Advance Auto Parts (AAP) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Contact:
Shelly Whitaker, APR
Shelly.whitaker@advanceautoparts.com
Direct	540-561-8452
Fax	540-561-6445

ADVANCE AUTO PARTS REPORTS FIRST QUARTER RESULTS

ROANOKE, Va., May 16, 2007— Advance Auto Parts, Inc. (NYSE: AAP), a leading retailer of automotive aftermarket parts, accessories, batteries, and maintenance items, today announced its financial results for the fiscal first quarter ended April 21, 2007.

Earnings per diluted share for the first quarter were $0.71, compared to $0.68 last year. In the first quarter, sales increased to $1.47 billion from $1.39 billion last year. Comparable-store sales increased 1.1% in the quarter, comprised of a 0.2% decrease in do-it-yourself (DIY) and a 5.2% increase in do-it-for-me (DIFM). The 1.1% comparable-store sales increase compares to a 3.9% increase in last year’s first quarter.

“For the first quarter, our comp store sales came in at the low end of our guidance range, which was disappointing,” said Jack Brouillard, interim Chairman, President and CEO. “However, largely due to our strong gross margin performance, our earnings per share of $0.71 came in at the higher end of our guidance range of $0.68 to $0.72 per share.”

First quarter gross margin was 48.3% of sales, a 57 basis-point improvement compared to last year’s quarter, primarily reflecting improved procurement costs and lower logistics costs.

ADVANCE AUTO PARTS REPORTS FIRST QUARTER 2007 RESULTS

May 16, 2007

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First quarter selling, general and administrative (SG&A) expenses were 39.1% of sales, compared to 38.7% in first quarter 2006, a 46 basis point increase. This increase was primarily due to a 70 basis point loss of leverage on rent, depreciation and other fixed costs from modest comparable-store sales.

Store Information

During the first quarter, the Company opened 70 new stores, of which eight were Autopart International (AI) stores. The Company also relocated eight existing stores, remodeled 34 stores, and closed two stores.

2007 Guidance

The Company reiterates its earnings guidance on comparable-store sales for the second quarter and the year in the low single-digit range. Quarter-to-date results are tracking in that range. The Company forecasts second quarter 2007 earnings per diluted share in the range of $0.65 to $0.69, which compares to $0.59 in last year’s second quarter. The Company expects full year 2007 earnings per diluted share in the range of $2.38 to $2.48, an increase of 10% to 15% as compared to 2006.

For 2007, the Company anticipates new-store growth in the 200-210 range, from the opening of both Advance and AI stores.

Jack Brouillard, interim Chairman, President and CEO stated. “I will be serving as interim CEO while we undertake a nationwide search for a new CEO. I am proud to have served as a member of Advance’s board of directors since 2004 and look forward to working with our very capable management team to pursue the many opportunities we believe we have to continue our growth and improve our performance. As a result of our comprehensive strategy review, we have been able to take a more in-depth look at the industry and our customers and we believe those understandings will help us to improve our sales growth. Through the lens of our strategy, we will be creating a more efficient business model enabling us to convert sales growth into increased profits.”

ADVANCE AUTO PARTS REPORTS FIRST QUARTER 2007 RESULTS

May 16, 2007

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Annual Meeting Announcements

The Company held its annual meeting of stockholders on May 16, 2007.

·   The following individuals will serve on the Company’s Board of Directors:

§   John C. Brouillard

§   Lawrence P. Castellani

§   Darren R. Jackson

§   Nicholas J. LaHowchic

§   William S. Oglesby

§   Gilbert T. Ray

§   Carlos A. Saladrigas

§   William L. Salter

§   Francesca M. Spinelli

Michael N. Coppola was also elected to the Board of Directors and resigned effective immediately following the annual meeting. Other proposals approved by the stockholders were the ratification of the appointment by the audit committee of Deloitte & Touche LLP as independent auditors for 2007, the approval of an amendment to the 2004 Long-Term Incentive plan and approval of the 2007 Executive Incentive Plan.

