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): July 12, 1996
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(July 12, 1996)
Ames Department Stores, Inc.
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(Exact Name of Registrant As Specified In 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)
(860) 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 July 12, 1996, 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 twenty-two weeks ended June 29, 1996. 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 June 29, 1996 were $10.4
million below the projections contained in the Form 8-K dated
June 11, 1996 (the "Plan"). EBITDA was $0.6 million less than
Plan and $2.8 million less than last year. The EBITDA results for
the five weeks reflected lower-than-planned gross margin and
lower-than-planned other income. The gross margin rate for the
five weeks was higher than planned.
Sales for the twenty-two weeks ended June 29, 1996 were
$19.2 million below Plan primarily due to lower-than-planned sales
in apparel. EBITDA was $3.1 million better than Plan and $5.7
million better than last year. The EBITDA variance from Plan for
the twenty-two weeks was due primarily to lower-than-planned
expenses, partially offset by lower-than-planned other income.
As of June 29, 1996, merchandise inventories were $9.8
million above Plan. Trade payables were $21.4 million above
Plan due primarily to better-than-planned payment terms and
the timing of merchandise receipts. Borrowings under the Company's
revolving line of credit were $11.5 million below Plan primarily
as a consequence of the net effect of the plan variances in
merchandise inventories and 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 27,
1996, the Company's Form 10-Q for the fiscal quarter ended April
27, 1996 and the Company's Form 8-K dated June 11, 1996. 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.
<PAGE>
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
INFORMATION AND EXHIBITS
Exhibit: 20 Unaudited Financial Summary Results for the Five
and Twenty-two Weeks Ended June 29, 1996
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
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20 Unaudited Financial Summary Results 6
for the Five and Twenty-two Weeks
Ended June 29, 1996.
<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: July 11, 1996 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: July 11, 1996 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
JUNE RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
June, 1996 Fiscal 1996 Yearto-Date
Last Last
ActualPlan (a) Yr (b) Actual Plan (a) Yr (b)
<S> <C> <C> <C> <C> <C> <C>
INCOME SUMMARY:
Net Sales $195.0 $205.4 $201.3 $788.0 $807.2 $790.7
FIFO Margin $ 53.4 53.8 53.7 215.4 215.5 211.3
Margin % 27.4% 26.2% 26.7% 27.3% 26.7% 26.7%
Total Expenses (50.4) (50.5) (52.3) (217.6) (221.7) (226.3)
Other Income 2.8 3.1 7.2 10.6 11.5 17.7
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EBITDA 5.8 6.4 8.6 8.4 5.3 2.7
Pre-Opening Expenses (0.4) (0.4) - (0.8) (0.7) -
Depreciation and Amort (net) (0.4) (0.4) (0.3) (2.0) (1.8) (0.9)
Net Interest Expense (1.8) (2.2) (2.3) (7.8) (9.3) (9.6)
Other Inc (Exp), Incl LIFO 0.1 - 0.4 0.3 - 0.8
Non-Cash Inc Tax Ben (Exp) (1.0) (1.0) (1.9) 0.6 1.9 2.1
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Net Income (Loss) $2.3 $2.4 $4.5 ($1.3) ($4.6) ($4.9)
===================================================
Balance at End of Period
Last
Actual Plan (a) Yr (b)
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BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $20.5 $23.1 $23.2
Merchandise Inventories, LIFO 451.4 441.6 495.8
Other Current Assets 42.1 39.9 34.3
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Total Current Assets 514.0 504.6 553.3
Net Fixed Assets 60.8 66.2 47.2
Long-Term Assets 6.1 4.4 5.1
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Total Assets $580.9 $575.2 $605.6
===========================
Trade Accounts Payable $130.6 $109.2 $118.2
Short-Term Debt (Revolver) 98.5 110.0 112.0
Other Current Liabilities 164.9 172.4 159.4
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Total Current Liabilities 394.0 391.6 389.6
Long-Term Debt 13.2 13.4 25.6
Other Long-Term Liabilities 33.8 34.2 42.2
Unfavorable Lease Liability 18.0 17.7 22.1
Fresh-start Excess Net Assets (Negative Goodwill) 39.9 39.9 46.0
Paid-In-Capital 81.0 81.0 81.0
Retained Earnings (Deficit) 1.0 (2.6) (0.9)
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Total Stockholders' Equity 82.0 78.4 80.1
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Total Liabilities & Equity $580.9 $575.2 $605.6
===========================
<FN>
(a) As reported on Form 8-K dated June 11, 1996.
(b) Certain restatements have been made in the fiscal 1995 account
balances:
(i) Net sales have been restated to reflect the effect of recording senior
citizen discounts as markdowns which conforms with the fiscal 1996
treatment. This restatement has no impact on the fiscal 1995 reported
gross margin, EBITDA and net income.
(ii)EBITDA has been restated to reflect the cash disbursements related to
the closing of a distribution center for which a reserve had been
established in fiscal 1994. This restatement has no impact on fiscal
1995 reported net income.
NOTE: EBITDA, as amended in January, 1996, is earnings (loss) before net
interest expense, income taxes, LIFO expense, extraordinary or non-
recurring items (including certain pre-opening expenses), depreciation,
amortization and other non-cash charges and gain or loss on the sale
of properties after January 28, 1996. Prior to January, 1996, EBITDA was
similarly defined, except that it included all pre-opening expenses and
gains or losses on the sale of properties.
Page 6 of 7
</TABLE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
JUNE RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
June, 1996 Fiscal 1996 YTD
Actual Plan (a) Actual Plan (a)
<S> <C> <C> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $25.0 $28.9 $14.2 $14.2
Cash Flow from Operations:
Net Income (Loss) 2.3 2.4 (1.3) (4.6)
Non-Cash Income Tax Exp (Ben) 1.0 1.0 (0.6) (1.9)
Other 0.6 0.7 0.1 1.0
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Cash Provided by (Used in) Operations 3.9 4.1 (1.8) (5.5)
Changes in Working Capital:
FIFO Inventory (increase) decrease 22.3 33.5 (49.3) (38.1)
Trade Payables increase (decrease) (21.7) (29.9) 17.9 (3.5)
All Other 4.2 4.6 (21.9) (19.1)
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Net Changes in Working Capital 4.8 8.2 (53.3) (60.7)
Capital Expenditures (1.9) (1.1) (9.3) (11.1)
Other:
Short-Term Borrow.(Pymnts)- Revolver (8.3) (15.0) 94.2 105.7
Capital Lease Payments (0.3) (0.3) (1.6) (1.5)
Long-Term Debt Payments (1.2) (1.2) (11.4) (11.4)
Restructuring and Other (0.7) (0.5) (9.5) (5.8)
Financing Fee Payments (0.8) - (1.0) (0.8)
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Total Other (11.3) (17.0) 70.7 86.2
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Increase (Decrease) in Cash & Cash Equiv (4.5) (5.8) 6.3 8.9
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Ending Cash & Cash Equivalents $20.5 $23.1 $20.5 $23.1
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<FN>
(a)As reported on Form 8-K dated June 11, 1996
Page 7 of 7
</TABLE>
