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): April 29, 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
On April 26, 1995, Roses Stores, Inc. (the "Company") filed with the
Securities and Exchange Commission its annual report on Form 10K for fiscal year
ended January 28, 1995 (fiscal 1994). On May 1, 1995, the Company announced that
it had satisfied all conditions required under its plan of reorganization and
had emerged from chapter 11 of the United States Bankruptcy Code on April 28,
1995. Beginning June 9, 1995, the Company will distribute 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). The Plan is attached as Exhibit 20 and is incorporated by reference
herein.
The Plan reflects the actual results for the first quarter and beginning
with April 28, 1995, reflects the application of the provisions of the American
Institute of Certified Public Accountants' Statement of Position 90-7,"Financial
Reporting by Entities in Reorganization under the Bankruptcy Code" ("SOP 90-
7"). The application of SOP 90-7 (sometimes called "Fresh Start Accounting")
changed the Company's basis of accounting for financial reporting purposes.
Specifically, SOP 90-7 required the adjustment of the Company's assets and
liabilities to reflect their estimated fair market value at the effective date
of the Company's reorganization. At the same time, the Company made certain
reclassifications between gross margin and expenses and changed the method
of accruing certain expenses between periods. Accordingly, the results of
operations and changes in cash flows commencing May, 1995 and the balance sheets
beginning with April, 1995 will not be comparable to the financial information
for prior periods.
The 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 credit analyses. The
Plan 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. 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 obligated to update the Plan
to reflect subsequent events or developments.
The Plan was not prepared with a view toward compliance with guidelines
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 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 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
Plan.
<PAGE>
Item 7: PROJECTIONS, FINANCIAL STATEMENTS
Exhibit 20 Fiscal 1995 Summary Financial Plan
<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: May , 1995 By: /s/ Jeanette R. Peters
Jeanette R. Peters
Senior Vice President
Chief Financial Officer
<PAGE>
<PAGE>
Exhibit 20
Page 1 of 6
ROSE'S STORES, INC.
1995 ACTUAL AND PROJECTED SPRING INCOME STATEMENTS
Condensed Management Format
(Amounts in 000's)
<TABLE>
<CAPTION>
Note (1) Note (2)
ACTUAL ACTUAL ACTUAL| PROJ PROJ PROJ
FEB MAR APR | MAY JUNE JULY SPRING
____________________________|_______________________________________
<S> <C> <C> <C> | <C> <C> <C> <C>
|
Gross Sales 52,373 49,793 57,241 | 66,711 50,262 52,060 328,440
Less: Leased Sales 1,510 1,648 1,959 | 2,373 1,979 1,764 11,233
___________________________|_______________________________________
Net Sales 50,863 48,145 55,282 | 64,338 48,283 50,296 317,207
|
FIFO Gross Margin 12,142 11,069 13,877 | 16,444 12,606 12,902 79,040
% TO SALES 23.87% 22.99% 25.10%| 25.56% 26.11% 25.65% 24.92%
|
Leased Dept Income 366 348 400 | 466 351 364 2,295
SG&A 12,236 11,395 11,855 | 15,455 12,715 13,024 76,680
__________________________________________________|______________________________________
EBITDA - PRE-LIFO 272 22 2,422 | 1,455 242 242 4,655
__________________________________________________|______________________________________
Depreciation & |
Amortization 621 605 586 | (256) (246) (236) 1,074
Interest Expense 280 212 234 | 480 507 515 2,228
LIFO Expense (Benefit) (131) (108) (125)| 100 100 100 (64)
Reorganization Cost 967 1,050 1,830 | 0 0 0 3,847
Non-cash Income Tax |
Expense (Benefit) 0 0 0 | 430 (45) (52) 333
__________________________________________________|______________________________________
NET INCOME (LOSS) (1,465) (1,737) (103)| 701 (74) (85) (2,763)
__________________________________________________|______________________________________
</TABLE>
Note (1): EBITDA for the first quarter was less than the Company's
prior projections by $468, primarily due to higher
than projected promotional markdowns.
