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): July 13, 1995
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(July 13, 1995)
Ames Department Stores, Inc.
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(Exact Name of Registrant As Specified In Its Charter)
Delaware
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(State Or Other Jurisdiction Of Incorporation)
1-5380 04-2269444
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(Commission File Number) (IRS Employer Identification No.)
2418 Main Street; Rocky Hill, Connecticut 06067-0801
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(Address Of Principal Executive Offices) (Zip Code)
(203) 257-2000
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(Registrant's Telephone Number, Including Area Code)
Not Applicable
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(Former Name Or Former Address, If Changed Since Last Report)
Exhibit Index on Page 4
Page 1 of 7 (Including Exhibits)
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ITEM 5: OTHER EVENTS
Beginning on July 13, 1995, the Company will distribute, to
certain of its banks and other lenders, principal trade vendors
and factors, summaries of its unaudited financial results for the
five and twenty-two weeks ended July 1, 1995. These monthly and
year-to-date results (collectively, the "monthly results") are
attached hereto as Exhibit 20 and are incorporated by reference
herein.
Sales for the five weeks ended July 1, 1995 were $1.1
million above the projections contained in the Form 8-K dated
February 16, 1995 (the "Plan"). EBITDA (as defined in Exhibit
20) for the five weeks was $3.2 million better than Plan and $5.9
million better than last year. The EBITDA improvement over Plan
was due to higher-than-planned other income and property gains
and lower-than-planned expenses, partially offset by an
unfavorable gross margin rate. During June, the company
completed the sale of the Clinton, MA distribution center (whose
closing was announced in November 1994) and realized a gain of
$4.3 million. Store non-payroll, field and home office expenses
were below Plan in fiscal June. The gross margin rate was
negatively impacted by higher-than-planned markdowns.
Sales for the twenty-two weeks ended July 1, 1995 were $5.2
million below Plan primarily due to below Plan sales performances
in womens and childrens apparel and home goods. The year-to-date
EBITDA was $3.6 million better than Plan and $7.8 million better
than last year. The EBITDA results for the twenty-two weeks
reflected the favorable impact of lower-than-planned expenses and
higher-than-planned other income and property gains, partially
offset by an unfavorable variance in gross margin dollars. Year-
to-date store, advertising and home office expenses were below
Plan for the twenty-two weeks. Gross margin was negatively
impacted by the below Plan sales performance and a lower-than-
planned gross margin rate. The gross margin rate was below Plan
because of higher-than-planned markdowns.
As of July 1, 1995, merchandise inventories were $23.5
million above Plan primarily due to higher-than-planned
inventories in apparel and home entertainment. Trade payables
were $40.7 million above Plan primarily due to improved payment
terms. Outstanding borrowings under the Company's revolving line
of credit were $28.0 million below Plan primarily due to the net
effect of the above factors.
The Company 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 28, 1995, the Company's Form 10-Q for the first
fiscal quarter ended April 29, 1995 and the Company's Form 8-K
dated February 16, 1995. 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>
Although the Company has continued to make its monthly
results public, the Company does not believe it is obligated to
provide such information indefinitely, other than as required by
applicable regulations, and the Company may cease making such
disclosures and updates at any time. The monthly results were
not examined, reviewed or compiled by the Company's independent
public accountants. Moreover, the Company 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 Twenty-Two Weeks Ended July 1, 1995.
<PAGE>
INDEX TO EXHIBITS
EXHIBIT NO. EXHIBIT PAGE NO.
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20 Unaudited Financial Summary Results 6
for the Five and Twenty-Two Weeks
Ended July 1, 1995.
<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.
