COST FY 2008 Earnings Report — Costco Wholesale Corporation Revenue & Financial Results | Market Cap Arena

Costco Wholesale CorporationCOST

FY 2008 Earnings

Reported October 16, 2008

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2008	Prior Q	FY 2007	QoQ Change	YoY Change
Revenue	$72.5B	—	$64.4B	—	12.6%
Op. Income	$2.0B	—	$1.6B	—	22.4%
Gross Margin	12.4%	—	12.3%	—	0.0pp
Net Margin	1.8%	—	1.7%	—	0.1pp
EPS (Diluted)	$2.89	—	$2.37	—	21.9%
Free Cash Flow	$578M	—	$691M	—	-16.4%

Revenue Flow

Item	Amount
REVENUE	$72.5B
Cost of Revenue	$63.5B
GROSS PROFIT	$9.0B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$7.0B
Other Expenses	$248.0K
Operating Expenses	$7.0B
Cost & Expenses	$70.5B
OPERATING INCOME	$2.0B
Interest Income	$96M
Interest Expense	$103M
Other Income/Expenses	$30M
INCOME BEFORE TAX	$2.0B
Income Tax Expense	$716M
Net Income from Continuing Ops	$1.3B
Net Income from Discontinued Ops	$0
Other Adjustments	$12M
NET INCOME	$1.3B
Net Income Deductions	$1M
BOTTOM LINE NET INCOME	$1.3B
D&A	$653M
EBIT	$2.1B
EBITDA	$2.8B
EPS	$3
EPS Diluted	$3

Income Statement

Item	Amount
REVENUE	$72.5B
Cost of Revenue	$63.5B
GROSS PROFIT	$9.0B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$7.0B
Other Expenses	$248.0K
Operating Expenses	$7.0B
Cost & Expenses	$70.5B
OPERATING INCOME	$2.0B
Interest Income	$96M
Interest Expense	$103M
Other Income/Expenses	$30M
INCOME BEFORE TAX	$2.0B
Income Tax Expense	$716M
Net Income from Continuing Ops	$1.3B
Net Income from Discontinued Ops	$0
Other Adjustments	$12M
NET INCOME	$1.3B
Net Income Deductions	$1M
BOTTOM LINE NET INCOME	$1.3B
D&A	$653M
EBIT	$2.1B
EBITDA	$2.8B
EPS	$3
EPS Diluted	$3

Cash Flow Statement

Item	Amount
Net Income	$1.3B
Depreciation & Amortization	$653M
Stock-Based Compensation	$166M
Deferred Income Tax	$21M
Other Non-Cash Items	$146M
Change in Working Capital	$131M
OPERATING CASH FLOW	$2.2B
Capital Expenditure	-$1.6B
Acquisitions (Net)	$48M
Purchases of Investments	-$1.5B
Sales/Maturities of Investments	$1.7B
Other Investing Activities	-$385M
NET CASH FROM INVESTING	-$1.7B
Net Debt Issuance	$170M
Common Stock Repurchased	-$895M
Common Dividends Paid	-$265M
Other Financing Activities	$377M
NET CASH FROM FINANCING	-$613M
FREE CASH FLOW	$578M
Net Change in Cash	-$160M

Balance Sheet

Item	Amount
Cash & Equivalents	$2.6B
Short-Term Investments	$656M
Net Receivables	$748M
Inventory	$5.0B
Other Current Assets	$400M
TOTAL CURRENT ASSETS	$9.5B
PP&E (Net)	$10.4B
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$0
Tax Assets	$0
Other Non-Current Assets	$865M
TOTAL NON-CURRENT ASSETS	$11.2B
TOTAL ASSETS	$20.7B
Account Payables	$5.2B
Short-Term Debt	$140M
Deferred Revenue	$748M
Other Current Liabilities	$1.2B
TOTAL CURRENT LIABILITIES	$8.9B
Long-Term Debt	$2.2B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$328M
Other Non-Current Liabilities	$0
TOTAL NON-CURRENT LIABILITIES	$2.5B
TOTAL LIABILITIES	$11.4B
Common Stock	$2M
Additional Paid-In Capital	$3.5B
Retained Earnings	$5.4B
Treasury Stock	$0
Accum. Other Comp. Income	$286M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$9.2B
Minority Interest	$82M
TOTAL EQUITY	$9.3B
TOTAL LIABILITIES & EQUITY	$20.7B
Total Debt	$2.3B
Net Debt	-$273M