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 20, 1997
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(March 20, 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 06067-0801
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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)
<PAGE>
ITEM 5: OTHER EVENTS
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On March 13, 1997, Ames Department Stores, Inc. (the "Company")
publicly released its audited results of operations and balance sheet
sheet for the fiscal year ended January 25, 1997. Beginning on
March 20, 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 four (unaudited) and fifty-two weeks
ended January 25, 1997 and for the four weeks ended February 22, 1997
(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 22, 1997 were $0.8 million
below the projections contained in the Form 8-K dated February 27, 1997
(the "Plan"). EBITDA was $1.5 million better than Plan and $0.9
million better than last year.
As of February 22, 1997, merchandise inventories were $9.7 million
above Plan. Trade payables were $13.6 million above Plan and
borrowings under the Company's revolving line of credit were $9.9
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 25, 1997 to be filed in
April, 1997, the Company's Form 10-Q for the first, second and third
quarters ended April 27, 1996, July 27, 1996, and October 26, 1996,
respectively, and the Company's Form 8-K dated June 11, 1996 and the
Company's Form 8-K dated February 27, 1997. 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
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INFORMATION AND EXHIBITS
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Exhibit: 20-A Financial Summary Results for the Four Weeks(Unaudited)
and Fifty-two Weeks Ended January 25, 1997
Exhibit: 20-B Unaudited Financial Summary Results for the Four Weeks
Ended February 22, 1997
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
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20-A Financial Summary Results for the 6
Four Weeks (Unaudited) and Fifty-two
Weeks Ended January 25, 1997.
20-B Unaudited Financial Summary Results 8
for the Four Weeks Ended February 22, 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
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Dated: March 19, 1997 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: March 19, 1997 By: /s/ John F. Burtelow
---------------------------------
John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: March 19, 1997 By: /s/ Gregory D. Lambert
---------------------------------
Gregory D. Lambert
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, 1997 (Unaudited) Fiscal 1996 Year-to-Date
Last Last
Actual Plan (a) Yr (b) Actual Plan (a) Yr (b)
<S> <C> <C> <C> <C> <C> <C>
INCOME SUMMARY:
Net Sales $116.0 $106.6 $99.7 $2,161.7 $2,141.4 $2,104.2
FIFO Margin $ 33.5 23.6 21.4 590.8 570.2 558.6
Margin % 28.9% 22.1% 21.5% 27.3% 26.6% 26.5%
Total Expenses (45.7) (40.4) (35.2) (555.8) (547.0) (547.5)
Other Income 1.4 1.5 1.9 27.8 28.8 28.6
---------------------------------------------------
EBITDA (c) (10.8) (15.3) (11.9) 62.8 52.0 39.7
Depreciation and Amort (net) (2.3) (0.4) (3.8) (6.8) (4.5) (6.5)
Net Interest Expense (0.5) (1.1) (1.0) (19.0) (24.0) (24.1)
Other Inc (Exp), Incl LIFO (0.6) - - (0.5) - 10.2
Store Closing Charge (9.7) - (20.9) (9.7) - (20.9)
Extra. Item, net of tax - - - (1.4) - -
Non-Cash Inc Tax Ben (Exp) 6.9 5.0 10.4 (8.1) (7.0) -
---------------------------------------------------
Net Income (Loss) ($17.0) ($11.8) ($27.2) $17.3 $16.5 ($1.6)
===================================================
Balance at End of Period
Last
Actual Plan (a) Yr (b)
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BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $46.1 $12.7 $14.2
Merchandise Inventories, LIFO 391.1 394.8 398.9
Other Current Assets 31.2 27.3 27.3
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Total Current Assets 468.4 434.8 440.4
Net Fixed Assets 63.6 70.0 58.2
Long-Term Assets 4.8 5.2 4.0
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Total Assets $536.8 $510.0 $502.6
===========================
Trade Accounts Payable $145.7 $122.7 $112.7
Short-Term Debt (Revolver) - 5.0 4.3
Other Current Liabilities 183.8 178.5 182.3
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Total Current Liabilities 329.5 306.2 299.3
Long-Term Debt 11.1 12.3 23.2
Other Long-Term Liabilities 34.7 32.3 35.7
Unfavorable Lease Liability 17.0 16.5 18.6
Fresh-start Excess Net Assets (Negative Goodwill) 36.3 36.3 42.5
Paid-In-Capital 88.6 87.9 81.0
Retained Earnings (Deficit) 19.6 18.5 2.3
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Total Stockholders' Equity 108.2 106.4 83.3
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Total Liabilities & Equity $536.8 $510.0 $502.6
===========================
<FN>
(a) As reported on Form 8-K dated June 11, 1996.
