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): February 21, 1996
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(February 21, 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 3
Page 1 of 7 (Including Exhibits)<PAGE>
Item 5: OTHER EVENTS
Beginning on February 21, 1996, Ames Department Stores, Inc.
(the "Company") will distribute to its banks and other lenders,
principal trade vendors and factors, summaries of its financial
plan (referred to herein as the "Plan") for the fiscal year ending
January 25, 1997 ("Fiscal 1996"). The Plan is attached hereto
as Exhibit 20 and is incorporated by reference herein.
The Company is distributing the Plan to its banks and other
lenders, principal trade vendors and factors to facilitate their
credit analyses. The Plan should not be relied upon for any
other purpose and should be read in conjunction with the
Company's Form 10-K to be filed in April, 1996 for the fiscal
year ended January 27, 1996 ("Fiscal 1995"). The 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 Plan
and currently expects to continue reporting its monthly results
during Fiscal 1996, 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 Plan to reflect
subsequent events or developments.
The 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 Plan is based
upon a variety of assumptions that may not be realized and is
subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond the
Company's control. Consequently, the 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 Plan.
<PAGE>
Item 7: FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS
Exhibit: 20 Fiscal 1996 Summary Financial Plan
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
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20 Fiscal 1996 Summary Financial Plan 5
<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: February 20, 1996 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: February 20, 1996 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: February 20, 1996 By: /s/ William C. Najdecki
------------------------------
William C. Najdecki
Senior Vice President,
Finance
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC.
CONDENSED INCOME STATEMENT
MANAGEMENT FORMAT
FISCAL 1996 PLAN
($ 000's)
<CAPTION> EXHIBIT 20
Page 1 of 3
FISCAL 1996 PLAN
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 $133,025 $176,277 $136,641 $155,936 $205,361 $149,582 $153,516 $185,715 $163,842 $203,857 $370,045 $107,577 $2,141,374
Gross
Margin $ 31,624 45,857 38,901 45,342 53,830 38,419 36,891 50,661 45,375 61,943 100,010 21,322 570,177
Gross
Margin % 23.77% 26.01% 28.47% 29.08% 26.21% 25.68% 24.03% 27.28% 27.69% 30.39% 27.03% 19.82% 26.63%
SG&A
Expenses (40,714) (48,977) (39,623) (41,927) (50,500) (41,073) (42,335) (49,925) (44,087) (46,345) (58,242) (40,013) (543,765)
Other Inc(a) 1,643 2,399 2,010 2,422 3,054 2,013 2,228 2,882 2,258 2,514 3,808 1,516 28,747
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EBITDA (b) (7,447) (722) 1,289 5,837 6,384 (642) (3,217) 3,617 3,546 18,112 45,576 (17,176) 55,159
Pre-Opening
Expense - - - (356) (356) (356) (356) (356) (356) (356) (356) (356) (3,200)
Depr & Amort (353) (429) (341) (351) (398) (348) (329) (393) (357) (371) (430) (393) (4,494)
Net Interest (1,299) (1,808) (1,922) (2,004) (2,252) (1,905) (1,980) (2,532) (2,465) (2,627) (2,143) (1,081) (24,017)
Non-Cash Inc Tax
Ben (Exp) 2,698 877 289 (927) (1,001) 964 1,744 (100) (109) (4,376) (12,646) 5,635 (6,952)
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Net Inc(Loss) ($6,401) ($2,081) ($686) $2,200 $2,376 ($2,286) ($4,137) $237 $259 $10,382 $30,003 ($13,370) $16,496
=======================================================================================================================
CERTAIN FISCAL 1995 ACTUALS (UNAUDITED) THRU DECEMBER 1995 AND JANUARY'S PLAN FROM THE AUGUST 18, 1995 FORM 8-K
FOR MONTH ENDED
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FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN TOTAL
Net Sales(e) $124,372 $174,291 $139,649 $151,070 $201,317 $147,801 $151,141 $187,771 $162,638 $218,168 $346,314 $116,953 $2,121,485
Gross
Margin $ 29,409 44,318 40,264 43,642 53,723 37,558 36,562 51,055 45,175 60,977 94,547 26,510 563,740
Gross
Margin % 23.65% 25.43% 28.83% 28.89% 26.69% 25.41% 24.19% 27.19% 27.78% 27.95% 27.30% 22.67% 26.57%
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EBITDA(b),(d) (9,031) (3,297) 1,731 4,701 8,625 (2,397) (4,255) 1,488 3,529 14,254 45,403 (9,932) 50,819
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<FN>
(a) Includes purchase discounts
(b) EBITDA is earnings (loss) before net interest expense, income taxes, LIFO expense, extraordinary or non-recurring
items (including certain pre-opening expenses), depreciation and amortization, and gain or loss on sale of properties
closing after January 28, 1996.
