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): January 9, 1997
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(January 9, 1997)
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
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ITEM 5: OTHER EVENTS
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Beginning on January 9, 1997, 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 forty-eight weeks ended December 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 December 28, 1996 were
$4.0 million below the projections contained in the Form 8-K dated
June 11, 1996 (the "Plan"). EBITDA was $3.5 million below Plan
and $2.8 million below last year. The EBITDA results for the five
weeks reflected higher-than-planned expenses partially offset by a
higher-than-planned gross margin. The largest component of the
variance in expenses is due to the recording of additional
performance bonuses based on the year-to-date results. Last year's
EBITDA also included a $3 million property gain.
Sales for the forty-eight weeks ended December 28, 1996
were $10.9 million above Plan. EBITDA was $6.5 million better
than Plan and $15.8 million better than last year. The EBITDA
variance from Plan for the forty-eight weeks was due primarily to a
higher-than-planned gross margin partially offset by higher-than-
planned expenses. Last year's EBITDA included $9.1 million in
property gains.
As of December 28, 1996, merchandise inventories were
$4.0 million above Plan. Trade payables were $52.6 million above
Plan. There were no borrowings outstanding under the
Company's revolving line of credit.
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, 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. 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 Unaudited Financial Summary Results for the
Five and Forty-eight Weeks Ended December 28,
1996
<PAGE>
INDEX TO EXHIBITS
EXHIBIT NO. EXHIBIT PAGE NO.
20 Unaudited Financial Summary Results 6
for the Five and Forty-eight Weeks Ended
December 28, 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: January 9, 1997 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: January 9, 1997 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: January 9, 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
DECEMBER RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
December, 1996 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 $368.0 $372.0 $346.3 $2,045.7 $2,034.8 $2,004.5
FIFO Margin $ 101.2 100.5 94.6 557.3 546.6 537.2
Margin % 27.5% 27.0% 27.3% 27.2% 26.9% 26.8%
Total Expenses (62.3) (58.2) (55.8) (507.2) (503.8) (512.3)
Other Income 3.7 3.8 6.6 26.4 27.2 35.8
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EBITDA 42.6 46.1 45.4 76.5 70.0 60.7
Pre-Opening Expenses (0.4) (0.4) - (2.9) (2.8) -
Depreciation and Amort (net) (0.5) (0.4) (0.5) (4.6) (4.1) (2.8)
Net Interest Expense (1.4) (2.1) (2.0) (18.5) (22.9) (23.1)
Other Inc (Exp), Incl LIFO - - - 0.1 - 1.1
Extra. Item, net of tax (1.3) - - (1.3) - -
Non-Cash Inc Tax Ben (Exp) (11.7) (12.8) (12.5) (15.0) (11.9) (10.4)
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Net Income (Loss) $27.3 $30.4 $30.4 $34.3 $28.3 $25.5
===================================================
Balance at End of Period
Last
Actual Plan (a) Yr (b)
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BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $95.9 $25.1 $49.7
Merchandise Inventories, LIFO 389.1 385.1 405.3
Other Current Assets 33.2 29.7 30.8
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Total Current Assets 518.2 439.9 485.8
Net Fixed Assets 64.0 69.6 58.3
Long-Term Assets 4.8 5.3 3.8
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Total Assets $587.0 $514.8 $547.9
===========================
Trade Accounts Payable $172.8 $120.2 $129.0
Short-Term Debt (Revolver) - - -
Other Current Liabilities 183.7 173.3 168.9
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Total Current Liabilities 356.5 293.5 297.9
Long-Term Debt 12.3 12.3 21.5
Other Long-Term Liabilities 32.2 32.4 43.4
Unfavorable Lease Liability 17.2 16.6 21.2
Fresh-start Excess Net Assets (Negative Goodwill) 36.8 36.8 43.0
Paid-In-Capital 95.4 92.9 91.4
Retained Earnings (Deficit) 36.6 30.3 29.5
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Total Stockholders' Equity 132.0 123.2 120.9
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Total Liabilities & Equity $587.0 $514.8 $547.9
===========================
<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
DECEMBER RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
December, 1996 Fiscal 1996 YTD
Actual Plan (a) Actual Plan (a)
<S> <C> <C> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $30.4 $34.3 $14.2 $14.2
Cash Flow from Operations:
Net Income (Loss) 27.3 30.4 34.3 28.3
Non-Cash Income Tax Exp (Ben) 11.7 12.8 15.0 11.9
Other 2.2 0.6 5.8 4.9
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Cash Provided by (Used in) Operations 41.2 43.8 55.1 45.1
Changes in Working Capital:
FIFO Inventory (increase) decrease 152.9 170.2 13.1 18.4
Trade Payables increase (decrease) (51.4) (62.5) 60.1 7.5
All Other 52.0 47.4 8.1 (9.6)
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Net Changes in Working Capital 153.5 155.1 81.3 16.3
Capital Expenditures (1.6) (1.2) (17.6) (19.8)
Other:
Short-Term Borrow.(Pymnts)- Revolver (123.5) (205.0) (4.3) (4.3)
Capital Lease Payments (0.3) (0.3) (3.4) (3.4)
Long-Term Debt Payments (0.9) (1.2) (13.2) (13.5)
Restructuring and Other (0.3) (0.4) (12.3) (8.2)
Financing Fee Payments (2.6) - (3.9) (1.3)
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Total Other (127.6) (206.9) (37.1) (30.7)
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Increase (Decrease) in Cash & Cash Equiv 65.5 (9.2) 81.7 10.9
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Ending Cash & Cash Equivalents $95.9 $25.1 $95.9 $25.1
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<FN>
(a)As reported on Form 8-K dated June 11, 1996
Page 7 of 7
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