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 9, 1997
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(October 9, 1997)
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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 06067-2598
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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>
ITEM 5: OTHER EVENTS
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Beginning on October 9, 1997, the Company will distribute, to
certain of its banks and other lenders, principal trade vendors and
factors, summaries of its financial results for the five and thirty-five
weeks ended September 27, 1997. 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 27, 1997 were $1.6
million above the projections contained in the Form 8-K dated
August 7, 1997 (the "Plan"). EBITDA (as defined in Exhibit 20) was
$0.8 million better than Plan and $0.4 million better than last year.
Sales for the thirty-five weeks ended September 27, 1997 were
$18.3 million below Plan. EBITDA was $8.3 million better than Plan
and $4.7 million better than last year.
As of September 27, 1997, merchandise inventories were $5.9
million above Plan. Trade payables were $22.7 million above Plan
and borrowings under the Company's revolving line of credit were
$30.8 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 25,
1997, the Company's Form 8-K dated August 7, 1997 and the
Company's Form 10-Qs for the fiscal quarters ended April 26, 1997
and July 26, 1997. The monthly results are being reported publicly
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
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INFORMATION AND EXHIBITS
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Exhibit: 20 Financial Summary Results for the Five
and Thirty-five Weeks Ended
September 27, 1997
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
---------- --------- -------
20 Financial Summary Results for the Five 6
and Thirty-five Weeks Ended
September 27, 1997.
<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: October 8, 1997 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: October 8, 1997 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: October 8, 1997 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, 1997 Fiscal 1997 Year-to-Date
-------------------------- -----------------------------
Last Last
Actual Plan (a) Yr Actual Plan (a) Yr
-------- -------- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INCOME SUMMARY:
Net Sales $193.0 $191.4 $189.3 $1,285.3 $1,303.6 $1,280.6
FIFO Margin $ 52.9 52.0 51.1 358.0 352.3 346.1
Margin % 27.4% 27.2% 27.0% 27.9% 27.0% 27.0%
Total Expenses (51.9) (51.9) (50.6) (360.1) (362.6) (352.8)
Other Income 2.8 2.9 2.9 17.8 17.7 17.7
-------- -------- -------- --------- --------- ---------
EBITDA 3.8 3.0 3.4 15.7 7.4 11.0
Dep and Amort (net) (0.8) (0.8) (0.5) (4.9) (5.1) (3.3)
Net Interest Expense (1.3) (1.9) (2.1) (8.0) (9.6) (13.3)
Other Income (Expense) - - (0.1) (0.1) - 0.2
Non-Cash Income Tax
(Provision) Benefit (0.6) (0.1) (0.2) (0.9) 2.5 1.6
-------- -------- -------- --------- --------- ---------
Net Income (Loss) $1.1 $0.2 $0.5 $1.8 ($4.8) ($3.8)
======== ======== ======== ========= ========= =========
Balance at End of Period
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Last
Actual Plan (a) Yr
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BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $18.0 $21.9 $20.5
Merchandise Inventories, LIFO 540.9 535.0 522.9
Other Current Assets 50.3 47.6 50.5
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Total Current Assets 609.2 604.5 593.9
Net Fixed Assets 79.3 78.8 63.1
Other Long-Term Assets 8.0 4.1 4.9
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Total Assets $696.5 $687.4 $661.9
========= ========= =========
Trade Accounts Payable $204.2 $181.5 $171.7
Short-Term Debt (Revolver) 124.2 155.0 144.1
Other Current Liabilities 160.1 159.2 164.9
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Total Current Liabilities 488.5 495.7 480.7
Long-Term Debt 9.5 9.3 12.7
Other Long-Term Liabilities 35.6 31.5 33.1
Unfavorable Lease Liability 15.8 15.3 17.6
Fresh-start Excess Net Assets (Negative Goodwill) 32.2 32.2 38.3
Paid-In-Capital 93.5 88.5 81.0
Retained Earnings (Deficit) 21.4 14.9 (1.5)
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Total Stockholders' Equity 114.9 103.4 79.5
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Total Liabilities & Equity $696.5 $687.4 $661.9
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<FN>
(a) As reported on Form 8-K dated August 7, 1997.
NOTE: EBITDA is earnings (loss) before net interest expense, income taxes,
LIFO expense, extraordinary or non-recurring items (including
certain store closing expenses), depreciation, amortization and other
non-cash charges and gains or losses on 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>
Fiscal 1997 Year-to-Date
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Actual Plan (a)
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<S> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $46.1 $46.1
Cash Flow from Operations:
Net Income (Loss) 1.8 (4.8)
Non-Cash Income Tax Provision (Benefit) 0.9 (2.5)
Other 4.7 4.4
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Cash Provided by (Used in) Operations 7.4 (2.9)
Changes in Working Capital:
FIFO Inventory (Increase) Decrease (149.8) (144.0)
Trade Payables Increase (Decrease) 58.5 35.8
All Other (14.6) (24.9)
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Net Changes in Working Capital (105.9) (133.1)
Capital Expenditures (23.5) (25.5)
Other:
Short-Term Borrowings (Payments)- Revolver 124.2 155.0
Capital Lease Payments (2.0) (1.8)
Long-Term Debt Payments (11.0) (11.2)
Store Closing and Other (17.3) (4.7)
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Total Other 93.9 137.3
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Increase (Decrease) in Cash & Cash Equivalents (28.1) (24.2)
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Ending Cash & Cash Equivalents $18.0 $21.9
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<FN>
(a) As reported on Form 8-K dated August 7, 1997
Page 7 of 7
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