Note (2): The Company adopted Fresh-Start accounting effective
April 28, 1995 as described in Note 2 to the Consolidated
Financial Statements filed on Form 10-K for year ended
January 28, 1995 (fiscal 1994). Accordingly, the results
of operations commencing May, 1995 will not be comparable
to prior periods.
<PAGE>
Exhibit 20
Page 2 of 6
ROSE'S STORES, INC.
1995 PROJECTED FALL INCOME STATEMENTS
Condensed Management Format
(Amounts in 000's)
<TABLE>
<CAPTION>
PROJ PROJ PROJ PROJ PROJ PROJ
AUG SEPT OCT NOV DEC JAN FALL ANNUAL
____________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross Sales 67,538 51,143 53,392 86,247 98,812 37,955 395,087 723,527
Less: Leased Sales 2,424 1,588 1,842 2,724 2,659 911 12,148 23,381
____________________________________________________________________________
Net Sales 65,114 49,555 51,550 83,523 96,153 37,044 382,939 700,146
FIFO Gross Margin 15,448 13,770 14,242 21,493 23,584 3,857 92,394 171,434
% TO SALES 23.72% 27.79% 27.63% 25.73% 24.53% 10.41% 24.13% 24.49%
Leased Dept Income 472 358 373 603 692 265 2,763 5,058
SG&A 14,679 12,915 12,558 16,441 15,091 11,513 83,197 159,877
_______________________________________________________________________________________________
EBITDA - PRE-LIFO 1,241 1,213 2,057 5,655 9,185 (7,391) 11,960 16,615
_______________________________________________________________________________________________
Depreciation &
Amortization (226) (216) (206) (196) (186) (176) (1,206) (132)
Interest Expense 651 557 630 795 416 275 3,324 5,552
LIFO Expense (Benefit) 100 100 100 100 100 100 600 536
Reorganization Cost 0 0 0 0 0 0 0 3,847
Non-cash Income Tax
Expense (Benefit) 272 293 583 1,883 3,365 (2,884) 3,512 3,845
_______________________________________________________________________________________________
NET INCOME (LOSS) 444 479 950 3,073 5,490 (4,706) 5,730 2,967
_______________________________________________________________________________________________
</TABLE>
<PAGE>
Exhibit 20
Page 3 of 6
ROSE'S STORES, INC.
1995 ACTUAL AND PROJECTED SPRING BALANCE SHEETS
Condensed Management Format
(Amounts in 000's)
<TABLE>
<CAPTION>
Note (1)
ACTUAL ACTUAL | ACTUAL PROJ PROJ PROJ
FEB MAR | APR MAY JUNE JULY
___________________|_______________________________________
<S> <C> <C> | <C> <C> <C> <C>
ASSETS |
CASH 629 625 | 622 700 700 700
INVENTORIES 134,891 148,152 | 185,129 178,765 171,014 168,329
OTHER CURRENT ASSETS 23,719 26,750 | 18,810 17,210 16,405 20,752
___________________|_______________________________________
TOTAL CURRENT ASSETS 159,239 175,527 | 204,561 196,675 188,119 189,781
|
NET PROPERTY 34,216 33,072 | 0 772 1,534 2,286
|
OTHER LONG TERM ASSETS 3,429 3,258 | 0 0 0 0
|
TOTAL ASSETS 196,884 211,857 | 204,561 197,447 189,653 192,067
===================|=======================================
|
LIABILITIES & EQUITY |
ACCOUNTS PAYABLE 31,023 35,249 | 37,642 29,379 26,094 28,067
SHORT TERM DEBT 9,125 21,100 | 58,654 65,143 62,695 62,528
OTHER CURRENT LIABILITIES 28,262 26,096 | 34,149 27,994 26,321 27,535
___________________|_______________________________________
TOTAL CURRENT LIABILITIES 68,410 82,445 | 130,445 122,516 115,110 118,130
|
PRE-PETITION CLAIMS 156,525 159,286 | 0 0 0 0
|
EXCESS OF ASSETS OVER VALUE 0 0 | 32,021 31,755 31,489 31,223
|
OTHER LIABILITIES 6,674 6,655 | 5,614 5,631 5,695 5,559
DEFERRED INCOME 1,926 1,859 | 1,481 1,414 1,347 1,280
|
STOCKHOLDERS' EQUITY (DEFICIT) (36,651) (38,388)| 35,000 36,131 36,012 35,875
|
TOTAL DEBT & EQUITY 196,884 211,857 | 204,561 197,447 189,653 192,067
===================|=======================================
</TABLE>
Note (1): The Company adopted Fresh-Start accounting effective
April 28, 1995 as described in Note 2 to the Consolidated
Financial Statements filed on Form 10-K for year ended
January 28, 1995 (fiscal 1994). Accordingly, the balance
sheets beginning with April, 1995 will not be comparable
to prior periods.
