CSK Auto Announces Record Fourth Quarter and Full-Year Sales
2 March 2000
CSK Auto Corporation Announces Record Fourth Quarter and Full-Year Sales
Martin Fraser Named President and Chief Operating Officer to Succeed
Jim Bazlen, Who is Retiring
PHOENIX, March 2 -- CSK Auto Corporation , the
parent company of CSK Auto, Inc., today announced record sales for its fourth
quarter and fiscal year ended January 30, 2000, as well as the naming of
Martin Fraser as President and Chief Operating Officer to succeed Jim Bazlen,
who will retire from day to day operations on April 1, 2000 in order to spend
more time with his family.
For the year ended January 30, 2000, sales were $1.231 billion as compared
to $1.004 billion for the year ended January 31, 1999, an increase of 23%.
Sales for the fourth quarter of fiscal 1999 increased to $328.4 million from
$248.1 million for the same period of fiscal 1998, an increase of 32%.
Comparable store sales for the fiscal year increased by 4% and for the fourth
quarter by 3%. CSK Auto will report its earnings results for the fourth
quarter and full year of fiscal 1999 on March 21, 2000.
"We are very pleased with the fourth quarter comparable store sales,
especially considering the lack of winter weather in our normally cold weather
markets," commented Maynard Jenkins, Chairman and Chief Executive Officer of
CSK Auto Corporation. "Current trends in the business are good and we are
looking forward to strong growth this year," said Mr. Jenkins.
As a result of the acquisition of the Big Wheel / Rossi business on June
30, 1999, the acquisition of the Al's and Grand Auto Supply business on
October 1, 1999, and new store openings, the number of stores operated by the
Company increased to 1120 at January 30, 2000, from 807 stores at January 31,
1999. For the fiscal year, the Company acquired 280 stores, opened 84 new
stores, relocated 26 stores, expanded 9 stores, and closed 51 stores in
addition to stores closed due to relocation. Thirty-seven of the 51 closed
stores were acquired stores and 10 stores were CSK Auto stores that were
closed due to overlap arising from the acquisitions. During the fourth
quarter of fiscal 1999, the Company opened 25 new stores, relocated 7 stores,
expanded 1 store, and closed 25 stores in addition to stores closed due to
relocations. Fifteen of the 25 closed stores were acquired stores and 10
stores were CSK Auto stores that were closed due to overlap arising from the
acquisitions.
Integration efforts with respect to the two recent acquisitions are
proceeding as planned. The Big Wheel / Rossi stores have been remodeled and
changed to Checker Auto Parts stores, with all systems installation and
remerchandising efforts complete. All of the Al's and Grand Auto Supply store
systems have been converted to CSK's systems, and approximately 85% of the
stores have been converted to CSK's merchandising mix. "The conversions will
be completed on schedule," said Mr. Jenkins. "We will complete the remaining
Al's and Grand Auto Supply conversions by the middle of March and look forward
to these stores contributing to our strong growth."
Executive Appointments
CSK Auto also announced today the appointment of Martin Fraser, who is
currently CSK Auto's Executive Vice President - Merchandising, Distribution,
and Commercial, as President and Chief Operating Officer, to succeed Jim
Bazlen, who will retire from day to day operations on April 1, 2000. Mr.
Fraser, age 44, has led the successful integration and conversion of the
Company's acquisitions of the Trak Auto stores, the Big Wheel / Rossi stores
and the Al's and Grand Auto Supply stores. "In his 22 years with CSK, Martin
has had an enormous impact on the success of the Company. We are extremely
proud of Martin's many accomplishments and look forward to his leadership in
the years to come," said Mr. Jenkins.
Mr. Bazlen, who has served in key operating roles at the Company during
the past ten years, will remain a member of the CSK Auto Board of Directors.
He will assist the Company in future special projects, including potential
acquisitions and the Company's e-commerce initiatives through his position as
one of CSK's representatives on the Board of Directors of PartsAmerica.com,
the Company's Internet partnership with Advance Auto Parts and Sequoia
Capital. "We deeply appreciate Jim's many contributions," said Mr. Jenkins.
"Jim has been a partner of mine since day one. We will miss Jim's involvement
in day to day operations, but we look forward to his continued leadership as a
Board member of both CSK Auto and PartsAmerica.com."
"Martin brings a tremendous amount of industry knowledge and experience as
the new President," said Jim Bazlen. "It has been a great experience for me
working with the CSK Auto team and participating in the significant growth we
have achieved. I look forward to playing a continuing role in the growth of
CSK Auto as well as the exciting development of PartsAmerica.com as a Director
of both of these companies."
As part of CSK's increasing emphasis and focus on its rapidly growing
Commercial Business, the Board of Directors approved the appointment of Paul
Lehr, age 53, as Executive Vice President -- Commercial Operations reporting
to Mr. Jenkins. Mr. Lehr had previously been the Chief Executive Officer and
President of The Parts Plus Group, Inc., a $300 million auto parts
distribution business. Mr. Lehr was a member of the Executive Board of "Parts
Plus," one of the largest automotive aftermarket purchasing and marketing
program distribution associations, from 1988 - 1999 and served as Chairman in
1994 and 1995. Mr. Lehr was also a co-founder of Wrenchead.com, an Internet
distributor of auto parts. "We look forward to Paul providing entrepreneurial
leadership to our extremely successful Commercial Operations. His 25 years of
experience in servicing the commercial customer and developing excellent
marketing programs will further enable CSK to expand its Commercial Business,"
said Mr. Jenkins.
In addition to Messrs. Fraser and Lehr, reporting to Mr. Jenkins will be
Don Watson, Senior Vice President and Chief Financial Officer.
CSK Auto is one of the largest retailers of automotive parts and
accessories in the United States with more than 1100 stores located primarily
in the western United States operating under the trade names of Checker Auto
Parts, Schuck's Auto Supply, and Kragen Auto Parts.
Certain statements contained in this release are forward-looking
statements. They discuss, among other things, expected growth, future store
development strategy, business strategies, future revenues and future
performance. The forward-looking statements are subject to risks,
uncertainties and assumptions, including, but not limited to, competitive
pressures, demand for the Company's products, uncertainties regarding Internet
commerce, the state of the economy, inflation, consumer debt levels and the
weather. Actual results may differ materially from the anticipated results
described in these forward-looking statements.