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): October 11, 1996
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(October 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 7 (Including Exhibits)<PAGE>
Item 5: OTHER EVENTS
Beginning on October 11, 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 thirty-five weeks ended September 28, 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 September 28, 1996 were $2.6
million above the projections contained in the Form 8-K dated June 11,
1996 (the "Plan"). EBITDA was $0.7 million better than Plan
and $2.3 million better than last year. The EBITDA results
for the five weeks reflected a higher-than-planned gross margin.
Sales for the thirty-five weeks ended September 28, 1996 were
$16.3 million below Plan primarily due to lower-than-planned sales in
apparel. EBITDA was $7.4 million better than Plan and $15.2
million better than last year. The EBITDA variance from Plan for
the thirty-five weeks was due primarily to lower-than-planned expenses
and a higher-than-planned gross margin.
As of September 28, 1996, merchandise inventories were $10.8
million below Plan. Trade payables were $0.8 million below Plan.
Borrowings under the Company's revolving line of credit were $20.9
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 Five
and Thirty-five Weeks Ended September 28, 1996
<PAGE>
INDEX TO EXHIBITS
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Exhibit No. Exhibit Page No.
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20 Unaudited Financial Summary Results 6
for the Five and Thirty-five Weeks
Ended September 28, 1996.
<PAGE>
SIGNATURES
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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: October 10, 1996 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: October 10, 1996 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: October 10, 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
SEPTEMBER RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
September, 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 $189.3 $186.7 $187.8 $1,280.6 $1,296.9 $1,277.4
FIFO Margin $ 51.1 50.1 51.1 346.1 341.8 336.6
Margin % 27.0% 26.8% 27.2% 27.0% 26.4% 26.4%
Total Expenses (50.2) (49.9) (52.4) (351.0) (355.1) (363.5)
Other Income 2.9 2.9 2.8 17.7 18.7 24.5
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EBITDA 3.8 3.1 1.5 12.8 5.4 (2.4)
Pre-Opening Expenses (0.4) (0.4) - (1.8) (1.8) -
Depreciation and Amort (net) (0.5) (0.4) (0.4) (3.3) (3.0) (1.7)
Net Interest Expense (2.1) (2.5) (2.5) (13.3) (15.7) (16.2)
Other Inc (Exp), Incl LIFO (0.1) - 0.1 0.2 - 1.0
Non-Cash Inc Tax Ben (Exp) (0.2) 0.1 0.4 1.6 4.5 5.8
---------------------------------------------------
Net Income (Loss) $0.5 ($0.1) ($0.9) ($3.8) ($10.6) ($13.5)
===================================================
Balance at End of Period
Last
Actual Plan (a) Yr (b)
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BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $20.5 $21.9 $22.6
Merchandise Inventories, LIFO 522.9 533.7 560.3
Other Current Assets 50.5 52.4 52.5
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Total Current Assets 593.9 608.0 635.4
Net Fixed Assets 63.1 68.4 52.8
Long-Term Assets 4.9 6.1 4.2
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Total Assets $661.9 $682.5 $692.4
===========================
Trade Accounts Payable $171.7 $172.5 $163.1
Short-Term Debt (Revolver) 144.1 165.0 166.5
Other Current Liabilities 164.9 170.9 157.7
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Total Current Liabilities 480.7 508.4 487.3
Long-Term Debt 12.7 12.8 25.2
Other Long-Term Liabilities 33.1 33.3 42.3
Unfavorable Lease Liability 17.6 17.2 21.6
Fresh-start Excess Net Assets (Negative Goodwill) 38.3 38.3 44.5
Paid-In-Capital 81.0 81.0 81.0
Retained Earnings (Deficit) (1.5) (8.5) (9.5)
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Total Stockholders' Equity 79.5 72.5 71.5
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Total Liabilities & Equity $661.9 $682.5 $692.4 ====================
<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
SEPTEMBER RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
September, 1996 Fiscal 1996 YTD
Actual Plan (a) Actual Plan (a)
<S> <C> <C> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $24.7 $26.1 $14.2 $14.2
Cash Flow from Operations:
Net Income (Loss) 0.5 (0.1) (3.8) (10.6)
Non-Cash Income Tax Exp (Ben) 0.2 (0.1) (1.6) (4.5)
Other 0.7 0.7 2.2 2.9
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Cash Provided by (Used in) Operations 1.4 0.5 (3.2) (12.2)
Changes in Working Capital:
FIFO Inventory (increase) decrease (42.1) (62.2) (120.8) (130.2)
Trade Payables increase (decrease) 14.1 23.8 59.0 59.9
All Other (0.1) 1.4 (28.1) (31.9)
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Net Changes in Working Capital (28.1) (37.0) (89.9) (102.2)
Capital Expenditures (2.0) (1.1) (13.8) (15.9)
Other:
Short-Term Borrow.(Pymnts)- Revolver 25.9 35.0 139.8 160.7
Capital Lease Payments (0.3) (0.3) (2.5) (2.4)
Long-Term Debt Payments (0.7) (0.9) (12.1) (12.3)
Restructuring and Other (0.4) (0.4) (11.0) (7.0)
Financing Fee Payments - - (1.0) (1.0)
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Total Other 24.5 33.4 113.2 138.0
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Increase (Decrease) in Cash & Cash Equiv (4.2) (4.2) 6.3 7.7
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Ending Cash & Cash Equivalents $20.5 $21.9 $20.5 $21.9
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<FN>
(a)As reported on Form 8-K dated June 11, 1996
Page 7 of 7
</TABLE>
