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): February 27, 1997
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(February 27, 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 06067-0801
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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 3<PAGE>
ITEM 5: OTHER EVENTS
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Beginning on February 27, 1997, Ames Department Stores, Inc.
(the "Company") will distribute to its banks and other lenders,
principal trade vendors and factors, summaries of its financial
plan (referred to herein as the "Plan") for the fiscal year ending
January 31, 1998 ("Fiscal 1997"). The Plan is attached hereto as
Exhibit 20 and is incorporated by reference herein.
The Company is distributing the Plan to its banks and other
lenders, principal trade vendors and factors to facilitate their
credit analyses. The Plan SHOULD NOT BE RELIED UPON FOR ANY
OTHER PURPOSE and should be read in conjunction with the
Company's Form 10-K to be filed in April, 1997 for the fiscal year
ended January 25, 1997 ("Fiscal 1996"). The 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 Plan
and currently 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 may cease making such disclosures
and updates at any time. Moreover, the Company does not believe
that it is obligated to update the Plan to reflect subsequent events
or developments.
The 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 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 Company's control.
Consequently, the 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 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
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INFORMATION AND EXHIBITS
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Exhibit: 20 Fiscal 1997 Summary Financial Plan
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
20 Fiscal 1997 Summary Financial Plan 5
<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: February 25, 1997 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: February 25, 1997 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: February 25, 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.
CONDENSED INCOME STATEMENT
MANAGEMENT FORMAT
FISCAL 1997 PLAN
($ 000's)
<CAPTION> EXHIBIT 20
Page 1 of 3
FISCAL 1997 PLAN (a)
FOR MONTH ENDING
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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 $158,554 $191,489 $175,047 $222,272 $375,150 $137,337 $2,216,237
Gross
Margin $ 30,960 44,414 39,885 46,476 55,748 41,983 41,387 51,704 49,818 60,978 103,186 36,993 603,532
Gross
Margin % 24.72% 25.82% 28.61% 29.09% 27.27% 26.98% 26.10% 27.00% 28.46% 27.43% 27.51% 26.94% 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 2,891 2,297 2,615 3,652 1,599 27,828
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EBITDA (c) (7,623) (1,461) 1,481 5,176 6,228 1,375 (212) 2,680 6,697 15,199 45,286 (11,460) 63,366
Depr & Amort (442) (561) (526) (597) (753) (662) (708) (841) (743) (762) (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) 168 759 25 (1,430) (4,336) (14,676) 4,397 (13,665)
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Net Inc(Loss) ($5,627) ($1,953) ($59) $2,186 $2,688 ($325) ($1,470) ($49) $2,771 $8,403 $28,440 ($8,525) $26,480
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<FN>
Note: In each of the fourth quarters of 1995 and 1996, the Company recorded a charge for the impact of closing certain stores.
The Company is not aware of any additional stores to be closed at this time and, therefore, no store closing charge is
included in the 1997 plan. The Company will continue to monitor the performance of individual stores and may close
additional stores in the fututre.
(a) Fiscal 1997 is a 53-week year.
(b) Includes purchase discounts
(c) EBITDA is earnings (loss) before net interest expense, income taxes, LIFO expense, extraordinary or non-recurring
items (including certain store closing charges), depreciation and amortization, and gain or loss on sale of properties.
Page 5 of 7
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<TABLE>
AMES DEPARTMENT STORES, INC.
CONDENSED BALANCE SHEET
MANAGEMENT FORMAT
FISCAL 1997 PLAN
($ 000's)
<CAPTION> EXHIBIT 20
Page 2 of 3
FOR MONTH ENDING
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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 $31,972 $24,752 $25,726 $35,094 $85,499 $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 40,745 47,484 54,594 73,730 28,656 29,179
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Total Current Assets 474,049 523,475 543,410 541,093 504,368 516,568 569,502 607,297 651,022 664,376 514,167 480,590
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 4,218 4,140 4,060 3,981 4,252 4,174
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Total Assets $541,656 $592,995 $616,012 $616,076 $580,506 $595,421 $651,240 $690,195 $736,082 $750,896 $602,311 $570,195
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Liabilities
Current Liabilities:
Trade acc'ts pay. $144,401 $164,996 $171,021 $167,152 $147,978 $166,454 $198,723 $184,149 $233,104 $241,337 $190,312 $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. 171,421 172,100 165,015 162,627 159,525 152,153 159,658 159,219 154,244 164,897 165,203 164,049
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Total Current Liabs. 340,822 397,096 421,036 419,779 382,503 398,607 458,381 498,368 542,348 546,234 355,515 338,613
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 31,475 31,247 31,020 30,791 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 32,775 32,184 31,710 31,237 30,645 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 91,844 106,521 102,123
Retained earnings 14,101 12,148 12,089 14,275 16,963 16,638 15,168 15,119 17,890 26,293 54,733 46,208
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Total Share. Equity 102,558 100,605 100,546 102,732 105,420 105,095 103,625 103,576 106,347 118,137 161,254 148,331
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Total Liab. & Equity $541,656 $592,995 $616,012 $616,076 $580,506 $595,421 $651,240 $690,195 $736,082 $750,896 $602,311 $570,195
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Page 6 of 7
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<TABLE>
AMES DEPARTMENT STORES, INC.
CONDENSED CASH FLOW
MANAGEMENT FORMAT
FISCAL 1997 PLAN
($ 000's)
<CAPTION> EXHIBIT 20
Page 3 of 3
FOR MONTH ENDING
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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 $31,972 $24,752 $25,726 $35,094 $85,499 $46,119
Cash generated from
(used in) operations:
Net income (loss) (5,627) (1,953) (59) 2,186 2,688 (325) (1,470) (49) 2,771 8,403 28,440 (8,525) 26,480
Noncash income tax
expense (benefit) (2,904) (1,008) (30) 1,128 1,386 (168) (759) (25) 1,430 4,336 14,676 (4,397) 13,665
Other 358 477 442 513 669 579 624 758 659 679 802 814 7,374
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Cash from operations: (8,173) (2,484) 353 3,827 4,743 86 (1,605) 684 4,860 13,418 43,918 (12,108) 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 32,269 (14,574) 48,955 8,233 (51,025)(15,748) 28,827
All other (8,892) (3,067) (1,118) (2,970) 2,356 (6,866) 1,216 (5,640)(12,958) (8,874) 46,695 (1,695) (1,813)
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Net changes in work cap (34,085)(21,195)(18,146) 1,396 9,529 (4,282) (5,281)(58,490) 356 14,509 151,210 (29,563) 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) (610) (621) (559) (560) (910) (559) (7,291)
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Total Other 16,696 32,300 24,196 4,198 (16,700) 4,196 19,165 53,258 (784)(15,785)(141,894) (1,720)(22,874)
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Inc (dec)in cash & equiv (26,704) 5,478 2,243 5,889 (5,007) (3,929) 7,883 (7,220) 974 9,368 50,405 (46,220) (6,840)
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Ending cash & equiv $19,415 $24,893 $27,136 $33,025 $28,018 $24,089 $31,972 $24,752 $25,726 $35,094 $85,499 $39,279 $39,279
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Page 7 of 7
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