CSK Auto (CAO) 8-K CSK Auto Corporation Announces Fourth Quarter and Fiscal 2007 Financial Results

Exhibit 99.1

CSK Auto Corporation Announces Fourth Quarter and Fiscal 2007 Financial
Results

PHOENIX, AZ, April 18, 2007 — CSK Auto Corporation (the “Company”) (NYSE:CAO), the parent company of CSK Auto, Inc., today reported net sales of $427.0 million for its fourth quarter of fiscal 2007 ended February 3, 2008, a decrease of 9.6%, or $45.2 million compared to the fourth quarter of fiscal 2006. The decrease in net sales was primarily due to one additional week of sales in the fourth quarter of fiscal 2006, which resulted in additional sales of approximately $34.3 million. Same store sales decreased 3.5% for the quarter, comprised of a decrease of 4.9% in retail same store sales and an increase of 3.1% in commercial same store sales.

For the quarter the Company reported a net loss of $12.3 million, or $0.28 loss per diluted common share compared to a net loss of $1.3 million or $0.03 loss per diluted common share for the same period last year. Gross profit as a percentage of sales increased to 47.2% from 46.9% last year.

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 cash component of the settlement, in addition to $5.0 million in litigation and regulatory-related defense costs. The Company expects to recognize a pre-tax gain of $15.0 million in its results of operations in the first quarter of fiscal 2008.

For the fiscal year ended February 3, 2008, net sales were $1,851.6 million, a decrease of 2.9% from the prior year. For fiscal 2007, net income decreased by $17.4 million to a net loss of $11.2 million, resulting in a $0.25 loss per diluted common share for the fiscal year. Our 2007 fiscal year consisted of 52 weeks as compared to our fiscal year 2006, which had 53 weeks.

Safe Harbour
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 February 3, 2008 the Company operated 1,349 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 CONDENSED STATEMENTS OF OPERATIONS

	Fiscal Year Ended
	February 3,			February 4,
	2008			2007
	(In thousands, except share and per share data)
Net sales	$	1,851,647		$	1,907,776
Cost of sales		984,649			1,011,712
Gross profit		866,998			896,064
Other costs and expenses:
Operating and administrative		804,265			788,400
Investigation and restatement costs		12,348			25,739
Securities class action settlement		11,700			—
Store closing costs		1,983			1,487
Operating profit		36,702			80,438
Interest expense		54,163			48,767
Loss on debt retirement		—			19,450
Income (loss) before income taxes and cumulative effect of change in accounting principle		(17,461	)		12,221
Income tax expense (benefit)		(6,309	)		4,991
Income (loss) before cumulative effect of change in accounting principle		(11,152	)		7,230
Cumulative effect of change in accounting principle, net of tax		—			(966	)
Net income (loss)	$	(11,152	)	$	6,264
Basic earnings (loss) per share:
Income (loss) before cumulative effect of change in accounting principle	$	(0.25	)	$	0.16
Cumulative effect of change in accounting principle		—			(0.02	)
Net income (loss) per share	$	(0.25	)	$	0.14
Shares used in computing per share amounts		43,971,417			43,876,533
Diluted earnings (loss) per share:
Income (loss) before cumulative effect of change in accounting principle	$	(0.25	)	$	0.16
Cumulative effect of change in accounting principle		—			(0.02	)
Net income (loss) per share	$	(0.25	)	$	0.14
Shares used in computing per share amounts		43,971,417			44,129,278

	Thirteen Weeks Ended			Fourteen Weeks Ended
	February 3,			February 4,
	2008			2007
	(In thousands, except share and per share data)
Net sales	$	426,999		$	472,191
Cost of sales		225,542			250,762
Gross profit		201,457			221,429
Other costs and expenses:
Operating and administrative		193,360			205,585
Investigation and restatement costs		1,725			3,371
Securities class action settlement		11,700			—
Store closing costs		230			442
Operating profit (loss)		(5,558	)		12,031
Interest expense		14,491			14,139
Loss on debt retirement		—			24
Loss before income taxes		(20,049	)		(2,132	)
Income tax benefit		(7,751	)		(864	)
Income (loss) before cumulative effect of change in accounting principle		(12,298	)		(1,268	)
Cumulative effect of change in accounting principle, net of tax		—			—
Net loss	$	(12,298	)	$	(1,268	)
Basic and diluted loss per share:
Loss before cumulative effect of change in accounting principle	$	(0.28	)	$	(0.03	)
Cumulative effect of change in accounting principle		—			—
Basic and diluted loss per share	$	(0.28	)	$	(0.03	)
Shares used in computing per share amounts		44,018,817			43,936,674

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CSK AUTO CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

