Costco Wholesale Corporation Reports First Quarter Fiscal Year 2013 Operating Results
ISSAQUAH, WA -- (Marketwire) -- 12/12/12 -- 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
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U.S. 7%
International 9%
Total Company 7%
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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
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U.S. 6%
International 7%
Total Company 6%
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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, November 20,
2012 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, September 2,
2012 2012
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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
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Total current assets 15,405 13,526
Property and equipment, net 13,251 12,961
Other assets 667 653
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TOTAL ASSETS $ 29,323 $ 27,140
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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
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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
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Total liabilities 16,491 14,622
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Total Costco stockholders' equity 12,665 12,361
Noncontrolling interests 167 157
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Total equity 12,832 12,518
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TOTAL LIABILITIES AND EQUITY $ 29,323 $ 27,140
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