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): September 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)
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Item 5: OTHER EVENTS
Beginning June 9, 1995, the Company distributed to its banks and other
lenders, principal trade vendors and factors summaries of its financial plan
(referred to herein as the "Plan") for the year ending January 27, 1996 (fiscal
1995). Beginning October 6, 1995, the Company will distribute to its principal
trade vendors and factors revisions to the Plan (the Plan, as so revised, is
referred to herein as the "Revised Plan") for fiscal 1995. The Revised Plan is
attached hereto as Exhibit 20 and is incorporated by reference herein.
The Revised Plan reflects the actual results through August, 1995 and,
beginning with April 28, 1995, reflects the application of the provisions of
the American Institute of Certified Public Accountant's Statement of Position
90-7, "Financial Reporting by Entities in Reorganization under the Bankruptcy
Code" ("SOP 90-7"). For further discussion of the effect of the application of
SOP 90-7 (sometimes called "Fresh Start Accounting"), see the Company's Quarter-
ly Report on Form 10-Q/A for the quarter ended April 29, 1995. As a result of
the application of Fresh Start Accounting the results of operations and changes
in cash flows commencing May 1995 and the balance sheets beginning with April
1995 are not comparable to the financial information for prior periods.
The Revised Plan is being reported publicly solely because it is being
distributed to a large number of the Company's principal trade vendors, banks,
and other lenders and factors to facilitate their credit analyses. The Revised
Plan should not be relied upon for any other purpose and should be read in con-
junction with the Company's Quarterly Report on Form 10-Q for the quarter ended
April 29, 1995 and Quarterly Report on Form 10-Q for the quarter ended July 29,
1995. Although the Company is publicly reporting the Plan and 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 obli-
gated to update the Revised Plan to reflect subsequent events or developments.
The Revised Plan was not prepared with a view toward compliance with guide-
lines established by the American Institute of Certified Public Accountants and
may not comply with the rules and regulations of the Securities and Exchange
Commission regarding financial projections. While presented with numerical
specificity, the Revised Plan is based upon a variety of assumptions that may
not be realized and is subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond the Company's control.
Consequently, the Revised Plan should not be regarded as a representation or
warranty by the Company, or any other person, that the forecasts contained
therein will be realized. Actual results may vary materially from those
presented in the Revised Plan.
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The Company and its bank group have agreed to amend the EBITDA covenants for
the remainder of fiscal 1995 in the Company's $125,000,000 Working Capital
Facility (the "Facility"). Prior to the amendment, the Facility included one
quarter/two quarter EBITDA tests for the end of October 1995 and the end of
January 1996. These have been replaced by the following year-to-date EBITDA
covenants:
Year-to-date through EBITDA must be not
the last day of: not less than:
October 1995 $ 2,800,000
November 1995 9,500,000
December 1995 20,700,000
January 1996 12,000,000
Item 7: PROJECTIONS, FINANCIAL STATEMENTS
Exhibit 20 Fiscal 1995 Summary Revised Financial Plan
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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 under-
signed hereunto duly authorized.
ROSE'S STORES, INC.
Date: October 6, 1995 By:/s/ Jeanette R. Peters
Jeanette R. Peters
Senior Vice President
Chief Financial Officer
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<PAGE>
Exhibit 20
Page 1 of 6
<TABLE>
<CAPTION>
ROSE'S STORES, INC.
