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 16, 1996
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(May 16, 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 May 16, 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 thirteen weeks ended April 27, 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 April 27, 1996 were $5.6
million above the projections contained in the Form 8-K dated
February 21, 1996 (the "Plan") primarily due to sales from nine
(9) new stores opened in the last ten days of fiscal April, but
which were not included in the plan for the month. EBITDA
was $2.3 million better than Plan and $1.9 million better than
last year. The EBITDA results for the four weeks reflected
higher-than-planned gross margin and lower-than-planned
expenses. The gross margin rate for the four weeks was
higher than planned.
Sales for the thirteen weeks ended April 27, 1996 were
$7.2 million below Plan primarily due to lower-than-planned
sales in apparel. EBITDA was $2.4 million better than Plan
and $6.1 million better than last year. The EBITDA variance
from Plan for the thirteen weeks was due primarily to lower-
than-planned expenses, partially offset by lower-than-planned
other income.
As of April 27, 1996, merchandise inventories were $0.9
million above Plan. Trade payables were $32.4 million above
Plan due primarily to higher-than-planned merchandise receipts
in March and April. Borrowings under the Company's revolving
line of credit were $31.5 million below Plan as a consequence
of the higher-than-planned balance in trade payables.
<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 27, 1996 and the Company's Form 8-K dated
February 21, 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.
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 Thirteen Weeks Ended April 27, 1996
<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 27, 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: May 15, 1996 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: May 15, 1996 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: May 15, 1996 By: /s/ William C. Najdecki
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William C. Najdecki
Senior Vice President,
Finance
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
APRIL RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
April, 1996 Fiscal 1996 Year-to-Date
Last Last
ActualPlan (a) Yr (b) Actual Plan (a) Yr (b)
<S> <C> <C> <C> <C> <C> <C>
INCOME SUMMARY:
Net Sales $142.2 $136.6 $139.6 $438.7 $445.9 $438.3
FIFO Margin $ 40.9 38.9 40.3 116.3 116.4 114.0
Margin % 28.8% 28.5% 28.9% 26.5% 26.1% 26.0%
Total Expenses (39.2) (39.6) (40.6) (126.2) (129.3) (131.9)
Other Income 1.9 2.0 2.0 5.4 6.0 7.3
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EBITDA 3.6 1.3 1.7 (4.5) (6.9) (10.6)
Depreciation and Amort (net) (0.4) (0.4) (0.2) (1.2) (1.1) (0.5)
Net Interest Expense (1.6) (1.9) (1.9) (4.2) (5.0) (5.1)
Other Inc (Exp), Incl LIFO - - 0.1 - - 0.3
Non-Cash Inc Tax Ben (Exp) (0.5) 0.3 0.1 2.9 3.8 4.8
---------------------------------------------------
Net Income (Loss) $1.1 ($0.7) ($0.2) ($7.0) ($9.2) ($11.1)
===================================================
Balance at end of Period
Last
Actual Plan (a) Yr (b)
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BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $18.8 $19.2 $20.2
Merchandise Inventories, LIFO 478.0 477.1 520.5
Other Current Assets 44.7 42.0 40.0
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Total Current Assets 541.5 538.3 580.7
Net Fixed Assets 62.4 64.4 44.6
Long-Term Assets 5.8 5.1 5.0
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Total Assets $609.7 $607.8 $630.3
===========================
Trade Accounts Payable $171.6 $139.2 $150.9
Short-Term Debt (Revolver) 83.5 115.0 103.1
Other Current Liabilities 167.2 171.8 160.4
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Total Current Liabilities 422.3 426.0 414.4
Long-Term Debt 14.0 14.1 29.6
Other Long-Term Liabilities 37.9 34.8 43.0
Unfavorable Lease Liability 18.3 18.1 22.4
Fresh-start Excess Net Assets (Negative Goodwill) 40.9 40.9 47.1
Paid-In-Capital 81.0 81.0 81.0
Retained Earnings (Deficit) (4.7) (7.1) (7.2)
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Total Stockholders' Equity 76.3 73.9 73.8
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Total Liabilities & Equity $609.7 $607.8 $630.3
===========================
<FN>
(a) As reported on Form 8-K dated February 21, 1996.
(b) Certain reclassifications 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
all gains or losses on the sale of properties.
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, 1996 Fiscal 1996 YTD
Actual Plan (a) Actual Plan (a)
<S> <C> <C> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $20.0 $25.3 $14.2 $14.2
Cash Generated from (Used in) Operations:
Net Income (Loss) 1.1 (0.7) (7.0) (9.2)
Non-Cash Income Tax Exp (Ben) 0.5 (0.3) (2.9) (3.8)
Other 0.7 0.6 (1.2) (0.3)
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Cash Provided by (Used in) Operations 2.3 (0.4) (11.1) (13.3)
Changes in Working Capital:
FIFO Inventory (increase) decrease (34.0) (17.1) (75.8) (73.6)
Trade Payables increase (decrease) 16.0 12.7 58.9 26.5
All Other (5.2) (6.1) (22.1) (21.5)
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Net Changes in Working Capital (23.2) (10.5) (39.0) (68.6)
Capital Expenditures (0.5) (2.8) (5.6) (7.5)
Other:
Short-Term Borrow.(Pymnts)- Revolver 24.9 10.0 79.2 110.7
Capital Lease Payments (0.4) (0.3) (1.0) (0.9)
Long-Term Debt Payments (0.2) (0.8) (9.8) (9.8)
Restructuring and Other (4.1) (0.6) (7.8) (4.9)
Financing Fee Payments - (0.7) (0.3) (0.7)
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Total Other 20.2 7.6 60.3 94.4
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Increase (Decrease) in Cash & Cash Equiv (1.2) (6.1) 4.6 5.0
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Ending Cash & Cash Equivalents $18.8 $19.2 $18.8 $19.2
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<FN>
(a)As reported on Form 8-K dated February 21, 1996
Page 7 of 7
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