(c) January and total Fiscal 1995 results have not yet been finalized and audited. The January amounts were taken from
the Company's plan for Fiscal 1995 filed in a Form 8-K on Auigust 18, 1995. Actual net sales for January were
$99,699 (restated, as explained in (e) below).
(d) EBITDA for the fiscal months of February, 1995 through July, 1995 has been restated to reflect the cash disbursements
related to the closing of a distribution center for which a closing reserve had been established during the prior
fiscal year. The restatement does not impact the monthly and year-to-date EBITDA totals as originally reported for
August, 1995 through December, 1995.
(e) Net Sales for the fiscal months of February, 1995 through December, 1995 have been restated to reflect the effect of recording
senior citizen discounts as markdowns which conforms with the Fiscal 1996 planned treatment. This restatement has no
impact on the reported gross margin amounts and EBITDAs for Fiscal 1995.
Page 5 of 7
</TABLE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC.
CONDENSED BALANCE SHEET
MANAGEMENT FORMAT
FISCAL 1996 PLAN
($ 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 $19,314 $25,273 $19,193 $28,906 $23,128 $20,240 $25,303 $21,547 $15,433 $37,032 $27,422 $12,695
Mdse Inventories 451,805 460,025 477,103 475,079 441,546 450,803 471,504 533,701 563,407 555,272 385,046 394,807
Other current assets 34,063 42,976 41,960 44,644 39,868 42,166 51,541 52,482 59,313 75,112 29,702 27,343
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Total Current Assets 505,182 528,274 538,257 548,630 504,543 513,209 548,348 607,730 638,153 667,415 442,171 434,845
Net Fixed Assets 64,101 62,421 64,406 66,110 66,236 67,115 68,214 68,386 69,052 69,407 69,609 69,967
Long Term Assets 5,109 4,755 5,150 4,796 4,441 4,337 6,483 6,128 6,024 5,669 5,315 5,211
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Total Assets $574,392 $595,450 $607,813 $619,536 $575,220 $584,661 $623,045 $682,244 $713,229 $742,492 $517,095 $510,023
============================================================================================================
Liabilities
Current Liabilities:
Trade acc'ts pay. $162,347 $126,558 $139,227 $139,058 $109,183 $132,594 $148,811 $172,549 $178,880 $182,607 $120,161 $122,694
Note (rev.) payable 40,000 105,000 115,000 125,000 110,000 105,000 130,000 165,000 195,000 205,000 - 5,000
Other current liabs. 183,967 180,594 171,832 172,551 172,434 166,608 168,942 170,866 166,115 172,127 173,323 178,554
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Total Current Liabs. 386,314 412,152 426,059 436,608 391,617 404,202 447,753 508,414 539,995 559,734 293,483 306,248
Long-term debt 15,587 13,964 14,065 13,995 13,371 13,471 13,400 12,776 12,877 12,977 12,318 12,270
Other LT liabilities 35,393 35,091 34,790 34,488 34,187 33,885 33,584 33,282 32,981 32,679 32,378 32,251
Unfav. lease liability 18,489 18,306 18,123 17,940 17,757 17,574 17,391 17,208 17,026 16,842 16,659 16,476
Fresh-start excess 42,004 41,413 40,939 40,466 39,874 39,401 38,928 38,336 37,863 37,390 36,798 36,324
Shareholders Equity
Paid-in capital 80,960 80,960 80,960 80,960 80,960 80,960 80,960 80,960 80,960 80,960 93,548 87,913
Ret. earn. (def.) (4,355) (6,436) (7,122) (4,922) (2,547) (4,833) (8,970) (8,733) (8,473) 1,908 31,911 18,541
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Total Share. Equity 76,605 74,524 73,838 76,038 78,414 76,127 71,990 72,227 72,487 82,869 125,458 106,454
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Total Liab. & Equity $574,392 $595,450 $607,813 $619,536 $575,220 $584,661 $623,045 $682,244 $713,229 $742,492 $517,095 $510,023
============================================================================================================
Page 6 of 7
</TABLE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC.