1995 ACTUAL SPRING INCOME STATEMENTS
Condensed Management Format
- -----------------------------------------------------------------------------------------
(Amounts in 000's) | Note (1)
ACTUAL ACTUAL ACTUAL | ACTUAL ACTUAL ACTUAL
FEB MAR APR | MAY JUNE JULY SPRING
<S> <C> <C> <C> <C> <C> <C> <C>
----------------------------|-------------------------------------
Gross Sales 52,373 49,793 57,242 | 67,905 50,550 50,032 327,895
Less: Leased Sales 1,510 1,648 1,959 | 2,310 1,798 1,656 10,881
-----------------------------------------------------------------
Net Sales 50,863 48,145 55,283 | 65,595 48,752 48,376 317,014
|
FIFO Gross Margin 12,142 11,069 13,877 | 15,890 12,500 11,863 77,341
% TO SALES 23.87% 22.99% 25.10% | 24.22% 25.64% 24.52% 24.40%
|
Leased Dept Income 366 348 400 | 475 353 350 2,292
SG&A 12,236 11,395 11,855 | 15,364 12,609 12,623 76,082
- -----------------------------------------------------------------------------------------
EBITDA - PRE-LIFO 272 22 2,422 | 1,001 244 (410) 3,551
- -----------------------------------------------------------------------------------------
Depreciation & |
Amortization 621 605 586 | (265) (264) (262) 1,021
Interest Expense 280 212 234 | 604 542 572 2,444
LIFO Expense (Benefit) (131) (108) (125) | 50 (50) 0 (364)
Reorganization Cost 967 1,050 (71,661) | 0 0 0 (69,644)
Non-cash Income Tax |
Expense (Benefit) 0 0 0 | 233 6 (239) 0
|
- -----------------------------------------------------------------------------------------
NET INCOME (LOSS) (1,465) (1,737) 73,388 | 379 10 (481) 70,094
- -----------------------------------------------------------------------------------------
Note (1): The Company adopted Fresh Start accounting
effective April 28, 1995 as described in the
Company's Quarterly Report on Form 10-Q/A for
quarter ended April 29, 1995. Accordingly, the
income statements commencing May 1995 are not
comparable to prior periods.
</TABLE>
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<PAGE>
Exhibit 20
Page 2 of 6
<TABLE>
<CAPTION>
ROSE'S STORES, INC.
1995 ACTUAL AND PROJECTED FALL INCOME STATEMENTS
Condensed Management Format
- -------------------------------------------------------------------------------------------
(Amounts in 000's)
ACTUAL PROJ PROJ PROJ PROJ PROJ
AUG SEPT OCT NOV DEC JAN FALL ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------
Gross Sales 64,659 47,756 50,650 86,894 98,629 37,420 386,008 713,903
Less: Leased Sales 2,085 1,481 1,746 2,738 2,643 896 11,589 22,470
---------------------------------------------------------------------------
Net Sales 62,574 46,275 48,904 84,156 95,986 36,524 374,419 691,433
FIFO Gross Margin 13,712 12,155 12,538 22,377 24,636 3,317 88,735 166,076
% TO SALES 21.91% 26.27% 25.64% 26.59% 25.67% 9.08% 23.70% 24.02%
Leased Dept Income 452 334 354 608 691 261 2,700 4,992
SG&A 14,470 12,594 12,335 15,865 13,345 12,531 81,140 157,222
- ------------------------------------------------------------------------------------------------
EBITDA - PRE-LIFO (306) (105) 557 7,120 11,982 (8,953) 10,295 13,846
- ------------------------------------------------------------------------------------------------
Depreciation &
Amortization (261) (244) (229) (324) (314) (304) (1,676) (655)
Interest Expense 702 663 742 878 442 325 3,752 6,196
LIFO Expense (Benefit) 0 0 0 0 0 0 0 (364)
Reorganization Cost 0 0 0 0 0 0 0 (69,644)
Non-cash Income Tax
Expense (Benefit) 0 0 0 1,994 4,504 (3,410) 3,088 3,088
- ------------------------------------------------------------------------------------------------
NET INCOME (LOSS) (747) (524) 44 4,572 7,350 (5,564) 5,131 75,225
- ------------------------------------------------------------------------------------------------
</TABLE>
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<PAGE>
Exhibit 20
Page 3 of 6
<TABLE>
<CAPTION>
ROSE'S STORES, INC.
