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): August 7, 1997
-----------------------------------------------------------------
(August 7, 1997)
-----------------
Ames Department Stores, Inc.
-------------------------------------------------------------------
(Exact Name of Registrant As Specified In Charter)
Delaware
--------------------------------------------------------------
(State Or Other Jurisdiction Of Incorporation)
1-5380 04-2269444
--------------------------- --------------------------------------
(Commission File Number) (IRS Employer Identification No.)
2418 Main Street; Rocky Hill, Connecticut 06067-2598
--------------------------------------------- -----------
(Address Of Principal Executive Offices) (Zip Code)
(860) 257-2000
----------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
Not Applicable
-------------------------------------------------------------------------
(Former Name Or Former Address, If Changed Since Last Report)
Exhibit Index on Page 4
ITEM 5: OTHER EVENTS
------------
Beginning on August 7, 1997, the Company will distribute, to its
banks and other lenders, principal trade vendors and factors, summaries
of its revised financial plan (referred to herein as the "Revised Plan") for
the fiscal year ending January 31, 1998 ("Fiscal 1997"). The Revised
Plan is attached hereto as Exhibit 20 and is incorporated by reference
herein. The Revised Plan supersedes, in its entirety, the summary
financial plan for Fiscal 1997 filed on Form 8-K dated February 27, 1997.
The changes contained in the Revised Plan principally represent a
recalendarization of sales and gross margin during the second half of
Fiscal 1997. THE NET EFFECT OF THE ADJUSTMENTS RESULT IN
NO CHANGE TO THE PROJECTED ANNUAL SALES AND NET
INCOME AS PRESENTED IN THE FORM 8-K DATED FEBRUARY 27,
1997. The Revised Plan does not contain any updates to the original
projections for the actual year-to-date sales, gross margin and other
normal operating results.
The Company is distributing the Revised Plan to its banks and other
lenders, principal trade vendors and factors to facilitate their credit
analyses. The Revised Plan 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 and the Company's Form
10-Q for the fiscal quarter ended April 26, 1997. The Revised Plan is
being reported publicly solely because it is being distributed to a large
number of the Company's vendors for purposes of their credit analyses.
Although the Company is publicly reporting the Revised Plan and expects
to continue reporting its monthly results during Fiscal 1997, 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. Moreover, the
Company does not believe that it is obligated to update the Revised Plan
to reflect subsequent events or developments.
The Revised Plan was not prepared with a view toward compliance
with the guidelines established by the American Institute of Certified
Public Accountants or the rules and regulations of the Securities and
Exchange Commission regarding financial projections. While presented
with numerical specificity, the Revised Plan is based upon a variety of
assumptions that may not be realized and is subject to significant
business, economic and competitive uncertainties and contingencies,
many of which are beyond the control of the Company. Consequently,
the Revised Plan should not be regarded as a representation or warranty
by the Company, or any other person, that the forecasts contained therein
will be realized. Actual results may vary materially from those presented
in the Revised Plan.
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,"
"projections," "plans" 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 Fiscal 1997 Revised Summary Financial Plan
<PAGE>
INDEX TO EXHIBITS
EXHIBIT NO. EXHIBIT PAGE NO.
----------- ------------ -----------
20 Fiscal 1997 Revised Summary 6
Financial Plan
<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.
-----------------------------------
Registrant
Dated: August 1, 1997 By: /s/ Joseph R. Ettore
---------------------------------------------
Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: August 1, 1997 By: /s/ John F. Burtelow
----------------------------------------------
John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: August 1, 1997 By: /s/ Gregory D. Lambert
--------------------------------------------
Gregory D. Lambert
Senior Vice President,
Finance
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC.