<PAGE>
Exhibit 20
Page 4 of 6
ROSE'S STORES, INC.
1995 PROJECTED FALL BALANCE SHEETS
Condensed Management Format
(Amounts in 000's)
<TABLE>
<CAPTION>
PROJ PROJ PROJ PROJ PROJ PROJ
AUG SEPT OCT NOV DEC JAN
___________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
ASSETS
CASH 700 700 700 3,000 3,000 700
INVENTORIES 166,527 177,936 190,792 187,055 144,573 143,919
OTHER CURRENT ASSETS 22,687 26,959 30,001 27,114 15,927 16,710
___________________________________________________________
TOTAL CURRENT ASSETS 189,914 205,595 221,493 217,169 163,500 161,329
NET PROPERTY 2,846 3,396 3,936 4,466 4,986 5,205
OTHER LONG TERM ASSETS 0 0 0 0 0 0
TOTAL ASSETS 192,760 208,991 225,429 221,635 168,486 166,534
===========================================================
LIABILITIES & EQUITY
ACCOUNTS PAYABLE 29,325 34,850 37,897 39,990 28,668 24,985
SHORT TERM DEBT 64,787 71,930 84,747 74,366 23,394 35,875
OTHER CURRENT LIABILITIES 24,264 27,324 26,834 26,641 27,200 24,509
___________________________________________________________
TOTAL CURRENT LIABILITIES 118,376 134,104 149,478 140,997 79,262 85,369
PRE-PETITION CLAIMS 0 0 0 0 0 0
EXCESS OF ASSETS OVER VALUE 30,957 30,691 30,425 30,159 29,893 29,627
OTHER LIABILITIES 5,623 5,687 5,551 5,615 5,679 5,543
DEFERRED INCOME 1,213 1,146 1,079 1,012 945 878
STOCKHOLDERS' EQUITY 36,591 37,363 38,896 43,852 52,707 45,117
TOTAL DEBT & EQUITY 192,760 208,991 225,429 221,635 168,486 166,534
===========================================================
</TABLE>
<PAGE>
Exhibit 20
Page 5 of 6
ROSE'S STORES, INC.
