EXHIBIT 99.1
CSK Auto Corporation Announces First Quarter 2008 Financial Results
PHOENIX, AZ, June 13, 2008 – CSK Auto Corporation (the “Company”) (NYSE:CAO), the parent company of CSK Auto, Inc., today reported net sales of $461.1 million for its first quarter of fiscal 2008 ended May 4, 2008, a decrease of 2.5%, or $11.9 million compared to the first quarter of fiscal 2007. The decrease in net sales was primarily due to decreased same store sales, which were partially offset by sales from nine net new stores added from May 7, 2007 through May 4, 2008. Total same store sales declined by 3.1% for the quarter, comprised of a decrease of 5.1% in retail same store sales and an increase of 6.1% in commercial same store sales.
For the quarter, the Company reported net income of $5.4 million, or $0.12 per diluted common share, compared to net income of $1.7 million, or $0.04 per diluted common share, for the same period last year. Gross profit as a percentage of sales increased to 47.1% from 46.6% for the same period last year.
The Company recognized a pre-tax gain of $15.0 million in its results of operations in the first quarter of fiscal 2008. The Company recorded a pre-tax charge in the fourth quarter of fiscal 2007 for the settlement of its class action securities litigation consisting of $10.0 million in cash and $1.7 million in Company stock. The Company’s primary insurer under its directors and officers liability insurance policy will pay the entire $10.0 million cash component of the settlement, in addition to $5.0 million in related litigation and regulatory legal expenses all of which had previously been expensed.
Safe Harbor
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 Company’s performance is contained in the Company’s 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.
About CSK Auto
CSK Auto Corporation is the parent company of CSK Auto, Inc., a specialty retailer in the U.S. automotive aftermarket industry. As of May 4, 2008, the Company operated 1,345 stores in 22 states under the brand names Checker Auto Parts, Schuck’s Auto Supply, Kragen Auto Parts and Murray’s Discount Auto Stores.
Investor Contact: Brenda Bonn — Manager, Investor Relations 602-631-7483
- Financial Tables Follow -

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CSK AUTO CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
                 
    Thirteen Weeks Ended  
    May 4,     May 6,  
    2008     2007  
Net sales
   $ 461,104     $ 473,035  
Cost of sales
     243,801       252,437  
 
            
Gross profit
     217,303       220,598  
Other costs and expenses:
                
Operating and administrative
     205,810       199,234  
Investigation, litigation and restatement costs
     983       4,564  
Insurance recovery
     (15,000 )     —  
Store closing costs
     785       706  
 
            
Operating profit
     24,725       16,094  
Interest expense, net
     15,445       13,322  
 
            
Income before income taxes
     9,280       2,772  
Income tax expense
     3,913       1,102  
 
            
Net income
   $ 5,367     $ 1,670  
 
            
 
                
Earnings per common share:
                
Basic
   $ 0.12     $ 0.04  
 
            
Diluted
   $ 0.12     $ 0.04  
 
            
 
                
Weighted average shares outstanding:
                
Basic
     44,032       43,951  
 
            
Diluted
     44,101       44,697  
 
            

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CSK AUTO CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In thousands, except share data)
(Unaudited)
                 
    May 4,     February 3,  
    2008     2008  
ASSETS
Cash and cash equivalents
   $ 19,679     $ 16,520  
Receivables, net
     36,721       37,322  
Inventories, net
     549,002       494,651  
Deferred income taxes
     44,527       50,649  
Prepaid expenses and other current assets
     50,434       35,842  
 
            
Total current assets
     700,363       634,984  
 
                
Property and equipment, net
     159,267       165,115  
Intangibles, net
     61,905       63,020  
Goodwill
     224,937       224,937  
Deferred income taxes
     17,288       15,380  
Other assets, net
     33,667       35,254  
 
            
Total assets
   $ 1,197,427     $ 1,138,690  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable
   $ 291,225     $ 236,879  
Accrued payroll and related expenses
     59,666       57,593  
Accrued expenses and other current liabilities
     98,950       107,211  
Current maturities of long-term debt
     493,443       50,551  
Current maturities of capital lease obligations
     5,982       6,351  
 
            
Total current liabilities
     949,266       458,585  
 
            
 
                
Long-term debt
     16,131       452,420  
Obligations under capital leases
     8,469       9,866  
Other liabilities
     52,662       53,281  
 
            
Total non-current liabilities
     77,262       515,567  
 
            
 
                
Commitments and contingencies
                
 
                
Stockholders’ equity:
                
