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): September 12, 1994
------------------
(September 12, 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>
Item 5: OTHER EVENTS
Beginning on September 12, 1994, Ames will distribute to its banks
and other lenders, principal trade vendors and factors, summaries of
its unaudited financial results for the four and thirty weeks ended
August 27, 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 four weeks
ended August 27, 1994 were $6.3 million less than Plan and EBITDA (as
defined in Exhibit 20) was $.9 million less than Plan. In August,
the unfavorable sales variance was primarily due to shortfalls in
home products and convenience goods. The August gross margin rate
was also less than Plan due primarily to higher-than-planned
markdowns in apparel. The unfavorable impact on the August EBITDA
from the lower-than-planned sales and gross margin rate was partially
offset by lower-than-planned expenses. Store non-payroll, field and
home office expenses were all less than Plan in August.
Sales for the thirty weeks ended August 27, 1994 were $18.5 million
less than Plan and EBITDA was $.6 million less than Plan. The
year-to-date unfavorable sales variance was due primarily to
shortfalls in 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 August 27, 1994, LIFO inventories were $19.3 million greater
than Plan, primarily in hardline categories. 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 $26.2 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 August 27, 1994 were $17.9 million less than
Plan due primarily to the better-than-planned trade payable terms.
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.
Page 2 of 7
<PAGE>
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 Four
and Thirty Weeks Ended August 27, 1994.
Page 3 of 7
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
20 Unaudited Financial Summary Results 6
for the Four and Thirty Weeks Ended
August 27, 1994.
Page 4 of 7
<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: September 12, 1994 By: /s/ Joseph R. Ettore
------------------------
Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: September 12, 1994 By: /s/ John F. Burtelow
-------------------------
John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: September 12, 1994 By: /s/ William C. Najdecki
-------------------------
William C. Najdecki
Senior Vice President,
Chief Accounting Officer
Page 5 of 7
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<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
AUGUST RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
August 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 $149.9 $156.2 $152.7 $1,076.9 $1,095.4 $1,084.3
FIFO Margin $ 39.1 41.7 39.9 285.5 298.3 290.4
Margin % 26.1% 26.7% 26.1% 26.5% 27.2% 26.8%
Total Expenses 41.7 43.5 43.1 301.2 311.2 308.9
Gain on Dispos. of Properties - - - 3.5 1.9 -
---------------------------------------------------
EBIT (2.6) (1.8) (3.2) (12.2) (11.0) (18.5)
Net Interest Expense 2.1 2.2 2.1 14.9 16.4 14.8
Non-Cash Inc. Tax Prov.(Ben.) (1.5) (1.3) - (4.9) (5.0) -
Extra. Chg., net of tax ben. - - - 1.5 1.5 -
Non-Recurring (Gain)-Wertheim - - - (12.0) (12.0) -
---------------------------------------------------
Net Income (Loss) ($3.2) ($2.7) ($5.3) ($11.7) ($11.9) ($33.3)
===================================================
From EBIT:
Non-Cash SARs Exp.(Credit) 0.1 - - 0.2 1.5 -
Depr/Amort, LIFO, & other,net - 0.2 (0.2) 2.3 0.4 (2.3)
---------------------------------------------------
EBITDA ($2.5) ($1.6) ($3.4) ($9.7) ($9.1) ($20.8)
===================================================
BALANCE SHEET SUMMARY:
Balance at end of Period
Actual Plan* Last Yr**
---------------------------
Unrestricted Cash and Cash Equivalents $28.3 $30.7 $27.8
Restricted Cash and Cash Equivalents 0.8 0.8 62.2
Merchandise Inventories, LIFO 508.2 488.9 532.0
Other Current Assets 46.5 34.9 37.3
---------------------------
Total Current Assets 583.8 555.3 659.3
Net Fixed Assets 34.5 49.0 14.0
Other Assets and Deferred Charges 7.2 6.1 -
---------------------------
Total Assets $625.5 $610.4 $673.3
===========================
Trade Accounts Payable $124.6 $98.4 $92.8
Short-Term Debt (Revolver) 112.1 130.0 115.5
Other Current Liabilities 172.5 174.8 194.4
---------------------------
Total Current Liabilities 409.2 403.2 402.7
Long-Term Debt 42.0 42.4 122.7
Other Long-Term Liabilities 50.6 49.4 53.4
Unfavorable Lease Liability 23.8 23.8 26.0
Fresh-start Excess Net Assets (Negative Goodwill) 51.2 51.3 55.7
Paid-In-Capital 73.5 64.4 70.0
Retained Earnings (Deficit) (24.8) (24.1) (57.2)
---------------------------
Total Stockholders' Equity 48.7 40.3 12.8
---------------------------
Total Liabilities & Equity $625.5 $610.4 $673.3
===========================
<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 August 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
AUGUST RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
Fiscal 1995
August 1994 Year-to-Date
Actual Plan* Actual Plan*
<S> <C> <C> <C> <C>
CASH FLOW SUMMARY:
Beg. Unrestricted Cash & Cash Equiv. $30.8 $29.1 $16.5 $26.9
Cash Generated from (Used in) Operations:
Net Income (Loss) (3.2) (2.7) (11.7) (11.9)
Non-Cash Income Tax Expense (Benefit) (1.5) (1.3) (4.9) (5.0)
Other 0.4 0.5 4.5 4.0
------------------------------------
Cash from Operations (4.3) (3.5) (12.1) (12.9)
Changes in Working Capital:
FIFO Inventory (increase) decrease (23.9) (9.4) (66.6) (48.9)
Trade Payables increase (decrease) 25.0 17.3 50.5 23.5
All Other 0.7 (1.9) (5.3) (9.8)
------------------------------------
Net Changes in Working Capital 1.8 6.0 (21.4) (35.2)
Capital Expenditures (5.0) (5.3) (15.7) (26.3)
(Incr) Decr. in Rest. Cash & Cash Equiv. 0.2 0.1 55.2 57.5
Other:
Short-Term Borrow. (Pymts) - Revolver 5.8 5.0 96.8 110.0
Payments of Capital Leases (0.4) (0.3) (2.2) (2.2)
Payments on Long-Term Debt (0.5) (0.4) (81.1) (79.7)
Increase in Deferred Financing Costs (0.1) - (7.7) (7.4)
------------------------------------
Total Other 4.8 4.3 5.8 20.7
------------------------------------
Unrestricted Cash Increase (Decrease) (2.5) 1.6 11.8 3.8
------------------------------------
Ending Unrestricted Cash & Cash Equiv. $28.3 $30.7 $28.3 $30.7
====================================
<FN>
* As reported on Form 8-K dated May 27, 1994.
Page 7 of 7
</TABLE>
