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): May 17, 1995
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(May 17, 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 May 17, 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 thirteen
weeks ended April 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 April 29, 1995 were $7.9 million
below the projections contained in the Form 8-K dated February 16, 1995
(the "Plan") primarily due to below Plan sales performances in womens
and childrens apparel, toys and home goods. EBITDA (as defined in
Exhibit 20) for the four weeks was $.4 million better than Plan and
$1.9 million above last year. The EBITDA improvement over Plan was due
to a favorable gross margin rate and lower-than-planned expenses,
partially offset by the below Plan sales performance and lower-than-
planned other income and property gains. The gross margin rate was
favorably impacted by lower-than-planned markdowns. Expenses were
below Plan principally because of lower store expenses.
The $.2 million net loss for the four weeks was $.4 million better
than Plan. It is not comparable to last year's net income of $3.0
million in April primarily because last year's $6.5 million non-cash
income tax benefit for the first quarter was recorded entirely in
April.
Sales for the thirteen weeks ended April 29, 1995 were $5.4
million below Plan primarily due to below Plan sales performances in
womens and childrens apparel and home goods. The year-to-date EBITDA
was $.1 million below Plan and $1.2 million above last year. The
EBITDA results reflected the below Plan sales performance and a lower-
than-planned gross margin rate, partially offset by lower-than-planned
expenses and higher-than-planned 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 29, 1995, were $60.8 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 $55.6 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 April 29, 1995, merchandise inventories were $24.8 million
above Plan primarily due to higher-than-planned inventories in apparel,
home entertainment and domestics. Trade payables were $35.6 million
above Plan primarily due to improved payment terms and higher-than-
planned merchandise purchases in April. Outstanding borrowings under
the Company's revolving line of credit were $16.9 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 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 Thirteen Weeks Ended April 29, 1995.
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
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20 Unaudited Financial Summary Results 6
for the Four and Thirteen Weeks Ended
April 29, 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: May 17, 1995 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: May 17, 1995 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: May 17, 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
APRIL RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
April, 1995 Year-to-Date 1995
Last Last
Actual Plan(a) Yr(b) Actual Plan(a) Yr (b)
<S> <C> <C> <C> <C> <C> <C>
INCOME SUMMARY:
Net Sales $140.7 $148.6 $135.3 $441.7 $447.1 $435.8
FIFO Margin $ 40.3 41.5 39.7 114.0 118.9 115.0
Margin % 28.6% 27.9% 29.3% 25.8% 26.6% 26.4%
Total Expenses (40.5) (42.6) (42.6) (131.5) (135.6) (136.4)
Other Income/Property Gains 2.0 2.5 2.8 7.3 6.6 10.0
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EBITDA 1.8 1.4 (0.1) (10.2) (10.1) (11.4)
Depreciation and Amort (net) (0.2) (0.1) 0.2 (0.5) (0.4) 0.6
Net Interest Expense (1.9) (2.2) (2.1) (5.1) (6.0) (6.0)
Other Expenses, Incl LIFO - - - (0.1) - (3.3)
Extra. Item, Net of Tax - - (1.5) - - (1.5)
Non-Cash Inc. Tax Ben. 0.1 0.3 6.5 4.8 5.0 6.5
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Net Income (Loss) (0.2) (0.6) 3.0 ($11.1) ($11.5) ($15.1)
===================================================
Balance at end of Period
Last
Actual Plan(a) Yr(b)
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BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $20.2 $25.7 $81.0
Merchandise Inventories, LIFO 520.5 495.7 506.8
Other Current Assets 40.0 41.8 44.8
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Total Current Assets 580.7 563.2 632.6
Net Fixed Assets 44.6 44.0 22.7
Long-Term Assets 5.0 5.9 1.1
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Total Assets $630.3 $613.1 $656.4
===========================
Trade Accounts Payable $150.9 $115.3 $110.3
Short-Term Debt (Revolver) 103.1 120.0 88.5
Other Current Liabilities 160.4 157.0 239.5
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Total Current Liabilities 414.4 392.3 438.3
Long-Term Debt 29.6 37.4 43.1
Other Long-Term Liabilities 43.0 41.7 52.0
Unfavorable Lease Liability 22.4 22.4 24.5
Fresh-start Excess Net Assets (Negative Goodwill) 47.1 47.1 53.2
Paid-In-Capital 81.0 80.3 73.5
Retained Earnings (Deficit) (7.2) (8.1) (28.2)
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Total Stockholders' Equity 73.8 72.2 45.3
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Total Liabilities & Equity $630.3 $613.1 $656.4
===========================
<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
APRIL RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
April, 1995 YTD 1995
Actual Plan(a) Actual Plan(a)
<S> <C> <C> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $26.6 $25.4 $30.4 $15.2
Cash Flow from Operations:
Net Income (Loss) (0.2) (0.6) (11.1) (11.5)
Non-Cash Income Tax Exp (Ben) (0.1) (0.3) (4.8) (5.0)
Other 1.3 0.4 1.4 1.4
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Cash Provided by (Used in) Operations 1.0 (0.5) (14.5) (15.1)
Changes in Working Capital:
FIFO Inventory (increase) decrease (25.3) (6.2) (90.4) (64.6)
Trade Payables increase (decrease) 4.0 10.4 20.2 (9.2)
All Other (6.5) (0.2) (12.7) (3.4)
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Net Changes in Working Capital (27.8) 4.0 (82.9) (77.2)
Capital Expenditures (2.3) (1.9) (5.0) (4.2)
Other:
Short-Term Borrow. - Revolver 23.0 - 103.1 120.0
Capital Lease Payments (0.3) (0.3) (1.0) (2.3)
Long-Term Debt Payments - (0.2) (9.9) (9.9)
Financing Fee Payments - (0.8) - (0.8)
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Total Other 22.7 (1.3) 92.2 107.0
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Increase (Decrease) in Cash & Cash Equiv (6.4) 0.3 (10.2) 10.5
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Ending Cash & Cash Equivalents $20.2 $25.7 $20.2 $25.7
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<FN>
(a)As reported on Form 8-K dated February 16, 1995
Page 7 of 7
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