Costco 1999 Annual Report Download - page 9

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7
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
(dollars in thousands, except per share data)
The following table sets forth the results of operations by quarter for fiscal 1999 and 1998. This information includes all
adjustments which management considers necessary for a fair presentation.
52 Weeks Ended August 29, 1999 52 Weeks Ended August 30, 1998
First Second Third Fourth First Second Third Fourth
Quarter Quarter Quarter Quarter Total Quarter Quarter Quarter Quarter Total
12 12 12 16 52 12 12 12 16 52
Weeks Weeks Weeks Weeks Weeks Weeks Weeks Weeks Weeks Weeks
REVENUE
Net sales . . . . . . ......... $5,894,238 $6,484,445 $5,941,049 $8,656,721 $26,976,453 $5,321,256 $5,697,098 $5,241,926 $7,570,100 $23,830,380
Membership fees and other . . . 103,840 107,913 112,771 155,054 479,578 108,507 97,908 96,160 136,922 439,497
Total revenue . . . . . . . . . . 5,998,078 6,592,358 6,053,820 8,811,775 27,456,031 5,429,763 5,795,006 5,338,086 7,707,022 24,269,877
OPERATING EXPENSES
Merchandise costs ......... 5,287,785 5,788,653 5,341,716 7,752,045 24,170,199 4,779,296 5,098,992 4,715,755 6,785,648 21,379,691
Selling, general and
administrative . . . . . . . . . . 518,990 543,565 528,158 747,485 2,338,198 470,711 478,732 466,987 653,470 2,069,900
Preopening expenses . . . . . . . . 10,707 3,951 6,120 10,229 31,007 7,343 4,071 8,884 6,712 27,010
Provision for impaired assets and
warehouse closing costs . . . . 2,000 3,000 1,500 50,000 56,500 2,000 — 1,500 2,500 6,000
Operating income ......... 178,596 253,189 176,326 252,016 860,127 170,413 213,211 144,960 258,692 787,276
OTHER INCOME (EXPENSE)
Interest expense . . . . . . . . . . (10,912) (10,995) (10,524) (13,096) (45,527) (10,923) (10,965) (10,477) (15,170) (47,535)
Interest income and other . . . . 6,039 11,192 10,659 16,376 44,266 3,720 7,743 7,562 7,637 26,662
INCOME BEFORE INCOME
TAXES AND CUMULATIVE
EFFECT OF ACCOUNTING
CHANGE .............. 173,723 253,386 176,461 255,296 858,866 163,210 209,989 142,045 251,159 766,403
Provision for income taxes . . . . 69,489 101,354 70,584 102,118 343,545 65,284 83,996 56,818 100,463 306,561
INCOME BEFORE
CUMULATIVE EFFECT OF
ACCOUNTING CHANGE . . . 104,234 152,032 105,877 153,178 515,321 97,926 125,993 85,227 150,696 459,842
Cumulative effect of accounting
change, net of tax . . . . . . . . (118,023) — — — (118,023) — — — — —
NET INCOME ............ $ (13,789) $ 152,032 $ 105,877 $ 153,178 $ 397,298 $ 97,926 $ 125,993 $ 85,227 $ 150,696 $ 459,842
NET INCOME PER COMMON
SHARE:
Basic Earnings per share:
Income before cumulative
effect of accounting change . $ 0.48 $ 0.69 $ 0.48 $ 0.69 $ 2.35 $ 0.46 $ 0.59 $ 0.39 $ 0.69 $ 2.13
Cumulative effect of
accounting change, net of
tax................ (0.54) — — — (0.54) — — — — —
Net Income . . . . . . . . . . . . . $ (0.06) $ 0.69 $ 0.48 $ 0.69 $ 1.81 $ 0.46 $ 0.59 $ 0.39 $ 0.69 $ 2.13
Diluted earnings per share . . . .
Income before cumulative
effect of accounting change . $ 0.46 $ 0.66 $ 0.46 $ 0.66 $ 2.23 $ 0.44 $ 0.56 $ 0.38 $ 0.66 $ 2.03
Cumulative effect of
accounting change, net of
tax................ (0.51) — — — (0.50) — — — — —
Net Income . . . . . . . . . . . . . $ (0.05) $ 0.66 $ 0.46 $ 0.66 $ 1.73 $ 0.44 $ 0.56 $ 0.38 $ 0.66 $ 2.03
Shares used in calculation (000’s):
Basic . . . . . . . . . . . . . . . . . 217,838 218,891 220,219 221,076 219,626 213,833 214,590 215,913 217,142 215,506
Diluted................ 233,387 235,227 236,785 236,480 235,560 229,413 230,482 232,378 233,501 231,685
Pro forma amounts assuming
accounting change had been in
effect in fiscal 1998:
Net Income . . . . . . . . . . . . . $ 87,966 $ 123,586 $ 84,730 $ 148,169 $ 444,451
Earnings per common share —
basic ................ $ 0.41 $ 0.58 $ 0.39 $ 0.68 $ 2.06
Earnings per common share —
diluted............... $ 0.39 $ 0.55 $ 0.37 $ 0.65 $ 1.96