Costco Wholesale Corporation Reports First Quarter Operating Results for Fiscal 2003.Business Editors ISSAQUAH, Wash.--(BUSINESS WIRE)--Dec. 12, 2002 Costco Costco Wholesale Corporation (NASDAQ: COST) is the largest membership warehouse club chain in the world based on sales volume, headquartered in Issaquah, Washington, United States,[1] with its flagship warehouse in nearby Seattle. Wholesale Corporation (Nasdaq: COST) announced today its operating results for the first quarter (12 weeks) of fiscal 2003, ended November November: see month. 24, 2002. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the first quarter of fiscal 2003 increased 9% to $9.01 billion from $8.30 billion during the first quarter of fiscal 2002. On a comparable warehouse basis, that is warehouses open at least a year, net sales increased 4%. Net income for the first quarter of fiscal 2003 increased 12% to $145.7 million, or $.31 per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), from $129.7 million, or $.28 per share (diluted), during the first quarter of fiscal 2002. Costco currently operates 411 warehouses, including 304 in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. , 61 in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , 15 in the United Kingdom, five in Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. , three in Taiwan, three in Japan and 20 in Mexico. The Company also operates Costco Online, an electronic commerce web site, at www.costco.com. The Company plans to open one additional new warehouse -- in Celaya, Mexico -- prior to the end of calendar year 2002. A conference call to discuss these first quarter results is scheduled for 8:00 a.m. (PST PST Paroxysmal supraventricular tachycardia, see there ) today, December 12, 2002, and is available via a webcast on www.costco.com (go to Customer Service, Investor Relations Investor relations The process by which the corporation communicates with its investors. , Financial Releases and click on the "Live Webcast" icon). Certain statements contained in this release constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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, conditions affecting the acquisition, development, ownership or use of real estate, actions of vendors, and other risks identified from time to time in the Company's public statements and reports filed with the SEC.
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
(unaudited)
12 Weeks Ended
--------------------------
November 24, November 25,
2002 2001
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REVENUE
Net sales $ 9,010,571 $ 8,297,076
Membership fees and other 188,014 169,477
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Total revenue 9,198,585 8,466,553
OPERATING EXPENSES
Merchandise costs 8,048,897 7,434,397
Selling, general and administrative 888,779 786,118
Preopening expenses 18,117 22,134
Provision for impaired assets and
closing costs 5,000 8,550
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Operating income 237,792 215,354
OTHER INCOME (EXPENSE)
Interest expense (8,468) (6,238)
Interest income and other 7,634 6,977
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INCOME BEFORE INCOME TAXES 236,958 216,093
Provision for income taxes 91,229 86,437
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NET INCOME $ 145,729 $ 129,656
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NET INCOME PER COMMON AND
COMMON EQUIVALENT SHARE:
Basic $ 0.32 $ 0.29
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Diluted $ 0.31 $ 0.28
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Shares used in calculation (000's)
Basic 455,570 451,990
Diluted 478,857 477,395
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