Common stock, $0.01 par value, 90,000,000 shares authorized, 44,035,913 and 44,030,644 shares issued and outstanding at May 4, 2008 and February 3, 2008, respectively
     440       440  
Additional paid-in capital
     439,086       438,092  
Accumulated deficit
     (268,627 )     (273,994 )
 
            
Total stockholders’ equity
     170,899       164,538  
 
            
Total liabilities and stockholders’ equity
   $ 1,197,427     $ 1,138,690  
 
            

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CSK AUTO CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
                 
    Thirteen Weeks Ended  
    May 4,     May 6,  
    2008     2007  
Cash flows provided by (used in) operating activities:
                
Net income
   $ 5,367     $ 1,670  
Adjustments:
                
Depreciation and amortization on property and equipment
     9,395       9,947  
Amortization of other items
     1,384       1,336  
Amortization of debt discount and deferred financing costs
     1,782       1,319  
Stock-based compensation expense
     1,244       1,367  
Write downs of property, equipment and other assets
     447       1,398  
Deferred income taxes
     3,756       1,046  
Changes in operating assets and liabilities:
                
Receivables
     (229 )     (2,344 )
Inventories
     (54,351 )     (25,559 )
Prepaid expenses and other current assets
     (14,592 )     (773 )
Accounts payable
     54,347       13,630  
Accrued payroll, accrued expenses and other current liabilities
     (6,401 )     4,838  
Other operating activities
     189       (192 )
 
            
Net cash provided by operating activities
     2,338       7,683  
 
            
 
                
Cash flows used in investing activities:
                
Capital expenditures
     (4,046 )     (8,858 )
Other investing activities
     (320 )     (477 )
 
            
Net cash used in investing activities
     (4,366 )     (9,335 )
 
            
 
                
Cash flows provided by (used in) financing activities:
                
Borrowings under senior credit facility — line of credit
     85,900       65,600  
Payments under senior credit facility — line of credit
     (79,400 )     (57,100 )
Payments under term loan facility
     (864 )     (873 )
Payment of debt financing costs
     (125 )     —  
Payments on capital lease obligations
     (1,694 )     (2,684 )
Proceeds from seller financing arrangements
     1,550       —  
Payments on seller financing arrangements
     (168 )     (156 )
Proceeds from exercise of stock options
     40       —  
Other financing activities
     (52 )     (44 )
 
            
Net cash provided by financing activities
     5,187       4,743  
 
            
 
                
Net increase in cash
     3,159       3,091  
Cash and cash equivalents, beginning of period
     16,520       20,169  
 
            
Cash and cash equivalents, end of period
   $ 19,679     $ 23,260  
 
            

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The following table provides certain financial information not derived in accordance with GAAP.  We have included calculations of these non-GAAP measures and reconciliations to the most comparable GAAP financial measures.
We believe that EBITDA is a recognized supplemental measurement tool widely used by analysts and investors to help evaluate a company’s overall operating performance, its ability to incur and service debt, and its capacity for making capital expenditures. We use EBITDA, in addition to operating income and cash flows from operating activities, to assess our performance relative to our competitors and relative to our own performance in prior periods. We believe that it is important for investors to have the opportunity to evaluate us using the same measures. EBITDA is calculated as follows ($ in thousands):
Calculation of EBITDA:
                 
    Thirteen weeks ended  
    May 4, 2008     May 6, 2007  
Income before income taxes
   $ 9,280     $ 2,772  
Interest expense, net
     15,445       13,322  
Depreciation
     9,395       9,947  
Amortization
     1,384       1,336  
 
            
EBITDA
     35,504       27,377  
 
            
 
                
Non-cash stock compensation expense
     1,244       1,367  
Investigation, litigation and restatement costs
     983       4,564  
Insurance recovery
     (15,000 )     —  
Asset retirements and impairment
     466       982  
Non-recurring charges
     2,729       —  
 
            
EBITDA, as adjusted
   $ 25,926     $ 34,290  
 
            
EBITDA, and EBITDA as adjusted, do not represent funds available for our discretionary use and are not intended to represent or to be used as substitute for net income or cash flow from operations data as measured under GAAP. The Company’s definition of EBITDA as adjusted, is consistent with the definitions applied in our term loan facility. The items excluded from EBITDA, and EBITDA as adjusted, are significant components of our statement of operations and must be considered in performing a comprehensive assessment of our overall financial performance. EBITDA, and EBITDA as adjusted, and the associated year-to-year trends should not be considered in isolation. EBITDA, and EBITDA as adjusted, may differ in method of calculation from similarly titled measures used by other companies.

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