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): December 4,1997
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(December 4,1997)
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 06067-2598
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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 1 of 7 (Including Exhibits)<PAGE>
ITEM 5: OTHER EVENTS
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Beginning on December 4,1997, 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 forty-three
weeks ended November 22, 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 November 22, 1997 were $13.1 million
above the projections contained in the Form 8-K dated August 7, 1997
(the "Plan"). EBITDA (as defined in Exhibit 20) was $1.6 million better
than Plan and $2.8 million better than last year.
Sales for the forty-three weeks ended November 22, 1997 were $3.0
million below Plan. EBITDA was $10.9 million better than Plan and $10.0
million better than last year.
In November, the Company recorded a charge of $1.6 million to provide
for the closing of two (2) stores in early 1998. The $1.6 million charge
consists of a $1.0 million store closing charge and a $0.6 million charge
for the write-down of inventory in the closing stores.
As of November 22, 1997, merchandise inventories were $10.5 million
above Plan. Trade payables were $7.7 million above Plan and borrowings
under the Company's revolving line of credit were $26.0 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, July 26, 1997 and October 25, 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 INFORMATION
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AND EXHIBITS
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Exhibit: 20 Financial Summary Results for the Four and Forty-three Weeks
Ended November 22, 1997
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
----------- ------- --------
20 Financial Summary Results for the Four 6
and Forty-three Weeks Ended November 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
Dated: December 3, 1997 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: December 3, 1997 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: December 3, 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
NOVEMBER RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
November, 1997 Fiscal 1997 Year-to-Date
-------------------------- -----------------------------
Last Last
Actual Plan (a) Year Actual Plan (a) Year
-------- -------- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INCOME SUMMARY:
Net Sales $239.5 $226.4 $223.0 $1,703.3 $1,706.3 $1,677.7
FIFO Margin $ 66.8 62.6 61.4 476.4 464.3 456.1
Margin % 27.9% 27.7% 27.5% 28.0% 27.2% 27.2%
Total Expenses (51.2) (48.4) (48.4) (457.9) (456.4) (447.4)
Other Income 2.8 2.6 2.6 22.9 22.6 22.7
-------- -------- -------- --------- --------- ---------
EBITDA 18.4 16.8 15.6 41.4 30.5 31.4
Dep and Amort (net) (0.7) (0.8) (0.4) (6.7) (6.6) (4.1)
Net Interest Expense (1.3) (1.7) (1.9) (10.7) (13.0) (17.2)
Other Income (Expense) - - (0.1) (0.1) - 0.1
Store Closing Charge (1.6) - - (1.6) - -
Non-Cash Income Tax Provision (5.0) (4.9) (4.2) (7.6) (3.7) (3.3)
-------- -------- -------- --------- --------- ---------
Net Income $9.8 $9.4 $9.0 $14.7 $7.2 $6.9
======== ======== ======== ========= ========= =========
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 $29.2 $37.7 $30.4
Merchandise Inventories, FIFO 566.1 555.6 542.0
Other Current Assets 83.0 73.7 77.6
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Total Current Assets 678.3 667.0 650.0
Net Fixed Assets 82.5 82.5 63.6
Other Long-Term Assets 6.4 4.0 4.4
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Total Assets $767.2 $753.5 $718.0
========= ========= =========
Trade Accounts Payable $250.6 $242.9 $224.2
Short-Term Debt (Revolver) 114.0 140.0 123.4
Other Current Liabilities 176.5 164.9 177.1
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Total Current Liabilities 541.1 547.8 524.7
Long-Term Debt 9.3 9.3 12.7
Other Long-Term Liabilities 35.3 31.0 32.3
Unfavorable Lease Liability 15.6 14.9 17.3
Fresh-start Excess Net Assets (Negative Goodwill) 31.2 31.3 37.4
Paid-In-Capital 100.3 92.2 84.3
Retained Earnings 34.4 27.0 9.3
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Total Stockholders' Equity 134.7 119.2 93.6
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Total Liabilities & Equity $767.2 $753.5 $718.0
========= ========= =========
<FN>
(a) As reported on Form 8-K dated August 7, 1997
NOTE: EBITDA is earnings (loss) before net interest expense, income taxes,
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
NOVEMBER RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
Fiscal 1997 Year-to-Date
------------------------
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 14.7 7.2
Non-Cash Income Tax Provision 7.6 3.7
Other 7.1 5.8
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Cash Provided by Operations 29.4 16.7
Changes in Working Capital:
FIFO Inventory Increase (175.0) (164.5)
Trade Payables Increase 104.8 97.2
All Other (30.8) (46.8)
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Net Changes in Working Capital (101.0) (114.1)
Capital Expenditures (29.3) (31.8)
Other:
Short-Term Borrowings (Payments)- Revolver, net 114.0 140.0
Capital Lease Payments (2.4) (2.2)
Long-Term Debt Payments (11.2) (11.2)
Store Closing and Other (16.4) (5.8)
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Total Other 84.0 120.8
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Decrease in Cash & Cash Equivalents (16.9) (8.4)
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Ending Cash & Cash Equivalents $29.2 $37.7
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<FN>
(a) As reported on Form 8-K dated August 7, 1997
Page 7 of 7
</TABLE>
