CSK Auto Corporation Reports First Quarter Fiscal 2000 Financial Results
31 May 2000
CSK Auto Corporation Reports First Quarter Fiscal 2000 Financial Results
PHOENIX, May 31 CSK Auto Corporation , the
parent company of CSK Auto, Inc., today reported its financial results for the
first quarter of fiscal 2000.
Net sales for the thirteen weeks ended April 30, 2000 increased 32.3% to
$356.4 million from $269.4 million in the first quarter of fiscal 1999. As a
result of recent acquisitions and new store openings, the number of stores
operated by the Company increased to 1,138 stores at April 30, 2000, from
822 stores at May 2, 1999. Comparable store sales increased 4% in the first
quarter of fiscal 2000.
Operating profit for the first quarter of fiscal 2000 totaled
$35.2 million, or 9.9% of net sales, excluding one-time charges, compared to
$23.2 million, or 8.6% of net sales, for the first quarter of fiscal 1999.
The increase in operating profit resulted primarily from a leveraging of
operating expenses over a larger sales base and from continued improvement in
gross profit margins. During the first quarter of fiscal 2000, the Company
incurred $11.4 million of one-time expenses associated with the integration of
the Al's and Grand's Auto Supply and Big Wheel/Rossi stores acquired in fiscal
1999.
Interest expense for the first quarter of fiscal 2000 increased to
$14.6 million from $7.3 million for the first quarter of fiscal 1999,
primarily due to increased debt levels incurred to fund acquisitions and
higher interest rates.
Net income for the first quarter of fiscal 2000 was $12.7 million, or
$0.46 per diluted common share, excluding the transition and integration
expenses discussed above. This compares to net income of $9.9 million, or
$0.34 per diluted common share, excluding a one-time charge of $0.7 million
for the cumulative effect of a change in the method of accounting for store
pre-opening expenses in the first quarter of fiscal 1999. Net income,
inclusive of all charges, was $5.7 million, or $0.20 per diluted common share,
for the first quarter of fiscal 2000, compared to $9.1 million, or $0.32 per
diluted common share, for the first quarter of fiscal 1999.
On April 27, 2000, the Company completed the acquisition of 22 stores in
Wisconsin and Michigan from All Car Distributors, Inc. The integration of
these stores is proceeding well and is expected to be completed in June 2000.
During the first quarter of fiscal 2000, the Company opened 12 new stores,
expanded 1 store, acquired 22 stores and closed 16 stores due to
acquisition-related overlap.
"The Company is pleased with its first quarter fiscal 2000 financial
results," said Maynard Jenkins, Chairman and Chief Executive Officer of CSK
Auto Corporation. "These results reflect the successful execution of our
strategic growth plan. While our comparable store sales increase of 4% in the
first quarter was consistent with our expectations, and we are pleased with
the improvements that we continue to realize with our operating margins,
comparable store sales trends have slowed during the first four weeks of the
second quarter, largely as a result of difficult comparisons to last year's
high levels."
CSK Auto Corporation is the parent company of CSK Auto, Inc., a specialty
retailer in the automotive aftermarket. As of April 30, 2000, the Company
operated 1,138 stores in 18 states under the brand names 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 and relocation 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, the state of the economy,
inflation, consumer debt levels and the weather. Actual results may differ
materially from anticipated results described in these forward-looking
statements.
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
April 30, May 2, April 30, May 2,
2000 1999 2000 1999
Net sales $356,354 $269,402 $356,354 $269,402
Cost of sales 182,811 139,251 182,811 139,251
Gross profit 173,543 130,151 173,543 130,151
Other costs and expenses:
Operating and
administrative 135,354 106,389 135,354 106,389
Store closing costs 1,845 536 1,845 536
Transition and
integration expenses 11,447 -- -- --
Goodwill amortization 1,112 3 1,112 3
Operating profit 23,785 23,223 35,232 23,223
Interest expense, net 14,558 7,349 14,558 7,349
Income before income
taxes and cumulative
effect of change in
accounting principle 9,227 15,874 20,674 15,874
Income tax expense 3,552 6,012 7,959 6,012
Income before cumulative
effect of change in
accounting principle 5,675 9,862 12,715 9,862
Cumulative effect of
change in accounting
principle, net of
$468 of income taxes -- (741) -- --
Net income $5,675 $9,121 $12,715 $9,862
Basic earnings (loss)
per share:
Income before cumulative
effect of change in
accounting principle $0.20 $0.36 $0.46 $0.36
Cumulative effect of
change in accounting
principle, net of
income taxes -- (0.03) -- --
Net income $0.20 $0.33 $0.46 $0.36
Shares used in
computing per
share amounts 27,836,587 27,785,264 27,836,587 27,785,264
Diluted earnings
(loss) per share:
Income before cumulative
effect of change in
accounting principle $0.20 $0.34 $0.46 $0.34
Cumulative effect of
change in accounting
principle, net of
income taxes -- (0.02) -- --
Net income $0.20 $0.32 $0.46 $0.34
Shares used in
computing per
share amounts 27,836,587 28,867,765 27,836,587 28,867,765