BILL GETS A CHRISTMAS PRESENT FROM COSTCO
Costco Wholesale Corporation Reports First Quarter Fiscal 2000 Operating Results and Announces Upcoming 2-For-1 Stock Split
ISSAQUAH, Wash.--(BUSINESS WIRE)--Dec. 9, 1999--Costco Wholesale
Corporation ("Costco" or the "Company") (Nasdaq:COST) announced today
its operating results for the first quarter of fiscal 2000, the 12
weeks ended November 21, 1999.
Sales for the first quarter of fiscal 2000 increased 16% to $6.82
billion from $5.89 billion during the first quarter of fiscal 1999. On
a comparable warehouse basis, that is warehouses open at least a year,
net sales increased by 13%.
Net income for the first quarter of fiscal 2000 was $129.3
million, or $.56 per diluted share. Excluding the impact of a one-time
accounting charge taken in last year's first quarter, net income for
the first quarter of fiscal 1999 was $104.2 million, or $.46 per
diluted share, resulting in year-over-year earnings and earnings per
share increases of 24% and 22%, respectively. In last year's first
quarter, the Company recorded a $118 million non-cash, after-tax
charge, reflecting the cumulative effect of the Company's change in
accounting for membership fees from a cash to a deferred method,
whereby membership fee income is recognized ratably over the one-year
life of the membership. Including this one-time charge, the Company
last year reported a loss of $13.8 million or $.05 per diluted share
for the first quarter of fiscal 1999.
The Company also announced today that its Board of Directors
approved a 2-for-1 split of its common stock. Shareholders will
receive one additional share of common stock for every share held on
the record date of December 24, 1999. Additional shares will be mailed
or delivered on or about January 13, 2000, by the Company's transfer
agent, ChaseMellon Shareholder Services. The common stock will begin
trading at a post-split price on January 14, 2000.
Costco currently operates 302 warehouses, including 230 in the
United States, 59 in Canada, seven in the United Kingdom, three in
Korea, two in Taiwan and a warehouse in Japan. The Company also
operates 17 warehouses in Mexico with a joint venture partner. The
Company plans to open an additional 15 to 20 new warehouses (including
four to six relocations of existing warehouses to larger and
better-located facilities) prior to the end of its fiscal year 2000 on
September 3, 2000. |
