News Release

Costco Wholesale Corporation Releases Fourth Quarter and Fiscal Year 2000 Results of Operations
ISSAQUAH, Wash.--(BUSINESS WIRE)--Oct. 12, 2000--Costco Wholesale Corporation ("Costco" or the "Company") (Nasdaq:COST) announced today its results of operations for the 17 weeks (fourth quarter) and the 53 weeks (fiscal year) ended September 3, 2000.
Net sales for fiscal 2000, the 53 weeks ended September 3, 2000, were $31.62 billion, an increase of 17% from $26.98 billion during the prior 52-week fiscal year ended August 29, 1999. Comparable warehouse sales increased 11% over the comparable 53-week period of fiscal 1999. Net sales for the 17-week fourth quarter ended September 3, 2000, increased 20% to $10.41 billion from $8.66 billion during the 16-week fourth quarter ended August 29, 1999. Comparable warehouse sales during the 17-week fourth quarter of fiscal 2000 increased 9% over the comparable 17-week period in the prior fiscal year.
Net income for the 17-week fourth quarter increased 31% to $200.2 million or $.43 per diluted share, from $153.2 million, or $.33 per diluted share, during the 16-week fourth quarter of fiscal 1999. Net income in the fourth quarter of fiscal 1999 was impacted by a $50 million ($30 million after-tax, or $.06 per diluted share) provision for impaired assets and warehouse closing costs primarily related to the Company's planned increase in the number of warehouse relocations to larger and better-located facilities. Before the impact of this charge, net income for the fourth quarter of fiscal 1999 would have been $183.2 million, or $.39 per diluted share and would have resulted in a 9% fourth quarter earnings increase.
Net income for fiscal 2000, a 53-week fiscal year, increased 59% to $631.4 million or $1.35 per diluted share, from $397.3 million or $.86 per diluted share during fiscal year 1999, a 52-week fiscal year. Net income for fiscal 1999 was impacted by both the $50 million fourth quarter provision for impaired assets and warehouse closing costs, as described above, as well as a one-time $118.0 million non-cash, after-tax charge recorded in the first quarter of fiscal 1999, reflecting the cumulative effect of the Company's change in accounting for membership fees from a cash to a deferred method. Before the impact of these two charges, net earnings in fiscal 1999 would have been $545.3 million, or $1.18 per diluted share and would have resulted in a 16% increase in net income in fiscal 2000 compared to fiscal 1999.
Costco currently operates 335 warehouses, including 240 in the United States, 59 in Canada, 10 in the United Kingdom, three in Korea, three in Taiwan, one in Japan and 19 in Mexico. The Company also operates Costco Online, an electronic commerce web site, at www.costco.com. The Company plans to open an additional 17 to 18 warehouses (including the relocation of three existing warehouses to larger and better-located facilities) prior to the end of the calendar year.
COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share data) (unaudited) 17 Weeks 16 Weeks 53 Weeks 52 Weeks Ended Ended Ended Ended ---------- ---------- ---------- ---------- September 3, August 29, September 3, August 29, 2000 1999 2000 1999 ---------- ---------- ---------- ---------- REVENUE Net sales $10,414,317 $ 8,656,721 $31,620,723 $26,976,453 Membership fees and other 174,872 155,054 543,573 479,578 ----------- ----------- ----------- ----------- Total revenue 10,589,189 8,811,775 32,164,296 27,456,031 OPERATING EXPENSES Merchandise costs 9,325,356 7,752,045 28,322,170 24,170,199 Selling, general and administrative 916,975 747,485 2,755,355 2,338,198 Preopening expenses 17,151 10,229 42,321 31,007 Provision for impaired assets and warehouse closing costs 3,000 50,000 7,000 56,500 ----------- ----------- ----------- ----------- Operating income 326,707 252,016 1,037,450 860,127 OTHER INCOME (EXPENSE) Interest expense (8,704) (13,096) (39,281) (45,527) Interest income and other 15,633 16,376 54,226 44,266 ----------- ----------- ----------- ----------- INCOME BEFORE INCOME TAXES AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE 333,636 255,296 1,052,395 858,866 Provision for income taxes 133,454 102,118 420,958 343,545 ----------- ----------- ----------- ----------- INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 200,182 153,178 631,437 515,321 Cumulative effect of accounting change, net of tax -- -- -- (118,023) ----------- ----------- ----------- ----------- NET INCOME $ 200,182 $ 153,178 $ 631,437 $ 397,298 =========== =========== =========== =========== NET INCOME PER COMMON SHARE Basic earnings per share: Income before cumulative effect of accounting change $ 0.45 $ 0.35 $ 1.41 $ 1.17 Cumulative effect of accounting change, net of tax -- -- -- (0.27) ----------- ----------- ----------- ----------- Net Income $ 0.45 $ 0.35 $ 1.41 $ 0.90 =========== =========== =========== =========== Diluted earnings per share: Income before cumulative effect of accounting change $ 0.43 $ 0.33 $ 1.35 $ 1.11 Cumulative effect of accounting change, net of tax -- -- -- (0.25) ----------- ----------- ----------- ----------- Net income $ 0.43 $ 0.33 $ 1.35 $ 0.86 =========== =========== =========== =========== Shares used in calculation (000's) Basic 447,757 442,152 446,255 439,253 Diluted 474,304 472,959 475,737 471,120
--30--APS/se*
CONTACT: | Costco Wholesale Corporation |
---|---|
Richard Galanti, 425/313-8203 | |
Bob Nelson, 425/313-8255 | |