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): April 11, 1997
---------------------------------------------------------------------
(April 11, 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 06067-0801
------------------------------------------ -----------
(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 April 11, 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 nine
weeks ended March 29, 1997. These monthly and year-to-date
results (collectively, the "monthly results") are attached hereto as
Exhibit 20 and is incorporated by reference herein.
Sales for the four weeks ended March 29, 1997 were $4.2
million above the projections contained in the Form 8-K dated
February 27, 1997 (the "Plan"). EBITDA was $0.4 million better
than Plan and even with last year.
Sales for the nine weeks ended March 29, 1997 were $3.3
million above Plan. EBITDA was $2.0 million better than Plan and
$0.9 better than last year.
As of March 29, 1997, merchandise inventories were $11.3
million below Plan. Trade payables were $6.7 million below Plan
and borrowings under the Company's revolving line of credit were
$8.2 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 and the Company's Form 8-K dated February 27, 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 Nine Weeks Ended March 29, 1997
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
- ----------- -------- --------
20 Financial Summary Results for the Four 6
and Nine Weeks Ended March 29, 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: April 10, 1997 By: /s/ Joseph R. Ettore
---------------------------
Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: April 10, 1997 By: /s/ John F. Burtelow
---------------------------
John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: April 10, 1997 By: /s/ Gregory D. Lambert
----------------------------
Gregory D. Lambert
Senior Vice President,
Finance
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
MARCH RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
March, 1997 Fiscal 1997 Yearto-Date
Last Last
Actual Plan(a) Yr Actual Plan(a) Yr
<S> <C> <C> <C> <C> <C> <C>
INCOME SUMMARY:
Net Sales $176.2 $172.0 $167.6 $300.6 $297.3 $296.5
FIFO Margin $ 44.9 44.4 44.7 76.9 75.4 75.4
Margin % 25.5% 25.8% 26.7% 25.6% 25.4% 25.4%
Total Expenses (48.1) (48.0) (47.8) (87.7) (88.0) (86.9)
Other Income 2.2 2.2 2.1 3.7 3.5 3.5
---------------------------------------------------
EBITDA (1.0) (1.4) (1.0) (7.1) (9.1) (8.0)
Depreciation and Amort (net) (0.6) (0.6) (0.5) (1.0) (1.0) (0.8)
Net Interest Expense (0.9) (0.9) (1.4) (1.4) (1.4) (2.7)
Other Inc (Exp), Incl LIFO (0.1) - - (0.2) - -
Non-Cash Inc Tax Ben (Exp) 0.9 1.0 0.9 3.3 3.9 3.4
---------------------------------------------------
Net Income (Loss) ($1.7) ($1.9) ($2.0) ($6.4) ($7.6) ($8.1)
===================================================
Balance at End of Period
Last
Actual Plan (a) Yr
---------------------------
BALANCE SHEET SUMMARY:
Cash and Cash Equivalents $22.9 $24.9 $20.0
Merchandise Inventories, LIFO 442.4 453.7 444.0
Other Current Assets 43.3 44.9 43.2
---------------------------
Total Current Assets 508.6 523.5 507.2
Net Fixed Assets 63.7 64.9 57.4
Long-Term Assets 7.4 4.6 5.6
---------------------------
Total Assets $579.7 $593.0 $570.2
===========================
Trade Accounts Payable $158.3 $165.0 $155.6
Short-Term Debt (Revolver) 51.8 60.0 58.6
Other Current Liabilities 170.7 172.1 172.8
---------------------------
Total Current Liabilities 380.8 397.1 387.0
Long-Term Debt 10.3 9.2 13.3
Other Long-Term Liabilities 34.0 34.2 34.9
Unfavorable Lease Liability 16.8 16.7 18.4
Fresh-start Excess Net Assets (Negative Goodwill) 35.3 35.2 41.4
Paid-In-Capital 89.3 88.5 81.0
Retained Earnings (Deficit) 13.2 12.1 (5.8)
---------------------------
Total Stockholders' Equity 102.5 100.6 75.2
---------------------------
Total Liabilities & Equity $579.7 $593.0 $570.2
===========================
<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
MARCH RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
Mar YTD 1997
Actual Plan (a)
<S> <C> <C>
CASH FLOW SUMMARY:
Beginning Cash & Cash Equivalents $46.1 $46.1
Cash from Operations:
Net Income (Loss) (6.4) (7.6)
Non-Cash Income Tax Exp (Ben) (3.3) (3.9)
Other 1.0 0.9
------------------
Cash Provided by (Used in) Operations (8.7) (10.6)
Changes in Working Capital:
FIFO Inventory (increase) decrease (51.4) (62.6)
Trade Payables increase (decrease) 12.5 19.3
All Other (10.0) (12.0)
------------------
Net Changes in Working Capital (48.9) (55.3)
Capital Expenditures (3.0) (4.3)
Other:
Short-Term Borrow.(Pymnts)- Revolver 51.8 60.0
Capital Lease Payments (0.5) (0.4)
Long-Term Debt Payments (8.2) (9.4)
Store Closing and Other (5.7) (1.2)
------------------
Total Other 37.4 49.0
------------------
Increase (Decrease) in Cash & Cash Equivalents (23.2) (21.2)
------------------
Ending Cash & Cash Equivalents $22.9 $24.9
==================
<FN>
(a)As reported on Form 8-K dated February 27, 1997
Page 7 of 7
</TABLE>
