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): June 11, 1996
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(June 11, 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 8 (Including Exhibits)<PAGE>
Item 5: OTHER EVENTS
Beginning on June 11, 1996, the Company will distribute, to
its banks and other lenders, principal trade vendors and factors,
summaries of its revised financial plan (referred to herein as the
"Revised Plan") for the fiscal year ending January 25, 1997
("Fiscal 1996"). The Revised Plan is attached hereto as Exhibit
20 and is incorporated by reference herein. The Revised Plan
supersedes, in its entirety, the summary financial plan for Fiscal
1996 filed on Form 8-K dated February 21, 1996. The changes
contained in the Revised Plan principally represent a
recalendarization of sales and gross margin during the second half
of Fiscal 1996. The net effect of the adjustments result in no
change to the projected annual sales and net income as
presented in the Form 8-K dated February 21, 1996. The Revised
Plan does not contain any updates to the original projections for
the actual year-to-date sales, gross margin and other normal
operating results incurred.
The Company is distributing the Revised Plan to its banks
and other lenders, principal trade vendors and factors to facilitate
their credit analyses. The Revised Plan 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 10-Q for the first quarter ended April 27,
1996. The Revised 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 Revised Plan and 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 Revised Plan to reflect subsequent events or
developments.
The Revised 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 Revised Plan is based upon a variety of assumptions that<PAGE>
may not be realized and is subject to significant business,
economic and competitive uncertainties and contingencies, many
of which are beyond the control of the Company. Consequently,
the Revised 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 Revised Plan.
Cautionary Statements Relevant to Forward-Looking Information
for Purposes of "Safe Harbor" Provisions of the Private Securities
Litigation Reform Act of 1995
When used in this Form 8-K, in any future filings by the
Company with the Securities and Exchange Commission, in the
Company's press releases and in oral statements made with the
approval of an authorized executive officer, the words or phrases
"will likely result," "are expected to," "will continue," "is
anticipated," "estimate," "projected," "projections," "plans" or
similar expressions are intended to identify "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements are subject to certain risks
and uncertainties that could cause actual results to differ
materially from historical earnings and those presently anticipated
or projected. The Company wishes to caution readers not to
place undue reliance on any such forward-looking statements,
which speak only as of the date made.
Item 7: FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS
Exhibit: 20 Fiscal 1996 Revised Summary Financial Plan
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
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20 Fiscal 1996 Revised Summary 6
Financial Plan
<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: June 10, 1996 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: June 10, 1996 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: June 10, 1996 By: /s/ William C. Najdecki
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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 $153,441 $186,670 $165,988 $199,923 $371,953 $106,577 2,141,374
Gross
Margin $ 31,624 45,857 38,901 45,342 53,830 38,419 37,723 50,132 45,547 58,688 100,508 23,606 570,177
Gross
Margin % 23.77% 26.01% 28.47% 29.08% 26.21% 25.68% 24.58% 26.86% 27.44% 29.36% 27.02% 22.15% 26.63%
SG&A
Expenses (40,714) (48,977) (39,623) (41,927) (50,500) (41,073) (42,335) (49,926) (44,088) (46,346) (58,242) (40,013) (543,764)
Other Inc(a) 1,643 2,398 2,011 2,422 3,054 2,012 2,228 2,882 2,258 2,514 3,808 1,516 28,746
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EBITDA (b) (7,447) (722) 1,289 5,837 6,384 (642) (2,384) 3,088 3,717 14,856 46,074 (14,891) 55,159
Pre-Opening
Expense - - - (356) (356) (356) (356) (356) (356) (356) (356) (352) (3,200)
Depr & Amort (353) (428) (342) (350) (399) (347) (328) (392) (356) (370) (429) (400) (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) (1,080) (24,017)
Non-Cash Inc Tax
Ben (Exp) 2,698 877 289 (927) (1,001) 964 1,497 57 (160) (3,411) (12,793) 4,958 (6,952)
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Net Inc(Loss) ($6,401) ($2,081) ($686) $2,200 $2,376 ($2,286) ($3,551) ($135) $380 $8,092 $30,353 ($11,765) $16,496
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<FN>
(a) Includes purchase discounts
(b) EBITDA is earnings (loss) before net interest expense, income taxes, LIFO expense, extraordinary or non-recurring
items (including certain pre-opening expenses), depreciation and amortization, and gain or loss on sale of properties
closing after January 28, 1996.
