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): October 13, 1995
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(October 13, 1995)
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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
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ITEM 5: OTHER EVENTS
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Beginning on October 13, 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 five and thirty-five weeks ended September 30, 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 September 30, 1995 were $6.7
million below the projections contained in the Form 8-K dated
August 18, 1995 (the "Plan"). EBITDA (as defined in Exhibit 20)
for the five weeks was $4.2 million below Plan and $0.8 million
below last year. The EBITDA results reflected lower-than-planned
gross margin and lower-than-planned other income and property gains,
partially offset by lower-than-planned expenses. Gross margin was
negatively impacted by the below Plan sales and a lower-than-planned
gross margin rate. The gross margin rate was below Plan because of
higher-than-planned markdowns.
Sales for the thirty-five weeks ended September 30, 1995 were
$12.4 million below Plan. The year-to-date EBITDA was $2.3 million
below Plan and $5.1 million better than last year. The EBITDA
results for the thirty-five 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 impacted by the
same factors as those cited above for the five week period.
Year-to-date total expenses have been increased and EBITDA
reduced by $1.2 million in cash disbursements related to the closing
and sale of the Clinton, MA distribution center for which a closing
reserve had been established during fiscal 1994. The year-to-date
net income has not been affected by these disbursements as other
income/expense includes an offset of $1.2 million.
<PAGE>
As of September 30, 1995, merchandise inventories were $17.7
million above Plan primarily due to higher-than-planned inventories
in certain hardlines categories and early receipt of October orders.
Trade payables were $20.9 million above Plan
primarily due to better-than-planned trade payment terms.
Outstanding borrowings under the Company's revolving line of credit
were $13.5 million below Plan primarily due to lower-than-planned
capital expenditures and higher-than-planned trade payables.
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, the Company's Form 10-Q for the second fiscal
quarter ended July 29, 1995 and the Company's Form 8-K dated
August 18, 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
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INFORMATION AND EXHIBITS
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Exhibit: 20 Unaudited Financial Summary Results for the Five
and Thirty-five Weeks Ended September 30, 1995
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
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20 Unaudited Financial Summary Results 6
for the Five and Thirty-five Weeks
Ended September 30, 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: October 12, 1995 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: October 12, 1995 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: October 12, 1995 By: /s/ William C. Najdecki
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William C. Najdecki
Senior Vice President,
Finance
<PAGE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
SEPTEMBER RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
September, 1995 Fiscal 1995 Year-to-Date
Last Last
Act Plan(a) Yr (b) Act(c) Plan(a) Yr (b)
<S> <C> <C> <C> <C> <C> <C>
INCOME SUMMARY:
Net Sales $189.3 $196.0 $190.8 $1,287.6 $1,300.0 $1,267.7
FIFO Margin $ 51.1 55.5 52.4 336.6 350.4 342.3
Margin % 27.0% 28.3% 27.5% 26.1% 27.0% 27.0%
Total Expenses (52.4) (53.2) (53.4) (363.5) (371.2) (376.4)
Other Income/Property Gains 2.8 3.4 3.3 24.5 20.7 26.6
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EBITDA 1.5 5.7 2.3 (2.4) (0.1) (7.5)
Depreciation and Amort (net) (0.4) (0.3) (0.1) (1.7) (1.7) 0.9
Net Interest Expense (2.5) (2.9) (2.5) (16.2) (18.6) (17.3)
Other Income (Expense),
Including LIFO 0.1 - (0.1) 1.0 - (3.6)
Non-Recur Gain - Wertheim Set - - - - - 12.0
Extra. Item, Net of Tax - - - - - (1.5)
Non-Cash Inc. Tax (Prov.) Ben 0.4 (0.8) 0.1 5.8 6.2 5.0
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Net Income (Loss) ($0.9) $1.7 ($0.3) ($13.5) ($14.2) ($12.0)
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Balance at end of Period
Last
Actual Plan (a) Yr (b)
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BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $22.6 $31.7 $32.2
Merchandise Inventories, LIFO 560.3 542.6 554.3
Other Current Assets 52.5 55.8 55.8
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Total Current Assets 635.4 630.1 642.3
Net Fixed Assets 52.8 58.3 38.8
Long-Term Assets 4.2 4.6 6.9
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Total Assets $692.4 $693.0 $688.0
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Trade Accounts Payable $168.6 $147.7 $144.8
Short-Term Debt (Revolver) 166.5 180.0 158.2
Other Current Liabilities 152.2 154.0 171.3
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Total Current Liabilities 487.3 481.7 474.3
Long-Term Debt 25.2 35.7 40.7
Other Long-Term Liabilities 42.3 40.0 50.4
Unfavorable Lease Liability 21.6 21.6 23.6
Fresh-start Excess Net Assets (Negative Goodwill) 44.5 44.5 50.6
Paid-In-Capital 81.0 80.3 73.5
Retained Earnings (Deficit) (9.5) (10.8) (25.1)
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Total Stockholders' Equity 71.5 69.5 48.4
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Total Liabilities & Equity $692.4 $693.0 $688.0
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<FN>
(a) As reported on Form 8-K dated August 18, 1995.
(b) Certain reclassifications have been made to the fiscal 1994 account
balances to conform to the current year presentation.
(c) Total expenses have been increased and EBITDA reduced by $1.2 million in
cash disbursements related to the closing of a distribution center for
which a closing reserve had been established during fiscal 1994. Net
income has not been affected by these disbursements as other income/
expense includes an offset of $1.2 million.
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
SEPTEMBER RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
September, 1995 Fiscal 1995 YTD
Actual Plan (a) Actual Plan (a)
<S> <C> <C> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $23.3 $23.5 $30.4 $15.2
Cash Flow from Operations:
Net Income (Loss) (0.9) 1.7 (13.5) (14.2)
Non-Cash Income Tax Exp (Ben) (0.4) 0.8 (5.8) (6.2)
Other 0.6 0.6 4.1 4.1
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Cash Provided by (Used in) Operations (0.7) 3.1 (15.2) (16.3)
Changes in Working Capital:
FIFO Inventory (increase) decrease (49.0) (41.8) (130.1) (111.5)
Trade Payables increase (decrease) 22.9 26.9 32.3 23.3
All Other (6.1) (5.8) (25.5) (19.3)
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Net Changes in Working Capital (32.2) (20.7) (123.3) (107.5)
Capital Expenditures (4.0) (2.9) (17.0) (22.5)
Other:
ST Borrowings (Payments) - Revolver 37.6 30.0 166.5 180.0
Capital Lease Payments (0.3) (0.3) (2.8) (3.9)
Long-Term Debt Payments (1.1) (1.0) (15.2) (12.3)
Financing Fee Payments - - (0.8) (1.0)
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Total Other 36.2 28.7 147.7 162.8
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Increase (Decrease) in Cash & Cash Equiv (0.7) 8.2 (7.8) 16.5
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Ending Cash & Cash Equivalents $22.6 $31.7 $22.6 $31.7
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<FN>
(a)As reported on Form 8-K dated August 18, 1995
Page 7 of 7
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