Advance Auto Parts (AAP) 8-K Financial statements and exhibits

EXHIBIT 99.1

5673 Airport Road
Roanoke, VA 24012
Phone (540) 362-4911
Fax (540) 561-1448

CONTACT: Sheila Stuewe

Sstuewe@AdvanceAutoParts.com

(540) 561-3281

ADVANCE AUTO PARTS REPORTS RECORD SECOND QUARTER RESULTS
~ Gross Margin Climbed 140 Basis Points to 45.4% Compared To 44.0% Last Year. ~
~ Comparable Store Sales Rose 2.0% Compared To 5.0% Last Year ~

Roanoke, Virginia, August 6, 2003 — Advance Auto Parts, Inc. (NYSE: AAP) today announced it achieved earnings per diluted share of $1.16 for the second quarter ended July 12, 2003, after non-recurring expenses of $0.05 per diluted share associated with the Discount Auto Parts’ integration. Year-to-date earnings per diluted share rose to $1.31, after non-recurring expenses of $0.79 per diluted share resulting from the early redemption of outstanding notes and debentures and $0.10 per diluted share in integration expenses.

Comparable earnings per diluted share rose by 57.1% to $1.21 in the second quarter from $0.77 last year. Year-to-date comparable earnings per diluted share rose 65.4% to $2.20 compared to $1.33 last year. Comparable results do not include the non-recurring expenses associated with the Discount Auto Parts’ integration and the early redemption of notes and debentures, as reconciled on the accompanying statements. The Company uses these non-GAAP-comparable measures as an indication of its earnings from recurring operations and believes it is important to the Company’s stockholders due to the non-recurring nature and significance of the excluded expenses.

Sales increased 5.9% in the second quarter to $839.2 million compared to $792.7 million last year. Same store sales grew 2.0% in the second quarter on top of 5.0% in the same quarter last year. The Discount Auto Parts stores, which are in the comparable store base this year, produced a comparable store sales increase of 6.6% during the second quarter compared to 3.7% last year. Year-to-date sales increased 4.2% to $1,872.7 million compared to $1,796.8 million last year as same store sales rose 1.5% compared to 6.5% during the same period last year.

During the second quarter, gross margin increased 140 basis points to 45.4% compared to 44.0% last year as the Company reaped the benefits of its category management initiatives and leveraged its logistics expenses. Year-to-date, gross margin improved 160 basis points to 45.3% from 43.7% last year.

As a result of the strong gross margin improvement, comparable operating income increased 24.6% in the second quarter to $80.9 million from $64.9 million in the same quarter last year, generating an operating margin increase of 140 basis points to 9.6%. On a GAAP basis, operating income increased 36.2% to $78.0 million.

Comparable net income rose 60.2% in the second quarter to $45.2 million from $28.2 million in the second quarter last year. On a GAAP basis, net income increased 172.6% to $43.5 million in the second quarter, which included $1.8 million of after-tax non-recurring integration expenses associated with the Discount Auto Parts’ acquisition. Year-to-date comparable net income increased 70.7% to $81.2 million compared to $47.6 million last year. On a GAAP basis, net income increased 73.0% to $48.5 million, which included $3.9 million of after-tax non-recurring integration expenses associated with the Discount Auto Parts’ acquisition and $28.8 million of after-tax non-recurring expenses related to the early redemption of outstanding notes and debentures in the first quarter.

Commenting on the second quarter results, Larry Castellani, the Company’s Chairman and Chief Executive Officer, said, “Our team proved this quarter that even in a challenging sales environment we can achieve our goal of expanding our operating margins. Our category management initiatives are running ahead of plan. We have developed a game plan to expand our sales growth and we see tremendous opportunities for the future.”

Year-to-date, the Company generated $234.3 million in free cash flow, including $140.2 million in the second quarter. These results do not include the non-recurring cash expenses of $36.9 million associated with the early redemption of the Company’s high interest bearing notes and debentures in the first quarter of 2003. Including these non-recurring expenses, year-to-date the Company generated $197.4 million in free cash flow. Free cash flow is calculated as cash provided by operating activities reduced by cash used in investing activities. The Company expects to be a slight user of cash in the second half of the year and raised its 2003 fiscal year guidance for free cash flow to $170 million.

During the quarter 27 new stores were opened, six stores were relocated, and one store was closed resulting in an ending store count of 2,482. Year-to-date, the Company has opened 60 new stores, relocated 18 stores, and closed 13 stores. The Company expects to open 125 stores this year, relocate approximately 40 stores, and close 25 stores.