	February 3,			February 4,
	2008			2007
	(In thousands, except share data)
ASSETS
Cash and cash equivalents	$	16,520		$	20,169
Receivables, net		37,322			43,898
Inventories		494,651			502,787
Deferred income taxes		50,649			46,500
Prepaid expenses and other current assets		35,842			31,585
Total current assets		634,984			644,939
Property and equipment, net		165,115			174,409
Intangibles, net		63,020			67,507
Goodwill		224,937			224,937
Deferred income taxes		15,380			4,200
Other assets, net		35,254			35,770
Total assets	$	1,138,690		$	1,151,762
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	236,879		$	260,146
Accrued payroll and related expenses		57,593			60,306
Accrued expenses and other current liabilities		107,211			81,569
Current maturities of long-term debt		50,551			56,098
Current maturities of capital lease obligations		6,351			8,761
Total current liabilities		458,585			466,880
Long-term debt		452,420			451,367
Obligations under capital leases		9,866			15,275
Other liabilities		53,281			46,730
Total non-current liabilities		515,567			513,372
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value, 90,000,000 shares authorized, 44,030,644 and 43,950,751 shares issued and outstanding at February 3, 2008 and February 4, 2007, respectively		440			440
Additional paid-in capital		438,092			433,912
Accumulated deficit		(273,994	)		(262,842	)
Total stockholders’ equity		164,538			171,510
Total liabilities and stockholders’ equity	$	1,138,690		$	1,151,762

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CSK AUTO CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS

	Fiscal Year Ended
	February 3,			February 4,			January 29,
	2008			2007			2006
	(In thousands)
Cash flows provided by (used in) operating activities:
Net income (loss)	$	(11,152	)	$	6,264		$	57,790
Adjustments:
Depreciation and amortization on property and equipment		40,668			40,645			36,628
Amortization of other items		5,513			7,585			4,231
Amortization of debt discount and deferred financing costs		5,701			4,539			2,161
Stock-based compensation expense		2,779			4,972			571
Tax benefit relating to exercise of stock options		—			—			231
Write downs of property, equipment and other assets		4,459			3,354			2,145
Loss on debt retirement		—			8,496			1,600
Deferred income taxes		(6,593	)		3,771			36,008
Changes in operating assets and liabilities:
Receivables		8,126			(13,412	)		6,747
Inventories		8,136			3,652			(23,588	)
Prepaid expenses and other current assets		(4,257	)		(11,538	)		7,616
Accounts payable		(23,267	)		51,639			17,329
Accrued payroll, accrued expenses and other current liabilities		23,816			4,838			9,987
Other operating activities		185			(5,165	)		2,867
Net cash provided by operating activities		54,114			109,640			162,323
Cash flows used in investing activities:
Capital expenditures		(34,772	)		(37,529	)		(36,775	)
Business acquisitions, net of cash acquired		—			(4,292	)		(177,658	)
Other investing activities		(1,623	)		(1,778	)		(1,499	)
Net cash used in investing activities		(36,395	)		(43,599	)		(215,932	)
Cash flows provided by (used in) financing activities:
Payments under senior credit facility — term loan		—			—			(252,450	)
Borrowings under senior credit facility — line of credit		258,300			84,800			230,300
Payments under senior credit facility — line of credit		(263,800	)		(126,800	)		(136,300	)
Borrowings under term loan facility		—			350,000			—
Payments under term loan facility		(3,478	)		(875	)		—
Payment of debt financing costs		(5,376	)		(13,166	)		(9,612	)
Proceeds from issuance of 4.625% exchangeable notes		—			—			100,000
Proceeds from issuance of 3.375% exchangeable notes		—			—			125,000
Retirement of 3.375% exchangeable notes		—			(125,000	)		—
Retirement of 7% senior notes		—			(225,000	)		—
Payments on capital lease obligations		(8,513	)		(10,301	)		(10,893	)
Proceeds from seller financing arrangements		2,145			428			3,164
Payments on seller financing arrangements		(685	)		(484	)		(381	)
Proceeds from repayment of stockholder receivable		—			—			10
Proceeds from exercise of stock options		443			1,196			1,130
Purchase of common stock		—			—			(25,029	)
Net proceeds from termination of common stock call option and warrants		—			1,555			—
Premium on common stock call option		—			—			(26,992	)
Premium from common stock warrants		—			—			17,820
Other financing activities		(404	)		(189	)		(423	)
Net cash (used in) provided by financing activities		(21,368	)		(63,836	)		15,344
Net increase (decrease) in cash		(3,649	)		2,205			(38,265	)
Cash and cash equivalents, beginning of period		20,169			17,964			56,229
Cash and cash equivalents, end of period	$	16,520		$	20,169		$	17,964

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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):

Preliminary Calculation of EBITDA:

	Thirteen Weeks Ended			Fourteen Weeks Ended			Fiscal Year Ended
	February 3, 2008			February 4, 2007			February 3, 2008			February 4, 2007
Income (loss) before income taxes and cumulative effect of change in accounting principle	$	(20,049	)	$	(2,132	)	$	(17,461	)	$	12,221
Interest expense		14,491			14,139			54,163			48,767
Depreciation		9,648			10,491			40,668			40,645
Amortization		1,480			847			5,513			7,585
EBITDA		5,570			23,345			82,883			109,218
Non-cash stock compensation expense		1,036			1,647			2,779			4,972
Investigation and restatement		1,725			3,371			12,348			25,739
Asset retirements and impairment		789			457			4,732			3,902
Securities class action settlement		11,700			—			11,700			—
Non-recurring charges		1,263			24			4,853			21,287
EBITDA, as adjusted	$	22,083		$	28,844		$	119,295		$	165,118

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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