ISSAQUAH, WA, Dec 08, 2011 (MARKETWIRE via COMTEX) --
Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ:
COST) announced today its operating results for the first quarter
(twelve weeks) of fiscal 2012, ended November 20, 2011.
Net sales for the quarter increased thirteen percent to $21.18
billion from $18.82 billion during the first quarter of fiscal 2011.
Comparable sales for the first quarter of fiscal 2012 were as
follows:
12 Weeks
-----------
U.S. 10%
International 11%
Total Company 10%
===========
Inflation in gasoline prices and strengthening foreign currencies had
a positive impact on comparable sales. Excluding these effects,
comparable sales for the twelve-week period were as follows:
12 Weeks
-----------
U.S. 6%
International 10%
Total Company 7%
===========
Net income for the quarter was $320 million, or $.73 per diluted
share, compared to $312 million, or $.71 per diluted share, for the
first quarter of fiscal 2011. First quarter results were negatively
impacted by a $24 million charge relating to the settlement of an
income tax audit of the Company's 50% owned Mexico joint venture. The
impact on net income attributable to Costco was $12 million, or $.03
per diluted share. Also negatively impacting this year's results was
a $17 million charge, or $.04 per diluted share, for contributions to
the Yes on 1183 Coalition in support of an initiative reforming
alcoholic beverage laws in Washington State. (The initiative was
approved by a 59% to 41% margin.) These contributions were not tax
deductible under U.S. tax laws.
Costco currently operates 596 warehouses, including 433 in the United
States and Puerto Rico, 82 in Canada, 32 in Mexico, 22 in the United
Kingdom, nine in Japan, eight in Taiwan, seven in Korea and three in
Australia. The Company also operates Costco Online, an electronic
commerce web site, at www.costco.com and at www.costco.ca in Canada.
The Company plans to open two additional warehouses in Japan prior to
the end of calendar year 2011.
A conference call to discuss these fiscal 2012 first quarter results
is scheduled for 8:00 a.m. (PT) today, December 8, 2011, and is
available via a webcast on www.costco.com (click on Investor
Relations and "Play Webcast").
Certain statements contained in this document constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. For these purposes,
forward-looking statements are statements that address activities,
events, conditions or developments that the Company expects or
anticipates may occur in the future. Such forward-looking statements
involve risks and uncertainties that may cause actual events, results
or performance to differ materially from those indicated by such
statements. These risks and uncertainties include, but are not
limited to, domestic and international economic conditions, including
exchange rates, the effects of competition and regulation,
uncertainties in the financial markets, consumer and small business
spending patterns and debt levels, conditions affecting the
acquisition, development, ownership or use of real estate, actions of
vendors, rising costs associated with employees (including health
care costs), energy, and certain commodities, geopolitical conditions
and other risks identified from time to time in the Company's public
statements and reports filed with the Securities and Exchange
Commission.
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(unaudited)
12 Weeks Ended
--------------------------
November 20, November 21,
2011 2010
------------ ------------
REVENUE
Net sales $ 21,181 $ 18,823
Membership fees 447 416
------------ ------------
Total revenue 21,628 19,239
OPERATING EXPENSES
Merchandise costs 18,931 16,757
Selling, general and administrative 2,145 1,941
Preopening expenses 10 12
Provision for impaired assets and closing
costs, net (1) 4
------------ ------------
Operating income 543 525
OTHER INCOME (EXPENSE)
Interest expense (27) (26)
Interest income and other, net 37 5
------------ ------------
INCOME BEFORE INCOME TAXES 553 504
Provision for income taxes 225 172
------------ ------------
Net income including noncontrolling interests 328 332
Net income attributable to noncontrolling
interests (8) (20)
------------ ------------
NET INCOME ATTRIBUTABLE TO COSTCO $ 320 $ 312
============ ============
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO
COSTCO:
Basic $ 0.74 $ 0.72
============ ============
Diluted $ 0.73 $ 0.71
============ ============
Shares used in calculation (000's)
Basic 434,222 434,099
Diluted 440,615 441,360
Dividends per share $ 0.240 $ 0.205
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(unaudited)
Subject to Reclassifications
November 20, August 28,
2011 2011
------------ ------------
ASSETS
Cash and cash equivalents $ 4,319 $ 4,009
Short-term investments 1,596 1,604
Receivables, net 982 965
Merchandise inventories 7,618 6,638
Deferred income taxes and other current assets 478 490
------------ ------------
Total current assets 14,993 13,706
Property and equipment, net 12,381 12,432
Other assets 630 623
------------ ------------
TOTAL ASSETS $ 28,004 $ 26,761
============ ============
LIABILITIES AND EQUITY
Short-term borrowings and current portion of long-
term debt $ 934 $ 900
Accounts payable 7,576 6,544
Other current liabilities 4,801 4,606
------------ ------------
Total current liabilities 13,311 12,050
Long-term debt, excluding current portion 1,330 1,253
Deferred income taxes and other liabilities 916 885
------------ ------------
Total liabilities 15,557 14,188
------------ ------------
Total Costco stockholders' equity 11,909 12,002
Noncontrolling interests 538 571
------------ ------------
Total equity 12,447 12,573
------------ ------------
TOTAL LIABILITIES AND EQUITY $ 28,004 $ 26,761
============ ============
CONTACTS:
Costco Wholesale Corporation
Richard Galanti
425/313-8203
Bob Nelson
425/313-8255
Jeff Elliott
425/313-8264
SOURCE: Costco
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