The Company also issued comparable earnings per diluted share guidance for the third quarter in the range of $1.18 to $1.22 compared to $0.92 last year, a 28% to 33% increase. Due to its strong earnings growth during the first half of 2003, the Company’s comparable earnings per diluted share guidance for the full year has increased to a range of $4.01 to $4.11 compared to its previous guidance of $3.85 to $3.95 per diluted share. This guidance excludes the non-recurring expenses of the redemption of notes and debentures, integration expenses, and the positive effect of the 53rd week in the fourth quarter. On a GAAP basis, the Company raised its earnings per diluted share guidance to $3.14 to $3.22, which includes the non-recurring expenses associated with the redemption of bonds and debentures in the first quarter and integration expenses related to the Discount Auto Parts acquisition.

The Company will host a conference call this evening, August 6, 2003, at 5:00 p.m. Eastern Standard Time to discuss its second quarter results. To listen to the live webcast please log on to http://www.advanceautoparts.com. The call will be archived on the Company’s website: http://www.advanceautoparts.com until August 6, 2004.

Advance Auto Parts, Inc., based in Roanoke, Va., is the second largest retailer of automotive parts in the United States. At July 12, 2003, the Company had 2,482 stores in 37 states, Puerto Rico and the Virgin Islands. The Company serves both the do-it-yourself and professional installer markets.

Certain statements contained in this news release are forward-looking statements. These statements discuss, among other things, expected growth, store development and expansion strategy, business strategies, future revenues and future performance, including our future free cash flow and earnings per share. These forward-looking statements are subject to risks, uncertainties and assumptions including, but not limited to, competitive pressures, demand for the Company’s products, the market for auto parts, the economy in general, inflation, consumer debt levels, the weather, and other risk factors listed from time to time in the Company’s filings with the Securities and Exchange Commission. Actual results may materially differ from anticipated results described in these forward-looking statements. The Company intends these forward-looking statements to speak only as of the time of the news release and does not undertake to update or revise them, as more information becomes available.

-Financial Tables To Follow-

Advance Auto Parts, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands)

	July 12,     2003		December 28,     2002		July 13,     2002
Assets
Current assets:
Cash and cash equivalents	$	46,074	$	13,885	$	39,544
Receivables, net		93,350		102,574		118,101
Inventories, net		1,079,884		1,048,803		1,074,653
Other current assets		34,664		20,210		49,970
Total current assets		1,253,972		1,185,472		1,282,268
Property and equipment, net		711,222		728,432		715,697
Assets held for sale		24,897		28,346		46,200
Other assets, net		11,997		22,975		25,933
	$	2,002,088	$	1,965,225	$	2,070,098
Liabilities and Stockholders' Equity
Current liabilities:
Bank overdrafts	$	14,372	$	869	$	--
Current portion of long-term debt		4,577		10,690		11,549
Accounts payable		591,827		470,740		585,119
Accrued expenses		207,055		208,176		209,192
Other current liabilities		44,068		32,101		39,676
Total current liabilities		861,899		722,576		845,536
Long-term debt		531,512		724,832		762,270
Other long-term liabilities		67,698		49,461		35,400
Total stockholders' equity		540,979		468,356		426,892
	$	2,002,088	$	1,965,225	$	2,070,098

NOTE: These balance sheets do not include the footnotes required by generally accepted accounting principles for complete financial statements.

Advance Auto Parts, Inc. and Subsidiaries
Consolidated Statements of Operations
Twelve Week Periods Ended
(in thousands, except per share data)

	July 12, 2003
	GAAP			Adjustment for       Non-recurring       Items			Comparable     2003
Net sales	$	839,168		$	--		$	839,168
Cost of sales, including purchasing and warehousing costs		457,881			--			457,881
Gross profit		381,287			--			381,287
Selling, general and administrative expenses		303,310			(2,890	)(a)		300,420
Operating income		77,977			2,890			80,867
Other, net:
Interest expense		(7,182	)		--			(7,182	)
Loss on extinguishment of debt		(254	)		--			(254	)
Other income, net		121			--			121
Total other, net		(7,315	)		--			(7,315	)
Income before provision for income taxes		70,662			2,890			73,552
Provision for income taxes		27,204			1,113	(b)		28,317
Net income	$	43,458		$	1,777		$	45,235
Net income per share:
Basic	$	1.19		$	0.05		$	1.24
Diluted		1.16			0.05			1.21
Average common shares outstanding ( c )		36,546			36,546			36,546
Dilutive effect of stock options		869			869			869
Average common shares outstanding - assuming dilution		37,415			37,415			37,415

