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): November 6,1997
- -------------------------------------------------------------------
(November 6,1997)
-----------------
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<PAGE>
ITEM 5: OTHER EVENTS
------------
Beginning on November 6,1997, 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 thirty-nine
weeks ended October 25, 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 October 25, 1997 were $2.0 million
above the projections contained in the Form 8-K dated August 7, 1997
(the "Plan"). EBITDA (as defined in Exhibit 20) was $0.9 million better
than Plan and $2.4 million better than last year.
Sales for the thirty-nine weeks ended October 25, 1997 were $16.3
million below Plan. EBITDA was $9.2 million better than Plan and $7.2
million better than last year.
As of October 25, 1997, merchandise inventories were $14.5
million above Plan. Trade payables were $7.0 million above Plan and
borrowings under the Company's revolving line of credit were $17.3
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 August 7, 1997 and the Company's Form 10-Qs for the fiscal
quarters ended April 26, 1997 and July 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 INFORMATION
-----------------------------------------------------
AND EXHIBITS
------------
Exhibit: 20 Financial Summary Results for the Four
and Thirty-nine Weeks Ended October 25, 1997
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
----------- ------- --------
20 Financial Summary Results for the Four 6
and Thirty-nine Weeks Ended October 25, 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.
----------------------------
Registrant
Dated: November 5, 1997 By: /s/ Joseph R. Ettore
------------------------------
Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: November 5, 1997 By: /s/ John F. Burtelow
------------------------------
John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: November 5, 1997 By: /s/ Gregory D. Lambert
------------------------------
Gregory D. Lambert
Senior Vice President,
Finance
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
OCTOBER RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
October, 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 $178.4 $176.4 $174.1 $1,463.7 $1,480.0 $1,454.7
FIFO Margin $ 51.6 49.5 48.7 409.6 401.8 394.8
Margin % 28.9% 28.1% 28.0% 28.0% 27.1% 27.1%
Total Expenses (46.6) (45.4) (46.2) (406.7) (408.0) (399.0)
Other Income 2.3 2.3 2.4 20.1 20.0 20.0
-------- -------- -------- --------- --------- ---------
EBITDA 7.3 6.4 4.9 23.0 13.8 15.8
Dep and Amort (net) (1.1) (0.7) (0.4) (5.9) (5.8) (3.7)
Net Interest Expense (1.4) (1.8) (2.0) (9.4) (11.3) (15.3)
Other Income (Expense) - - - (0.1) - 0.2
Non-Cash Income Tax
(Provision) Benefit (1.6) (1.3) (0.7) (2.6) 1.1 0.9
-------- -------- -------- --------- --------- ---------
Net Income (Loss) $3.2 $2.6 $1.8 $5.0 ($2.2) ($2.1)
======== ======== ======== ========= ========= =========
Balance at End of Period
-----------------------------
Last
Actual Plan (a) Year
--------- --------- ---------
BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $18.7 $24.2 $20.6
Merchandise Inventories, LIFO 585.2 570.7 558.7
Other Current Assets 61.7 54.8 60.7
--------- --------- ---------
Total Current Assets 665.6 649.7 640.0
Net Fixed Assets 82.4 81.0 63.6
Other Long-Term Assets 6.6 4.1 4.8
--------- --------- ---------
Total Assets $754.6 $734.8 $708.4
========= ========= =========
Trade Accounts Payable $239.2 $232.2 $218.4
Short-Term Debt (Revolver) 137.7 155.0 141.5
Other Current Liabilities 165.9 154.2 166.6
--------- --------- ---------
Total Current Liabilities 542.8 541.4 526.5
Long-Term Debt 9.3 9.3 12.6
Other Long-Term Liabilities 35.4 31.3 32.7
Unfavorable Lease Liability 15.7 15.1 17.4
Fresh-start Excess Net Assets (Negative Goodwill) 31.7 31.7 37.9
Paid-In-Capital 95.1 88.5 81.0
Retained Earnings (Deficit) 24.6 17.5 0.3
--------- --------- ---------
Total Stockholders' Equity 119.7 106.0 81.3
--------- --------- ---------
Total Liabilities & Equity $754.6 $734.8 $708.4
========= ========= =========
<FN>
(a) As reported on Form 8-K dated August 7, 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 sale of properties.
Page 6 of 7
</TABLE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
OCTOBER RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
Fiscal 1997 Year-to-Date
------------------------
Actual Plan (a)
--------- ---------
<S> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $46.1 $46.1
Cash Flow from Operations:
Net Income (Loss) 5.0 (2.2)
Non-Cash Income Tax Provision (Benefit) 2.6 (1.1)
Other 5.7 5.0
--------- ---------
Cash Provided by (Used in) Operations 13.3 1.7
Changes in Working Capital:
FIFO Inventory (Increase) Decrease (194.2) (179.6)
Trade Payables Increase (Decrease) 93.4 86.4
All Other (20.0) (37.9)
--------- ---------
Net Changes in Working Capital (120.8) (131.1)
Capital Expenditures (28.0) (29.0)
Other:
Short-Term Borrowings (Payments)- Revolver 137.7 155.0
Capital Lease Payments (2.2) (2.0)
Long-Term Debt Payments (11.2) (11.2)
Store Closing and Other (16.2) (5.3)
--------- ---------
Total Other 108.1 136.5
--------- ---------
Increase (Decrease) in Cash & Cash Equivalents (27.4) (21.9)
--------- ---------
Ending Cash & Cash Equivalents $18.7 $24.2
========= =========
<FN>
(a) As reported on Form 8-K dated August 7, 1997
Page 7 of 7
</TABLE>
