UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): December 8, 2011
COSTCO WHOLESALE CORPORATION
(Exact name of registrant as specified in its charter)
Washington | 0-20355 | 91-1223280 | ||
(State or other jurisdiction of incorporation) |
(Commission File No.) |
(I.R.S. Employer Identification No.) |
999 Lake Drive
Issaquah, WA 98027
(Address of principal executive offices and zip code)
Registrants telephone number, including area code: 425-313-8100
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Item 2.02. Results of Operations and Financial Condition
On December 8, 2011, the Company issued a press release containing its operating results for the first quarter (twelve weeks) of fiscal 2012, ended November 20, 2011. A copy of the press release is included in Item 9.01.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits. The following exhibits are included in this report:
99.1. | Press release dated December 8, 2011. |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized, on December 8, 2011.
COSTCO WHOLESALE CORPORATION | ||
By: | /s/ Richard A. Galanti | |
Richard A. Galanti Executive Vice President and Chief Financial Officer |
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Exhibit 99.1
News from |
COSTCO WHOLESALE CORPORATION REPORTS FIRST QUARTER
FISCAL YEAR 2012 OPERATING RESULTS
ISSAQUAH, Wash., December 8, 2011Costco Wholesale Corporation (Costco or the Company) (Nasdaq: COST) announced today its operating results for the first quarter (twelve weeks) of fiscal 2012, ended November 20, 2011.
Net sales for the quarter increased thirteen percent to $21.18 billion from $18.82 billion during the first quarter of fiscal 2011. Comparable sales for the first quarter of fiscal 2012 were as follows:
12 Weeks | ||||
U.S. |
10 | % | ||
International |
11 | % | ||
Total Company |
10 | % | ||
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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. |
6 | % | ||
International |
10 | % | ||
Total Company |
7 | % | ||
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Net income for the quarter was $320 million, or $.73 per diluted share, compared to $312 million, or $.71 per diluted share, for the first quarter of fiscal 2011. First quarter results were negatively impacted by a $24 million charge relating to the settlement of an income tax audit of the Companys 50% owned Mexico joint venture. The impact on net income attributable to Costco was $12 million, or $.03 per diluted share. Also negatively impacting this years results was a $17 million charge, or $.04 per diluted share, for contributions to the Yes on 1183 Coalition in support of an initiative reforming alcoholic beverage laws in Washington State. (The initiative was approved by a 59% to 41% margin.) These contributions were not tax deductible under U.S. tax laws.
Costco currently operates 596 warehouses, including 433 in the United States and Puerto Rico, 82 in Canada, 32 in Mexico, 22 in the United Kingdom, nine in Japan, eight in Taiwan, seven in Korea and three in Australia. 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 two additional warehouses in Japan prior to the end of calendar year 2011.
A conference call to discuss these fiscal 2012 first quarter results is scheduled for 8:00 a.m. (PT) today, December 8, 2011, and is available via a webcast on www.costco.com (click on Investor Relations and Play Webcast).
News from |
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 Companys public statements and reports filed with the Securities and Exchange Commission.
CONTACTS: Costco Wholesale Corporation
Richard Galanti, 425/313-8203, Bob Nelson, 425/313-8255, Jeff Elliott, 425/313-8264
News from |
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(unaudited)
12 Weeks Ended | ||||||||
November 20, 2011 |
November 21, 2010 |
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REVENUE |
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Net sales |
$ | 21,181 | $ | 18,823 | ||||
Membership fees |
447 | 416 | ||||||
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Total revenue |
21,628 | 19,239 | ||||||
OPERATING EXPENSES |
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Merchandise costs |
18,931 | 16,757 | ||||||
Selling, general and administrative |
2,145 | 1,941 | ||||||
Preopening expenses |
10 | 12 | ||||||
Provision for impaired assets and closing costs, net |
(1 | ) | 4 | |||||
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Operating income |
543 | 525 | ||||||
OTHER INCOME (EXPENSE) |
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Interest expense |
(27 | ) | (26 | ) | ||||
Interest income and other, net |
37 | 5 | ||||||
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INCOME BEFORE INCOME TAXES |
553 | 504 | ||||||
Provision for income taxes |
225 | 172 | ||||||
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Net income including noncontrolling interests |
328 | 332 | ||||||
Net income attributable to noncontrolling interests |
(8 | ) | (20 | ) | ||||
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NET INCOME ATTRIBUTABLE TO COSTCO |
$ | 320 | $ | 312 | ||||
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NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: |
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Basic |
$ | 0.74 | $ | 0.72 | ||||
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Diluted |
$ | 0.73 | $ | 0.71 | ||||
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Shares used in calculation (000s) |
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Basic |
434,222 | 434,099 | ||||||
Diluted |
440,615 | 441,360 | ||||||
Dividends per share |
$ | 0.240 | $ | 0.205 |
News from |
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(unaudited)
Subject to Reclassifications
November 20, 2011 |
August 28, 2011 |
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ASSETS |
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Cash and cash equivalents |
$ | 4,319 | $ | 4,009 | ||||
Short-term investments |
1,596 | 1,604 | ||||||
Receivables, net |
982 | 965 | ||||||
Merchandise inventories |
7,618 | 6,638 | ||||||
Deferred income taxes and other current assets |
478 | 490 | ||||||
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Total current assets |
14,993 | 13,706 | ||||||
Property and equipment, net |
12,381 | 12,432 | ||||||
Other assets |
630 | 623 | ||||||
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TOTAL ASSETS |
$ | 28,004 | $ | 26,761 | ||||
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LIABILITIES AND EQUITY |
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Short-term borrowings and current portion of long-term debt |
$ | 934 | $ | 900 | ||||
Accounts payable |
7,576 | 6,544 | ||||||
Other current liabilities |
4,801 | 4,606 | ||||||
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Total current liabilities |
13,311 | 12,050 | ||||||
Long-term debt, excluding current portion |
1,330 | 1,253 | ||||||
Deferred income taxes and other liabilities |
916 | 885 | ||||||
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Total liabilities |
15,557 | 14,188 | ||||||
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Total Costco stockholders equity |
11,909 | 12,002 | ||||||
Noncontrolling interests |
538 | 571 | ||||||
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Total equity |
12,447 | 12,573 | ||||||
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TOTAL LIABILITIES AND EQUITY |
$ | 28,004 | $ | 26,761 | ||||
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