12 Weeks 36 Weeks -------- -------- US 7% 5% International 10% 8% Total Company 7% 6% ======== ========Costco currently operates 510 warehouses, including 376 in the United States and Puerto Rico, 71 in Canada, 19 in the United Kingdom, five in Korea, four in Taiwan, five in Japan and 30 in Mexico. 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 an additional seven to eight new warehouses prior to the end of its 52-week 2007 fiscal year on September 2, 2007. A conference call to discuss these third quarter results is scheduled for 8:00 a.m. (PT) today, May 31, 2007, and is available via a webcast on www.costco.com (click on Investor Relations and "Webcasts"). 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 those 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, 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 and workers' compensation costs), rising costs associated with the acquisition of merchandise (including the direct and indirect effects of the rising cost of petroleum-based products and fuel and energy costs), 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 thousands, except per share data) (unaudited) 12 Weeks Ended 36 Weeks Ended -------------------------- -------------------------- May 13, 2007 May 7, 2006 May 13, 2007 May 7, 2006 ------------ ------------ ------------ ------------ REVENUE Net sales $ 14,341,520 $ 13,007,415 $ 42,998,537 $ 39,467,453 Membership fees 317,735 276,233 924,358 808,553 ------------ ------------ ------------ ------------ Total revenue 14,659,255 13,283,648 43,922,895 40,276,006 OPERATING EXPENSES Merchandise costs 12,877,587 11,635,052 38,518,297 35,269,073 Selling, general and administrative 1,432,650 1,282,276 4,303,108 3,864,172 Preopening expenses 9,022 10,431 39,235 27,422 Provision for impaired assets and closing costs, net 931 1,182 8,722 3,821 ------------ ------------ ------------ ------------ Operating income 339,065 354,707 1,053,533 1,111,518 OTHER INCOME (EXPENSE) Interest expense (26,016) (2,679) (31,776) (9,326) Interest income and other 42,838 33,751 106,475 94,516 ------------ ------------ ------------ ------------ INCOME BEFORE INCOME TAXES 355,887 385,779 1,128,232 1,196,708 Provision for income taxes 131,901 150,184 417,882 449,092 ------------ ------------ ------------ ------------ NET INCOME $ 223,986 $ 235,595 $ 710,350 $ 747,616 ============ ============ ============ ============ NET INCOME PER COMMON SHARE: Basic $ 0.50 $ 0.50 $ 1.57 $ 1.58 ============ ============ ============ ============ Diluted $ 0.49 $ 0.49 $ 1.54 $ 1.55 ============ ============ ============ ============ Shares used in calculation (000's) Basic 445,471 470,516 451,744 471,699 Diluted 455,889 480,533 461,702 482,933 Dividends per share $ 0.145 $ 0.13 $ 0.405 $ 0.36
Contact Information: CONTACTS: Costco Wholesale Corporation Richard Galanti, 425/313-8203 Bob Nelson, 425/313-8255 Jeff Elliott, 425/313-8264