1995 ACTUAL SPRING BALANCE SHEETS
Condensed Management Format
- -------------------------------------------------------------------------------------------
(Amounts in 000's) | Note (1)
ACTUAL ACTUAL | ACTUAL ACTUAL ACTUAL ACTUAL
FEB MAR | APR MAY JUNE JULY
------------------|-----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS |
CASH 629 625 | 622 639 646 641
INVENTORIES 134,891 148,152 | 185,129 186,209 181,842 178,551
OTHER CURRENT ASSETS 23,719 26,750 | 17,451 16,984 14,974 17,307
----------------------------------------------------------
TOTAL CURRENT ASSETS 159,239 175,527 | 203,202 203,832 197,462 196,499
|
NET PROPERTY 34,216 33,072 | 0 273 678 1,566
|
LONG TERM ASSETS 3,428 3,257 | 0 0 0 0
|
TOTAL ASSETS 196,883 211,856 | 203,202 204,105 198,140 198,065
==========================================================
LIABILITIES & EQUITY |
ACCOUNTS PAYABLE 31,023 35,249 | 37,642 29,750 25,598 26,717
SHORT TERM DEBT 9,125 21,100 | 58,654 67,639 70,947 72,094
OTHER CURRENT LIABILITIES 28,261 26,095 | 32,790 32,311 27,510 26,223
----------------------------------------------------------
TOTAL CURRENT LIABILITIES 68,409 82,444 | 129,086 129,700 124,055 125,034
|
PRE-PETITION CLAIMS 156,525 159,286 | 0 0 0 0
|
EXCESS OF ASSETS OVER VALUE 0 0 | 32,021 31,755 31,488 31,221
|
OTHER LIABILITIES 6,674 6,655 | 5,614 5,614 5,601 5,590
DEFERRED INCOME 1,926 1,859 | 1,481 1,424 1,368 1,312
|
STOCKHOLDERS' EQUITY (36,651) (38,388)| 35,000 35,612 35,628 34,908
|
TOTAL DEBT & EQUITY 196,883 211,856 | 203,202 204,105 198,140 198,065
==========================================================
Note (1): The Company adopted Fresh Start accounting
effective April 28, 1995 as described in the
Company's Quarterly Report on Form 10-Q/A for
the quarter ended April 29, 1995. Accordingly,
the balance sheets beginning with April 1995
are not comparable to prior periods.
</TABLE>
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<PAGE>
Exhibit 20
Page 4 of 6
<TABLE>
<CAPTION>
ROSE'S STORES, INC.
1995 ACTUAL AND PROJECTED FALL BALANCE SHEETS
Condensed Management Format
- ----------------------------------------------------------------------------------------
(Amounts in 000's)
ACTUAL PROJ PROJ PROJ PROJ PROJ
AUG SEPT OCT NOV DEC JAN
---------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
CASH 654 650 650 3,000 3,000 700
INVENTORIES 178,992 189,424 200,705 194,897 158,514 158,022
OTHER CURRENT ASSETS 16,668 20,766 23,864 22,575 12,228 13,502
---------------------------------------------------------
TOTAL CURRENT ASSETS 196,314 210,840 225,219 220,472 173,742 172,224
NET PROPERTY 2,368 3,246 4,109 4,662 5,205 5,738
LONG TERM ASSETS 0 0 0 0 0 0
TOTAL ASSETS 198,682 214,086 229,328 225,134 178,947 177,962
=========================================================
LIABILITIES & EQUITY
ACCOUNTS PAYABLE 25,948 30,362 35,059 37,609 29,985 20,847
SHORT TERM DEBT 77,744 87,465 87,298 76,995 26,836 44,969
OTHER CURRENT LIABILITIES 23,036 25,091 24,221 21,581 21,690 21,251
---------------------------------------------------------
TOTAL CURRENT LIABILITIES 126,728 142,918 146,578 136,185 78,511 87,067
PRE-PETITION CLAIMS 0 0 0 0 0 0
EXCESS OF ASSETS OVER VALUE 30,954 30,688 42,422 42,051 41,680 41,309
OTHER LIABILITIES 5,584 5,655 5,526 5,597 5,668 5,539
DEFERRED INCOME 1,255 1,188 1,121 1,054 987 920
STOCKHOLDERS' EQUITY 34,161 33,637 33,681 40,247 52,101 43,127
TOTAL DEBT & EQUITY 198,682 214,086 229,328 225,134 178,947 177,962
=========================================================
</TABLE>
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Exhibit 20
Page 5 of 6
<TABLE>
<CAPTION>
ROSE'S STORES, INC.
