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): March 28, 1996
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(March 28, 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 9 (Including Exhibits)<PAGE>
Item 5: OTHER EVENTS
On March 14, 1996, Ames Department Stores, Inc. (the
"Company") publicly released its audited results of operations and
balance sheet for the fiscal year ended January 27, 1996 ("fiscal
1995"). Beginning on March 28, 1996, the Company will
distribute, to certain of its banks and other lenders, principal trade
vendors and factors, summaries of its financial results for the four
(unaudited) and fifty-two weeks ended January 27, 1996 and for
the four weeks ended February 24, 1996 (unaudited). These
monthly and year-to-date results (collectively, the "monthly
results") are attached hereto as Exhibits 20-A and 20-B and are
incorporated by reference herein.
Sales for the four weeks ended February 24, 1996 were $4.1
million below the projections contained in the Form 8-K dated
February 21, 1996 (the "FY 1996 Plan") primarily due to lower-
than-planned sales in apparel and domestics. EBITDA was $0.4
million better than FY 1996 Plan and $2.0 million better than last
year. The EBITDA results for the four weeks reflected the
favorable impact of lower-than-planned expenses, partially offset
by lower-than-planned gross margin and lower-than-planned other
income. Gross margin was negatively impacted by the below FY
1996 Plan sales.
As of February 24, 1996, merchandise inventories were
$41.9 million below FY 1996 Plan due primarily to lower-than-
planned merchandise purchases during February. Trade payables
and borrowings under the Company's revolving line of credit were
$30.5 million and $4.7 million below FY 1996 Plan, respectively,
primarily due to the lower-than-planned inventory position.
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 to be filed in April, 1996, the Company's Form 10-Q for the
first, second and third quarters ended April 29, 1995, July 29,
1995, and October 28, 1995, respectively, and the Company's
Form 8-K dated August 18, 1995 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.
Item 7: FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS
Exhibit: 20-A Financial Summary Results for the Four Weeks
(Unaudited) and Fifty-two Weeks Ended
January 27, 1996
Exhibit: 20-B Unaudited Financial Summary Results for the
Four Weeks Ended February 24, 1996
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
20-A Financial Summary Results 6
for the Four Weeks (Unaudited)
and Fifty-two Weeks
Ended January 27, 1996.
20-B Unaudited Financial Summary 8
Results for the Four Weeks
Ended February 24, 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: March 28, 1996 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: March 28, 1996 By: /s/ John F. Burtelow
-----------------------------
John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: March 28, 1996 By: /s/ William C. Najdecki
------------------------------
William C. Najdecki
Senior Vice President,
Finance
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20-A
JANUARY RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(In Millions)
<CAPTION>
Jan, 1996 (Unaudited) Fiscal 1995 Year-to-Date
Last Last
ActualPlan (a) Yr (b) Act(c) Plan (a) Yr (b)
<S> <C> <C> <C> <C> <C> <C>
INCOME SUMMARY:
Net Sales $100.6 $117.0 $116.1 $2,120.8 $2,196.4 $2,142.8
FIFO Margin $ 21.4 26.5 20.0 558.6 589.3 566.1
Margin % 21.3% 22.6% 17.2% 26.3% 26.8% 26.4%
Total Expenses (35.3) (41.1) (39.2) (547.6) (572.1) (564.4)
Other Income/Property Gains 1.9 4.7 4.9 37.8 37.9 42.8
---------------------------------------------------
EBITDA (12.0) (9.9) (14.3) 48.8 55.1 44.5
Depreciation and Amort (net) (3.8) (0.3) (0.1) (6.6) (3.0) 0.6
Net Interest Expense (1.0) (1.2) (1.2) (24.1) (27.2) (25.4)
Other Income (Expense),
Including LIFO 0.1 - 0.2 1.2 - (5.0)
Restructuring Charge (20.9) - - (20.9) - -
Non-Recur Gain - Wertheim Set - - - - - 12.0
Extra. Item, Net of Tax - - - - - (1.5)
Non-Cash Inc. Tax (Prov.) Ben 10.4 3.4 4.2 - (7.5) (8.2)
---------------------------------------------------
Net Income (Loss) ($27.2) ($8.0) ($11.2) ($1.6) $17.4 $17.0
===================================================
Balance at end of Period
Last
Actual Plan (a) Yr (b)
---------------------------
BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $14.2 $16.8 $30.4
Merchandise Inventories, LIFO 402.2 417.1 430.2
Other Current Assets 27.2 29.3 25.8
---------------------------
Total Current Assets 443.6 463.2 486.4
Net Fixed Assets 58.2 57.5 41.0
Long-Term Assets 4.0 3.9 6.0
---------------------------
Total Assets $505.8 $524.6 $533.4
===========================
Trade Accounts Payable $112.7 $127.1 $130.7
Short-Term Debt (Revolver) 4.3 - -
Other Current Liabilities 185.5 163.1 162.9
---------------------------
Total Current Liabilities 302.5 290.2 293.6
Long-Term Debt 23.2 27.0 39.0
Other Long-Term Liabilities 35.7 35.4 44.3
Unfavorable Lease Liability 18.6 21.0 22.9
Fresh-start Excess Net Assets (Negative Goodwill) 42.5 42.5 48.6
Paid-In-Capital 81.0 87.8 81.0
Retained Earnings (Deficit) 2.3 20.7 4.0
---------------------------
Total Stockholders' Equity 83.3 108.5 85.0
---------------------------
Total Liabilities & Equity $505.8 $524.6 $533.4
===========================
<FN>
(a) As reported on Form 8-K dated August 18, 1995.
