CSK Auto Reports Second Quarter Fiscal 2000 Financial Results

8 September 2000

    PHOENIX, Sept. 7 CSK Auto Corporation, the parent company of CSK Auto, Inc., 
today reported its financial results for the second quarter of fiscal 2000.

    Thirteen Weeks Ended July 30, 2000
    The number of stores operated by the Company increased to 1,143 at
July 30, 2000, from 926 stores at August 1, 1999.  The increase reflects the
acquisition of the Al's and Grand Auto Supply stores (154 units, net of
closures) in the third quarter of fiscal 1999, the acquisition of All Car
Distributors (22 units) in the first quarter of fiscal 2000 and new store
openings.  The number of stores at both July 30, 2000 and August 1, 1999
include the 86 stores, net of relocations, acquired from Big Wheel/Rossi
during the second quarter of fiscal 1999.  However, the operating results of
the Big Wheel/Rossi stores are reflected for only one month in the 1999
quarter and are reflected for the full fiscal quarter ended July 30, 2000.

    Net sales for the thirteen weeks ended July 30, 2000, increased approximately 
24% to $374.8 million from $302.3 million in the second quarter of fiscal 1999.  
Comparable store sales, however, were flat in the second quarter of fiscal 2000.  
Sales in the second quarter of fiscal 2000 were lower than anticipated with the 
softness affecting both the do-it-yourself (DIY) retail and commercial sales 
levels.  Furthermore, initial sales results at our recently acquired stores 
have been disappointing, with a significant portion of the sales shortfall 
coming from the loss of automotive service sales that were assumed to be retained 
until the service centers were subleased or closed.  As of July 30, 2000, the 
Company has sublet a majority of the acquired service centers and is finalizing 
sublease and/or closure arrangements for the remaining service centers with the 
intention of eliminating all of the service centers by the end of the third 
quarter of fiscal 2000.

    Excluding non-recurring charges for (i) acquisition-related transition
expenses including associated store closing costs and (ii) the operating
losses of service centers that the Company is exiting, operating profit for
the second quarter of fiscal 2000 totaled $28.8 million compared to
$29.4 million, for the second quarter of fiscal 1999.  The decrease in
operating profit resulted from lower gross profit contribution due to lower
than anticipated sales levels and the assimilation of acquired inventories
without customary purchase allowances.  In addition, the Company recorded a
non-cash charge of $0.7 million to record its proportionate equity share of
the development stage losses of the PartsAmerica.com joint venture in which
the Company participates.

    Interest expense for the second quarter of fiscal 2000 increased to $15.3 
million from $8.1 million for the second quarter of fiscal 1999, primarily due 
to increased debt levels and higher variable interest rates.

    Excluding the above-described non-recurring charges, net income for the
second quarter of fiscal 2000 was $8.4 million, or $0.30 per diluted common
share ($0.32 per diluted common share excluding the charge for PartsAmerica.com).  
This compares to net income of $13.1 million, or $0.46 per diluted common share, 
for the second quarter of fiscal 1999.  Including the one-time charges, net loss 
for the second quarter of fiscal 2000 was $1.5 million, or ($0.05) per diluted 
common share.

    During the second quarter of fiscal 2000, the Company opened 8 new stores,
relocated 5 stores, expanded 2 stores, acquired 1 store and closed 4 stores in
addition to those closed due to relocation.

    Twenty-six Weeks Ended July 30, 2000
    Net sales for the twenty-six weeks ended July 30, 2000, increased 28% to
$731.2 million from $571.7 million for the comparable period of fiscal 1999.
Comparable store sales increased 2% for the twenty-six weeks ended
July 30, 2000.

    Operating profit, excluding the above-described charges, increased to
$64.8 million for the twenty-six weeks ended July 30, 2000 from $52.6 million
for the comparable period of fiscal 1999.  Inclusive of all items, operating
profit declined to $36.6 million for the first two quarters of fiscal 2000
from $52.0 million for the comparable period of fiscal 1999.

