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): January 8,1998
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(January 8,1998)
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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 1 of 7 (Including Exhibits)
<PAGE>
Item 5: OTHER EVENTS
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Beginning on January 8,1998, 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
forty-eight weeks ended December 27, 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 December 27, 1997 were $11.0
million above the projections contained in the Form 8-K dated August
7, 1997 (the "Plan"). EBITDA (as defined in Exhibit 20) was $2.0
million better than Plan and $3.7 million better than last year.
Sales for the forty-eight weeks ended December 27, 1997 were
$7.9 million above Plan. EBITDA was $12.8 million better than Plan
and $13.7 million better than last year.
As of December 27, 1997, merchandise inventories were $5.9
million above Plan. Trade payables were $13.3 million above Plan.
There were no borrowings outstanding under the Company's revolving
line of credit.
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 Forms 10-Q
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.
2 of 7
<PAGE>
For the past several years, the Company has voluntarily filed
Forms 8-K disclosing its monthly results. The Company has
consistently indicated that it might cease making such disclosures
at any time. The Company has now determined that, effective
immediately, it will discontinue making such monthly disclosures of
its financial results. The Company will of course continue to make
all required filings, including annual, quarterly and periodic
reports.
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
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Exhibit: 20 Financial Summary Results for the Five
and Forty-eight Weeks Ended December 27, 1997
3 of 7
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Page No.
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20 Financial Summary Results for the Five 6
and Forty-eight Weeks Ended December 27, 1997.
4 of 7
<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: January 7, 1998 By: /s/ Joseph R. Ettore
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Joseph R. Ettore
President, Director, and
Chief Executive Officer
Dated: January 7, 1998 By: /s/ Gregory D. Lambert
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Gregory D. Lambert
Senior Vice President,
Finance
Dated: January 7, 1998 By: /s/ Mark von Mayrhauser
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Mark von Mayrhauser
Vice President, Controller
5 of 7
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<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
DECEMBER RESULTS VS. PLAN Page 1 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
December, 1997 Fiscal 1997 Year-to-Date
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Last Last
Actual Plan (a) Year Actual Plan (a) Year
-------- -------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INCOME SUMMARY:
- ---------------
Net Sales $386.4 $375.4 $368.0 $2,089.6 $2,081.7 $2,045.7
FIFO Margin $ 106.8 101.8 101.2 583.2 566.2 557.3
Margin % 27.6% 27.1% 27.5% 27.9% 27.2% 27.2%
Total Expenses (64.5) (61.6) (62.7) (522.4) (517.9) (510.1)
Other Income 3.6 3.7 3.7 26.5 26.2 26.4
-------- -------- -------- --------- --------- ---------
EBITDA 45.9 43.9 42.2 87.3 74.5 73.6
Dep and Amort (net) (0.9) (0.9) (0.5) (7.6) (7.5) (4.6)
Net Interest Expense (0.8) (1.3) (1.4) (11.5) (14.3) (18.5)
Other Income (Expense) - - - (0.1) - 0.1
Store Closing Charge - - - (1.6) - -
Extraordinary Item, net of tax - - (1.3) - - (1.3)
Non-Cash Income Tax Provision (16.1) (14.2) (11.7) (23.7) (17.9) (15.0)
------- ------- ------- -------- -------- --------
Net Income $28.1 $27.5 $27.3 $42.8 $34.8 $34.3
======= ======= ======= ======== ======== ========
Balance at End of Period
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Last
Actual Plan (a) Yr
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BALANCE SHEET SUMMARY:
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Cash and Cash Equivalents $113.1 $88.3 $95.9
Merchandise Inventories, FIFO 405.9 400.0 389.1
Other Current Assets 40.3 28.7 33.2
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Total Current Assets 559.3 517.0 518.2
Net Fixed Assets 83.2 83.9 64.0
Other Long-Term Assets 6.5 4.2 4.8
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Total Assets $649.0 $605.1 $587.0
======== ======== ========
Trade Accounts Payable $206.8 $193.5 $172.8
Short-Term Debt (Revolver) - - -
Other Current Liabilities 172.5 165.2 183.7
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Total Current Liabilities 379.3 358.7 356.5
Long-Term Debt 9.2 9.4 12.3
Other Long-Term Liabilities 35.3 30.8 32.2
Unfavorable Lease Liability 15.5 14.7 17.2
Fresh-start Excess Net Assets (Negative Goodwill) 30.6 30.6 36.8
Paid-In-Capital 116.6 106.4 95.4
Retained Earnings 62.5 54.5 36.6
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Total Stockholders' Equity 179.1 160.9 132.0
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Total Liabilities & Equity $649.0 $605.1 $587.0
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<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
</FN>
</TABLE>
<PAGE>
<TABLE>
AMES DEPARTMENT STORES, INC. Exhibit 20
DECEMBER RESULTS VS. PLAN Page 2 of 2
MANAGEMENT FORMAT
(Unaudited)
(In Millions)
<CAPTION>
Fiscal 1997 Year-to-Date
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Actual Plan (a)
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<S> <C> <C>
CASH FLOW SUMMARY:
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Beginning Cash & Cash Equivalents $46.1 $46.1
Cash Flow from Operations:
Net Income 42.8 34.8
Non-Cash Income Tax Provision 23.7 17.9
Other 8.0 6.6
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Cash Provided by Operations 74.5 59.3
Changes in Working Capital:
FIFO Inventory Increase (14.8) (8.9)
Trade Payables Increase 61.1 47.7
All Other 9.0 (0.1)
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Net Changes in Working Capital 55.3 38.7
Capital Expenditures (31.4) (34.6)
Other:
Short-Term Borrowings (Payments)- Revolver, net - -
Capital Lease Payments (2.6) (2.5)
Long-Term Debt Payments (12.1) (12.0)
Store Closing and Other (16.7) (6.7)
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Total Other (31.4) (21.2)
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Increase in Cash & Cash Equivalents 67.0 42.2
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Ending Cash & Cash Equivalents $113.1 $88.3
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<FN>
(a) As reported on Form 8-K dated August 7, 1997
Page 7 of 7
</FN>
</TABLE>