(b) Certain reclassifications have been made to the fiscal 1994 account
balances to conform to the current year presentation.
(c) Total expenses have been increased and EBITDA reduced by $1.2 million in
cash disbursements related to the closing of a distribution center for
which a closing reserve had been established during fiscal 1994. Net
income has not been affected by these disbursements as other income/
expense includes an offset of $1.2 million.
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 sold after January 28, 1996.
Page 6 of 9
</TABLE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20-A
JANUARY RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(In Millions)
<CAPTION>
Jan, 1996 (Unaud) Fiscal 1995 YTD
Actual Plan (a) Actual Plan (a)
<S> <C> <C> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $49.7 $54.3 $30.4 $15.2
Cash Flow from Operations:
Net Income (Loss) (27.2) (8.0) (1.6) 17.4
Non-Cash Income Tax Exp (Ben) (10.4) (3.4) - 7.5
Other 25.5 0.6 31.5 6.7
------------------------------------
Cash Provided by (Used in) Operations (12.1) (10.8) 29.9 31.6
Changes in Working Capital:
FIFO Inventory (increase) decrease 3.1 (6.9) 28.0 13.9
Trade Payables increase (decrease) (16.3) (9.5) (18.1) 2.6
All Other (11.6) (8.0) (7.7) 0.4
------------------------------------
Net Changes in Working Capital (24.8) (24.4) 2.2 16.9
Capital Expenditures (2.1) (0.3) (27.2) (25.0)
Other:
ST Borrowings (Payments) - Revolver 4.3 - 4.3 -
Capital Lease Payments (0.3) (0.3) (4.1) (5.2)
Long-Term Debt Payments - (1.5) (19.6) (15.2)
Financing Fee Payments (0.5) (0.2) (1.7) (1.5)
------------------------------------
Total Other 3.5 (2.0) (21.1) (21.9)
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Increase (Decrease) in Cash & Cash Equiv (35.5) (37.5) (16.2) 1.6
------------------------------------
Ending Cash & Cash Equivalents $14.2 $16.8 $14.2 $16.8
====================================
<FN>
(a)As reported on Form 8-K dated August 18, 1995
Page 7 of 9
</TABLE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20-B
FEBRUARY RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
Feb and Yearto-Date 1996
Last
Actual Plan (a) Yr (b)
<S> <C> <C> <C>
INCOME SUMMARY:
Net Sales $128.9 $133.0 $124.4
FIFO Margin $ 30.7 31.6 29.4
Margin % 23.8% 23.8% 23.6%
Total Expenses (39.1) (40.7) (40.2)
Other Income/Property Gains 1.4 1.7 1.8
---------------------------
EBITDA (7.0) (7.4) (9.0)
Depreciation and Amort (net) (0.4) (0.4) (0.1)
Net Interest Expense (1.3) (1.3) (1.4)
Other Expenses, Incl LIFO - - -
Non-Cash Inc. Tax Ben. 2.6 2.7 3.2
---------------------------
Net Income (Loss) ($6.1) ($6.4) ($7.3)
===========================
Balance at end of Period
Last
Actual Plan (a) Yr (b)
---------------------------
BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $22.9 $19.3 $22.0
Merchandise Inventories, LIFO 409.9 451.8 461.5
Other Current Assets 37.9 34.1 32.7
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Total Current Assets 470.7 505.2 516.2
Net Fixed Assets 56.0 64.1 41.3
Long-Term Assets 5.6 5.1 5.6
---------------------------
Total Assets $532.3 $574.4 $563.1
===========================
Trade Accounts Payable $131.8 $162.3 $146.1
Short-Term Debt (Revolver) 35.3 40.0 31.5
Other Current Liabilities 177.3 184.0 163.1
---------------------------
Total Current Liabilities 344.4 386.3 340.7
Long-Term Debt 14.8 15.6 30.0
Other Long-Term Liabilities 35.3 35.4 43.9
Unfavorable Lease Liability 18.5 18.5 22.7
Fresh-start Excess Net Assets (Negative Goodwill) 42.0 42.0 48.2
Paid-In-Capital 81.0 81.0 81.0
Retained Earnings (Deficit) (3.7) (4.4) (3.4)
---------------------------
Total Stockholders' Equity 77.3 76.6 77.6
---------------------------
Total Liabilities & Equity $532.3 $574.4 $563.1
===========================
<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 8 of 9
</TABLE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20-B
FEBRUARY RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
Feb and YTD 1996
Actual Plan (a)
<S> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $14.2 $14.2
Cash Generated from (Used in) Operations:
Net Income (Loss) (6.1) (6.4)
Non-Cash Income Tax Exp (Ben) (2.6) (2.7)
Other 0.7 0.6
------------------
Cash from Operations (8.0) (8.5)
Changes in Working Capital:
FIFO Inventory (increase) decrease (7.7) (48.3)
Trade Payables increase (decrease) 19.1 49.7
All Other (11.5) (9.2)
------------------
Net Changes in Working Capital (0.1) (7.8)
Capital Expenditures (2.6) (3.3)
Other:
Short-Term Borrow.(Pymnts)- Revolver 31.0 35.7
Capital Lease Payments (0.3) (0.3)
Long-Term Debt Payments (8.8) (8.0)
Restructuring and Other (2.5) (2.7)
Financing Fee Payments - -
------------------
Total Other 19.4 24.7
------------------
Increase (Decrease) in Cash & Cash Equiv 8.7 5.1
------------------
Ending Cash & Cash Equivalents $22.9 $19.3
==================
<FN>
(a)As reported on Form 8-K dated February 21, 1996
Page 9 of 9
</TABLE>
