CSK Auto Corporation, the parent company of CSK Auto, Inc., a specialty retailer in the automotive aftermarket, increased net income for the second quarter of fiscal 2002, ended August 4, 2002, to approximately $US4.1 million from a loss of $23.8 million in the second quarter of 2001.
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Same store sales grew by 7% total outstanding debt was reduced by $89.0 million year over year.
During the quarter 13 stores geographically remote from the company’s other operations were sold.
Net sales for the second quarter of fiscal 2002 increased 4.3% to $398.3 million from sales of $381.7 million in Q2 2001.
During the second quarter of fiscal 2002, the company opened four stores, relocated one store, closed one store in addition to the store closed due to relocation and sold 13 stores in west Texas.
At August 4, 2002, the company had 1,114 stores in operation, compared to 1,154 at the end of the second quarter of fiscal 2001.
Gross profit was $182.1 million, or 45.7% of net sales, in the second quarter of fiscal 2002 as compared to $147.1 million, or 38.5% of net sales for the second quarter of fiscal 2001.
The higher gross profit margin reflected the company’s improved inventory in-stock position and the realisation of more cash discounts and vendor allowances as a result of the company’s increased liquidity.
Operating profit for the second quarter of fiscal 2002 totalled $28.2 million, or 7.1% of net sales, compared to an operating loss of $24.0 million, or 6.3% of net sales, for the second quarter of fiscal 2001.
Operating profit for the second quarter of fiscal 2002 includes a loss of $0.8 million on the sale of the 13 stores in west Texas, as well as $0.3 million of expenses that were incurred in connection with the company’s offering of common stock in June 2002.
“The management of CSK Auto is very pleased with the continued operating and financial improvements we have achieved so far this year,” said chairman and chief executive officer Maynard Jenkins.
“The improved liquidity from the company’s refinancing at year-end 2001 has already had a significant impact on our operating results.”
