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): October 28, 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)
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Item 5: OTHER EVENTS
Beginning December 1, 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 October
28, 1995 (fiscal October), 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 and second 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 four weeks and
39 weeks ended October 28, 1995 (fiscal October)
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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 1, 1995 By: /s/ Jeanette R. Peters
Jeanette R. Peters
Senior Vice President
Chief Financial Officer
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Exhibit 20
Page 1 of 4
<TABLE>
<CAPTION>
ROSE'S STORES, INC. OCTOBER INCOME STATEMENTS
(Amounts in 000's)
1995 1995 | 1994
OCTOBER OCTOBER | OCTOBER
ACTUAL REV. PLAN| ACTUAL
<S> <C> <C> <C>
Gross Sales 50,291 50,650 | 54,406
Less: Lease department sales 1,562 1,746 | 1,881
Net Sales 48,729 48,904 | 52,525
|
FIFO Gross Margin 12,326 12,538 | 13,741
% to Sales 25.29% 25.64% | 26.16%
|
Leased Department Income 352 354 | 380
SG&A 12,238 12,335 | 11,968
_________________________________________________________________________________________
EBITDA - PRE-LIFO 440 557 | 2,153
_________________________________________________________________________________________
Depreciation & Amortization Expense (Benefit) (335) (229) | 722
Interest Expense 614 742 | 441
LIFO Expense (Benefit) - - | (298)
Reorganization Costs (Benefit) - - | 1,190
Non-cash Income Tax Expense (Benefit) - - | -
________________________________________________________________________________________
NET INCOME (LOSS) 161 44 | 98
________________________________________________________________________________________
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>
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Exhibit 20
Page 2 of 4
<TABLE>
<CAPTION>
ROSE'S STORES, INC. OCTOBER YTD INCOME STATEMENTS
(Amounts in 000's)
1995 1995 | 1994
OCTOBER OCTOBER | OCTOBER
YTD YTD | YTD
ACTUAL REV. PLAN| ACTUAL
|
<S> <C> <C> <C>
Gross Sales 490,832 490,960 | 528,345
Less: Lease department sales 15,876 16,193 | 17,970
Net Sales 474,956 474,767 | 510,375
|
FIFO Gross Margin 115,383 115,746 | 124,887
% to Sales 24.29% 24.38% | 24.47%
|
Leased Department Income 3,432 3,432 | 3,698
SG&A 114,939 115,481 | 118,900
____________________________________________________________________________________________
EBITDA - PRE-LIFO 3,876 3,697 | 9,685
____________________________________________________________________________________________
Depreciation & Amortization Expense (Benefit) 165 287 | 7,108
Interest Expense 4,400 4,551 | 4,925
LIFO Expense (Benefit) (364) (364) | (2,079)
Reorganization Costs (69,644) (69,644) | 54,746
Non-cash Income Tax Expense (Benefit) - - | -
____________________________________________________________________________________________
NET INCOME (LOSS) 69,319 68,867 | (55,015)
____________________________________________________________________________________________
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
proforma basis of approximately $599.
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>
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Exhibit 20
Page 3 of 4
<TABLE>
<CAPTION>
ROSE'S STORES, INC. BALANCE SHEETS
(Amounts in 000's)
1995 1995 | 1994
OCTOBER OCTOBER | OCTOBER
ACTUAL REV. PLAN| ACTUAL
ASSETS |
<S> <C> <C> <C>
CASH 609 650 | 620
INVENTORIES 200,206 200,705 | 164,841
OTHER CURRENT ASSETS 22,682 23,864 | 36,954
_______ _______ | ______
TOTAL CURRENT ASSETS 223,497 225,219 | 202,415
|
NET PROPERTY 3,647 4,109 | 36,297
|
LONG TERM ASSETS - - | 6,719
|
TOTAL ASSETS 227,144 229,328 | 245,431
======= ======= | =======
|
LIABILITIES & EQUITY |
ACCOUNTS PAYABLE 35,441 35,059 | 33,505
SHORT-TERM DEBT 81,657 87,298 | 34,975
OTHER CURRENT LIABILITIES 29,791 24,221 | 33,505
_______ _______ | _______
TOTAL CURRENT LIABILITIES 146,889 146,578 | 101,985
|
PRE-PETITION CLAIMS - - | 173,248
EXCESS OF ASSETS OVER VALUE 39,073 42,422 | -
OTHER LIABILITIES 5,906 5,526 | 6,888
DEFERRED INCOME 1,143 1,121 | 2,229
STOCKHOLDERS' EQUITY (DEFICIT) 34,133 33,681 | (38,919)
|
TOTAL DEBT & EQUITY 227,144 229,328 | 245,431
======= ======= | =======
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.
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Exhibit 20
Page 4 of 4
<TABLE>
<CAPTION>
ROSE'S STORES, INC. OCTOBER YTD CHANGES IN CASH
(Amounts in 000's)
1995 1995 | 1994
OCTOBER OCTOBER | OCTOBER
YTD YTD | YTD
ACTUAL REV. PLAN| ACTUAL
|
<S> <C> <C> <C>
Net earnings (loss) 69,319 68,867 | (55,015)
Closed store provision - - | 43,000
Non-cash income tax expense (benefit) - - | -
Non-cash fresh start adjustments (73,491) (73,491) | -
Other (203) (80) | 4,751
_______ _______ | _______
CASH PROVIDED (USED) BY OPERATIONS |
BEFORE ASSET & LIABILITY CHANGES (4,375) (4,704) | (7,264)
|
(Inc.) dec. in Inventories (55,368) (55,867) | 40,388
Inc. (dec.) in Accounts Payable 12,160 11,778 | (6,257)
All other (17,640) (18,316) | (22,267)
_______ _______ | _______
CASH PROVIDED (USED) BY OPERATIONS (65,223) (67,109) | 4,600
|
INVESTING ACTIVITIES (3,830) (4,486) | (542)
|
FINANCING ACTIVITIES |
Proceeds (payments) of pre-petition claims (29,784) (30,003) | (49,179)
Proceeds (payments) of short-term debt 81,057 86,698 | 34,975
Capital lease payments (536) (540) | (1,634)
Other 17,575 14,740 | 445
_______ _______ | _______
CASH PROVIDED (USED) BY FINANCING 68,312 70,895 | (15,393)
|
(DECREASE) INCREASE IN CASH (741) (700) | (11,335)
======== ======== | ========
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.
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