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): November 12, 1996
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(November 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 November 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 four and thirty-nine weeks ended October 26, 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 October 26, 1996 were $8.1
million above the projections contained in the Form 8-K dated
June 11, 1996 (the "Plan"). EBITDA was $1.5 million better than
Plan and $1.7 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.
Sales for the thirty-nine weeks ended October 26, 1996 were
$8.2 million below Plan. EBITDA was $8.9 million better than
Plan and $16.9 million better than last year. The EBITDA
variance from Plan for the thirty-nine weeks was due primarily
to lower-than-planned expenses and a higher-than-planned gross
margin.
As of October 26, 1996, merchandise inventories were $4.7
million below Plan. Trade payables were $39.5 million above
Plan. Borrowings under the Company's revolving line of credit
were $53.5 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 and second quarters ended April 27, 1996 and July 27, 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 Thirty-nine Weeks Ended October 26, 1996
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
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20 Unaudited Financial Summary Results 6
for the Four and Thirty-nine Weeks
Ended October 26, 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: November 11, 1996 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: November 11, 1996 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: November 11, 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
OCTOBER RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
October, 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 $174.1 $166.0 $162.6 $1,454.7 $1,462.9 $1,440.1
FIFO Margin $ 48.7 45.5 45.2 394.8 387.4 381.7
Margin % 28.0% 27.4% 27.8% 27.1% 26.5% 26.5%
Total Expenses (45.9) (44.1) (43.8) (396.8) (399.2) (407.3)
Other Income 2.4 2.3 2.1 20.0 20.9 26.7
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EBITDA 5.2 3.7 3.5 18.0 9.1 1.1
Pre-Opening Expenses (0.3) (0.3) - (2.2) (2.1) -
Depreciation and Amort (net) (0.4) (0.3) (0.3) (3.7) (3.3) (2.0)
Net Interest Expense (2.0) (2.5) (2.4) (15.3) (18.2) (18.6)
Other Inc (Exp), Incl LIFO - - 0.1 0.2 - 1.1
Non-Cash Inc Tax Ben (Exp) (0.7) (0.2) (0.3) 0.9 4.3 5.6
---------------------------------------------------
Net Income (Loss) $1.8 $0.4 $0.6 ($2.1) ($10.2) ($12.8)
===================================================
Balance at End of Period
Last
Actual Plan (a) Yr (b)
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BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $20.6 $15.9 $20.0
Merchandise Inventories, LIFO 558.7 563.4 600.2
Other Current Assets 60.7 59.2 58.3
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Total Current Assets 640.0 638.5 678.5
Net Fixed Assets 63.6 69.1 55.1
Long-Term Assets 4.8 6.0 4.2
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Total Assets $708.4 $713.6 $737.8
===========================
Trade Accounts Payable $218.4 $178.9 $203.2
Short-Term Debt (Revolver) 141.5 195.0 175.7
Other Current Liabilities 166.6 166.1 154.0
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Total Current Liabilities 526.5 540.0 532.9
Long-Term Debt 12.6 12.9 25.4
Other Long-Term Liabilities 32.7 33.0 41.9
Unfavorable Lease Liability 17.4 17.0 21.5
Fresh-start Excess Net Assets (Negative Goodwill) 37.9 37.8 44.0
Paid-In-Capital 81.0 81.0 81.0
Retained Earnings (Deficit) 0.3 (8.1) (8.9)
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Total Stockholders' Equity 81.3 72.9 72.1
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Total Liabilities & Equity $708.4 $713.6 $737.8
===========================
<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
OCTOBER RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
October, 1996 Fiscal 1996 YTD
Actual Plan (a) Actual Plan (a)
<S> <C> <C> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $20.5 $21.9 $14.2 $14.2
Cash Flow from Operations:
Net Income (Loss) 1.8 0.4 (2.1) (10.2)
Non-Cash Income Tax Exp (Ben) 0.7 0.2 (0.9) (4.3)
Other 0.8 0.6 3.1 3.5
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Cash Provided by (Used in) Operations 3.3 1.2 0.1 (11.0)
Changes in Working Capital:
FIFO Inventory (increase) decrease (35.8) (29.7) (156.6) (159.9)
Trade Payables increase (decrease) 46.8 6.3 105.8 66.2
All Other (8.9) (11.3) (37.0) (43.2)
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Net Changes in Working Capital 2.1 (34.7) (87.8) (136.9)
Capital Expenditures (1.5) (1.5) (15.3) (17.4)
Other:
Short-Term Borrow.(Pymnts)- Revolver (2.6) 30.0 137.2 190.7
Capital Lease Payments (0.3) (0.3) (2.8) (2.8)
Long-Term Debt Payments (0.2) - (12.3) (12.3)
Restructuring and Other (0.4) (0.4) (11.4) (7.4)
Financing Fee Payments (0.3) (0.3) (1.3) (1.2)
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Total Other (3.8) 29.0 109.4 167.0
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Increase (Decrease) in Cash & Cash Equiv 0.1 (6.0) 6.4 1.7
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Ending Cash & Cash Equivalents $20.6 $15.9 $20.6 $15.9
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<FN>
(a)As reported on Form 8-K dated June 11, 1996
Page 7 of 7
</TABLE>