    Interest expense for the twenty-six weeks ended July 30, 2000 increased to
$29.8 million from $15.5 million for the comparable period of fiscal 1999,
primarily due to increased debt levels and higher variable interest rates.

    Net income for the twenty-six weeks ended July 30, 2000, excluding all of
the non-recurring items discussed above that affected operating profit,
decreased to $21.5 million or $0.77 per diluted common share ($0.79 per
diluted common share excluding the charge for PartsAmerica.com) from
$22.9 million, or $0.80 per diluted common share, excluding non-recurring
charges, for the comparable period of fiscal 1999.  Inclusive of all
non-recurring charges, net income for the twenty-six weeks ended July 30, 2000
totaled $4.2 million or $0.15 per diluted common share compared to net income
of $21.8 million, or $0.76 per diluted common share for the comparable period
of the prior year.

    "We are very disappointed by our second quarter and year-to-date fiscal
2000 financial results," said Mr. Jenkins.  "We believe that the soft sales
trends which we are experiencing are reflective of the general market
conditions that are also being experienced by many of our suppliers and
competitors.  Despite these conditions, we are maintaining our focus on
serving our customers, operating our stores efficiently and improving our
operating results."

    Outlook for the Remainder of Fiscal 2000
    With respect to the remainder of fiscal 2000, the Company expects
comparable store sales increases of approximately 3% for the second half of
the fiscal year with the increases being driven largely by the commercial
sales program and the maturation of newly opened stores.  Total annual net
sales are expected to approximate $1.48 billion.  Gross profit margins are
expected to remain consistent with the second quarter run rate and earnings
per diluted common share are expected to range from $0.55 to $0.60 for the
second half of the fiscal year.  In addition, the Company expects to generate
annual earnings before interest, taxes, depreciation and amortization
("EBITDA") of approximately $155 million.  For fiscal 2001, the Company's
preliminary projection anticipates top-line growth of approximately 8 to
10 percent, a net income increase of between 15 and 20 percent over fiscal
2000 earnings and the production of approximately $175 million of EBITDA.

    The Company has entered into an agreement in principle to settle the class
action lawsuits brought by former and present California store managers and
senior assistant managers seeking overtime pay under California law.  The
maximum amount of the settlement is $11.0 million (which includes plaintiffs'
attorneys' fees and costs), but may be lower depending upon the number of
potential class members that submit claims.  The tentative settlement will not
be final until the parties execute a definitive settlement agreement, which
must be approved by the court in which the lawsuits are pending.  The Company
will record a charge when the final settlement amount is determined.  The
Company believes that the settlement amount is reasonable in light of the
projected legal expenses and other costs necessary to defend these lawsuits
and the potential incremental exposure to the Company in the event of an
unfavorable outcome.
    
                     CSK AUTO CORPORATION AND SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (UNAUDITED)
               (in thousands, except share and per share data)

                                                         (As adjusted)
                           Thirteen Weeks Ended      Thirteen Weeks Ended
                          July 30,        Aug 1,     July 30,        Aug 1,
                              2000          1999     2000 (1)          1999


    Net sales             $374,802      $302,322     $372,303      $302,322
    Cost of sales          201,348       159,593      198,749       159,593
    Gross profit           173,454       142,729      173,554       142,729
    Other costs and expenses:
     Operating and
      administrative       143,399       112,374      142,321       112,374
     Store closing costs     4,018           675          291           675
     Transition and
      integration
      expenses (2)          11,063           619           --            --
     Equity in loss of
      joint venture            716            --          716            --
    Goodwill amortization    1,416           280        1,416           280

    Operating profit        12,842        28,781       28,810        29,400
    Interest expense, net   15,263         8,143       15,263         8,143
    Income (loss) before
     income taxes          (2,421)        20,638       13,547        21,257
    Income tax expense
     (benefit)               (926)         7,945        5,182         8,183
    Net income (loss)     $(1,495)       $12,693       $8,365       $13,074

