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): June 5, 1997
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(June 5, 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 June 5, 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 and seventeen weeks ended
May 24, 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 four weeks ended May 24, 1997 were $7.2 million below
the projections contained in the Form 8-K dated February 27, 1997 (the
"Plan"). EBITDA was $0.6 million better than Plan and $0.9 million less
than last year.
Sales for the seventeen weeks ended May 24, 1997 were $11.3 million
below Plan. EBITDA was $3.3 million better than Plan and $1.3 less than
last year.
As of May 24, 1997, merchandise inventories were $8.8 million below
Plan. Trade payables were $16.4 million below Plan and borrowings under
the Company's revolving line of credit were $0.3 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
February 27, 1997 and the Company's Form 10-Q for the fiscal quarter ended
April 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 Four
and Seventeen Weeks Ended May 24, 1997
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INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
- ----------- ---------- -----------
20 Financial Summary Results for the Four 6
and Seventeen Weeks Ended May 24, 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: June 5, 1997 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: June 5, 1997 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: June 5, 1997 By: /s/ Gregory D. Lambert
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Gregory D. Lambert
Senior Vice President,
Finance
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<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
MAY RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
May, 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 $152.5 $159.7 $154.4 $585.1 $596.4 $593.0
FIFO Margin $ 46.7 46.5 45.7 163.9 161.7 162.1
Margin % 30.6% 29.1% 29.6% 28.0% 27.1% 27.3%
Total Expenses (43.1) (43.6) (41.4) (170.7) (171.8) (167.6)
Other Income 2.2 2.3 2.4 7.7 7.7 7.7
-------- -------- -------- --------- --------- ---------
EBITDA 5.8 5.2 6.7 0.9 (2.4) 2.2
Dep and Amort (net) (0.5) (0.6) (0.4) (2.1) (2.1) (1.6)
Net Interest Exp (1.1) (1.3) (1.7) (3.5) (3.7) (5.9)
Other Inc (Exp) - - 0.2 (0.1) - 0.2
Non-Cash Income Tax (1.4) (1.1) (1.4) 1.6 2.8 1.5
(Provision) Benefit
-------- -------- -------- --------- --------- ---------
Net Income (Loss) $2.8 $2.2 $3.4 ($3.2) ($5.4) ($3.6)
======== ======== ======== ========= ========= =========
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 $22.8 $33.0 $25.0
Merchandise Inventories, LIFO 459.7 468.5 473.8
Other Current Assets 44.7 39.6 46.1
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Total Current Assets 527.2 541.1 544.9
Net Fixed Assets 70.6 70.5 63.3
Long-Term Assets 7.2 4.5 5.8
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Total Assets $605.0 $616.1 $614.0
========= ========= =========
Trade Accounts Payable $150.8 $167.2 $152.3
Short-Term Debt (Revolver) 89.7 90.0 106.8
Other Current Liabilities 164.2 162.6 165.2
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Total Current Liabilities 404.7 419.8 424.3
Long-Term Debt 9.2 9.2 13.9
Other Long-Term Liabilities 33.4 33.7 37.5
Unfavorable Lease Liability 16.6 16.3 18.1
Fresh-start Excess Net Assets (Negative Goodwill) 34.3 34.3 40.5
Paid-In-Capital 90.3 88.5 81.0
Retained Earnings (Deficit) 16.5 14.3 (1.3)
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Total Stockholders' Equity 106.8 102.8 79.7
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Total Liabilities & Equity $605.0 $616.1 $614.0
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<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 6 of 7
</TABLE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
MAY RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
Fiscal 1997 YTD
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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) (3.2) (5.4)
Non-Cash Income Tax Provision (Benefit) (1.6) (2.8)
Other 2.0 1.7
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Cash Provided by (Used in) Operations (2.8) (6.5)
Changes in Working Capital:
FIFO Inventory (increase) decrease (68.7) (77.4)
Trade Payables increase (decrease) 5.1 21.4
All Other (17.0) (16.0)
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Net Changes in Working Capital (80.6) (72.0)
Capital Expenditures (11.9) (12.0)
Other:
Short-Term Borrow.(Pymnts)- Revolver 89.7 90.0
Capital Lease Payments (1.0) (0.9)
Long-Term Debt Payments (9.4) (9.4)
Store Closing and Other (7.3) (2.3)
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Total Other 72.0 77.4
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Increase (Decrease) in Cash & Cash Equivalents (23.3) (13.1)
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Ending Cash & Cash Equivalents $22.8 $33.0
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<FN>
(a)As reported on Form 8-K dated February 27, 1997
Page 7 of 7
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