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 18, 1995
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(August 18, 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 8 (Including Exhibits)<PAGE>
Item 5: OTHER EVENTS
Beginning on August 18, 1995, the Company will distribute,
to its banks and other lenders, principal trade vendors and factors,
summaries of its revised financial plan (referred to herein as the
"Revised Plan") for the fiscal year ending January 27, 1996
("Fiscal 1995"). The Revised Plan is attached hereto as Exhibit
20 and is incorporated by reference herein. The Revised Plan
supersedes, in its entirety, the summary financial plan for Fiscal
1995 filed on Form 8-K dated February 16, 1995. The changes
contained in the Revised Plan represent a recalendarization of
sales and gross margin during the second half of Fiscal 1995.
THE NET EFFECT OF THE ADJUSTMENTS RESULT IN NO
CHANGE TO THE PROJECTED ANNUAL SALES AND NET INCOME AS
PRESENTED IN THE FORM 8-K DATED FEBRUARY 16, 1995.
The Revised Plan does not contain any updates to the original
projections for the actual year-to-date sales, gross margin and
other normal operating results incurred.
The Company is distributing the Revised Plan to its banks
and other lenders, principal trade vendors and factors to facilitate
their credit analyses. The Revised Plan 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
and the Company's Form 10-Q for the first quarter ended April 29,
1995. The Revised Plan is being reported publicly solely because
it is being distributed to a large number of the Company's vendors
for purposes of their credit analyses. Although the Company is
publicly reporting the Revised Plan and expects to continue
reporting its monthly results during Fiscal 1995, the Company
does not believe it is obligated to provide such information
indefinitely, other than as required by applicable regulations, and
may cease making such disclosures and updates at any time.
Moreover, the Company does not believe that it is obligated to
update the Revised Plan to reflect subsequent events or
developments.
<PAGE>
The Revised Plan was not prepared with a view toward
compliance with the guidelines established by the American
Institute of Certified Public Accountants or the rules and
regulations of the Securities and Exchange Commission regarding
financial projections. While presented with numerical specificity,
the Revised Plan is based upon a variety of assumptions thatmay
not be realized and is subject to significant business, economic
and competitive uncertainties and contingencies, many of which
are beyond the control of the Company. Consequently, the
Revised Plan should not be regarded as a representation or
warranty by the Company, or any other person, that the forecasts
contained therein will be realized. Actual results may vary
materially from those presented in the Revised Plan.
Item 7: FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS
Exhibit: 20 Fiscal 1995 Revised Summary Financial Plan
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
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20 Fiscal 1995 Revised Summary 6
Financial Plan.
<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: August 17, 1995 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: August 17, 1995 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: August 17, 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.
CONDENSED INCOME STATEMENT
MANAGEMENT FORMAT
FISCAL 1995 PLAN (REVISED)
($ 000's)
<CAPTION> EXHIBIT 20
Page 1 of 3
FOR MONTH ENDING
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FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales $125,044 $173,447 $148,639 $153,223 $201,775 $147,881 $154,000 $195,950 $177,000 $232,764 $369,750 $116,953 $2,196,426
Gross
Margin $ 31,624 45,773 41,500 45,062 54,962 36,363 39,610 55,524 48,277 64,202 99,893 26,510 589,300
Gross
Margin % 25.29% 26.39% 27.92% 29.41% 27.24% 24.59% 25.72% 28.34% 27.28% 27.58% 27.02% 22.67% 26.83%
SG&A
Expenses (41,630) (51,420) (42,553) (43,322) (52,453) (42,727) (43,892) (53,201) (47,085) (52,470) (60,283) (41,073) (572,109)
Other Income(a)/Prop
Gains (b) 1,683 2,457 2,519 2,485 3,280 2,280 2,566 3,412 5,467 3,250 3,879 4,631 37,909
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EBITDA (c) (8,323) (3,190) 1,466 4,225 5,789 (4,084) (1,716) 5,735 6,659 14,982 43,489 (9,932) 55,100
Depr & Amort (105) (148) (140) (167) (239) (257) (300) (337) (324) (328) (354) (331) (3,030)
Net Interest (1,542) (2,262) (2,209) (2,293) (2,681) (2,298) (2,346) (2,937) (2,627) (2,668) (2,180) (1,149) (27,192)
Non-Cash Inc Tax
Ben (Exp) 3,017 1,694 267 (534) (868) 2,009 1,320 (745) (1,122) (3,627) (12,392) 3,453 (7,527)
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Net Inc(Loss) ($6,953) ($3,906) ($616) $1,231 $2,001 ($4,630) ($3,042) $1,716 $2,586 $8,359 $28,563 ($7,959) $17,351
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<FN>
(a) Previously netted against expenses in the Fiscal 1994 management format. Includes purchase discounts.
(b) Property gains of $6.0 million are planned for Fiscal 1995.
(c) EBITDA is earnings (loss) before net interest expense, income taxes, LIFO expense, extraordinary or non-recurring
items, depreciation and amortization
Page 6 of 8
</TABLE>
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<TABLE>
AMES DEPARTMENT STORES, INC.
