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Costco Wholesale Corporation Reports First Quarter Fiscal Year 2013 Operating Results

Dec 12, 2012 (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 2013, ended November 25, 2012.

Net sales for the quarter increased ten percent, to $23.20 billion from $21.18 billion during the first quarter last year. Comparable sales for the first quarter of fiscal 2013 were as follows:

     
    12 Weeks
     
U.S.   7%
International   9%
     
Total Company   7%
     

Inflation in gasoline prices and strengthening foreign currencies had a positive impact on comparable sales. Excluding these effects, comparable sales were as follows:

     
    12 Weeks
     
U.S.   6%
International   7%
     
Total Company   6%
     

Net income for the quarter was $416 million, or $.95 per diluted share, compared to $320 million, or $.73 per diluted share, last year. Last year's net income was negatively impacted by a $12 million charge (or $.03 per diluted share) related to settlement of an income tax audit of the Company's Mexico operation, and a $17 million charge (or $.04 per diluted share) related to contributions to an initiative reforming alcoholic beverage laws in Washington State.

Costco currently operates 621 warehouses, including 448 in the United States and Puerto Rico, 85 in Canada, 32 in Mexico, 23 in the United Kingdom, 13 in Japan, nine in Taiwan, eight in Korea, and three in Australia. The Company plans to open one additional new warehouse (Gwangmyeong, Korea) before the end of calendar year 2012. The Company also operates Costco Online, electronic commerce web sites, at www.costco.com (U.S.), www.costco.ca (CN), and www.costco.co.uk (United Kingdom).

A conference call to discuss these fiscal 2013 first quarter operating results is scheduled for 7:00 a.m. (PT) today, December 12, 2012, 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  
CONSOLIDATED STATEMENTS OF INCOME  
(dollars in millions, except per share data)  
(unaudited)  
   
    12 Weeks Ended  
    November 25,
2012
    November 20,
2011
 
REVENUE                
  Net sales   $ 23,204     $ 21,181  
  Membership fees     511       447  
    Total revenue     23,715       21,628  
OPERATING EXPENSES                
  Merchandise costs     20,726       18,931  
  Selling, general and administrative     2,332       2,144  
  Preopening expenses     18       10  
    Operating income     639       543  
OTHER INCOME (EXPENSE)                
  Interest expense     (13 )     (27 )
  Interest income and other, net     20       37  
INCOME BEFORE INCOME TAXES     646       553  
  Provision for income taxes     225       225  
Net income including noncontrolling interests     421       328  
Net income attributable to noncontrolling interests     (5 )     (8 )
NET INCOME ATTRIBUTABLE TO COSTCO   $ 416     $ 320  
                 
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:                
  Basic   $ 0.96     $ 0.74  
  Diluted   $ 0.95     $ 0.73  
                 
Shares used in calculation (000's)                
  Basic     433,423       434,222  
  Diluted     438,643       440,615  
                 
CASH DIVIDENDS DECLARED PER COMMON SHARE   $ 0.275     $ 0.240  
                 
                 
                 
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(unaudited)
 
Subject to Reclassifications
 
    November 25,
2012
  September 2,
2012
ASSETS            
Cash and cash equivalents   $ 3,897   $ 3,528
Short-term investments     1,679     1,326
Receivables, net     1,175     1,026
Merchandise inventories     8,152     7,096
Deferred income taxes and other current assets     502     550
  Total current assets     15,405     13,526
Property and equipment, net     13,251     12,961
Other assets     667     653
TOTAL ASSETS   $ 29,323   $ 27,140
             
LIABILITIES AND EQUITY            
Accounts payable   $ 8,825   $ 7,303
Accrued salaries and benefits     1,945     1,832
Other current liabilities     2,196     2,024
Deferred membership fees     1,169     1,101
  Total current liabilities     14,135     12,260
Long-term debt, excluding current portion     1,366     1,381
Deferred income taxes and other liabilities     990     981
  Total liabilities     16,491     14,622
Total Costco stockholders' equity     12,665     12,361
Noncontrolling interests     167     157
  Total equity     12,832     12,518
TOTAL LIABILITIES AND EQUITY   $ 29,323   $ 27,140
             
             
             
CONTACTS: 
        Costco Wholesale Corporation
        Richard Galanti
        425/313-8203
        Bob Nelson
        425/313-8255
        Jeff Elliott
        425/313-8264
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