(b) 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.
(c) 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 the sale of properties. The Plan and Last
Year amounts have been restated to conform with this definition of EBITDA
which is consistent with the Company's new credit agreement effective
December 27, 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>
Fiscal 1996 YTD
Actual Plan (a)
<S> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $14.2 $14.2
Cash Flow from Operations:
Net Income (Loss) 17.3 16.5
Non-Cash Income Tax Exp (Ben) 8.1 7.0
Other 18.2 5.5
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Cash Provided by (Used in) Operations 43.6 29.0
Changes in Working Capital:
FIFO Inventory (increase) decrease 7.9 8.7
Trade Payables increase (decrease) 33.1 10.0
All Other 5.7 (1.5)
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Net Changes in Working Capital 46.7 17.2
Capital Expenditures (19.8) (21.0)
Other:
Short-Term Borrow.(Pymnts)- Revolver (4.3) 0.7
Capital Lease Payments (3.7) (3.7)
Long-Term Debt Payments (13.7) (13.7)
Store Closing and Other (12.9) (8.5)
Financing Fee Payments (4.0) (1.5)
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Total Other (38.6) (26.7)
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Increase (Decrease) in Cash & Cash Equiv 31.9 (1.5)
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Ending Cash & Cash Equivalents $46.1 $12.7
==================
<FN>
(a)As reported on Form 8-K dated June 11, 1996
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 Year-to-Date 1997
Last
Actual Plan (a) Yr (b)
<S> <C> <C> <C>
INCOME SUMMARY:
Net Sales $124.4 $125.2 $128.9
FIFO Margin $ 32.0 31.0 30.7
Margin % 25.7% 24.8% 23.8%
Total Expenses (39.6) (40.0) (39.1)
Other Income 1.5 1.4 1.4
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EBITDA (6.1) (7.6) (7.0)
Depreciation and Amort (net) (0.4) (0.4) (0.4)
Net Interest Expense (0.5) (0.5) (1.3)
Other Expenses, Incl LIFO (0.1) - -
Non-Cash Inc. Tax Ben. 2.4 2.9 2.6
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Net Income (Loss) ($4.7) ($5.6) ($6.1)
===========================
Balance at end of Period
Last
Actual Plan (a) Yr (b)
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BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $18.1 $19.4 $22.9
Merchandise Inventories, LIFO 424.6 414.9 406.7
Other Current Assets 34.3 39.7 37.8
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Total Current Assets 477.0 474.0 467.4
Net Fixed Assets 63.1 62.9 56.0
Long-Term Assets 5.0 4.7 5.6
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Total Assets $545.1 $541.6 $529.0
===========================
Trade Accounts Payable $158.0 $144.4 $131.8
Short-Term Debt (Revolver) 15.1 25.0 35.3
Other Current Liabilities 170.1 171.3 174.0
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Total Current Liabilities 343.2 340.7 341.1
Long-Term Debt 11.2 11.2 14.8
Other Long-Term Liabilities 34.2 34.4 35.3
Unfavorable Lease Liability 16.9 16.8 18.5
Fresh-start Excess Net Assets (Negative Goodwill) 35.9 35.9 42.0
Paid-In-Capital 88.8 88.5 81.0
Retained Earnings (Deficit) 14.9 14.1 (3.7)
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Total Stockholders' Equity 103.7 102.6 77.3
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Total Liabilities & Equity $545.1 $541.6 $529.0
===========================
<FN>
(a) As reported on Form 8-K dated February 27, 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 the sale of properties.
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 1997
Actual Plan (a)
<S> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $46.1 $46.1
Cash Generated from (Used in) Operations:
Net Income (Loss) (4.7) (5.6)
Non-Cash Income Tax Exp (Ben) (2.4) (2.9)
Other 0.4 0.3
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Cash from Operations (6.7) (8.2)
Changes in Working Capital:
FIFO Inventory (increase) decrease (33.5) (23.9)
Trade Payables increase (decrease) 12.3 (1.3)
All Other (4.7) (8.9)
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Net Changes in Working Capital (25.9) (34.1)
Capital Expenditures (1.3) (1.1)
Other:
Short-Term Borrow.(Pymnts)- Revolver 15.1 25.0
Capital Lease Payments (0.3) (0.2)
Long-Term Debt Payments (7.5) (7.5)
Store Closing and Other (1.4) (0.6)
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Total Other 5.9 16.7
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Increase (Decrease) in Cash & Cash Equiv (28.0) (26.7)
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Ending Cash & Cash Equivalents $18.1 $19.4
==================
<FN>
(a)As reported on Form 8-K dated February 27, 1997
Page 9 of 9
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