CONDENSED BALANCE SHEET
MANAGEMENT FORMAT
FISCAL 1995 PLAN (REVISED)
($ 000's)
<CAPTION> EXHIBIT 20
Page 2 of 3
FOR MONTH ENDING
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FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Current Assets:
Cash & equivalents $22,749 $25,352 $25,698 $29,895 $29,821 $23,976 $23,527 $31,670 $24,196 $49,963 $54,280 $16,843
Mdse Inventories 478,837 489,489 495,681 494,484 472,288 492,244 500,829 542,590 585,693 568,034 410,204 417,099
Other current assets 30,855 40,352 41,828 43,062 38,237 40,520 46,811 55,799 62,042 93,175 34,561 29,313
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Total Current Assets 532,441 555,193 563,207 567,441 540,346 556,740 571,167 630,059 671,931 711,172 499,045 463,255
Net Fixed Assets 41,697 42,697 44,026 46,680 50,064 52,938 56,309 58,304 58,649 58,444 58,013 57,505
Long Term Assets 5,790 5,477 5,915 5,602 5,290 5,227 4,915 4,602 4,540 4,227 3,915 3,852
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Total Assets $579,928 $603,368 $613,148 $619,723 $595,700 $614,905 $632,391 $692,964 $735,119 $773,842 $560,973 $524,612
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Liabilities
Current Liabilities:
Trade acc'ts pay. $118,377 $104,856 $115,262 $106,357 $77,517 $122,736 $120,777 $147,681 $205,830 $207,810 $136,530 $127,051
Note (rev.) payable 75,000 120,000 120,000 140,000 140,000 125,000 150,000 180,000 165,000 190,000 - -
Other current liabs. 157,321 155,344 156,993 152,396 157,424 151,923 150,202 154,027 151,319 155,492 166,553 163,120
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Total Current Liabs. 350,697 380,200 392,255 398,752 374,941 399,659 420,979 481,708 522,149 553,303 303,083 290,171
Long-term debt 39,191 38,124 37,438 37,254 36,134 36,230 36,404 35,621 35,722 35,896 34,788 26,970
Other LT liabilities 42,384 42,042 41,699 41,360 41,016 40,668 40,331 39,991 39,647 39,314 38,978 35,389
Unfav. lease liability 22,744 22,587 22,430 22,273 22,117 21,960 21,803 21,646 21,489 21,332 21,175 21,018
Fresh-start excess 48,173 47,581 47,108 46,635 46,043 45,570 45,097 44,505 44,032 43,559 42,967 42,493
Shareholders Equity
Paid-in capital 80,305 80,305 80,305 80,305 80,305 80,305 80,305 80,305 80,305 80,305 91,285 87,832
Ret. earn. (def.) (3,565) (7,471) (8,087) (6,856) (4,855) (9,485) (12,527) (10,811) (8,225) 134 28,697 20,738
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Total Share. Equity 76,739 72,834 72,218 73,449 75,450 70,819 67,777 69,494 72,080 80,439 119,983 108,571
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Total Liab. & Equity $579,928 $603,368 $613,148 $619,723 $595,700 $614,905 $632,391 $692,964 $735,119 $773,842 $560,973 $524,612
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Page 7 of 8
</TABLE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC.
CONDENSED CASH FLOW
MANAGEMENT FORMAT
FISCAL 1995 PLAN (REVISED)
($ 000's)
<CAPTION> EXHIBIT 20
Page 3 of 3
FOR MONTH ENDING
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FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Beg. cash & equivalents $15,202 $22,749 $25,352 $25,698 $29,895 $29,821 $23,976 $23,527 $31,670 $24,196 $49,963 $54,280 $15,202
Cash generated from
(used in) operations:
Net income (loss) (6,953) (3,906) (616) 1,231 2,001 (4,630) (3,042) 1,716 2,586 8,359 28,563 (7,959) 17,351
Noncash income tax
expense (benefit) (3,017) (1,694) (267) 534 868 (2,009) (1,320) 745 1,122 3,627 12,392 (3,453) 7,527
Other 408 452 443 470 543 560 603 641 628 632 658 635 6,673
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Cash from operations: (9,562) (5,148) (440) 2,235 3,412 (6,079) (3,759) 3,102 4,336 12,618 41,613 (10,777) 31,551
Changes in working capital:
Inventory (inc) dec (47,785)(10,652) (6,192) 1,197 22,196 (19,956) (8,585)(41,761)(43,103) 17,659 157,830 (6,895) 13,953
Trade pay inc (dec) (6,037)(13,520) 10,406 (8,905)(28,840) 45,219 (1,959) 26,904 58,149 1,980 (71,280) (9,479) 2,637
All other 6,440 (9,615) (214) (6,677) 8,789 (5,593) (6,645) (5,832) (9,970)(30,540) 68,211 (7,980) 374
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Net changes in work cap (47,382)(33,787) 4,000 (14,385) 2,145 19,670 (17,189)(20,689) 5,075 (10,900) 154,760 (24,354) 16,964
Capital spending (588) (1,739) (1,942) (3,294) (4,215) (3,604) (4,145) (2,923) (1,142) (596) (515) (297)(25,000)
Other
Borrow (pymts) - rev 75,000 45,000 - 20,000 - (15,000) 25,000 30,000 (15,000) 25,000 (190,000) - -
Pymts of cap leases (1,588) (336) (337) (333) (338) (342) (331) (334) (338) (327) (330) (267) (5,206)
Pymts of long-term debt (8,331) (1,386) (184) (26) (1,078) (239) (26) (1,013) (155) (27) (1,210) (1,493)(15,168)
Pymts of financing fees - - (750) - - (250) - - (250) - - (250) (1,500)
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Total Other 65,081 43,278 (1,271) 19,640 (1,416)(15,831) 24,643 28,653 (15,743) 24,646 (191,540) (2,010)(21,874)
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Inc (dec)in cash & equiv 7,550 2,603 346 4,197 (74) (5,844) (450) 8,143 (7,474) 25,767 4,318 (37,438) 1,642
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Ending cash & equiv $22,749 $25,352 $25,698 $29,895 $29,821 $23,976 $23,527 $31,670 $24,196 $49,963 $54,280 $16,843 $16,843
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Page 8 of 8
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