Dividend

On May 16, 2007, the Company’s Board of Directors declared a regular quarterly cash dividend of six cents per share to be paid on July 6, 2007 to stockholders of record as of June 22, 2007.

Investor Conference Call

The Company will host a conference call on May 17, 2007, at 8:00 a.m. Eastern Standard Time to discuss its quarterly results. To listen to the live call, please log on to the Company’s Web site,

ADVANCE AUTO PARTS REPORTS FIRST QUARTER 2007 RESULTS

May 16, 2007

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www.AdvanceAutoParts.com, or dial (866) 908-1AAP. The call will be archived on the Company’s Web site until May 16, 2008.

About Advance Auto Parts

Headquartered in Roanoke, Va., Advance Auto Parts is the second-largest retailer of automotive aftermarket parts, accessories, batteries, and maintenance items in the United States, based on store count and sales. As of April 21, 2007, the Company operated 3,150 stores in 40 states, Puerto Rico, and the Virgin Islands. The Company serves both the do-it-yourself and professional installer markets.

Certain statements contained in this release are forward-looking statements, as that statement is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address future events or developments, and typically use words such as believe, anticipate, expect, intend, plan, forecast, outlook or estimate. These statements discuss, among other things, expected growth and future performance, including store growth, comparable-store sales, gross margin and SG&A rates, and earnings per share for second-quarter 2007 and fiscal year 2007. 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, acts of terrorism, availability of suitable real estate, dependence on foreign suppliers and other factors disclosed in the Company’s 10-K for the fiscal year ended December 30, 2006, on file with the Securities and Exchange Commission. Actual results may differ materially from anticipated results described in these forward-looking statements. The Company intends these forward-looking statements to speak only as of the time of this 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
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
	April 21,		December 30,		April 22,
	2007		2006		2006
Assets
Current assets:
Cash and cash equivalents	$	16,983	$	11,128	$	55,350
Receivables, net		89,754		97,046		84,779
Inventories, net		1,556,052		1,463,340		1,420,889
Other current assets		29,418		40,459		28,742
Total current assets		1,692,207		1,611,973		1,589,760
Property and equipment, net		1,016,046		994,977		932,455
Assets held for sale		1,448		1,548		5,106
Goodwill		33,718		33,718		67,208
Intangible assets, net		27,596		27,926		-
Other assets, net		10,299		12,539		21,199
	$	2,781,314	$	2,682,681	$	2,615,728
Liabilities and Stockholders' Equity
Current liabilities:
Bank overdrafts	$	5,707	$	34,206	$	21,923
Current portion of long-term debt		62		67		35,261
Financed vendor accounts payable		118,246		127,543		125,433
Accounts payable		768,621		651,587		696,559
Accrued expenses		254,859		252,975		282,916
Other current liabilities		47,173		47,042		46,786
Total current liabilities		1,194,668		1,113,420		1,208,878
Long-term debt		404,150		477,173		395,343
Other long-term liabilities		64,537		61,234		72,002
Total stockholders' equity		1,117,959		1,030,854		939,505
	$	2,781,314	$	2,682,681	$	2,615,728
NOTE: These preliminary condensed consolidated balance sheets have been prepared on a basis consistent with our previously prepared balance sheets filed with the Securities and Exchange Commission for our prior quarter and annual reports, but do not include the footnotes required by generally accepted accounting principles for complete financial statements.