1995 ACTUAL AND PROJECTED SPRING CHANGES IN CASH
Condensed Management Format
(Amounts in 000's)
<TABLE>
<CAPTION>
Note (1)
ACTUAL ACTUAL ACTUAL | PROJ PROJ PROJ
FEB MAR APR | MAY JUNE JULY SPRING
______________________________|____________________________________
<S> <C> <C> <C> | <C> <C> <C> <C>
Net earnings (loss) (1,465) (1,737) (103) | 701 (74) (85) (2,763)
Non-cash income tax |
expense (benefit) 0 0 0 | 430 (45) (52) 333
Other 489 497 461 | (218) (208) (198) 823
_____________________________|_____________________________________
CASH PROV.(USED) BY OPERATIONS |
BEFORE ASSET/LIABILITY CHG (976) (1,240) 358 | 913 (327) (335) (1,607)
|
(Inc.) dec. in Inventories (15,193) (13,153) (11,945) | 6,977 7,651 2,585 (22,867)
Inc. (dec.) in AP 7,631 4,226 2,504 | (8,263) (3,285) 1,973 4,559
All other (2,650) (2,691) (2,353) | 1,006 (796) (3,260)(10,728)
_____________________________|____________________________________
CASH PROV. (USED) BY OPERATIONS (11,188) (12,858) (11,436) | 633 3,243 963 (30,643)
|
INVESTING ACTIVITIES (146) (67) (292) | (682) (682) (682) (2,551)
|
FINANCING ACTIVITIES |
Proceeds (payments) pre-petition |
claims 51 (11) (28,056) | (5,000) 0 0 (33,016)
Proceeds (payments) of short-term |
debt 8,525 11,975 37,554 | 6,489 (2,448) (167) 61,928
Capital Lease payments (109) (94) (78) | (112) (113) (114) (620)
Other 2,146 1,051 2,305 | (1,250) 0 0 4,252
_____________________________|____________________________________
CASH PROV.(USED) BY FINANCE 10,613 12,921 11,725 | 127 (2,561) (281) 32,544
|
(DEC.) INC. IN CASH (721) (4) (3) | 78 0 0 (650)
=============================|===================================
</TABLE>
Note (1): The Company adopted Fresh-Start accounting effective
April 28, 1995 as described in Note 2 to the Consolidated
Financial Statements filed on Form 10-K for year ended
January 28, 1995 (fiscal 1994). Accordingly, the change
in cash flows beginning with May, 1995 will not be
comparable to prior periods.
<PAGE>
Exhibit 20
Page 6 of 6
ROSE'S STORES, INC.
1995 PROJECTED FALL CHANGES IN CASH
Condensed Management Format
(Amounts in 000's)
<TABLE>
<CAPTION>
PROJ 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) 444 479 950 3,073 5,490 (4,706) 5,730 2,967
Non-cash income tax
expense (benefit) 272 293 583 1,883 3,365 (2,884) 3,512 3,845
Other (188) (178) (168) (158) (148) (138) (978) (155)
_________________________________________________________________________
CASH PROV.(USED) BY OPERATIONS
BEFORE ASSET/LIABILITY CHG 528 594 1,365 4,798 8,707 (7,728) 8,264 6,657
(Inc.) dec. in Inventories 1,702 (11,509) (12,956) 3,637 42,382 554 23,810 943
Inc. (dec.) in AP 1,258 5,525 3,047 2,093 (11,322) (3,683) (3,082) 1,477
All other (5,132) (3,137) (2,656) 4,771 11,824 (3,595) 2,075 (8,653)
_________________________________________________________________________
CASH PROV. (USED) BY
OPERATIONS (1,644) (8,527) (11,200) 15,299 51,591 (14,452) 31,067 424
INVESTING ACTIVITIES (500) (500) (500) (500) (500) (209) (2,709) (5,260)
FINANCING ACTIVITIES
Proceeds (payments) pre-petition
claims 0 0 0 0 0 0 0 (33,016)
Proceeds (payments) of short-term
debt 2,259 7,143 12,817 (10,381) (50,972) 12,481 (26,653) 35,275
Capital lease payments (115) (116) (117) (118) (119) (120) (705) (1,325)
Other 0 2,000 (1,000) (2,000) 0 0 (1,000) 3,252
________________________________________________________________________
CASH PROV.(USED) BY
FINANCE 2,144 9,027 11,700 (12,499) (51,091) 12,361 (28,358) 4,186
(DEC.) INC. IN CASH 0 0 0 2,300 0 (2,300) 0 (650)
========================================================================
</TABLE>
