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): December 5, 1996
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(December 5, 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 December 5, 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 four and forty-three weeks ended November
23, 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 four weeks ended November 23, 1996 were
$23.1 million above the projections contained in the
Form 8-K dated June 11, 1996 (the "Plan"). EBITDA was
$1.0 million better than Plan and $1.6 million better than
last year. The EBITDA results for the four weeks reflected
a higher-than-planned gross margin, partially offset by
higher-than-planned expenses. The gross margin rate for the
four weeks was lower than planned; however, gross margin was
positively impacted by the above Plan sales and was above
Plan for the period.
Sales for the forty-three weeks ended November 23, 1996
were $14.9 million above Plan. EBITDA was $9.9 million better
than Plan and $18.6 million better than last year. The EBITDA
variance from Plan for the forty-three weeks was due primarily
to a higher-than-planned gross margin.
As of November 23, 1996, merchandise inventories were
$13.3 million below Plan. Trade payables were $41.6 million
above Plan. Borrowings under the Company's revolving line of
credit were $81.6 million below Plan.
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 first,
second and third quarters ended April 27, 1996, July 27, 1996
and October 26, 1996, respectively, 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 Four
and Forty-three Weeks Ended November 23, 1996
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
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20 Unaudited Financial Summary Results 6
for the Four and Forty-three Weeks
Ended November 23, 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: December 5, 1996 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: December 5, 1996 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: December 5, 1996 By: /s/ Gregory D. Lambert
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Gregory D. Lambert
Senior Vice President,
Finance
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
NOVEMBER RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
November, 1996 Fiscal 1996 Yearto-Date
Last Last
Actual Plan(a) Yr(b) Actual Plan(a) Yr (b)
<S> <C> <C> <C> <C> <C> <C>
INCOME SUMMARY:
Net Sales $223.0 $199.9 $218.2 $1,677.7 $1,662.8 $1,658.2
FIFO Margin $ 61.4 58.7 61.0 456.1 446.1 442.7
Margin % 27.5% 29.4% 28.0% 27.2% 26.8% 26.7%
Total Expenses (48.1) (46.3) (49.3) (444.9) (445.5) (456.6)
Other Income 2.6 2.5 2.6 22.7 23.4 29.2
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EBITDA 15.9 14.9 14.3 33.9 24.0 15.3
Pre-Opening Expenses (0.3) (0.4) - (2.5) (2.5) -
Depreciation and Amort (net) (0.4) (0.4) (0.3) (4.1) (3.7) (2.3)
Net Interest Expense (1.9) (2.6) (2.5) (17.2) (20.8) (21.1)
Other Inc (Exp), Incl LIFO (0.1) - - 0.1 - 1.1
Non-Cash Inc Tax Ben (Exp) (4.2) (3.4) (3.5) (3.3) 0.9 2.1
---------------------------------------------------
Net Income (Loss) $9.0 $8.1 $8.0 $6.9 ($2.1) ($4.9)
===================================================
Balance at End of Period
Last
Actual Plan (a) Yr (b)
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BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $30.4 $34.3 $42.9
Merchandise Inventories, LIFO 542.0 555.3 561.4
Other Current Assets 77.6 75.9 74.4
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Total Current Assets 650.0 665.5 678.7
Net Fixed Assets 63.6 69.4 56.7
Long-Term Assets 4.4 5.6 3.9
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Total Assets $718.0 $740.5 $739.3
===========================
Trade Accounts Payable $224.2 $182.6 $190.0
Short-Term Debt (Revolver) 123.4 205.0 174.3
Other Current Liabilities 177.1 172.1 163.0
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Total Current Liabilities 524.7 559.7 527.3
Long-Term Debt 12.7 13.0 25.6
Other Long-Term Liabilities 32.3 32.7 41.5
Unfavorable Lease Liability 17.3 16.8 21.3
Fresh-start Excess Net Assets (Negative Goodwill) 37.4 37.4 43.5
Paid-In-Capital 84.3 81.0 81.0
Retained Earnings (Deficit) 9.3 (0.1) (0.9)
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Total Stockholders' Equity 93.6 80.9 80.1
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Total Liabilities & Equity $718.0 $740.5 $739.3
===========================
<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
NOVEMBER RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
November, 1996 Fiscal 1996 YTD
Actual Plan (a) Actual Plan (a)
<S> <C> <C> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $20.6 $15.9 $14.2 $14.2
Cash Flow from Operations:
Net Income (Loss) 9.0 8.1 6.9 (2.1)
Non-Cash Income Tax Exp (Ben) 4.2 3.4 3.3 (0.9)
Other 0.6 0.7 3.7 4.2
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Cash Provided by (Used in) Operations 13.8 12.2 13.9 1.2
Changes in Working Capital:
FIFO Inventory (increase) decrease 16.8 8.1 (139.8) (151.8)
Trade Payables increase (decrease) 5.7 3.7 111.5 69.9
All Other (6.9) (13.7) (43.9) (56.9)
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Net Changes in Working Capital 15.6 (1.9) (72.2) (138.8)
Capital Expenditures (0.7) (1.2) (16.0) (18.6)
Other:
Short-Term Borrow.(Pymnts)- Revolver (18.0) 10.0 119.2 200.7
Capital Lease Payments (0.3) (0.3) (3.1) (3.1)
Long-Term Debt Payments - - (12.3) (12.3)
Restructuring and Other (0.6) (0.4) (12.0) (7.8)
Financing Fee Payments - - (1.3) (1.2)
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Total Other (18.9) 9.3 90.5 176.3
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Increase (Decrease) in Cash & Cash Equiv 9.8 18.4 16.2 20.1
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Ending Cash & Cash Equivalents $30.4 $34.3 $30.4 $34.3
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<FN>
(a)As reported on Form 8-K dated June 11, 1996
Page 7 of 7
</TABLE>
