CSK Auto reports decrease in fourth quarter sales

An additional week of sales in the fourth quarter of fiscal 2006 negatively impacted CSK Auto Corporation's sales for the fourth quarter of fiscal 2007. The company recently reported net sales of $427.0 million, a decrease of 9.6 percent or $45.2 million compared to last year's report. In addition, same store sales decreased 3.5 percent for the quarter, which included a decrease of $.9 percent in retail same store sales and an increase of 3.1 percent in commercial same store sales.

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 percent from 46.9 percent 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 Feb. 3, 2008, net sales were $1,851.6 million, a decrease of 2.9 percent 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. The company's 2007 fiscal year consisted of 52 weeks as compared to its fiscal year 2006, which had 53 weeks.

For more information about CSK Auto, visit the company's Web site.