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Registrant
Dated: July 12, 1995 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: July 12, 1995 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: July 12, 1995 By: /s/ William C. Najdecki
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William C. Najdecki
Senior Vice President,
Finance
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
JUNE RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
June, 1995 Year-to-Date 1995
Last Last
ActualPlan (a) Yr (b) Actual Plan (a) Yr (b)
<S> <C> <C> <C> <C> <C> <C>
INCOME SUMMARY:
Net Sales $202.9 $201.8 $199.6 $796.9 $802.1 $783.6
FIFO Margin $ 53.7 55.0 54.2 211.3 218.9 213.9
Margin % 26.5% 27.3% 27.2% 26.5% 27.3% 27.3%
Total Expenses (52.0) (52.5) (54.4) (225.4) (231.3) (235.3)
Other Income/Property Gains 7.3 3.3 3.3 17.7 12.4 17.2
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EBITDA 9.0 5.8 3.1 3.6 - (4.2)
Depreciation and Amort (net) (0.3) (0.2) 0.1 (0.9) (0.8) 0.9
Net Interest Expense (2.3) (2.7) (2.5) (9.6) (11.0) (10.8)
Other Expenses, Incl LIFO - - 0.2 (0.1) - (3.5)
Non-Recur Gain - Wertheim Set - - 12.0 - - 12.0
Extra. Item, Net of Tax - - - - - (1.5)
Non-Cash Inc. Tax (Prov.) Ben (1.9) (0.9) (4.2) 2.1 3.6 1.8
---------------------------------------------------
Net Income (Loss) $4.5 $2.0 $8.7 ($4.9) ($8.2) ($5.3)
===================================================
Balance at end of Period
Last
Actual Plan (a) Yr (b)
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BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $23.2 $29.8 $33.9
Merchandise Inventories, LIFO 495.8 472.3 474.6
Other Current Assets 34.3 38.2 38.2
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Total Current Assets 553.3 540.3 546.7
Net Fixed Assets 47.2 50.1 25.9
Long-Term Assets 5.1 5.3 7.6
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Total Assets $605.6 $595.7 $580.2
===========================
Trade Accounts Payable $118.2 $77.5 $72.4
Short-Term Debt (Revolver) 112.0 140.0 114.2
Other Current Liabilities 159.4 157.5 168.6
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Total Current Liabilities 389.6 375.0 355.2
Long-Term Debt 25.6 36.1 42.2
Other Long-Term Liabilities 42.2 41.0 51.4
Unfavorable Lease Liability 22.1 22.1 24.1
Fresh-start Excess Net Assets (Negative Goodwill) 46.0 46.0 52.2
Paid-In-Capital 81.0 80.3 73.5
Retained Earnings (Deficit) (0.9) (4.8) (18.4)
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Total Stockholders' Equity 80.1 75.5 55.1
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Total Liabilities & Equity $605.6 $595.7 $580.2
===========================
<FN>
(a) As reported on Form 8-K dated February 16, 1995.
(b) Certain reclassifications have been made to the fiscal 1994 account
balances to conform to the current year presentation.
NOTE: EBITDA is earnings (loss) before net interest expense, income taxes,
LIFO expense, extraordinary or non-recurring items, depreciation and
amortization and other non-cash charges.
Page 6 of 7
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<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
JUNE RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
June, 1995 YTD 1995
Actual Plan (a) Actual Plan (a)
<S> <C> <C> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $26.9 $29.9 $30.4 $15.2
Cash Flow from Operations:
Net Income (Loss) 4.5 2.0 (4.9) (8.2)
Non-Cash Income Tax Exp (Ben) 1.9 0.9 (2.1) (3.6)
Other 0.6 0.5 2.5 2.3
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Cash Provided by (Used in) Operations 7.0 3.4 (4.5) (9.5)
Changes in Working Capital:
FIFO Inventory (increase) decrease 19.3 22.2 (65.6) (41.2)
Trade Payables increase (decrease) (16.0) (28.8) (12.5) (46.9)
All Other 3.9 8.7 (11.0) (1.3)
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Net Changes in Working Capital 7.2 2.1 (89.1) (89.4)
Capital Expenditures (2.0) (4.2) (8.9) (11.8)
Other:
ST Borrowings (Payments) - Revolver (10.6) - 112.0 140.0
Capital Lease Payments (0.4) (0.3) (1.8) (2.9)
Long-Term Debt Payments (4.1) (1.1) (14.1) (11.0)
Financing Fee Payments (0.8) - (0.8) (0.8)
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Total Other (15.9) (1.4) 95.3 125.3
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Increase (Decrease) in Cash & Cash Equiv (3.7) (0.1) (7.2) 14.6
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Ending Cash & Cash Equivalents $23.2 $29.8 $23.2 $29.8
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<FN>
(a)As reported on Form 8-K dated February 16, 1995
Page 7 of 7
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