CONDENSED INCOME STATEMENT
MANAGEMENT FORMAT
FISCAL 1997 PLAN
($ 000's)
<CAPTION> EXHIBIT 20
Page 1 of 3
FISCAL 1997 PLAN (a)
FOR MONTH ENDING
-----------------------------------------------------------------------------------------------------------------------
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales $125,238 $172,013 $139,386 $159,745 $204,418 $155,588 $155,784 $191,411 $176,375 $226,390 $375,388 $134,501 $2,216,237
Gross
Margin $ 30,960 44,414 39,885 46,476 55,748 41,983 40,777 52,055 49,500 62,563 101,824 37,347 603,532
Gross
Margin % 24.72% 25.82% 28.61% 29.09% 27.27% 26.98% 26.18% 27.20% 28.07% 27.64% 27.13% 27.77% 27.23%
SG&A
Expenses (39,951) (48,025) (40,270) (43,572) (52,437) (42,646) (43,762) (51,915) (45,418) (48,394) (61,552) (50,052) (567,994)
Other Inc (b) 1,368 2,150 1,866 2,272 2,917 2,038 2,163 2,892 2,297 2,615 3,653 1,597 27,828
-----------------------------------------------------------------------------------------------------------------------
EBITDA (c) (7,623) (1,461) 1,481 5,176 6,228 1,375 (822) 3,032 6,379 16,784 43,925 (11,108) 63,366
Depr & Amort (442) (561) (526) (597) (753) (662) (708) (843) (742) (761) (884) (817) (8,296)
Net Interest (466) (939) (1,044) (1,265) (1,401) (1,206) (1,309) (1,913) (1,753) (1,698) (1,286) (645) (14,925)
Non-Cash Inc Tax
Ben (Exp) 2,904 1,008 30 (1,128) (1,386) 168 966 (94) (1,322) (4,876) (14,213) 4,278 (13,665)
-----------------------------------------------------------------------------------------------------------------------
Net Inc (Loss ($5,627) ($1,953) ($59) $2,186 $2,688 ($325) ($1,873) $182 $2,562 $9,449 $27,542 ($8,292) $26,480
=======================================================================================================================
<FN>
Note: In each of the fourth quarters of 1995 and 1996, the Company recorded a charge for the impact of closing certain stores.
The Company is not aware of any additional stores to be closed at this time and, therefore, no store closing charge is
included in the 1997 plan. The Company will continue to monitor the performance of individual stores and may close
additional stores in the future.
(a) Fiscal 1997 is a 53-week year.
(b) Includes purchase discounts
(c) EBITDA is earnings (loss) before net interest expense, income taxes, LIFO expense, extraordinary or non-recurring
items (including certain store closing charges), depreciation and amortization, and gain or loss on sale of properties.
Page 6 of 8
</TABLE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC.
CONDENSED BALANCE SHEET
MANAGEMENT FORMAT
FISCAL 1997 PLAN
($ 000's)
<CAPTION> EXHIBIT 20
Page 2 of 3
FOR MONTH ENDING
------------------------------------------------------------------------------------------------------------
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Current Assets:
Cash & equivalents $19,415 $24,893 $27,136 $33,025 $28,018 $24,089 $29,203 $21,904 $24,206 $37,692 $88,335 $39,279
Mdse Inventories 414,933 453,656 476,709 468,474 442,127 458,019 496,785 535,061 570,702 555,552 400,012 412,132
Other current assets 39,701 44,926 39,565 39,594 34,223 34,460 40,952 47,572 54,791 73,729 28,657 29,179
------------------------------------------------------------------------------------------------------------
Total Current Assets 474,049 523,475 543,410 541,093 504,368 516,568 566,940 604,537 649,699 666,973 517,004 480,590
Net Fixed Assets 62,913 64,904 68,066 70,527 71,761 74,555 77,520 78,758 81,000 82,539 83,892 85,431
Long Term Assets 4,694 4,616 4,536 4,456 4,377 4,298 4,219 4,140 4,060 3,982 4,252 4,174
------------------------------------------------------------------------------------------------------------
Total Assets $541,656 $592,995 $616,012 $616,076 $580,506 $595,421 $648,679 $687,435 $734,759 $753,494 $605,148 $570,195
============================================================================================================
Liabilities
Current Liabilities:
Trade acc'ts pay. $144,401 $164,996 $171,021 $167,152 $147,978 $166,454 $196,564 $181,560 $232,161 $242,926 $193,500 $174,564
Note (rev.) payable 25,000 60,000 85,000 90,000 75,000 80,000 100,000 155,000 155,000 140,000 - -
Other current liabs. 171,421 172,100 165,015 162,627 159,525 152,153 159,658 159,219 154,244 164,898 165,204 164,049
------------------------------------------------------------------------------------------------------------
Total Current Liabs. 340,822 397,096 421,036 419,779 382,503 398,607 456,222 495,779 541,405 547,824 358,704 338,613
Long-term debt 11,155 9,176 9,197 9,217 9,239 9,260 9,281 9,301 9,322 9,343 9,364 9,375
Other LT liabilities 34,423 34,195 33,966 33,738 33,508 33,279 31,704 31,476 31,247 31,020 30,792 29,062
Unfav. lease liability 16,846 16,663 16,480 16,297 16,114 15,931 15,474 15,291 15,108 14,925 14,742 14,642
Fresh-start excess 35,852 35,260 34,787 34,313 33,722 33,249 32,776 32,184 31,711 31,237 30,646 30,172
Shareholders Equity
Paid-in capital 88,457 88,457 88,457 88,457 88,457 88,457 88,457 88,457 88,457 92,187 106,400 102,123
Retained earnings 14,101 12,148 12,089 14,275 16,963 16,638 14,765 14,947 17,509 26,958 54,500 46,208
------------------------------------------------------------------------------------------------------------
Total Share. Equity 102,558 100,605 100,546 102,732 105,420 105,095 103,222 103,404 105,966 119,145 160,900 148,331
------------------------------------------------------------------------------------------------------------
Total Liab. & Equity $541,656 $592,995 $616,012 $616,076 $580,506 $595,421 $648,679 $687,435 $734,759 $753,494 $605,148 $570,195
============================================================================================================
Page 7 of 8
</TABLE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC.
