FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 2, 1995
ROSE'S STORES, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
0-631 56-0382475
(Commission File Number) (IRS Employer Identification No.)
218 S. Garnett Street
Henderson, North Carolina 27536
(Address of principal executive offices) (Zip Code)
(919) 430-2600
(Registrant's telephone number, including area code)
PAGE
<PAGE>
Item 5: OTHER EVENTS
Beginning December 28, 1995, the Company will distribute to its banks and
other lenders, principal trade vendors and factors, the monthly and year-to-
date financial results and other financial data for the period ended December
2, 1995 (fiscal November), together with projected financial information for
similar periods as contained in the Company's revised plan for the year ending
January 27, 1996 (the "Revised Plan"). Such financial results are attached
hereto as Exhibit 20, and are incorporated by reference herein.
Such financial monthly results and other financial data and information
concerning the Revised Plan are being reported publicly solely because they are
being distributed to a large number of the Company's principal trade vendors,
banks, and other lenders and factors to facilitate their credit analyses. These
results should not be relied upon for any other purpose and should be read in
conjunction with the Company's Form 10-K for fiscal 1994 and Forms 10-Q for the
first quarter, second quarter, and third quarter of 1995. Although the Company
is publicly reporting its monthly results during fiscal 1995, the Company does
not believe it is obligated to provide such information indefinitely and may
cease making such disclosures and updates at any time. Moreover, the Company
does not believe that it is obligated to update monthly results to reflect
subsequent events or developments.
For information concerning the Revised Plan, including the limitations
thereof and certain assumptions made in its formulation, reference is made to
the Company's Current Report on Form 8-K, dated September 2, 1995.
Item 7: PROJECTIONS, FINANCIAL STATEMENTS
Exhibit: 20 Unaudited financial results for the five weeks and
44 weeks ended December 2, 1995 (fiscal November)
<PAGE>
<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 hereunto duly authorized.
ROSE'S STORES, INC.
Date: December 28, 1995 By:/s/ Jeanette R. Peters
Jeanette R. Peters
Senior Vice President
Chief Financial Officer
PAGE
<PAGE>
Exhibit 20
Page 1 of 4
ROSE'S STORES, INC. NOVEMBER INCOME STATEMENTS
(Amounts in 000's)
<TABLE>
<CAPTION>
1995 1995 | 1994
NOVEMBER NOVEMBER | NOVEMBER
ACTUAL REV. PLAN| ACTUAL
|
<S> <C> <C> <C>
Gross Sales 85,206 86,894 | 89,912
Less: Lease department sales 2,346 2,738 | 2,845
Net Sales 82,860 84,156 | 87,067
|
FIFO Gross Margin 20,357 22,377 | 21,822
% to Sales 24.57% 26.59% | 25.06%
|
Leased Department Income 596 608 | 628
SG&A 15,206 15,865 | 14,452
_________________________________________________________________________________________
EBITDA - PRE-LIFO 5,747 7,120 | 7,998
_________________________________________________________________________________________
Depreciation & Amortization Expense (Benefit) (332) (324) | 721
Interest Expense 794 878 | 456
LIFO Expense (Benefit) - - | (344)
Reorganization Costs (Benefit) - - | 1,769
Non-cash Income Tax Expense (Benefit) 1,679 1,994 | -
________________________________________________________________________________________
NET INCOME (LOSS) 3,606 4,572 | 5,396
________________________________________________________________________________________
Note (1): The Company currently operates 105 stores compared to 113 last year.
Note (2): Beginning in May, 1995, the income statements reflect the application of Fresh
Start accounting as described in the Company's quarterly report on Form 10-Q,
dated April 29, 1995, and are therefore not comparable to the prior year.
</TABLE>
PAGE
<PAGE>
Exhibit 20
Page 2 of 4
ROSE'S STORES, INC. NOVEMBER YTD INCOME STATEMENTS
(Amounts in 000's)
<TABLE>
<CAPTION>
1995 1995 | 1994
NOVEMBER NOVEMBER | NOVEMBER
YTD YTD | YTD
ACTUAL REV. PLAN| ACTUAL
|
<S> <C> <C> <C>
Gross Sales 576,038 577,854 | 618,257
Less: Lease department sales 18,222 18,931 | 20,815
Net Sales 557,816 558,923 | 597,442
|
FIFO Gross Margin 135,740 138,123 | 146,709
% to Sales 24.33% 24.71% | 24.56%
|
Leased Department Income 4,028 4,040 | 4,326
SG&A 130,145 131,346 | 133,352
____________________________________________________________________________________________
EBITDA - PRE-LIFO 9,623 10,817 | 17,683
____________________________________________________________________________________________
Depreciation & Amortization Expense (Benefit) (167) (37) | 7,829
Interest Expense 5,194 5,429 | 5,381
LIFO Expense (Benefit) (364) (364) | (2,423)
Reorganization Costs (69,644) (69,644) | 56,515
Non-cash Income Tax Expense (Benefit) 1,679 1,994 | -
____________________________________________________________________________________________
NET INCOME (LOSS) 72,925 73,439 | (49,619)
____________________________________________________________________________________________
Note (1): The Company currently operates 105 stores compared to 113 last year.
