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): August 16, 1995
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(August 16, 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)<PAGE>
Item 5: OTHER EVENTS
Beginning on August 16, 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
four and twenty-six weeks ended July 29, 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 four weeks ended July 29, 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 four weeks was $1.9 million better than Plan and $0.8
million better than last year. The EBITDA improvement over Plan
was due to higher-than-planned gross margin and lower-than-
planned expenses. Store non-payroll and advertising expenses
were below Plan in fiscal July. The gross margin rate was
favorably impacted by lower-than-planned markdowns.
Sales for the twenty-six weeks ended July 29, 1995 were
$4.1 million below Plan. The year-to-date EBITDA was $5.5
million better than Plan and $8.7 million better than last year. The
EBITDA results for the twenty-six weeks reflected the favorable
impact of lower-than-planned expenses and higher-than-planned
other income and property gains (a portion of which is due to the
timing of the sale of a property), partially offset by an unfavorable
variance in gross margin dollars. 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 29, 1995, merchandise inventories were $6.1
million above Plan. Trade payables were $3.5 million above Plan
primarily due to better-than-planned trade payment terms.
Outstanding borrowings under the Company's revolving line of
credit were $10.9 million below Plan primarily due to lower-than-
planned capital expenditures and higher-than-planned trade
payables.
<PAGE>
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.
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
Four and Twenty-Six Weeks Ended July 29, 1995
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<TABLE>
INDEX TO EXHIBITS
<C> <C> <C>
Exhibit No. Exhibit Page No.
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20 Unaudited Financial Summary Results 6
for the Four and Twenty-Six Weeks
Ended July 29, 1995.
</TABLE>
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<TABLE>
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
<C> <C>
Dated: August 15, 1995 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: August 15, 1995 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: August 15, 1995 By: /s/ William C. Najdecki
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William C. Najdecki
Senior Vice President,
Finance
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<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
JULY RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
July, 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 $149.0 $147.9 $143.5 $945.9 $950.0 $927.1
FIFO Margin $ 37.6 36.4 36.2 248.9 255.3 250.1
Margin % 25.2% 24.6% 25.2% 26.3% 26.9% 27.0%
Total Expenses (41.8) (42.7) (42.9) (267.2) (274.1) (278.2)
Other Income/Property Gains 2.0 2.2 3.7 19.7 14.7 20.8
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EBITDA (2.2) (4.1) (3.0) 1.4 (4.1) (7.3)
Depreciation and Amort (net) (0.2) (0.2) 0.1 (1.2) (1.1) 1.0
Net Interest Expense (2.0) (2.3) (2.0) (11.5) (13.3) (12.8)
Other Expenses, Incl LIFO - - 0.2 (0.1) - (3.3)
Non-Recur Gain - Wertheim Set - - - - - 12.0
Extra. Item, Net of Tax - - - - - (1.5)
Non-Cash Inc. Tax (Prov.) Ben 1.3 2.0 1.5 3.4 5.6 3.4
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Net Income (Loss) ($3.1) ($4.6) ($3.2) ($8.0) ($12.9) ($8.5)
===================================================
Balance at end of Period
Last
Actual Plan (a) Yr (b)
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BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $19.8 $24.0 $31.8
Merchandise Inventories, LIFO 498.3 492.2 484.3
Other Current Assets 36.6 40.5 39.2
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Total Current Assets 554.7 556.7 555.3
Net Fixed Assets 47.8 53.0 30.1
Long-Term Assets 4.8 5.2 7.3
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Total Assets $607.3 $614.9 $592.7
===========================
Trade Accounts Payable $126.2 $122.7 $99.6
Short-Term Debt (Revolver) 114.1 125.0 106.4
Other Current Liabilities 153.7 151.9 166.5
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Total Current Liabilities 394.0 399.6 372.5
Long-Term Debt 25.9 36.2 41.7
Other Long-Term Liabilities 42.8 40.7 50.9
Unfavorable Lease Liability 22.0 22.0 24.0
Fresh-start Excess Net Assets (Negative Goodwill) 45.6 45.6 51.7
Paid-In-Capital 81.0 80.3 73.5
Retained Earnings (Deficit) (4.0) (9.5) (21.6)
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Total Stockholders' Equity 77.0 70.8 51.9
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Total Liabilities & Equity $607.3 $614.9 $592.7
===========================
<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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<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
JULY RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
July, 1995 YTD 1995
Actual Plan (a) Actual Plan (a)
<S> <C> <C> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $23.2 $29.8 $30.4 $15.2
Cash Flow from Operations:
Net Income (Loss) (3.1) (4.6) (8.0) (12.9)
Non-Cash Income Tax Exp (Ben) (1.3) (2.0) (3.4) (5.6)
Other 0.4 0.5 2.9 2.9
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Cash Provided by (Used in) Operations (4.0) (6.1) (8.5) (15.6)
Changes in Working Capital:
FIFO Inventory (increase) decrease (2.5) (19.9) (68.1) (61.2)
Trade Payables increase (decrease) 8.0 45.2 (4.5) (1.7)
All Other (5.3) (5.6) (16.3) (6.8)
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Net Changes in Working Capital 0.2 19.7 (88.9) (69.7)
Capital Expenditures (1.4) (3.6) (10.3) (15.4)
Other:
ST Borrowings (Payments) - Revolver 2.1 (15.0) 114.1 125.0
Capital Lease Payments (0.3) (0.3) (2.1) (3.3)
Long-Term Debt Payments - (0.2) (14.1) (11.2)
Financing Fee Payments - (0.3) (0.8) (1.0)
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Total Other 1.8 (15.8) 97.1 109.5
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Increase (Decrease) in Cash & Cash Equiv (3.4) (5.8) (10.6) 8.8
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Ending Cash & Cash Equivalents $19.8 $24.0 $19.8 $24.0
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<FN>
(a)As reported on Form 8-K dated February 16, 1995
Page 7 of 7
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