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

May 30 2013 12:00AM

Marketwire

Tracker

ISSAQUAH, WA -- (Marketwired) -- 05/30/13 -- 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 66,919OPERATING 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 1,810OTHER 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 1,145Net 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 440,780 439,166 439,738 439,748Cash 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, September 2, 2013 2012 -------------- -------------- ASSETSCash and cash equivalents $ 5,448 $ 3,528Short-term investments 1,062 1,326Receivables, net 1,134 1,026Merchandise inventories 7,635 7,096Deferred income taxes and other current assets 584 550 -------------- -------------- Total current assets 15,863 13,526Property and equipment, net 13,546 12,961Other assets 597 653 -------------- --------------TOTAL ASSETS $ 30,006 $ 27,140 ============== ============== LIABILITIES AND EQUITYShort-term borrowings $ 54 $ 0Accounts payable 7,788 7,303Accrued salaries and benefits 1,911 1,832Other current liabilities 2,544 2,024Deferred membership fees 1,212 1,101 -------------- -------------- Total current liabilities 13,509 12,260Long-term debt, excluding current portion 4,887 1,381Deferred income taxes and other liabilities 963 981 -------------- -------------- Total liabilities 19,359 14,622 -------------- --------------Total Costco stockholders' equity 10,472 12,361Noncontrolling interests 175 157 -------------- -------------- Total equity 10,647 12,518 -------------- --------------TOTAL LIABILITIES AND EQUITY $ 30,006 $ 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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