( a )	Represents the non-recurring merger and integration expenses associated with the integration of the Discount Auto Parts operations
( b )	This adjustment reflects the tax impact for the non-recurring items discussed above at a 38.5% effective tax rate
( c )	Average common shares outstanding is calculated based on the weighted average number of shares outstanding for the quarter. At July 12, 2003, we had 36,686 shares outstanding

NOTE: These preliminary statements of operations have been prepared on a consistent basis with previously presented statements of operations and do not include the footnotes required by generally accepted accounting principles for complete financial statements.

Advance Auto Parts, Inc. and Subsidiaries
Consolidated Statements of Operations
Twenty-Eight Week Periods Ended
(in thousands, except per share data)

	July 12, 2003
	GAAP			Adjustment for      Non-recurring      Items			Comparable     2003
Net sales	$	1,872,705		$	--		$	1,872,705
Cost of sales, including purchasing and warehousing costs		1,023,609			--			1,023,609
Gross profit		849,096			--			849,096
Selling, general and administrative expenses		696,586			(6,271	) (a)		690,315
Operating income		152,510			6,271			158,781
Other, net:
Interest expense		(26,749	)		--			(26,749	)
Loss on extinguishment of debt		(47,141	)		46,887	(b)		(254	)
Other income, net		239			--			239
Total other, net		(73,651	)		46,887			(26,764	)
Income before provision for income taxes		78,859			53,158			132,017
Provision for income taxes		30,360			20,466	(c)		50,826
Net income	$	48,499		$	32,692		$	81,191
Net income per share:
Basic	$	1.34		$	0.90		$	2.24
Diluted		1.31			0.89			2.20
Average common shares outstanding ( d )		36,178			36,178			36,178
Dilutive effect of stock options		782			782			782
Average common shares outstanding - assuming dilution		36,960			36,960			36,960

( a )	Represents the non-recurring merger and integration expenses associated with the integration of the Discount Auto Parts operations.
( b )	This adjustment reflects the deferred loan costs, unamortized discounts and the premiums paid upon the complete repurchase and retirement of our outstanding bonds during the first quarter of 2003.
( c )	This adjustment reflects the tax impact for the non-recurring items discussed above at a 38.5% effective tax rate.
( d )	Average common shares outstanding is calculated based on the weighted average number of shares outstanding for the quarter. At July 12, 2003, we had 36,686 shares outstanding.

NOTE: These preliminary statements of operations have been prepared on a consistent basis with previously presented statements of operations and do not include the footnotes required by generally accepted accounting principles for complete financial statements.

Advance Auto Parts, Inc. and Subsidiaries
Consolidated Statements of Operations
Twelve Week Week Periods Ended
(in thousands, except per share data)

	July 13, 2002
	GAAP			Adjustment for      Non-recurring      Items			Comparable     2002
Net sales	$	792,717		$	--		$	792,717
Cost of sales, including purchasing and warehousing costs		443,703			--			443,703
Gross profit		349,014			--			349,014
Selling, general and administrative expenses		291,764			(7,629	)(a)		284,135
Operating income		57,250			7,629			64,879
Other, net:
Interest expense		(19,120	)		--			(19,120	)
Loss on extinguishment of debt		(12,458	)		12,458	(b)		--
Other income, net		377			--			377
Total other, net		(31,201	)		12,458			(18,743	)
Income before provision for income taxes		26,049			20,087			46,136
Provision for income taxes		10,108			7,794	(c)		17,902
Net income	$	15,941		$	12,293		$	28,234
Net income per share:
Basic	$	0.45		$	0.35		$	0.80
Diluted		0.44			0.33			0.77
Average common shares outstanding ( d )		35,386			35,386			35,386
Dilutive effect of stock options		1,156			1,156			1,156
Average common shares outstanding - assuming dilution		36,542			36,542			36,542

( a )	Represents the non-recurring merger and integration expenses associated with the integration of the Discount Auto Parts operations.
( b )	This adjustment reflects the current and deferred loan costs associated with the Company’s refinancing of the tranche B term loan under its senior credit facility and reflects the ratable portion of deferred loan costs and the premium paid upon the repurchase and retirement of outstanding bonds.
( c )	This adjustment reflects the tax impact for the non-recurring items discussed above at a 38.8% effective tax rate.
( d )	Average common shares outstanding is calculated based on the weighted average number of shares outstanding for the quarter. At July 13, 2002, we had 35,665 shares outstanding.

