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): April 14, 1995
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(April 14, 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 April 14, 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 nine weeks ended April 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 April 1, 1995 were $2.3
million above the projections contained in the Form 8-K dated
February 16, 1995 (the "Plan") primarily due to above plan sales
performances in toys, home entertainment, seasonal, womens
apparel and jewelry. EBITDA (as defined in Exhibit 20) for the
five weeks was equal to Plan and $.4 million below last year. An
unfavorable gross margin rate was offset by lower-than-planned
expenses and higher-than-planned other income and property gains.
The gross margin rate was unfavorably impacted by higher-than-
planned markdowns. Expenses were below Plan principally because
of lower home office expenses.
The net loss for the five weeks was $4.1 million better than
the net loss for the comparable period in the prior year
primarily because of (i) a non-cash charge of $2.0 million in the
prior year resulting from the accrual for the value of
unexercised stock appreciation rights ("SARs") and (ii) a non-
cash income tax benefit of $1.6 million recorded in the current
year. The prior year's non-cash charge for SARs was reversed
later in fiscal 1994. In the prior year, interim non-cash income
tax accruals (benefits or expenses) were not recorded until
subsequent periods.
Sales for the nine weeks ended April 1, 1995 were $2.5
million better than the Plan primarily due to higher-than-planned
sales in womens and mens apparel. The year-to-date EBITDA was
lower than the prior year by $.7 million. It was lower than Plan
by $.6 million due primarily to a lower-than-planned gross margin
rate, partially offset by lower expenses and higher other income
and property gains. The gross margin rate was below Plan because
of higher-than-planned markdowns. Store, field and home office
expenses were below Plan.
Cash and cash equivalents as of April 1, 1995, were $66.2
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 $54.8 million in restricted
cash required to cash 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 April 1, 1995, merchandise inventories were $5.7
million above Plan. Trade payables were $42.1 million above Plan
due primarily to improved payment terms. Outstanding borrowings
under the Company's revolving line of credit were $39.9 million
below Plan due primarily to 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 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
EXHIBITS
Exhibit: 20 Unaudited Financial Summary Results for the
Four and Nine Weeks Ended April 1, 1995.
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
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20 Unaudited Financial Summary Results 6
for the Four and Nine Weeks Ended
April 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: April 13, 1995 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: April 13, 1995 By: /s/ William C. Najdecki
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William C. Najdecki
Senior Vice President,
Chief Accounting Officer
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
MARCH RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
March, 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 $175.7 $173.4 $178.9 $301.0 $298.5 $300.4
FIFO Margin $ 44.3 45.8 44.9 73.7 77.4 75.2
Margin % 25.2% 26.4% 25.1% 24.5% 25.9% 25.0%
Total Expenses (51.0) (51.4) (51.9) (91.1) (93.0) (93.8)
Other Income/Property Gains 3.5 2.4 4.2 5.3 4.1 7.2
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EBITDA (3.2) (3.2) (2.8) (12.1) (11.5) (11.4)
Depreciation and Amort (net) (0.2) (0.1) 0.2 (0.3) (0.3) 0.4
Net Interest Expense (1.8) (2.3) (2.1) (3.2) (3.8) (3.9)
Other Expenses, Incl LIFO - - (3.0) (0.1) - (3.3)
Non-Cash Inc. Tax Ben. 1.6 1.7 - 4.7 4.7 -
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Net Income (Loss) (3.6) (3.9) (7.7) ($11.0) ($10.9) ($18.2)
===================================================
Balance at end of Period
Last
Actual Plan (a) Yr (b)
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BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $26.6 $25.4 $92.8
Merchandise Inventories, LIFO 495.2 489.5 494.0
Other Current Assets 41.4 40.3 35.7
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Total Current Assets 563.2 555.2 622.5
Net Fixed Assets 42.6 42.7 22.1
Long-Term Assets 5.3 5.5 1.7
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Total Assets $611.1 $603.4 $646.3
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Trade Accounts Payable $146.9 $104.8 $119.7
Short-Term Debt (Revolver) 80.1 120.0 73.6
Other Current Liabilities 166.9 155.4 236.4
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Total Current Liabilities 393.9 380.2 429.7
Long-Term Debt 30.1 38.1 43.6
Other Long-Term Liabilities 43.0 42.1 52.3
Unfavorable Lease Liability 22.6 22.6 24.7
Fresh-start Excess Net Assets (Negative Goodwill) 47.5 47.6 53.7
Paid-In-Capital 81.0 80.3 73.5
Retained Earnings (Deficit) (7.0) (7.5) (31.2)
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Total Stockholders' Equity 74.0 72.8 42.3
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Total Liabilities & Equity $611.1 $603.4 $646.3
===========================
<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
MARCH RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
March, 1995 YTD 1995
Actual Plan (a) Actual Plan (a)
<S> <C> <C> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $22.0 $22.7 $30.4 $15.2
Cash Generated from (Used in) Operations:
Net Income (Loss) (3.6) (3.9) (11.0) (10.9)
Non-Cash Income Tax Exp (Ben) (1.6) (1.7) (4.7) (4.7)
Other (0.1) 0.5 0.2 0.9
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Cash from Operations (5.3) (5.1) (15.5) (14.7)
Changes in Working Capital:
FIFO Inventory (increase) decrease (33.8) (10.7) (65.1) (58.4)
Trade Payables increase (decrease) 0.8 (13.5) 16.2 (19.6)
All Other (3.0) (9.6) (6.2) (3.2)
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Net Changes in Working Capital (36.0) (33.8) (55.1) (81.2)
Capital Expenditures (2.0) (1.7) (2.7) (2.3)
Other:
Short-Term Borrow.(Pymnts)- Revolver 48.6 45.0 80.1 120.0
Capital Lease Payments (0.3) (0.3) (0.7) (1.9)
Long-Term Debt Payments (0.4) (1.4) (9.9) (9.7)
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Total Other 47.9 43.3 69.5 108.4
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Increase (Decrease) in Cash & Cash Equiv 4.6 2.7 (3.8) 10.2
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Ending Cash & Cash Equivalents $26.6 $25.4 $26.6 $25.4
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<FN>
(a)As reported on Form 8-K dated February 16, 1995
Page 7 of 7
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