EXHIBIT 99.1
CSK Auto Corporation Announces Preliminary Third Quarter
Sales; Provides Additional Updates
PHOENIX (BUSINESS WIRE) Nov 20, 2006 CSK Auto Corporation (NYSE:CAO) announced today
preliminary net sales results and new store openings for its third quarter of fiscal year 2006
ended October 29. As previously announced, the Company will continue to defer the release of its
financial results for fiscal 2005 and the first three quarters of fiscal 2006 pending completion of
its restatement work.
We are not yet in a position to release audited financial results for fiscal 2005, but we have
made substantial progress and expect to be able to do so in February 2007, said Maynard Jenkins,
Chairman and CEO. On the business side, we remain focused on exceeding customer expectations and
driving traffic into our stores. With approximately 18% of our total net sales derived from
commercial sales in fiscal 2005, we continue to experience strong demand from the commercial
customer, with additional growth opportunities expected as we expand our commercial sales
operations to the acquired Murrays stores. Importantly, weve substantially completed the
integration of Murrays into the CSK systems and operations.
Sales
The Company reported that preliminary net sales results for the third quarter were $473.8 million,
an increase of $65.4 million, or 16%, compared to the third quarter of fiscal 2005. Nearly all of
the increase in third quarter sales was attributable to sales from Murrays Discount Auto Stores,
which the Company acquired in December 2005. Excluding sales from the Murrays stores, same store
sales for the third quarter of fiscal 2006 declined 0.7%, consisting of an increase of 9.0% in
commercial same store sales and a decline of 2.8% in retail same store sales.
Thirty-nine Weeks Ended October 29, 2006
Net sales for the 39 weeks ended October 29, 2006 (39 weeks of fiscal 2006) were $1,408.0 million,
compared to $1,224.6 million for the 39 weeks ended October 30, 2005 (39 weeks of fiscal 2005).
Nearly all of the increase in net sales year-over-year was attributable to sales from the Murrays
stores. Same store sales for the 39 weeks of fiscal 2006 declined by 1.8% compared to the 39 weeks
of fiscal 2005, consisting of an increase of 7.0% in commercial same store sales and a decline of
3.6% in retail same store sales.
New Store Growth
The Company also announced the opening in the third quarter of 16 net new stores, consistent with
its projections to open approximately 55 net new stores and strategically relocate 7 existing
stores in fiscal 2006.
As expected, the acquisition of Murrays is providing the Company with additional opportunities to
expand its commercial sales growth into the Murrays stores, which historically focused almost
exclusively on retail sales. Since the acquisition, the Company has opened 23 CSK ProShop
Commercial Sales Centers in the Murrays stores and expects to have 40 commercial sales centers
open in the Murrays locations by fiscal 2006 year end.
Update on Restatement and Accounting Investigation
As previously announced, the Company is in the process of completing the work to restate its
financial statements for each of the two fiscal years 2003 and 2004, selected consolidated
financial data for each of the four fiscal years 2001 through 2004 and interim financial
information for each of its quarters in fiscal year 2004 and for the first three quarters of fiscal
2005, in order to account properly for the matters identified in connection with its Audit
Committee-led accounting investigation, which was substantially concluded in late September. During
the course of the Companys internal investigation and following its conclusion, representatives of
the Audit Committee and its advisors have met with representatives of the Securities and Exchange
Commission to keep them advised as to the course of the companys investigation and its findings.
CSK continues to share information with the SEC and to cooperate with the agency in its informal
inquiry of these matters.
As previously disclosed, the Company recently received an extension for continued listing and
trading on the NYSE which provides the Company until February 28, 2007 to file its fiscal 2005 Form
10-K. The Company currently expects that it can meet this deadline and expects to be in a position
to file its Form 10-Qs for the first three quarters of fiscal 2006 as promptly as reasonably
possible thereafter.
As discussed in previous releases, the Company expects to identify additional material weaknesses
in its internal control over financial reporting associated with the matters identified in the
course of the Audit Committees investigation, in addition to those material weaknesses previously
reported in its fiscal 2004 Form 10-K. The Company will conclude its evaluation and report its
findings and plan for remediation of such material weaknesses in this regard when it files its
fiscal 2005 Form 10-K.
Portions of this release may constitute forward-looking statements as defined by federal law.
Although the Company believes any such statements are based on reasonable assumptions, there is no
assurance that actual outcomes will not be materially different. Any such statements are made in
reliance on the safe harbor protections provided under the Private Securities Litigation Reform
Act of 1995. Additional information about issues that could lead to material changes in the
Companys performance is contained in the Companys filings with the Securities and Exchange
Commission. The Company makes no commitment to revise or update any forward looking statement in
order to reflect events or circumstances after the date any such statement is made.
CSK Auto Corporation is the parent company of CSK Auto, Inc., a specialty retailer in the
automotive aftermarket. As of October 29, 2006, the Company operated 1,307 stores in 22 states
under the brand names Checker Auto Parts, Schucks Auto Supply, Kragen Auto Parts and Murrays
Discount Auto Stores.
Investor Contact: Brenda Bonn Manager, Investor Relations 602-631-7483