12 Weeks
---------
U.S. 5%
International 14%
Total Company 7%
=========
Inflation in gasoline prices and strengthening foreign currencies had a
positive impact on comparable sales. Excluding these effects, comparable
sales for the twelve-week period were as follows:
12 Weeks
---------
U.S. 4%
International 10%
Total Company 5%
=========
Net income for the quarter was $312 million, or $.71 per diluted share,
compared to $266 million, or $.60 per diluted share, during the first
quarter of fiscal 2010. Mexico's results for the prior year were accounted
for under the equity method and Costco's 50% share was included in interest
income and other. In the current year the joint venture results are fully
consolidated and the joint venture partner's 50% share is reported as net
income attributable to noncontrolling interests. The consolidation of the
Mexico joint venture had no impact on net income or earnings per share
attributable to Costco.
Costco currently operates 582 warehouses, including 425 in the United
States and Puerto Rico, 80 in Canada, 22 in the United Kingdom, seven in
Korea, six in Taiwan, nine in Japan, one in Australia and 32 in Mexico. The
Company also operates Costco Online, an electronic commerce web site, at
www.costco.com and at www.costco.ca in Canada.
A conference call to discuss these fiscal 2011 first quarter results is
scheduled for 8:00 a.m. (PT) today, December 8, 2010, 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), 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
--------------------------
November 21, November 22,
2010 2009
------------ ------------
REVENUE
Net sales $ 18,823 $ 16,922
Membership fees 416 377
------------ ------------
Total revenue 19,239 17,299
OPERATING EXPENSES
Merchandise costs 16,757 15,081
Selling, general and administrative 1,941 1,777
Preopening expenses 12 11
Provision for impaired assets and closing
costs, net 4 2
------------ ------------
Operating income 525 428
OTHER INCOME (EXPENSE)
Interest expense (26) (24)
Interest income and other, net 5 18
------------ ------------
INCOME BEFORE INCOME TAXES 504 422
Provision for income taxes 172 152
------------ ------------
Net income including noncontrolling interests 332 270
Net income attributable to noncontrolling
interests (20) (4)
------------ ------------
NET INCOME ATTRIBUTABLE TO COSTCO $ 312 $ 266
============ ============
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO
COSTCO:
Basic $ 0.72 $ 0.61
============ ============
Diluted $ 0.71 $ 0.60
============ ============
Shares used in calculation (000's)
Basic 434,099 437,173
Diluted 441,360 444,849
Dividends per share $ 0.205 $ 0.180
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(unaudited)
Subject to Reclassifications
November 21, August 29,
2010 2010
------------ ------------
ASSETS
Cash and cash equivalents $ 3,739 $ 3,214
Short-term investments 1,545 1,535
Receivables, net 985 884
Merchandise inventories 6,852 5,638
Deferred income taxes and other current assets 437 437
------------ ------------
Total current assets 13,558 11,708
Property and equipment, net 12,019 11,314
Other assets 466 793
------------ ------------
TOTAL ASSETS $ 26,043 $ 23,815
============ ============
LIABILITIES AND EQUITY
Accounts payable $ 7,205 $ 5,947
Short-term borrowings and current portion of
long-term debt 24 26
Other current liabilities 4,273 4,090
------------ ------------
Total current liabilities 11,502 10,063
Long-term debt, excluding current portion 2,143 2,141
Deferred income taxes and other liabilities 691 681
------------ ------------
Total liabilities 14,336 12,885
------------ ------------
Total Costco stockholders' equity 11,199 10,829
Noncontrolling interests 508 101
------------ ------------
Total equity 11,707 10,930
------------ ------------
TOTAL LIABILITIES AND EQUITY $ 26,043 $ 23,815
============ ============
Contact Information: CONTACTS: Costco Wholesale Corporation Richard Galanti 425/313-8203 Bob Nelson 425/313-8255 Jeff Elliott 425/313-8264