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): June 9, 1995
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(June 9, 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
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Beginning on June 9, 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 seventeen weeks ended May 27, 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 May 27, 1995 were $.9 million
below the projections contained in the Form 8-K dated February
16, 1995 (the "Plan") primarily due to below Plan sales
performance in apparel. EBITDA (as defined in Exhibit 20) for
the four weeks was $.7 million better than Plan and $.8 million
above last year. The EBITDA improvement over Plan was due to
lower-than-planned expenses and higher-than-planned other income
and property gains, partially offset by an unfavorable gross
margin rate. Store, advertising and home office expenses were
below Plan during May. The gross margin rate was negatively
impacted by the discounts related to the "55 Gold" senior citizen
discount program. During May, the company sold a previously
closed warehouse and realized a gain of $.8 million.
Sales for the seventeen weeks ended May 27, 1995 were $6.3
million below Plan primarily due to below Plan sales performances
in womens and childrens apparel and home goods. The year-to-date
EBITDA was $.5 million better than Plan and $2.0 million above
last year. The EBITDA results for the seventeen 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 seventeen weeks. The 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 and the impact of the senior
citizen discount program.
Cash and cash equivalents as of May 27, 1995, were $60.6
million less than cash and cash equivalents at the end of the
comparable period in the prior year. A year ago, the balance in
cash and cash equivalents included $54.3 million in restricted
cash required to collateralize the Company's outstanding letters
of credit under the Company's previous revolving line of credit.
This restricted cash was used to retire long-term debt in
conjunction with the Company's
June 1994 working capital refinancing.
As of May 27, 1995, merchandise inventories were $20.5
million above Plan primarily due to higher-than-planned
inventories in apparel, home entertainment and toys. Trade
payables were $27.7 million above Plan primarily due to improved
payment terms. Outstanding borrowings under the Company's
revolving line of credit were $17.4 million below Plan primarily
due to the net effect of the above factors.
<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
certified 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
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EXHIBITS
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Exhibit: 20 Unaudited Financial Summary Results for the
Four and Seventeen Weeks Ended May 27, 1995.
<PAGE>
INDEX TO EXHIBITS
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Exhibit No. Exhibit Page No.
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20 Unaudited Financial Summary Results 6
for the Four and Seventeen Weeks
Ended May 27, 1995.
<PAGE>
SIGNATURES
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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: June 9, 1995 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: June 9, 1995 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: June 9, 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
MAY RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
May, 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 $152.3 $153.2 $148.3 $594.0 $600.3 $584.0
FIFO Margin $ 43.6 45.0 44.7 157.6 164.0 159.7
Margin % 28.6% 29.4% 30.1% 26.5% 27.3% 27.3%
Total Expenses (41.9) (43.3) (44.5) (173.4) (178.9) (180.9)
Other Income/Property Gains 3.2 2.5 3.9 10.5 9.1 13.9
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EBITDA 4.9 4.2 4.1 (5.3) (5.8) (7.3)
Depreciation and Amort (net) (0.2) (0.2) 0.2 (0.7) (0.5) 0.7
Net Interest Expense (2.1) (2.3) (2.3) (7.2) (8.3) (8.2)
Other Expenses, Incl LIFO - - (0.4) (0.1) - (3.8)
Extra. Item, Net of Tax - - - - - (1.5)
Non-Cash Inc. Tax (Prov.) Ben (0.8) (0.5) (0.5) 4.0 4.4 6.0
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Net Income (Loss) $1.8 $1.2 $1.1 ($9.3) ($10.2) ($14.1)
===================================================
Balance at end of Period
Last
Actual Plan (a) Yr (b)
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BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $26.9 $29.9 $87.5
Merchandise Inventories, LIFO 515.0 494.5 505.6
Other Current Assets 40.8 43.1 46.5
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Total Current Assets 582.7 567.5 639.6
Net Fixed Assets 46.1 46.7 23.1
Long-Term Assets 4.7 5.6 1.2
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Total Assets $633.5 $619.8 $663.9
===========================
Trade Accounts Payable $134.1 $106.4 $101.7
Short-Term Debt (Revolver) 122.6 140.0 108.2
Other Current Liabilities 160.3 152.4 235.7
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Total Current Liabilities 417.0 398.8 445.6
Long-Term Debt 29.3 37.3 43.2
Other Long-Term Liabilities 42.7 41.4 51.7
Unfavorable Lease Liability 22.3 22.3 24.3
Fresh-start Excess Net Assets (Negative Goodwill) 46.6 46.6 52.8
Paid-In-Capital 81.0 80.3 73.4
Retained Earnings (Deficit) (5.4) (6.9) (27.1)
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Total Stockholders' Equity 75.6 73.4 46.3
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Total Liabilities & Equity $633.5 $619.8 $663.9
===========================
<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
</TABLE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
MAY RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
May, 1995 YTD 1995
Actual Plan (a) Actual Plan (a)
<S> <C> <C> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $20.2 $25.7 $30.4 $15.2
Cash Flow from Operations:
Net Income (Loss) 1.8 1.2 (9.3) (10.2)
Non-Cash Income Tax Exp (Ben) 0.8 0.5 (4.0) (4.4)
Other 0.5 0.5 1.9 1.8
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Cash Provided by (Used in) Operations 3.1 2.2 (11.4) (12.8)
Changes in Working Capital:
FIFO Inventory (increase) decrease 5.5 1.2 (84.9) (63.4)
Trade Payables increase (decrease) (16.8) (8.9) 3.4 (18.1)
All Other (2.2) (6.7) (14.9) (10.1)
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Net Changes in Working Capital (13.5) (14.4) (96.4) (91.6)
Capital Expenditures (1.9) (3.3) (6.9) (7.6)
Other:
Short-Term Borrow. - Revolver 19.5 20.0 122.6 140.0
Capital Lease Payments (0.4) (0.3) (1.4) (2.6)
Long-Term Debt Payments (0.1) - (10.0) (9.9)
Financing Fee Payments - - - (0.8)
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Total Other 19.0 19.7 111.2 126.7
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Increase (Decrease) in Cash & Cash Equiv 6.7 4.2 (3.5) 14.7
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Ending Cash & Cash Equivalents $26.9 $29.9 $26.9 $29.9
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<FN>
(a)As reported on Form 8-K dated February 16, 1995
Page 7 of 7
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