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): April 12, 1996
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(April 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 April 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
five and nine weeks ended March 30, 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 five weeks ended March 30, 1996 were $8.7
million below the projections contained in the Form 8-K dated
February 21, 1996 (the "Plan") primarily due to lower-than-planned
sales in apparel and domestics. EBITDA was $0.3 million less
than Plan and $2.3 million better than last year. The EBITDA
results for the five weeks reflected lower-than-planned gross
margin and other income partially offset by lower-than-planned
expenses. The gross margin rate for the five weeks was higher
than planned; however, gross margin was negatively impacted by
the below Plan sales and was below Plan for the period.
Sales for the nine weeks ended March 30, 1996 were $12.8
million below Plan primarily due to lower-than-planned sales
in apparel and domestics. EBITDA was $0.2 million better than
Plan and $4.3 million better than last year. The EBITDA variance
from Plan for the nine weeks was due to the same factors as those
cited above for the five week period.
As of March 30, 1996, merchandise inventories were $16.0
million below Plan due primarily to lower-than-planned year-to-
date merchandise purchases. Trade payables were $29.0 million
above Plan due primarily to higher-than-planned merchandise
purchases in March. Borrowings under the Company's revolving
line of credit were $46.4 million below Plan due to the plan
variances in merchandise inventories and trade payables
discussed above.
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.<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.
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" 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 Unaudited Financial Summary Results for the Five
and Nine Weeks Ended March 30, 1996
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
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20 Unaudited Financial Summary Results 6
for the Five and Nine Weeks
Ended March 30, 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: April 10, 1996 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: April 10, 1996 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: April 10, 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
MARCH RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
March, 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 $167.6 $176.3 $174.3 $296.5 $309.3 $298.7
FIFO Margin $ 44.7 45.9 44.3 75.4 77.5 73.7
Margin % 26.7% 26.0% 25.4% 25.4% 25.1% 24.7%
Total Expenses (47.8) (49.0) (51.1) (86.9) (89.7) (91.3)
Other Income 2.1 2.4 3.5 3.5 4.0 5.3
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EBITDA (1.0) (0.7) (3.3) (8.0) (8.2) (12.3)
Depreciation and Amort (net) (0.5) (0.5) (0.2) (0.8) (0.8) (0.3)
Net Interest Expense (1.4) (1.8) (1.8) (2.7) (3.1) (3.2)
Other Expenses, Incl LIFO - - 0.1 - - 0.1
Non-Cash Inc. Tax Ben. 0.9 0.9 1.6 3.4 3.6 4.7
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Net Income (Loss) ($2.0) ($2.1) ($3.6) ($8.1) ($8.5) ($11.0)
===================================================
Balance at end of Period
Last
Actual Plan (a) Yr (b)
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BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $20.0 $25.3 $26.6
Merchandise Inventories, LIFO 444.0 460.0 495.2
Other Current Assets 43.2 43.0 41.4
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Total Current Assets 507.2 528.3 563.2
Net Fixed Assets 57.4 62.4 42.6
Long-Term Assets 5.6 4.8 5.3
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Total Assets $570.2 $595.5 $611.1
===========================
Trade Accounts Payable $155.6 $126.6 $146.9
Short-Term Debt (Revolver) 58.6 105.0 80.1
Other Current Liabilities 172.8 180.6 166.9
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Total Current Liabilities 387.0 412.2 393.9
Long-Term Debt 13.3 13.9 30.1
Other Long-Term Liabilities 34.9 35.1 43.0
Unfavorable Lease Liability 18.4 18.3 22.6
Fresh-start Excess Net Assets (Negative Goodwill) 41.4 41.4 47.5
Paid-In-Capital 81.0 81.0 81.0
Retained Earnings (Deficit) (5.8) (6.4) (7.0)
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Total Stockholders' Equity 75.2 74.6 74.0
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Total Liabilities & Equity $570.2 $595.5 $611.1
===========================
<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
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.
Page 6 of 7
</TABLE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
MARCH RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
March, 1996 Fiscal 1996 YTD
Actual Plan (a) Actual Plan (a)
<S> <C> <C> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $22.9 $19.3 $14.2 $14.2
Cash Generated from (Used in) Operations:
Net Income (Loss) (2.0) (2.1) (8.1) (8.5)
Non-Cash Income Tax Exp (Ben) (0.9) (0.9) (3.4) (3.6)
Other (2.6) (1.5) (1.9) (0.9)
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Cash from Operations (5.5) (4.5) (13.4) (13.0)
Changes in Working Capital:
FIFO Inventory (increase) decrease (34.1) (8.2) (41.8) (56.5)
Trade Payables increase (decrease) 23.8 (35.8) 42.9 13.9
All Other (5.4) (6.2) (16.9) (15.4)
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Net Changes in Working Capital (15.7) (50.2) (15.8) (58.0)
Capital Expenditures (2.5) (1.4) (5.1) (4.7)
Other:
Short-Term Borrow.(Pymnts)- Revolver 23.4 65.0 54.3 100.7
Capital Lease Payments (0.3) (0.3) (0.6) (0.6)
Long-Term Debt Payments (0.8) (1.0) (9.6) (9.0)
Restructuring and Other (1.2) (1.6) (3.7) (4.3)
Financing Fee Payments (0.3) - (0.3) -
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Total Other 20.8 62.1 40.1 86.8
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Increase (Decrease) in Cash & Cash Equiv (2.9) 6.0 5.8 11.1
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Ending Cash & Cash Equivalents $20.0 $25.3 $20.0 $25.3
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<FN>
(a)As reported on Form 8-K dated February 21, 1996
Page 7 of 7
</TABLE>
