SOURCE: Costco

May 24, 2012 03:01 ET

Costco Wholesale Corporation Reports Third Quarter and Year-to-Date Operating Results for Fiscal Year 2012

ISSAQUAH, WA--(Marketwire - May 24, 2012) - Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) announced today its operating results for the third quarter (twelve weeks) and first thirty-six weeks of fiscal 2012, both ended May 6, 2012.

Net sales for the quarter increased eight percent, to $21.85 billion, from $20.19 billion last year. Net sales for the first thirty-six weeks increased ten percent, to $65.54 billion, from $59.46 billion last year.

Comparable sales were as follows:

12 Weeks 36 Weeks
U.S. 5% 7%
International 5% 8%
Total 5% 8%

Inflation in gasoline prices had a positive impact on comparable sales, particularly for the thirty-six-week period; foreign currencies had a negative impact for both periods. Excluding these effects, comparable sales were as follows:

12 Weeks 36 Weeks
U.S. 4% 6%
International 8% 9%
Total 5% 7%

Net income for the quarter was $386 million, or $.88 per diluted share, compared to $324 million, or $.73 per diluted share, last year. Net income for the first thirty-six weeks was $1.100 billion, or $2.50 per diluted share, compared to $984 million, or $2.22 per diluted share, last year. The quarter this year included a $6.5 million pre-tax LIFO charge ($.01 per diluted share) compared to a $49 million pre-tax LIFO charge ($.07 per diluted share) last year.

Costco currently operates 602 warehouses, including 435 in the United States and Puerto Rico, 82 in Canada, 32 in Mexico, 22 in the United Kingdom, 13 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 up to an additional six new warehouses prior to the end of its fiscal year on September 2, 2012.

A conference call to discuss these third quarter operating results is scheduled for 8:00 a.m. (PT) today, May 24, 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, and consumer and small business spending patterns and debt levels, conditions affecting the acquisition, development, ownership or use of real estate, actions of suppliers, 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 36 Weeks Ended
May 6,
2012
May 8,
2011
May 6,
2012
May 8,
2011
REVENUE
Net sales $ 21,849 $ 20,188 $ 65,538 $ 59,460
Membership fees 475 435 1,381 1,277
Total revenue 22,324 20,623 66,919 60,737
OPERATING EXPENSES
Merchandise costs 19,543 18,067 58,613 53,059
Selling, general and administrative 2,151 1,991 6,472 5,970
Preopening expenses 6 8 22 24
Provision for impaired assets, closing costs and other, net
1

1

2

7
Operating income 623 556 1,810 1,677
OTHER INCOME (EXPENSE)
Interest expense (19 ) (27 ) (73 ) (80 )
Interest income and other, net 18 5 65 14
INCOME BEFORE INCOME TAXES 622 534 1,802 1,611
Provision for income taxes 217 193 657 569
Net income including noncontrolling interests 405 341 1,145 1,042
Net income attributable to noncontrolling interests (19 ) (17 ) (45 ) (58 )
NET INCOME ATTRIBUTABLE TO COSTCO $ 386 $ 324 $ 1,100 $ 984
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
Basic $ 0.89 $ 0.74 $ 2.53 $ 2.26
Diluted $ 0.88 $ 0.73 $ 2.50 $ 2.22
Shares used in calculation (000's)
Basic 433,791 436,977 434,180 435,913
Diluted 439,166 443,570 439,748 442,727
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(unaudited)
Subject to Reclassifications
May 6,
2012
August 28,
2011
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 4,791 $ 4,009
Short-term investments 1,185 1,604
Receivables, net 1,018 965
Merchandise inventories 7,044 6,638
Deferred income taxes and other current assets 553 490
Total current assets 14,591 13,706
PROPERTY AND EQUIPMENT
Land 3,950 3,819
Buildings and improvements 10,639 10,278
Equipment and fixtures 4,206 4,002
Construction in progress 244 269
19,039 18,368
Less accumulated depreciation and amortization (6,443 ) (5,936 )
Net property and equipment 12,596 12,432
OTHER ASSETS 649 623
TOTAL ASSETS $ 27,836 $ 26,761
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable $ 7,302 $ 6,544
Current portion of long-term debt 0 900
Accrued salaries and benefits 1,765 1,758
Accrued sales and other taxes 378 335
Other current liabilities 1,799 1,540
Deferred membership fees 1,122 973
Total current liabilities 12,366 12,050
LONG-TERM DEBT, excluding current portion 1,373 1,253
DEFERRED INCOME TAXES AND OTHER LIABILITIES 914 885
Total liabilities 14,653 14,188
COMMITMENTS AND CONTINGENCIES
EQUITY
Preferred stock $.005 par value; 100,000,000 shares authorized; no shares issued and outstanding
0
0
Common stock $.005 par value; 900,000,000 shares authorized; 433,243,000 and 434,266,000 shares issued and outstanding
2
2
Additional paid-in capital 4,653 4,516
Accumulated other comprehensive income 319 373
Retained earnings 7,611 7,111
Total Costco stockholders' equity 12,585 12,002
Noncontrolling interests 598 571
Total equity 13,183 12,573
TOTAL LIABILITIES AND EQUITY $ 27,836 $ 26,761

Contact Information

  • CONTACTS:

    Costco Wholesale Corporation


    Richard Galanti
    425/313-8203

    Bob Nelson
    425/313-8255

    Jeff Elliott
    425/313-8264