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): June 3, 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>
Item 5: OTHER EVENTS
Beginning July 7, 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 June 3, 1995
(fiscal May), together with projected financial information for similar periods
as contained in the Company's plan for the year ending January 27, 1996 (the
"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 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 conjunc-
tion with the Company's Form 10-K for fiscal 1994 and Form 10-Q for the first
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 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 June 8, 1995.
Item 7: PROJECTIONS, FINANCIAL STATEMENTS
Exhibit: 20 Unaudited financial results for the five weeks and
18 weeks ended June 3, 1995 (fiscal May)
<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: July 6, 1995 By:/s/ Jeanette R. Peters
Jeanette R. Peters
Senior Vice President
Chief Financial Officer
<PAGE>
Exhibit 20
Page 1 of 4
ROSE'S STORES, INC. MAY INCOME STATEMENTS
(Amounts in 000's)
<TABLE>
<CAPTION>
1995 1995 | 1994
MAY MAY | MAY
ACTUAL PLAN | ACTUAL
<S> <C> <C> | <C>
|
Gross Sales 67,905 66,711 | 67,437
Less: Lease department sales 2,310 2,373 | 2,406
Net Sales 65,595 64,338 | 65,031
|
FIFO Gross Margin 15,890 16,444 | 16,181
% to Sales 24.22% 25.56% | 24.88%
|
Leased Department Income 475 466 | 392
SG&A 15,364 15,455 | 15,018
________________________________________________________________________________|____________
EBITDA - PRE-LIFO 1,001 1,455 | 1,555
________________________________________________________________________________|____________
Depreciation & Amortization (265) (256) | 795
Interest Expense 604 480 | 643
LIFO Expense (Benefit) 50 100 | 82
Reorganization Costs - - | 1,677
Non-cash Income Tax Expense (Benefit) 233 430 | -
________________________________________________________________________________|____________
NET INCOME (LOSS) 379 701 | (1,642)
________________________________________________________________________________|____________
Note (1): The 1995 actual and planned results are for 106 stores. 1994 actual results
are for 113 stores.
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 periods prior to
May, 1995. The Fresh Start accounting reduces depreciation and amortization
expense by approximately $960 a period.
Note (3): The Company believes that it is critical to be in stock on advertised merchandise
and has significantly improved its in stock position. This has resulted in higher
promotional sales; however, this has also resulted in higher promotional markdowns
with a corresponding decrease in gross margin.
</TABLE>
<PAGE>
Exhibit 20
Page 2 of 4
ROSE'S STORES, INC. MAY YTD INCOME STATEMENTS
(Amounts in 000's)
<TABLE>
<CAPTION>
1995 1995 | 1994
MAY MAY | MAY
YTD YTD | YTD
ACTUAL PLAN | ACTUAL
<S> <C> <C> | <C>
|
Gross Sales 227,312 226,118 | 242,020
Less: Lease department sales 7,427 7,490 | 7,920
Net Sales 219,885 218,628 | 234,100
|
FIFO Gross Margin 52,978 53,532 | 58,726
% to Sales 24.09% 24.49% | 25.09%
|
Leased Department Income 1,589 1,580 | 1,692
SG&A 50,850 50,941 | 55,199
________________________________________________________________________________|____________
EBITDA - PRE-LIFO 3,717 4,171 | 5,219
________________________________________________________________________________|____________
Depreciation & Amortization 1,547 1,556 | 3,270
Interest Expense 1,330 1,206 | 2,427
LIFO Expense (Benefit) (314) (264) | 254
Reorganization Costs 3,847 3,847 | 60,458
Non-cash Income Tax Expense (Benefit) 233 430 | -
________________________________________________________________________________|____________
NET INCOME (LOSS) (2,926) (2,604) | (61,190)
________________________________________________________________________________|____________
Note (1): The 1995 actual and planned results are for 106 stores. 1994 actual results
are for 113 stores.
