<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 14, 1994
--------------------------------------------------------------------
(October 14, 1994)
Ames Department Stores, Inc.
-----------------------------------------------------
(Exact Name of Registrant As Specified In Its Charter)
Delaware
----------------------------------------------
(State Or Other Jurisdiction Of Incorporation)
1-5380 04-2269444
----------------------- --------------------------------
(Commission File Number) (IRS Employer Identification No.)
2418 Main Street; Rocky Hill, Connecticut 06067-0801
----------------------------------------- ----------
(Address Of Principal Executive Offices) (Zip Code)
(203) 257-2000
----------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
Not Applicable
------------------------------------------------------------
(Former Name Or Former Address, If Changed Since Last Report)
Exhibit Index on Page 4
Page 1 of 7 (Including Exhibit)
<PAGE>
<PAGE>
ITEM 5: OTHER EVENTS
Beginning on October 14, 1994, Ames Department Stores, Inc.
("Ames" or the "Company") will distribute to its banks and other
lenders, principal trade vendors and factors, summaries of its
unaudited financial results for the five and thirty-five weeks
ended October 1, 1994. These monthly and year-to-date results
(collectively, the "monthly results") are attached hereto as
Exhibit 20 and are incorporated by reference herein.
Compared with the projections contained in the Form 8-K dated May
27, 1994 (referred to herein as the "Plan"), sales for the five
weeks ended October 1, 1994 were $9.4 million less than Plan and
EBITDA (as defined in Exhibit 20) was $4.4 million less than Plan
and $0.3 million greater than last year. In September, the
unfavorable sales variance was primarily due to shortfalls in
ladies and childrens apparel, most home products, and convenience
goods. September's gross margin rate was also less than Plan due
primarily to higher-than-planned markdowns in apparel and
convenience goods. Expenses were slightly above Plan due
primarily to lower-than-planned other income (which is netted
against expenses in the management format) because of lower
purchase discounts resulting from better-than-planned trade
payable terms. Store non-payroll, field and home office expenses
were less than Plan in September.
Sales for the thirty-five weeks ended October 1, 1994 were $27.9
million less than Plan and EBITDA was $5.1 million less than Plan
but $11.3 million greater than last year. The year-to-date
unfavorable sales variance was due primarily to shortfalls in
ladies apparel, crafts, and convenience goods. The lower
year-to-date gross margin rate was due to higher-than-planned
markdowns, particularly in apparel. The unfavorable impact on the
year-to-date EBITDA from the lower-than-planned sales and gross
margin rate was partially offset by lower-than-planned expenses
and additional gains on property sales. Year-to-date store, field
and home office expenses were all less than Plan.
As of October 1, 1994, LIFO inventories were $33.0 million greater
than Plan, primarily in hardline categories. As previously
reported, the Company decided to temporarily build inventory
levels above those projected in the Plan to support several new
sales promotions for the Fall and Christmas seasons. Trade
payables were $22.7 million greater than Plan due primarily to the
higher-than-planned inventory purchases and improved payment
terms. Outstanding borrowings under the Company's revolving line
of credit as of October 1, 1994 were $13.2 million greater than
Plan due primarily to the additional inventory purchases,
partially offset by the better-than-planned trade payable terms.
Page 2 of 7
<PAGE>
<PAGE>
Ames is distributing the monthly results to its banks and other
lenders, principal trade vendors and factors to facilitate their
credit analyses. The summary results SHOULD NOT BE RELIED UPON
FOR ANY OTHER PURPOSE and should be read in conjunction with the
Company's Form 10-K for the fiscal year ended January 29, 1994,
the Company's Form 10-Q for the first and second fiscal quarters
ended April 30 and July 30, 1994, respectively, and the Company's
Form 8-K dated May 27, 1994. The monthly results are being
reported publicly solely because they are being distributed to a
large number of the Company's vendors for purposes of their credit
analyses.
During the pendency of its reorganization case, Ames disclosed
publicly its monthly results through filings with the Office of
the U.S. Bankruptcy Trustee and continued to report publicly its
monthly results during the fiscal year ended January 29, 1994.
Although Ames expects to continue to make its monthly results
public for the fiscal year ending January 28, 1995, Ames does not
believe it is obligated to provide such information indefinitely,
other than as required by applicable regulations, and Ames may
cease making such disclosures and updates at any time. The
monthly results were not examined, reviewed or compiled by Ames'
independent certified public accountants. Moreover, Ames does not
believe that it is obligated to update the monthly results to
reflect subsequent events or developments. The reported monthly
results are subject to future adjustments, if any, that could
materially affect such results. However, in the opinion of the
Company, the monthly results contain all adjustments (consisting
of normal recurring adjustments) necessary for a fair statement of
the results for the periods presented.
ITEM 7: FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
Exhibit: 20 Unaudited Financial Summary Results for the Five
and Thirty-five Weeks Ended October 1, 1994.
Page 3 of 7
<PAGE>
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
----------- ------- --------
20 Unaudited Financial Summary Results 6
for the Five and Thirty-five Weeks
Ended October 1, 1994.
Page 4 of 7
<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
AMES DEPARTMENT STORES, INC.