Page 6 of 8
</TABLE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC.
CONDENSED BALANCE SHEET
MANAGEMENT FORMAT
FISCAL 1996 PLAN
($ 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 $26,136 $21,851 $15,909 $34,253 $25,141 $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 41,961 44,645 39,869 42,166 51,294 52,392 59,172 75,935 29,703 27,343
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Total Current Assets 505,182 528,274 538,257 548,630 504,543 513,209 548,934 607,944 638,488 665,460 439,890 434,845
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 6,023 5,670 5,315 5,211
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Total Assets $574,392 $595,450 $607,813 $619,536 $575,220 $584,661 $623,631 $682,458 $713,563 $740,537 $514,814 $510,023
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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 $120,160 $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. 183,967 180,594 171,832 172,550 172,434 166,608 168,942 170,865 166,115 172,126 173,323 178,554
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Total Current Liabs. 386,314 412,152 426,059 436,608 391,617 404,202 447,753 508,414 539,995 559,733 293,483 306,248
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 34,789 34,489 34,187 33,885 33,582 33,282 32,980 32,681 32,378 32,250
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 92,871 87,913
Ret. earn. (def.) (4,355) (6,436) (7,122) (4,922) (2,546) (4,832) (8,383) (8,518) (8,138) (46) 30,307 18,542
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Total Share. Equity 76,605 74,524 73,838 76,038 78,414 76,128 72,577 72,442 72,822 80,914 123,178 106,455
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Total Liab. & Equity $574,392 $595,450 $607,813 $619,536 $575,220 $584,661 $623,631 $682,458 $713,563 $740,537 $514,814 $510,023
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Page 7 of 8
</TABLE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC.
CONDENSED CASH FLOW
MANAGEMENT FORMAT
FISCAL 1996 PLAN
($ 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 $26,136 $21,851 $15,909 $34,253 $25,141 $14,185
Cash generated from
(used in) operations:
Net income (loss) (6,401) (2,081) (686) 2,200 2,376 (2,286) (3,551) (135) 380 8,092 30,353 (11,765) 16,496
Noncash income tax
expense (benefit) (2,698) (877) (289) 927 1,001 (964) (1,497) (57) 160 3,411 12,793 (4,958) 6,952
Other 631 (1,568) 619 628 675 625 606 670 634 648 707 671 5,546
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Cash from operations: (8,468) (4,526) (356) 3,755 4,052 (2,625) (4,442) 478 1,174 12,151 43,853 (16,052) 28,994
Changes in working capital:
Inventory (inc) dec (48,328) (8,220)(17,078) 2,024 33,533 (9,257)(20,701)(62,197)(29,706) 8,135 170,226 (9,761) 8,670
Trade pay inc (dec) 49,665 (35,789) 12,669 (169)(29,875) 23,411 16,217 23,738 6,331 3,727 (62,447) 2,534 10,012
All other (9,170) (6,223) (6,087) (2,244) 4,627 (6,683) (7,576) 1,445 (11,284)(13,789) 47,385 8,140 (1,459)
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Net changes in work cap (7,833)(50,232)(10,496) (389) 8,285 7,471 (12,060)(37,014)(34,659) (1,927) 155,164 913 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) (3,672)
Pymts of long-term debt (8,002) (988) (799) (360) (1,234) (18) - (896) (13) - (1,223) (149)(13,682)
Restructuring & other (2,684) (1,629) (573) (459) (459) (460) (394) (391) (392) (374) (376) (378) (8,569)
Pymts of financing fees - - (750) - - (250) - - (250) - - (250) (1,500)
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Total other 24,724 62,077 7,572 8,875 (16,999) (6,034) 24,300 33,407 29,039 9,320 (206,905) 3,917 (26,707)
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Inc (dec)in cash & equiv 5,129 5,959 (6,080) 9,713 (5,778) (2,888) 5,896 (4,285) (5,942) 18,344 (9,112)(12,446) (1,490)
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Ending cash & equiv $19,314 $25,273 $19,193 $28,906 $23,128 $20,240 $26,136 $21,851 $15,909 $34,253 $25,141 $12,695 $12,695
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Page 8 of 8
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