PHOENIX — CSK Auto Corp., parent company of CSK Auto Inc., has reported its financial results for the first quarter of fiscal 2004.
Sales for the 13 weeks, which ended on May 2, increased $19.7 million to $397.1 million from $377.4 million for the 13 weeks, which ended on May 4, 2003. Same store sales for the first quarter of fiscal 2004 increased 5 percent compared to the first quarter of fiscal 2003. The company said the sales increases are a result of strong sales in core product categories such as batteries, brakes, shocks and rotating electric parts and its increasing commercial sales. Sales were also positively impacted by CSK’s ability to increase its dollar average sale per customer and attract new customers to the stores through new and product offerings, according to the company.
Gross profit increased $13.6 million to $188.6 million, or 47.5 percent of net sales, for the first quarter of fiscal 2004 from $175 million, or 46.4 percent of net sales, for the first quarter of fiscal 2003. CSK said the increased gross margin dollars and rate are a result of continuing efforts to lower the acquisition costs in the company’s core product categories and its ability to acquire promotional products upon more favorable terms. The company also reduced store inventory shrinkage through improved store procedures and enhanced inventory control systems.
Operating profit for the first quarter of fiscal 2004 totaled $29.5 million, or 7.4 percent of net sales, compared to $26.2 million, or 6.9 percent of net sales, for the first quarter of fiscal 2003. Operating profit was favorably impacted during the first quarter of fiscal 2004 as a result of higher gross margin dollars, which was partially offset by higher incentive payments and benefit costs associated with its employee compensation programs. Interest expense for the first quarter of fiscal 2004 decreased by $5.6 million to $8.3 million compared to $13.9 million for the same period last year. This reduction is primarily the result of recent refinancing, which the company completed in January 2004.
Net income for the first quarter of fiscal 2004 was $13 million, or 28 cents per diluted common share, compared to net income of $7.5 million, or 17 cents per diluted May 2, 2004, CSK had no borrowings under CSK’s revolving credit facility.
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