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): July 10, 1997
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(July 10, 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 July 10, 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
five and twenty-two weeks ended June 28, 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 five weeks ended June 28, 1997 were $6.0
million below the projections contained in the Form 8-K dated
February 27, 1997 (the "Plan"). EBITDA (as defined in Exhibit 20)
was $1.8 million better than Plan and $2.6 million better than last
year.
Sales for the twenty-two weeks ended June 28, 1997
were $17.2 million below Plan. EBITDA was $5.1 million
better than Plan and $1.3 million better than last year.
As of June 28, 1997, merchandise inventories were $10.6
million below Plan. Trade payables were $6.5 million below
Plan and borrowings under the Company's revolving line of
credit were $0.1 million above 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 Five
and Twenty-two Weeks Ended June 28, 1997
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
- ----------- --------- -------------
20 Financial Summary Results for the Five 6
and Twenty-two Weeks Ended June 28, 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: July 9, 1997 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: July 9, 1997 By: /s/ John F. Burtelow
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John F. Burtelow
Executive Vice President,
Chief Financial Officer
Dated: July 9, 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
JUNE RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
June, 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 $198.4 $204.4 $195.0 $783.6 $800.8 $788.0
FIFO Margin $ 54.8 55.7 53.4 218.8 217.5 215.4
Margin % 27.6% 27.3% 27.4% 27.9% 27.2% 27.3%
Total Expenses (49.9) (52.4) (50.8) (220.6) (224.3) (218.4)
Other Income 3.1 2.9 2.8 10.7 10.6 10.6
-------- -------- -------- --------- --------- ---------
EBITDA 8.0 6.2 5.4 8.9 3.8 7.6
Dep and Amort (net) (0.7) (0.7) (0.4) (2.8) (2.9) (2.0)
Net Interest Exp (1.2) (1.4) (1.8) (4.6) (5.1) (7.8)
Other Inc (Exp) - - 0.1 (0.1) - 0.3
Non-Cash Income Tax (2.1) (1.4) (1.0) (0.5) 1.4 0.6
(Provision) Benefit
-------- -------- -------- --------- --------- ---------
Net Income (Loss) $4.0 $2.7 $2.3 $0.9 ($2.8) ($1.3)
======== ======== ======== ========= ========= =========
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 $33.9 $28.0 $20.5
Merchandise Inventories, LIFO 431.5 442.1 451.4
Other Current Assets 40.1 34.2 42.1
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Total Current Assets 505.5 504.3 514.0
Net Fixed Assets 71.9 71.8 60.8
Other Long-Term Assets 8.3 4.4 6.1
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Total Assets $585.7 $580.5 $580.9
========= ========= =========
Trade Accounts Payable $141.5 $148.0 $130.6
Short-Term Debt (Revolver) 75.1 75.0 98.5
Other Current Liabilities 164.8 159.5 164.9
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Total Current Liabilities 381.4 382.5 394.0
Long-Term Debt 9.2 9.2 13.2
Other Long-Term Liabilities 33.6 33.5 33.8
Unfavorable Lease Liability 16.4 16.1 18.0
Fresh-start Excess Net Assets (Negative Goodwill) 33.7 33.7 39.9
Paid-In-Capital 90.9 88.5 81.0
Retained Earnings (Deficit) 20.5 17.0 1.0
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Total Stockholders' Equity 111.4 105.5 82.0
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Total Liabilities & Equity $585.7 $580.5 $580.9
========= ========= =========
<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
JUNE 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) 0.9 (2.8)
Non-Cash Income Tax Provision (Benefit) 0.5 (1.4)
Other 2.7 2.5
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Cash Provided by (Used in) Operations 4.1 (1.7)
Changes in Working Capital:
FIFO Inventory (Increase) Decrease (40.4) (51.0)
Trade Payables Increase (Decrease) (4.2) 2.2
All Other (11.3) (13.7)
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Net Changes in Working Capital (55.9) (62.5)
Capital Expenditures (14.3) (14.6)
Other:
Short-Term Borrow.(Pymnts)- Revolver 75.1 75.0
Capital Lease Payments (1.2) (1.1)
Long-Term Debt Payments (10.3) (10.3)
Store Closing and Other (9.7) (2.9)
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Total Other 53.9 60.7
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Increase (Decrease) in Cash & Cash Equivalents (12.2) (18.1)
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Ending Cash & Cash Equivalents $33.9 $28.0
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<FN>
(a) As reported on Form 8-K dated February 27, 1997
Page 7 of 7
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