Note (2): Beginning in May 1995, the income statements reflect the application of Fresh
Start accounting as described in the Company's quarterly report on Form 10-Q,
dated April 29, 1995, and are therefore not comparable to the prior year. If the
Company had emerged from Chapter 11 at the beginning of the year, the application
of Fresh Start accounting would have resulted in year-to-date net income on a
pro forma basis of approximately $3,832.
Note (3): Reorganization costs for 1995 include a gain on debt discharge of $90,924.
Reorganization costs for 1994 include a $43,000 provision to close 59 stores in
the second quarter of 1994.
</TABLE>
PAGE
<PAGE>
Exhibit 20
Page 3 of 4
ROSE'S STORES, INC. BALANCE SHEETS
(Amounts in 000's)
<TABLE>
<CAPTION>
1995 1995 | 1994
NOVEMBER NOVEMBER | NOVEMBER
ACTUAL REV. PLAN| ACTUAL
<S> <C> <C> <C>
ASSETS |
CASH 748 3,000 | 3,563
INVENTORIES 191,466 194,897 | 159,857
OTHER CURRENT ASSETS 20,667 22,575 | 34,764
_______ _______ | ______
TOTAL CURRENT ASSETS 212,881 220,472 | 198,184
|
NET PROPERTY 4,476 4,662 | 35,746
|
LONG TERM ASSETS - - | 6,719
|
TOTAL ASSETS 217,357 225,134 | 240,649
======= ======= | =======
|
LIABILITIES & EQUITY |
ACCOUNTS PAYABLE 34,398 37,609 | 37,523
SHORT-TERM DEBT 71,821 76,995 | 29,615
OTHER CURRENT LIABILITIES 26,004 21,581 | 31,746
_______ _______ | _______
TOTAL CURRENT LIABILITIES 132,223 136,185 | 98,884
|
PRE-PETITION CLAIMS - - | 166,241
EXCESS OF ASSETS OVER VALUE 38,730 42,051 | -
OTHER LIABILITIES 5,900 5,597 | 6,920
DEFERRED INCOME 1,086 1,054 | 2,127
STOCKHOLDERS' EQUITY (DEFICIT) 39,418 40,247 | (33,523)
|
TOTAL DEBT & EQUITY 217,357 225,134 | 240,649
======= ======= | =======
Note (1): The 1995 balance sheets reflect the application of Fresh Start accounting as
described in the Company's quarterly report on Form 10-Q, dated April 29, 1995,
and are therefore not comparable to the prior year.
Note (2): The 1995 actual and planned inventories are for 106 stores. The 1994
inventories are for 113 stores and include a reserve for LIFO that was written
off as part of Fresh Start accounting.
</TABLE>
PAGE
<PAGE>
Exhibit 20
Page 4 of 4
ROSE'S STORES, INC. NOVEMBER YTD CHANGES IN CASH
(Amounts in 000's)
<TABLE>
<CAPTION>
1995 1995 | 1994
NOVEMBER NOVEMBER | NOVEMBER
YTD YTD | YTD
ACTUAL REV. PLAN| ACTUAL
<S> <C> <C> <C>
|
Net earnings (loss) 72,925 73,439 | (49,619)
Closed store provision - - | 43,000
Non-cash income tax expense (benefit) 1,679 1,994 | -
Non-cash fresh start adjustments (73,491) (73,491) | -
Other (542) (404) | 5,128
_______ _______ | _______
CASH PROVIDED (USED) BY OPERATIONS |
BEFORE ASSET & LIABILITY CHANGES 571 1,538 | (1,491)
|
(Inc.) dec. in Inventories (46,628) (50,059) | 45,716
Inc. (dec.) in Accounts Payable 11,117 14,328 | (1,277)
All other (15,956) (16,569) | (21,228)
_______ _______ | _______
CASH PROVIDED (USED) BY OPERATIONS (50,896) (50,762) | 21,720
|
INVESTING ACTIVITIES (4,663) (4,986) | (712)
|
FINANCING ACTIVITIES |
Proceeds (payments) of pre-petition claims (30,249) (30,163) | (57,240)
Proceeds (payments) of short-term debt 71,221 76,395 | 29,615
Capital lease payments (566) (574) | (1,775)
Other 14,551 11,740 | -
_______ _______ | _______
CASH PROVIDED (USED) BY FINANCING 54,957 57,398 | (29,400)
|
(DECREASE) INCREASE IN CASH (602) 1,650 | (8,392)
======== ======== | ========
Note (1): Beginning in May, 1995, the cash flows reflect the application of Fresh Start
accounting as described in the Company's quarterly report on Form 10-Q, dated
April 29, 1995, and are therefore not comparable to the periods prior to May,
1995.
</TABLE>
