Form 8-K COSTCO WHOLESALE CORP For: Sep 29

 

 

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): September 29, 2015

 

 

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)

Registrant’s 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 September 29, 2015, the Company issued a press release containing its operating results for the fourth quarter and the fiscal year ended August 30, 2015. A copy of the press release is included in Item 9.01.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits. The following exhibit is included in this report:

 

99.1.		Press release dated September 29, 2015.

 

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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 September 29, 2015.

 

 

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Exhibit 99.1

 

COSTCO WHOLESALE CORPORATION REPORTS FOURTH QUARTER AND

FISCAL YEAR 2015 OPERATING RESULTS

ISSAQUAH, Wash., September 29, 2015 – Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the 16-week fourth quarter and the 52-week fiscal year ended August 30, 2015.

Net sales for the fourth quarter were $34.99 billion, an increase of one percent from $34.75 billion in fiscal 2014. Net sales for the fiscal year were $113.67 billion, an increase of three percent from $110.21 billion last year.

Comparable sales were as follows:

 

		16 Weeks				52 Weeks
U.S.			2	%			3	%
Canada			-10	%			-5	%
Other International			-7	%			-3	%
Total Company			-1	%			1	%

Comparable sales for these periods excluding the negative impacts from gasoline price deflation and foreign exchange were as follows:

 

		16 Weeks				52 Weeks
U.S.			6	%			6	%
Canada			7	%			8	%
Other International			6	%			6	%
Total Company			6	%			7	%

Net income for the fourth quarter was $767 million, or $1.73 per diluted share, compared to $697 million, or $1.58 per diluted share, last year.

Net income for this fiscal year was $2.38 billion, or $5.37 per diluted share, compared to $2.06 billion, or $4.65 per diluted share, last year. Net income this year was positively impacted by a $57 million ($.13 per diluted share) tax benefit in connection with a second-quarter special cash dividend received by the Company 401(k) plan participants.

Costco currently operates 686 warehouses, including 480 in the United States and Puerto Rico, 89 in Canada, 36 in Mexico, 27 in the United Kingdom, 23 in Japan, 12 in Korea, 11 in Taiwan, seven in Australia and one in Spain. The Company plans to open up to an additional 12 new warehouses (including one relocation) before the end of calendar year 2015. Costco also operates e-commerce web sites in the U.S., Canada, the United Kingdom and Mexico.

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A conference call to discuss these fiscal 2015 fourth quarter and year-end operating results is scheduled for 8:00 a.m. (PT) tomorrow, September 30, 2015, 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, breaches of security or privacy of member or business information, conditions affecting the acquisition, development, ownership or use of real estate, capital spending, 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 Company’s public statements and reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements, except as required by law.

CONTACTS: Costco Wholesale Corporation

Richard Galanti, 425/313-8203, Bob Nelson, 425/313-8255, Jeff Elliott, 425/313-8264

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COSTCO WHOLESALE CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(dollars in millions, except per share data)

(unaudited)

 

		16 Weeks Ended August 30, 2015				16 Weeks Ended August 31, 2014				52 Weeks Ended August 30, 2015				52 Weeks Ended August 31, 2014
REVENUE
Net sales		$	34,993			$	34,755			$	113,666			$	110,212
Membership fees			785				768				2,533				2,428
Total revenue			35,778				35,523				116,199				112,640
OPERATING EXPENSES
Merchandise costs			31,096				31,037				101,065				98,458
Selling, general and administrative			3,499				3,380				11,445				10,899
Preopening expenses			27				15				65				63
Operating income			1,156				1,091				3,624				3,220
OTHER INCOME (EXPENSE)
Interest expense			(40	)			(35	)			(124	)			(113	)
Interest income and other, net			40				30				104				90
INCOME BEFORE INCOME TAXES			1,156				1,086				3,604				3,197
Provision for income taxes			378				381				1,195				1,109
Net income including noncontrolling interests			778				705				2,409				2,088
Net income attributable to noncontrolling interests			(11	)			(8	)			(32	)			(30	)
NET INCOME ATTRIBUTABLE TO COSTCO		$	767			$	697			$	2,377			$	2,058
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
Basic		$	1.75			$	1.59			$	5.41			$	4.69
Diluted		$	1.73			$	1.58			$	5.37			$	4.65
Shares used in calculation: (000’s)
Basic			438,835				437,875				439,455				438,693
Diluted			442,404				441,887				442,716				442,485
Cash dividends declared per common share		$	0.40			$	0.355			$	6.51			$	1.33

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COSTCO WHOLESALE CORPORATION

CONSOLIDATED BALANCE SHEETS

(amounts in millions, except par value and share data)

(unaudited)

Subject to Reclassifications

		August 30, 2015				August 31, 2014
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	4,801			$	5,738
Short-term investments			1,618				1,577
Receivables, net			1,224				1,148
Merchandise inventories			8,908				8,456
Deferred income taxes and other current assets			748				669
Total current assets			17,299				17,588
PROPERTY AND EQUIPMENT
Land			4,961				4,716
Buildings and improvements			12,618				12,522
Equipment and fixtures			5,274				4,845
Construction in progress			811				592
			23,664				22,675
Less accumulated depreciation and amortization			(8,263	)			(7,845	)
Net property and equipment			15,401				14,830
OTHER ASSETS			740				606
TOTAL ASSETS		$	33,440			$	33,024
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable		$	9,011			$	8,491
Accrued salaries and benefits			2,468				2,231
Accrued member rewards			813				773
Deferred membership fees			1,269				1,254
Current portion long-term debt			1,283				0
Other current liabilities			1,696				1,663
Total current liabilities			16,540				14,412
LONG-TERM DEBT, excluding current portion			4,864				5,093
DEFERRED INCOME TAXES AND OTHER LIABILITIES			1,193				1,004
Total liabilities			22,597				20,509
COMMITMENTS AND CONTINGENCIES
EQUITY
Preferred stock $ .005 par value; 100,000,000 shares authorized; no shares issued and outstanding			0				0
Common stock $ .005 par value; 900,000,000 shares authorized; 437,952,000 and 437,683,000 shares issued and outstanding			2				2
Additional paid-in capital			5,218				4,919
Accumulated other comprehensive loss			(1,121	)			(76	)
Retained earnings			6,518				7,458
Total Costco stockholders’ equity			10,617				12,303
Noncontrolling interests			226				212
Total equity			10,843				12,515
TOTAL LIABILITIES AND EQUITY		$	33,440			$	33,024

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