenges in e-commerce] “one of the challenges for sure is delivery times. We’re trying to look at different ways to reduce the delivery time so that the members don’t have to wait two or three weeks before they get their merchandise…The other challenge, believe it or not, there is still a lot of, in some of the cultures where we’re operating, there’s still a lot of fear of providing the credit card information”
“there is not a club competitor in Colombia and the same applies for Central America. There isn’t just any other club competitors, except for Guatemala”