CONDENSED CASH FLOW
MANAGEMENT FORMAT
FISCAL 1996 PLAN
($ 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 $14,185 $19,314 $25,273 $19,193 $28,906 $23,128 $20,240 $25,303 $21,547 $15,433 $37,032 $27,422 $14,185
Cash generated from
(used in) operations:
Net income (loss) (6,401) (2,081) (686) 2,200 2,376 (2,286) (4,137) 237 259 10,382 30,003 (13,370) 16,495
Noncash income tax
expense (benefit) (2,698) (877) (289) 927 1,001 (964) (1,744) 100 109 4,376 12,646 (5,635) 6,952
Other 631 (1,568) 619 628 675 625 606 670 634 648 707 670 5,546
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Cash from operations: (8,468) (4,526) (356) 3,755 4,053 (2,625) (5,275) 1,007 1,003 15,406 43,355 (18,335) 28,993
Changes in working capital:
Inventory (inc) dec (48,328) (8,220)(17,078) 2,024 33,533 (9,257)(20,701)(62,198)(29,706) 8,136 170,225 (9,761) 8,670
Trade pay inc (dec) 49,665 (35,789) 12,669 (169)(29,875) 23,412 16,216 23,738 6,332 3,727 (62,447) 2,533 10,012
All other (9,170) (6,223) (6,086) (2,244) 4,627 (6,684) (7,576) 1,447 (11,285)(13,789) 47,384 8,139 (1,459)
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Net changes in work cap (7,833)(50,232)(10,496) (389) 8,285 7,471 (12,060)(37,012)(34,659) (1,926) 155,163 912 17,223
Capital spending (3,294) (1,360) (2,800) (2,528) (1,116) (1,700) (1,902) (1,156) (1,496) (1,200) (1,224) (1,224)(21,000)
Other
Borrow (pymts) - rev 35,716 65,000 10,000 10,000 (15,000) (5,000) 25,000 35,000 30,000 10,000 (205,000) 5,000 716
Pymts of cap leases (306) (306) (306) (306) (306) (306) (306) (306) (306) (306) (306) (306) (3,666)
Pymts of long-term debt (8,002) (988) (799) (360) (1,234) (18) - (896) (13) - (1,223) (149)(13,682)
Restruc pymnts & other (2,682) (1,630) (573) (460) (460) (460) (394) (394) (394) (375) (375) (375) (8,573)
Pymts of financing fees - - (750) - - (250) - - (250) - - (250) (1,500)
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Total Other 24,726 62,076 7,573 8,874 (17,000) (6,034) 24,301 33,405 29,038 9,319 (206,904) 3,920 (26,705)
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Inc (dec)in cash & equiv 5,131 5,958 (6,078) 9,712 (5,778) (2,888) 5,064 (3,756) (6,115) 21,599 (9,610)(14,727) (1,488)
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Ending cash & equiv $19,314 $25,273 $19,193 $28,906 $23,128 $20,240 $25,303 $21,547 $15,433 $37,032 $27,422 $12,695 $12,695
=========================================================================================================
Page 8 of 8
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