----------------------------
Registrant
Dated: October 13, 1994 By: /s/ Joseph R. Ettore
-----------------------------
Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: October 13, 1994 By: /s/ John F. Burtelow
------------------------------
John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: October 13, 1994 By: /s/ William C. Najdecki
-----------------------------
William C. Najdecki
Senior Vice President,
Chief Accounting Officer
Page 5 of 7
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
SEPTEMBER RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
September 1994 Fiscal 1995 Year-to-Date
Actual Plan* Last Yr** Actual Plan* Last Yr**
<S> <C> <C> <C> <C> <C> <C>
INCOME SUMMARY:
Net Sales $190.8 $200.2 $197.6 $1,267.7 $1,295.6 $1,281.9
FIFO Margin $ 51.3 55.6 54.1 336.8 353.9 344.5
Margin % 26.9% 27.8% 27.4% 26.6% 27.3% 26.9%
Total Expenses 49.2 49.1 51.7 350.5 360.2 360.6
Gain on Dispos. of Properties - - - 3.5 1.9 -
---------------------------------------------------
EBIT 2.1 6.5 2.4 (10.2) (4.4) (16.1)
Net Interest Expense 2.5 2.5 2.9 17.3 18.9 17.7
Non-Cash Inc. Tax Prov.(Ben.) (0.1) 1.3 - (5.0) (3.6) -
Extra. Chg., net of tax ben. - - - 1.5 1.5 -
Non-Recurring (Gain)-Wertheim - - - (12.0) (12.0) -
---------------------------------------------------
Net Income (Loss) ($0.3) $2.7 ($0.5) ($12.0) ($9.2) ($33.8)
===================================================
From EBIT:
Non-Cash SARs Exp.(Credit) 0.1 - - 0.3 1.5 -
Depr/Amort, LIFO, & other,net 0.1 0.2 (0.4) 2.4 0.5 (2.7)
---------------------------------------------------
EBITDA $2.3 $6.7 $2.0 ($7.5) ($2.4) ($18.8)
===================================================
BALANCE SHEET SUMMARY:
Balance at end of Period
Actual Plan* Last Yr**
---------------------------
Unrestricted Cash and Cash Equivalents $31.5 $27.3 $24.9
Restricted Cash and Cash Equivalents 0.7 0.6 53.0
Merchandise Inventories, LIFO 554.3 521.3 575.1
Other Current Assets 55.8 48.9 44.5
---------------------------
Total Current Assets 642.3 598.1 697.5
Net Fixed Assets 38.8 50.8 16.3
Other Assets and Deferred Charges 6.9 5.8 -
---------------------------
Total Assets $688.0 $654.7 $713.8
===========================
Trade Accounts Payable $144.8 $122.1 $113.0
Short-Term Debt (Revolver) 158.2 145.0 148.1
Other Current Liabilities 171.3 178.3 184.4
---------------------------
Total Current Liabilities 474.3 445.4 445.5
Long-Term Debt 40.7 41.4 121.8
Other Long-Term Liabilities 50.4 49.1 53.1
Unfavorable Lease Liability 23.6 23.7 25.8
Fresh-start Excess Net Assets (Negative Goodwill) 50.6 50.7 55.2
Paid-In-Capital 73.5 65.8 70.1
Retained Earnings (Deficit) (25.1) (21.4) (57.7)
---------------------------
Total Stockholders' Equity 48.4 44.4 12.4
---------------------------
Total Liabilities & Equity $688.0 $654.7 $713.8
===========================
<FN>
* As reported on Form 8-K dated May 27, 1994.
** Last year's (fiscal 1994) income and balance sheet summaries
represent 309 stores as compared to 305 stores in September 1994.
NOTE: EBIT is earnings (loss) before net interest expense, income taxes, and
non-recurring or extraordinary items. EBITDA is EBIT before depre-
ciation & amortization, LIFO expense, stock appreciation rights (SARs)
accruals, and other non-cash charges.
Page 6 of 7
</TABLE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
SEPTEMBER RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
Fiscal 1995
September 1994 Year-to-Date
Actual Plan* Actual Plan*
<S> <C> <C> <C> <C>
CASH FLOW SUMMARY:
Beg. Unrestricted Cash & Cash Equiv. $28.3 $30.7 $16.5 $26.9
Cash Generated from (Used in) Operations:
Net Income (Loss) (0.3) 2.7 (12.0) (9.2)
Non-Cash Income Tax Expense (Benefit) (0.1) 1.3 (5.0) (3.6)
Other (0.6) 0.5 3.9 4.5
------------------------------------
Cash from Operations (1.0) 4.5 (13.1) (8.3)
Changes in Working Capital:
FIFO Inventory (increase) decrease (46.1) (32.4) (112.7) (81.4)
Trade Payables increase (decrease) 20.2 23.7 70.7 47.2
All Other (10.6) (11.3) (15.9) (21.1)
------------------------------------
Net Changes in Working Capital (36.5) (20.0) (57.9) (55.3)
Capital Expenditures (4.2) (2.5) (19.9) (28.8)
(Incr) Decr. in Rest. Cash & Cash Equiv. 0.1 0.2 55.3 57.7
Other:
Short-Term Borrow. (Pymts) - Revolver 46.0 15.0 142.8 125.0
Payments of Capital Leases (0.4) (0.3) (2.6) (2.5)
Payments on Long-Term Debt (0.7) (0.3) (81.8) (80.0)
Increase in Deferred Financing Costs (0.1) - (7.8) (7.4)
------------------------------------
Total Other 44.8 14.4 50.6 35.1
------------------------------------
Unrestricted Cash Increase (Decrease) 3.2 (3.4) 15.0 0.4
------------------------------------
Ending Unrestricted Cash & Cash Equiv. $31.5 $27.3 $31.5 $27.3
====================================
<FN>
* As reported on Form 8-K dated May 27, 1994.
Page 7 of 7
</TABLE>