Note (2): Reorganization Costs for 1994 included a $55,000 provision to close 59 stores in
the second quarter of 1994.
Note (3): 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 periods prior
to May, 1995. The Fresh Start accounting reduces depreciation and amortization
expense by approximately $960 a period.
</TABLE>
<PAGE>
Exhibit 20
Page 3 of 4
ROSE'S STORES, INC. BALANCE SHEETS
(Amounts in 000's)
<TABLE>
<CAPTION>
1995 1995 | 1994
MAY MAY | MAY
ACTUAL PLAN | ACTUAL
<S> <C> <C> | <C>
ASSETS |
CASH 639 700 | 2,311
INVENTORIES 186,209 178,765 | 211,913
OTHER CURRENT ASSETS 18,330 17,210 | 27,533
_______ _______ | ______
TOTAL CURRENT ASSETS 205,178 196,675 | 241,757
|
NET PROPERTY 273 772 | 40,002
|
LONG TERM ASSETS - - | 7,048
|
TOTAL ASSETS 205,451 197,447 | 288,807
======= ======= | =======
|
LIABILITIES & EQUITY |
ACCOUNTS PAYABLE 29,750 29,379 | 27,731
SHORT-TERM DEBT 67,639 65,143 | 12,350
OTHER CURRENT LIABILITIES 33,657 27,994 | 72,135
_______ _______ | _______
TOTAL CURRENT LIABILITIES 131,046 122,516 | 112,216
|
PRE-PETITION CLAIMS - - | 212,587
EXCESS OF ASSETS OVER VALUE 31,755 31,755 | -
OTHER LIABILITIES 5,614 5,631 | 7,302
DEFERRED INCOME 1,424 1,414 | 1,797
STOCKHOLDERS' EQUITY (DEFICIT) 35,612 36,131 | (45,095)
|
TOTAL DEBT & EQUITY 205,451 197,447 | 288,807
======= ======= | =======
Note (1): The 1995 actual and planned inventories are for 113 stores, including
7 that will be closed during the second quarter of 1995. The 1994
inventories are for 172 stores, including 59 stores that were closed in
the second quarter of 1994.
Note (2): 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.
</TABLE>
<PAGE>
Exhibit 20
Page 4 of 4
ROSE'S STORES, INC. MAY YTD CHANGES IN CASH
(Amounts in 000's)
<TABLE>
<CAPTION>
1995 1995 | 1994
MAY MAY | MAY
YTD YTD | YTD
ACTUAL PLAN | ACTUAL
<S> <C> <C> | <C>
|
Net earnings (loss) (2,926) (2,604) | (61,190)
Closed store provision - - | 55,000
Non-cash income tax expense (benefit) 233 430 | -
Other 1,232 1,229 | 3,214
_______ _______ | _______
CASH PROVIDED (USED) BY OPERATIONS |
BEFORE ASSET & LIABILITY CHANGES (1,461) (945) | (2,976)
|
(Inc.) dec. in Inventories (41,210) (33,314) | (9,017)
Inc. (dec.) in Accounts Payable 6,242 6,098 | (12,570)
All other (7,936) (6,688) | 10,850
_______ _______ | _______
CASH PROVIDED (USED) BY OPERATIONS (44,365) (34,849) | (13,713)
|
INVESTING ACTIVITIES (779) (1,187) | 271
|
FINANCING ACTIVITIES |
Proceeds (payments) of pre-petition claims (28,891) (33,016) | (7,750)
Proceeds (payments) of short-term debt 67,039 64,543 | 12,350
Capital lease payments (332) (393) | (801)
Other 6,617 4,252 | (1)
_______ _______ | _______
CASH PROVIDED (USED) BY FINANCING 44,433 35,386 | 3,798
|
(DECREASE) INCREASE IN CASH (711) (650) | (9,644)
======== ======== | ========
Note (1): The 1995 actual and planned net losses are for 106 stores. The 1994 actual
net loss is for 113 stores.
Note (2): 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>
