News Column

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

Mar 12 2013 12:00AM

Marketwire

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ISSAQUAH, WA -- (Marketwire) -- 03/12/13 -- Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) announced today its operating results for the second quarter (twelve weeks) and first half (24 weeks) of fiscal 2013, ended February 17, 2013. Net sales for the quarter increased eight percent, to $24.34 billion, from $22.51 billion last year. Net sales for the first half increased nine percent, to $47.55 billion, from $43.69 billion last year.

Comparable sales were as follows:


12 Weeks 24 Weeks ------------- ------------- U.S. 5% 6% International 6% 7% Total 5% 6% ============= =============




Inflation in gasoline prices and stronger foreign currencies had positive impacts on comparable sales for both reporting periods. Excluding these effects, comparable sales were as follows:


12 Weeks 24 Weeks ------------- ------------- U.S. 5% 6% International 4% 5% Total 5% 5% ============= =============




Net income for the quarter was $547 million, or $1.24 per diluted share, compared to $394 million, or $.90 per diluted share, last year. Net income was positively impacted by a $62 million ($0.14 per diluted share) tax benefit in connection with the portion of the special cash dividend paid by the Company in December 2012 to the Company 401(k) plan participants. Net income for the first half was $963 million, or $2.19 per diluted share, compared to $714 million, or $1.62 per diluted share, last year.

Costco currently operates 622 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, nine in Korea and three in Australia. The Company plans to open up to an additional fourteen 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 second quarter operating results is scheduled for 8:00 a.m. (PT) today, March 12, 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 24 Weeks Ended ---------------------- ---------------------- February February February February 17, 2013 12, 2012 17, 2013 12, 2012 ---------- ---------- ---------- ----------REVENUE Net sales $ 24,343 $ 22,508 $ 47,547 $ 43,689 Membership fees 528 459 1,039 906 ---------- ---------- ---------- ---------- Total revenue 24,871 22,967 48,586 44,595OPERATING EXPENSES Merchandise costs 21,766 20,139 42,492 39,070 Selling, general and administrative 2,361 2,178 4,693 4,322 Preopening expenses 6 6 24 16 ---------- ---------- ---------- ---------- Operating income 738 644 1,377 1,187OTHER INCOME (EXPENSE) Interest expense (25) (27) (38) (54) Interest income and other, net 26 10 46 47 ---------- ---------- ---------- ----------INCOME BEFORE INCOME TAXES 739 627 1,385 1,180 Provision for income taxes 185 215 410 440 ---------- ---------- ---------- ----------Net income including noncontrolling interests 554 412 975 740Net income attributable to noncontrolling interests (7) (18) (12) (26) ---------- ---------- ---------- ----------NET INCOME ATTRIBUTABLE TO COSTCO $ 547 $ 394 $ 963 $ 714 ========== ========== ========== ==========NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: Basic $ 1.26 $ 0.91 $ 2.22 $ 1.64 ========== ========== ========== ========== Diluted $ 1.24 $ 0.90 $ 2.19 $ 1.62 ========== ========== ========== ==========Shares used in calculation (000's) Basic 435,975 434,535 434,698 434,374 Diluted 439,812 439,468 439,222 440,036Cash dividends declared per common share $ 7.275 $ 0.240 $ 7.550 $ 0.480 COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in millions) (unaudited)Subject to Reclassifications February 17, September 2, 2013 2012 -------------- -------------- ASSETSCash and cash equivalents $ 4,413 $ 3,528Short-term investments 1,238 1,326Receivables, net 1,300 1,026Merchandise inventories 7,582 7,096Deferred income taxes and other current assets 577 550 -------------- -------------- Total current assets 15,110 13,526Property and equipment, net 13,386 12,961Other assets 593 653 -------------- --------------TOTAL ASSETS $ 29,089 $ 27,140 ============== ============== LIABILITIES AND EQUITYShort-term borrowings $ 64 $ 0Accounts payable 7,441 7,303Accrued salaries and benefits 2,077 1,832Other current liabilities 2,264 2,024Deferred membership fees 1,199 1,101 -------------- -------------- Total current liabilities 13,045 12,260Long-term debt, excluding current portion 4,806 1,381Deferred income taxes and other liabilities 955 981 -------------- -------------- Total liabilities 18,806 14,622 -------------- --------------Total Costco stockholders' equity 10,112 12,361Noncontrolling interests 171 157 -------------- -------------- Total equity 10,283 12,518 -------------- --------------TOTAL LIABILITIES AND EQUITY $ 29,089 $ 27,140 ============== ==============





CONTACTS:
Costco Wholesale Corporation
Richard Galanti
425/313-8203

Bob Nelson
425/313-8255

Jeff Elliott
425/313-8264





Source: Marketwire


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