1995 ACTUAL SPRING CHANGES IN CASH
Condensed Management Format
- ----------------------------------------------------------------------------------------------
(Amounts in 000's) | Note (1)
ACTUAL ACTUAL ACTUAL | ACTUAL ACTUAL ACTUAL
FEB MAR APR | MAY JUNE JULY SPRING
----------------------------|-------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net earnings (loss) (1,465) (1,737) 73,388 | 379 10 (481) 70,094
Non-cash income tax |
expense (benefit) 0 0 0 | 233 6 (239) 0
Non-cash fresh-start |
adjustments 0 0 (73,491)| 0 0 0 (73,491)
Other 489 497 461 | (215) (314) (263) 655
----------------------------|-------------------------------------
CASH PROV.(USED) BY OPERATIONS |
BEFORE ASSET/LIABILITY CHG (976) (1,240) 358 | 397 (298) (983) (2,742)
|
(Inc.) dec. in Inventories (15,193) (13,153) (11,945)| (1,130) 4,417 3,291 (33,713)
Inc. (dec.) in AP 7,631 4,226 2,504 | (7,892) (4,152) 1,119 3,436
All other (2,650) (2,691) (2,353)| (258) 2,049 (4,608)(10,511)
----------------------------|-------------------------------------
CASH PROV. (USED) BY |
OPERATIONS (11,188) (12,858) (11,436)| (8,883) 2,016 (1,181)(43,530)
|
INVESTING ACTIVITIES (146) (67) (292)| (274) (408) (892) (2,079)
|
FINANCING ACTIVITIES |
Proceeds (payments) |
pre-petition claims 51 (11) (28,056)| (875) (139) (358)(29,388)
Proceeds (payments) of |
short-term debt 8,525 11,975 37,554 | 8,985 3,308 1,147 71,494
Capital Lease payments (109) (94) (78)| (51) (49) (63) (444)
Other 2,146 1,051 2,305 | 1,115 (4,721) 1,342 3,238
----------------------------|------------------------------------
CASH PROV.(USED) BY FINANCE 10,613 12,921 11,725 | 9,174 (1,601) 2,068 44,900
|
(DEC.) INC. IN CASH (721) (4) (3)| 17 7 (5) (709)
============================|====================================
Note (1): The Company adopted Fresh Start accounting effective
April 28, 1995 as described in the Company's Quarterly
Report on Form 10-Q/A for quarter ended April 29,
1995. Accordingly, the change in cash flows beginning
with May 1995 are not comparable to prior periods.
</TABLE>
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<PAGE>
Exhibit 20
Page 6 of 6
<TABLE>
<CAPTION>
ROSE'S STORES, INC.
1995 ACTUAL AND PROJECTED FALL CHANGES IN CASH
Condensed Management Format
- ---------------------------------------------------------------------------------------------
(Amounts in 000's)
ACTUAL PROJ PROJ PROJ PROJ PROJ
AUG SEPT OCT NOV DEC JAN FALL ANNUAL
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net earnings (loss) (747) (524) 44 4,572 7,350 (5,564) 5,131 75,225
Non-cash income tax
expense (benefit) 0 0 0 1,994 4,504 (3,410) 3,088 3,088
Non-cash fresh-start
adjustments 0 0 0 0 0 0 0 (73,491)
Other (262) (244) (229) (324) (314) (304) (1,677) (1,022)
-----------------------------------------------------------------------
CASH PROV.(USED) BY
OPERATIONS BEFORE
ASSET/LIABILITY CHG (1,009) (768) (185) 6,242 11,540 (9,278) 6,542 3,800
(Inc.) dec. in Inventories (441) (10,432) (11,281) 5,808 36,383 492 20,529 (13,184)
Inc. (dec.) in AP (769) 4,414 4,697 2,550 (7,624) (9,138) (5,870) (2,434)
All other (1,617) (2,137) (4,051) 1,747 10,561 (1,837) 2,666 (7,845)
-----------------------------------------------------------------------
CASH PROV. (USED) BY
OPERATIONS (3,836) (8,923) (10,820) 16,347 50,860 (19,761) 23,867 (19,663)
INVESTING ACTIVITIES (807) (800) (800) (500) (500) (507) (3,914) (5,993)
FINANCING ACTIVITIES
Proceeds (payments)
pre-petition claims (122) (313) (180) (160) (166) (129) (1,070)(30,458)
Proceeds (payments)
of short-term debt 5,650 9,721 (167) (10,303) (50,159) 18,133 (27,125) 44,369
Capital lease payments (31) (32) (33) (34) (35) (36) (201) (645)
Other (841) 343 12,000 (3,000) 0 0 8,502 11,740
-----------------------------------------------------------------------
CASH PROV.(USED) BY
FINANCE 4,656 9,719 11,620 (13,497) (50,360) 17,968 (19,894) 25,006
(DEC.) INC. IN CASH 13 (4) 0 2,350 0 (2,300) 59 (650)
======================================================================
</TABLE>