    Basic earnings (loss)
    per share:
     Net income (loss)     $(0.05)         $0.46        $0.30         $0.47
     Shares used in
      computing per
      share amounts     27,838,889    27,814,773   27,838,889    27,814,773

    Diluted earnings
    (loss) per share:
     Net income (loss)     $(0.05)         $0.44        $0.30         $0.46
    Shares used in computing
     per share amounts  27,838,889    28,673,234   27,838,889    28,673,234

    (1)  The "As adjusted" column excludes:  (i) $2.499 million of sales made
         by acquired automotive service centers that the Company has closed or
         will be closing; (ii) $2.599 million of cost of sales associated with
         the excluded sales; (iii) $1.078 million of operating expenses of the
         automotive service centers that the Company has closed or will be
         closing; and (iv) $3.7 million of store closing costs incurred with
         respect to CSK stores that overlap with acquired stores.

    (2)  Reflects costs incurred to replace store systems, re-merchandise
         stores, train employees and conduct other activities associated with
         the integration of acquired stores into the Company's operations.

                     CSK AUTO CORPORATION AND SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (UNAUDITED)
               (in thousands, except share and per share data)


                                                          (As adjusted)
                         Twenty-six Weeks Ended      Twenty-six Weeks Ended

                          July 30,        Aug 1,     July 30,        Aug 1,
                              2000          1999     2000 (1)          1999

    Net sales             $731,156      $571,724     $724,754      $571,724
    Cost of sales          384,159       298,844      378,260       298,844
    Gross profit           346,997       272,880      346,494       272,880
    Other costs and expenses:
     Operating and
      administrative       278,753       218,764      276,341       218,764
     Store closing costs     5,863         1,210        2,136         1,210
     Transition and
      integration
      expenses (2)          22,510           619           --            --
     Equity in loss of
      joint venture            716            --          716            --
     Goodwill amortization   2,528           283        2,528           283

    Operating profit        36,627        52,004       64,773        52,623
    Interest expense, net   29,821        15,492       29,821        15,492
    Income before income
     taxes and cumulative
     effect of change
     in accounting
     principle               6,806        36,512       34,952        37,131
    Income tax expense       2,626        13,957       13,484        14,194
    Income before cumulative
     effect of change in
     accounting principle    4,180        22,555       21,468        22,937
    Cumulative effect of
     change in accounting
     principle, net of
     $468 of income taxes (3)   --         (741)           --            --
    Net income              $4,180       $21,814      $21,468       $22,937

    Basic earnings (loss)
    per share:
     Income before cumulative
      effect of change in
      accounting principle   $0.15         $0.81        $0.77         $0.83
     Cumulative effect of
      change in accounting
      principle, net of
      income taxes              --        (0.03)           --            --
     Net income              $0.15         $0.78        $0.77         $0.83
    Shares used in computing
     per share amounts  27,837,735    27,800,049   27,837,735    27,800,049

    Diluted earnings (loss)
    per share:
     Income before cumulative
      effect of change in
      accounting principle   $0.15         $0.78        $0.77         $0.80
     Cumulative effect of
      change in accounting
      principle, net of
      income taxes              --        (0.02)           --            --
     Net income              $0.15         $0.76        $0.77         $0.80
    Shares used in computing
     per share amounts  27,837,735    28,804,643   27,837,735    28,804,643

    (1)  The "As adjusted" column excludes:  (i) $6.402 million of sales made
         by acquired automotive service centers that the Company has closed or
         will be closing; (ii) $5.899 million of cost of sales associated with
         the excluded sales; (iii) $2.412 million of operating expenses of the
         automotive service centers that the Company has closed or will be
         closing; and (iv) $3.7 million of store closing costs incurred with
         respect to CSK stores that overlap with acquired stores.
    (2)  Reflects costs incurred to replace store systems, re-merchandise
         stores, train employees and conduct other activities associated with
         the integration of acquired stores into the Company's operations.
    (3)  Reflects the cumulative effect of a change in the method of
         accounting for store pre-opening costs.