NOTE: These preliminary statements of operations have been prepared on a consistent basis with previously presented statements of operations and do not include the footnotes required by generally accepted accounting principles for complete financial statements.

Advance Auto Parts, Inc. and Subsidiaries
Consolidated Statements of Operations
Twenty-Eight Week Periods Ended
(in thousands, except per share data)

	July 13, 2002
	GAAP			Adjustment for      Non-recurring      Items			Comparable     2002
Net sales	$	1,796,804		$	--		$	1,796,804
Cost of sales, including purchasing and warehousing costs		1,011,282			--			1,011,282
Gross profit		785,522			--			785,522
Selling, general and administrative expenses		679,918			(18,194	) (a)		661,724
Operating income		105,604			18,194			123,798
Other, net:
Interest expense		(46,718	)		--			(46,718	)
Loss on extinguishment of debt		(13,724	)		13,724	(b)		--
Other income, net		650			--			650
Total other, net		(59,792	)		13,724			(46,068	)
Income before provision for income taxes		45,812			31,918			77,730
Provision for income taxes		17,775			12,384	(c)		30,159
Net income	$	28,037		$	19,534		$	47,571
Net income per share:
Basic	$	0.81		$	0.57		$	1.38
Diluted		0.79			0.54			1.33
Average common shares outstanding ( d )		34,498			34,498			34,498
Dilutive effect of stock options		1,212			1,212			1,212
Average common shares outstanding - assuming dilution		35,710			35,710			35,710

( a )	Represents the non-recurring merger and integration expenses associated with the integration of the Discount Auto Parts operations.
( b )	This adjustment reflects the current and deferred loan costs associated with the Company’s refinancing of the tranche B term loan under its senior credit facility and reflects the ratable portion of deferred loan costs and the premium paid upon the repurchase and retirement of outstanding bonds.
( c )	This adjustment reflects the tax impact for the non-recurring items discussed above at a 38.8% effective tax rate.
( d )	Average common shares outstanding is calculated based on the weighted average number of shares outstanding for the quarter. At July 13, 2002, we had 35,665 shares outstanding.

NOTE: These preliminary statements of operations have been prepared on a consistent basis with previously presented statements of operations and do not include the footnotes required by generally accepted accounting principles for complete financial statements.

Advance Auto Parts, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Twenty-Eight Week Periods Ended
(in thousands, except per share data)

	July 12,       2003			July 13,       2002
Cash flows from operating activities:
Net income	$	48,499		$	28,037
Depreciation		53,807			48,983
Loss on extinguishment of debt		47,141			13,724
Provision for deferred income taxes		30,142			17,706
Other non-cash adjustments to net income		10,742			15,764
Decrease (increase) in :
Receivables, net		9,224			(24,397	)
Inventories, net		(31,081	)		(101,427	)
Other assets		(18,609	)		(18,005	)
Increase (decrease) in :
Accounts payable		121,087			156,078
Accrued expenses		6,687			40,589
Other liabilities		(1,707	)		4,852
Net cash provided by operating activities		275,932			181,904
Cash flows from investing activities:
Purchases of property and equipment		(50,595	)		(46,638	)
Proceeds from sales of property and equipment		8,974			9,410
Net cash used in investing activities		(41,621	)		(37,228	)
Cash flows from financing activities:
Increase in bank overdrafts		13,503			(34,748	)
Early extinguishment of debt, including debt related costs		(551,374	)		(429,214	)
Net borrowings under the credit facility		348,300			240,000
Payment of debt related costs		(36,895	)		(8,098	)
Proceeds from the exercise of stock options		18,824			16,089
Proceeds from the issuance of common stock		--			88,695
Other net financing activities		5,520			4,027
Net cash used in financing activities		(202,122	)		(123,249	)
Increase in cash and cash equivalents		32,189			21,427
Cash and cash equivalents, beginning of period		13,885			18,117
Cash and cash equivalents, end of period	$	46,074		$	39,544

NOTE: These preliminary statements of cash flows have been prepared on a consistent basis with previously presented statements of cash flows and do not include the footnotes required by generally accepted accounting principles for complete financial statements.