Advance Auto Parts, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
Sixteen Week Periods Ended
April 21, 2007 and April 22, 2006
(in thousands, except per share data)
(unaudited)
	April 21,			April 22,
	2007			2006
Net sales	$	1,468,120		$	1,393,010
Cost of sales, including purchasing and warehousing costs		758,717			727,842
Gross profit		709,403			665,168
Selling, general and administrative expenses		574,710			538,870
Operating income		134,693			126,298
Other, net:
Interest expense		(11,274	)		(10,163	)
Other income, net		342			620
Total other, net		(10,932	)		(9,543	)
Income before provision for income taxes		123,761			116,755
Provision for income taxes		47,660			42,674
Net income	$	76,101		$	74,081
Basic earnings per share	$	0.72		$	0.69
Diluted earnings per share	$	0.71		$	0.68
Average common shares outstanding ( a )		105,694			107,879
Dilutive effect of stock options		951			1,376
Average common shares outstanding - assuming dilution		106,645			109,255

( a )	Average common shares outstanding is calculated based on the weighted average number of shares outstanding for the quarter. At April 21, 2007 and April 22, 2006, we had 106,058 and 106,960 shares outstanding, respectively.
NOTE: These preliminary condensed consolidated statements of operations have been prepared on a basis consistent with our previously prepared statements of operations filed with the Securities and Exchange Commission for our prior quarter and annual reports , but do not include the footnotes required by generally accepted accounting principles for complete financial statements.

Advance Auto Parts, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
Sixteen Week Periods Ended
April 21, 2007 and April 22, 2006
(in thousands)
(unaudited)
	April 21,			April 22,
	2007			2006
Cash flows from operating activities:
Net income	$	76,101		$	74,081
Depreciation and amortization		45,426			39,833
Share-based compensation		5,398			5,045
Benefit for deferred income taxes		(6,087	)		(1,163	)
Excess tax benefit from share-based compensation		(3,607	)		(2,663	)
Other non-cash adjustments to net income		3,439			366
Decrease (increase) in:
Receivables, net		4,041			9,716
Inventories, net		(92,712	)		(53,790	)
Other assets		13,316			15,454
Increase in:
Accounts payable		117,034			67,311
Accrued expenses		21,491			10,130
Other liabilities		3,035			1,974
Net cash provided by operating activities		186,875			166,294
Cash flows from investing activities:
Purchases of property and equipment		(75,940	)		(77,954	)
Insurance proceeds related to damaged property		3,251			-
Proceeds from sales of property and equipment		239			5,111
Net cash used in investing activities		(72,450	)		(72,843	)
Cash flows from financing activities:
Decrease in bank overdrafts		(28,499	)		(28,247	)
(Decrease) increase in financed vendor accounts payable		(9,297	)		6,082
Dividends paid		(12,682	)		(6,479	)
Net payments on credit facilities		(73,000	)		(8,175	)
Proceeds from the issuance of common stock, primarily exercise
of stock options		11,262			8,576
Excess tax benefit from share-based compensation		3,607			2,663
Repurchase of common stock		-			(53,327	)
Other		39			23
Net cash used in financing activities		(108,570	)		(78,884	)
Net increase in cash and cash equivalents		5,855			14,567
Cash and cash equivalents, beginning of period		11,128			40,783
Cash and cash equivalents, end of period	$	16,983		$	55,350
NOTE: These preliminary condensed consolidated statements of cash flows have been prepared on a consistent basis with previously prepared statements of cash flows filed with the Securities and Exchange Commission for our prior quarter and annual reports, but do not include the footnotes required by generally accepted accounting principles for complete financial statements.

Advance Auto Parts, Inc. and Subsidiaries
Supplemental Financial Schedules
Sixteen Week Periods Ended
April 21, 2007 and April 22, 2006
(in thousands, except per share data)
(unaudited)
Reconciliation of Free Cash Flow
	April 21,			April 22,
	2007			2006
Cash flows from operating activities	$	186,875		$	166,294
Cash flows used in investing activities		(72,450	)		(72,843	)
		114,425			93,451
Decrease (increase) in financed vendor accounts payable		(9,297	)		6,082
Free cash flow	$	105,128		$	99,533
Note: Management uses free cash flow as a measure of our liquidity and believes it is a useful indicator to stockholders of our ability to implement our growth strategies and service our debt. Free cash flow is a non-GAAP measure and should be considered in addition to, but not as a substitute for, information contained in our condensed consolidated statement of cash flows.