SOURCE: Costco

May 30, 2013 03:01 ET

Costco Wholesale Corporation Reports Third Quarter and Year-to-Date Operating Results for Fiscal Year 2013

ISSAQUAH, WA--(Marketwired - May 30, 2013) -  Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) announced today its operating results for the third quarter (twelve weeks) and the first thirty-six-weeks of fiscal 2013, ended May 12, 2013. Net sales for the quarter increased eight percent, to $23.55 billion, from $21.85 billion last year. Net sales for the first thirty-six weeks increased eight percent, to $71.10 billion, from $65.54 billion last year.

Comparable sales were as follows:

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

Changes in gasoline prices and foreign exchange rates had negative impacts on comparable sales for the 12-week period; and immaterial impacts for the 36-week period. Excluding these effects, comparable sales were as follows:

       
  12 Weeks   36 Weeks
U.S. 7%   6%
International 7%   6%
       
Total 7%   6%
       

Net income for the quarter was $459 million, or $1.04 per diluted share, compared to $386 million, or $.88 per diluted share, last year. Net income for the first thirty-six weeks was $1.42 billion, or $3.23 per diluted share, compared to $1.10 billion, or $2.50 per diluted share, last year. Net income for the thirty-six weeks was positively impacted by a second quarter $62 million ($.14 per diluted share) tax benefit in connection with the portion of the special cash dividend paid in December 2012 to the Company 401(k) plan participants.

Costco currently operates 627 warehouses, including 449 in the United States and Puerto Rico, 85 in Canada, 33 in Mexico, 24 in the United Kingdom, 15 in Japan, nine in Taiwan, nine in Korea and three in Australia. The Company plans to open up to an additional nine new warehouses prior to the end of its fiscal year on September 1, 2013. Costco also operates electronic commerce web sites, at www.costco.com (U.S.), www.costco.ca (Canada), and www.costco.co.uk (United Kingdom).

A conference call to discuss these third quarter operating results is scheduled for 8:00 a.m. (PT) today, May 30, 2013, 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     36 Weeks Ended  
    May 12, 2013     May 6, 2012     May 12, 2013     May 6, 2012  
REVENUE                                
  Net sales   $ 23,552     $ 21,849     $ 71,099     $ 65,538  
  Membership fees     531       475       1,570       1,381  
    Total revenue     24,083       22,324       72,669       66,919  
OPERATING EXPENSES                                
  Merchandise costs     21,038       19,543       63,530       58,613  
  Selling, general and administrative     2,313       2,152       7,006       6,474  
  Preopening expenses     10       6       34       22  
    Operating income     722       623       2,099       1,810  
OTHER INCOME (EXPENSE)                                
  Interest expense     (25 )     (19 )     (63 )     (73 )
  Interest income and other, net     15       18       61       65  
INCOME BEFORE INCOME TAXES     712       622       2,097       1,802  
  Provision for income taxes     248       217       658       657  
Net income including noncontrolling interests     464       405       1,439       1,145  
Net income attributable to noncontrolling interests     (5 )     (19 )     (17 )     (45 )
NET INCOME ATTRIBUTABLE TO COSTCO   $ 459     $ 386     $ 1,422     $ 1,100  
                                 
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:                                
  Basic   $ 1.05     $ 0.89     $ 3.27     $ 2.53  
  Diluted   $ 1.04     $ 0.88     $ 3.23     $ 2.50  
                                 
Shares used in calculation (000's)                                
  Basic     436,488       433,791       435,293       434,180  
  Diluted     440,780       439,166       439,738       439,748  
                                 
                                 
                                 
Cash dividends declared per common share   $ 0.31     $ 0.00     $ 7.86     $ 0.48  
                                 
                                 
                                 
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(unaudited)
Subject to Reclassifications
 
    May 12,
2013
  September 2,
 2012
ASSETS            
Cash and cash equivalents   $ 5,448   $ 3,528
Short-term investments     1,062     1,326
Receivables, net     1,134     1,026
Merchandise inventories     7,635     7,096
Deferred income taxes and other current assets     584     550
  Total current assets     15,863     13,526
Property and equipment, net     13,546     12,961
Other assets     597     653
TOTAL ASSETS   $ 30,006   $ 27,140
             
LIABILITIES AND EQUITY            
             
Short-term borrowings   $ 54   $ 0
Accounts payable     7,788     7,303
Accrued salaries and benefits     1,911     1,832
Other current liabilities     2,544     2,024
Deferred membership fees     1,212     1,101
  Total current liabilities     13,509     12,260
Long-term debt, excluding current portion     4,887     1,381
Deferred income taxes and other liabilities     963     981
  Total liabilities     19,359     14,622
             
Total Costco stockholders' equity     10,472     12,361
Noncontrolling interests     175     157
  Total equity     10,647     12,518
TOTAL LIABILITIES AND EQUITY   $ 30,006   $ 27,140
             

Contact Information

  • CONTACTS:
    Costco Wholesale Corporation


    Richard Galanti
    425/313-8203

    Bob Nelson
    425/313-8255

    Jeff Elliott
    425/313-8264