Pricesmart (PSMT), which owns and operates membership shopping warehouse clubs, has posted 15 percent increase in profit for the quarter ended May 31, 2014. The company earned $21.32 million or $0.70 a share in the third-quarter compared with $18.54 million or $0.61 a share a year ago. Analysts on average had predicted net income of $0.70 a share.

Revenue during the third-quarter grew 7.58 percent to $615.04 million from $571.72 million in the last year period.

Gross margin expanded by 34 basis points over the previous year period to 17.13 percent. That has resulted in improvement of 9 basis points in operating margins to 5.07 percent.

The company disclosed operating income of $31.20 million, compared with operating income of $28.49 million in the last year period.

As on May 31, 2014, the company's cash balance stood at $123.76 million, up 33.93 percent or $31.35 million from May 31, 2013.

Working Capital

Pricesmart has witnessed an increase in the working capital over the last one year. The company's working capital stood at $105.58 million as at May 31, 2014, up $6.38 million or 6.44 percent from $99.19 million on May 31, 2013. It registered a decrease in current ratio to 1.37 as at May 31, 2014 from 1.40 on May 31, 2013.

Debt Position

Pricesmart has witnessed an increase in the total debt over the last one year. As on May 31, 2014, total debt stood at $94.10 million, up 22.95 percent or $17.56 million, from May 31, 2013. The company's total debt was 10.47 percent of total assets as on May 31, 2014, compared with 9.66 percent on May 31, 2013.

Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has declined to 29.92 from 66.72 in the same period last year.

Shares Pricesmart declined 1.70 a share or 1.93 percent to close at $86.21 on Thursday.