CONDENSED CASH FLOW
MANAGEMENT FORMAT
FISCAL 1997 PLAN
($ 000's)
<CAPTION> EXHIBIT 20
Page 3 of 3
FOR MONTH ENDING
---------------------------------------------------------------------------------------------------------
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Beg. cash & equivalents $46,119 $19,415 $24,893 $27,136 $33,025 $28,018 $24,089 $29,203 $21,904 $24,206 $37,692 $88,335 $46,119
Cash generated from
(used in) operations:
Net income (loss) (5,627) (1,953) (59) 2,186 2,688 (325) (1,873) 182 2,562 9,449 27,542 (8,292) 26,480
Noncash income tax
expense (benefit) (2,904) (1,008) (30) 1,128 1,386 (168) (966) 94 1,322 4,876 14,213 (4,278) 13,665
Other 358 477 442 513 669 579 624 759 658 678 801 816 7,374
---------------------------------------------------------------------------------------------------------
Cash from operations: (8,173) (2,484) 353 3,827 4,743 86 (2,215) 1,035 4,542 15,003 42,556 (11,754) 47,519
Changes in working capital:
Inventory (inc) dec (23,857)(38,723)(23,053) 8,235 26,347 (15,892)(38,766)(38,276)(35,641) 15,150 155,540 (12,120)(21,056)
Trade pay inc (dec) (1,336) 20,595 6,025 (3,869)(19,174) 18,476 30,110 (15,004) 50,601 10,765 (49,426)(18,936) 28,827
All other (8,892) (3,067) (1,118) (2,970) 2,356 (6,866) 1,215 (5,639)(12,958) (8,874) 46,696 (1,696) (1,813)
---------------------------------------------------------------------------------------------------------
Net changes in work cap (34,085)(21,195)(18,146) 1,396 9,529 (4,282) (7,441)(58,919) 2,002 17,041 152,810 (32,752) 5,958
Capital spending (1,142) (3,143) (4,160) (3,532) (2,579) (3,929) (4,396) (2,672) (3,458) (2,774) (2,829) (2,829)(37,443)
Other
Borrow (pymts) - rev 25,000 35,000 25,000 5,000 (15,000) 5,000 20,000 55,000 - (15,000)(140,000) - -
Pymts of cap leases (225) (225) (225) (225) (225) (225) (225) (225) (225) (225) (225) (225) (2,700)
Pymts of long-term debt (7,500) (1,896) - - (896) - - (896) - - (759) (936)(12,883)
Restruc pymnts & other (579) (579) (579) (577) (579) (579) (609) (622) (559) (559) (910) (560) (7,291)
---------------------------------------------------------------------------------------------------------
Total Other 16,696 32,300 24,196 4,198 (16,700) 4,196 19,166 53,257 (784)(15,784)(141,894) (1,721)(22,874)
---------------------------------------------------------------------------------------------------------
Inc (dec)in cash & equiv (26,704) 5,478 2,243 5,889 (5,007) (3,929) 5,114 (7,299) 2,302 13,486 50,643 (49,056) (6,840)
---------------------------------------------------------------------------------------------------------
Ending cash & equiv $19,415 $24,893 $27,136 $33,025 $28,018 $24,089 $29,203 $21,904 $24,206 $37,692 $88,335 $39,279 $39,279
=========================================================================================================
Page 8 of 8
</TABLE>
