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 30, 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 October 30, 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 September
30, 1995 (fiscal September), 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
35 weeks ended September 30, 1995 (fiscal September)
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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: October 30, 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
ROSE'S STORES, INC. SEPTEMBER INCOME STATEMENTS
(Amounts in 000's)
<TABLE>
<CAPTION>
1995 1995 | 1994
SEPTEMBER SEPTEMBER| SEPTEMBER
ACTUAL REV. PLAN| ACTUAL
<S> <C> <C> <C> <C>
Gross Sales 47,987 47,756 | 53,079
Less: Lease department sales 1,348 1,481 | 1,651
Net Sales 46,639 46,275 | 51,428
|
FIFO Gross Margin 12,004 12,155 | 13,382
% to Sales 25.74% 26.27% | 26.02%
|
Leased Department Income 336 334 | 370
SG&A 12,149 12,594 | 12,827
_________________________________________________________________________________________
EBITDA - PRE-LIFO 191 (105) | 925
_________________________________________________________________________________________
Depreciation & Amortization Expense (Benefit) (260) (244) | 734
Interest Expense 640 663 | 473
LIFO Expense (Benefit) - - | (530)
Reorganization Costs (Benefit) - - | 1,348
Non-cash Income Tax Expense (Benefit) - - | -
________________________________________________________________________________________
NET INCOME (LOSS) (189) (524) | (1,100)
________________________________________________________________________________________
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
ROSE'S STORES, INC. SEPTEMBER YTD INCOME STATEMENTS
(Amounts in 000's)
<TABLE>
<CAPTION>
1995 1995 | 1994
SEPTEMBER SEPTEMBER| SEPTEMBER
YTD YTD | YTD
ACTUAL REV. PLAN| ACTUAL
|
<S> <C> <C> <C> <C>
Gross Sales 440,541 440,310 | 473,939
Less: Lease department sales 14,314 14,447 | 16,089
Net Sales 426,227 425,863 | 457,850
|
FIFO Gross Margin 103,057 103,208 | 111,146
% to Sales 24.18% 24.24% | 24.28%
|
Leased Department Income 3,080 3,078 | 3,318
SG&A 102,701 103,146 | 106,932
____________________________________________________________________________________________
EBITDA - PRE-LIFO 3,436 3,140 | 7,532
____________________________________________________________________________________________
Depreciation & Amortization Expense (Benefit) 500 516 | 6,386
Interest Expense 3,786 3,809 | 4,484
LIFO Expense (Benefit) (364) (364) | (1,781)
Reorganization Costs (Benefit) (69,644) (69,644) | 53,556
Non-cash Income Tax Expense (Benefit) - - | -
____________________________________________________________________________________________
NET INCOME (LOSS) 69,158 68,823 | (55,113)
____________________________________________________________________________________________
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 $1,900.
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.
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Exhibit 20
Page 3 of 4
ROSE'S STORES, INC. BALANCE SHEETS
(Amounts in 000's)
</TABLE>
<TABLE>
<CAPTION>
1995 1995 | 1994
SEPTEMBER SEPTEMBER| SEPTEMBER
ACTUAL REV. PLAN| ACTUAL
ASSETS |
<S> <C> <C> <C> <C>
CASH 629 650 | 633
INVENTORIES 189,405 189,424 | 155,395
OTHER CURRENT ASSETS 20,262 20,766 | 35,154
_______ _______ | ______
TOTAL CURRENT ASSETS 210,296 210,840 | 191,182
|
NET PROPERTY 2,716 3,246 | 36,903
|
LONG TERM ASSETS - - | 6,970
|
TOTAL ASSETS 213,012 214,086 | 235,055
======= ======= | =======
|
LIABILITIES & EQUITY |
ACCOUNTS PAYABLE 29,064 30,362 | 28,819
SHORT-TERM DEBT 83,579 87,465 | 17,600
OTHER CURRENT LIABILITIES 28,933 25,091 | 37,080
_______ _______ | _______
TOTAL CURRENT LIABILITIES 141,576 142,918 | 83,499
|
PRE-PETITION CLAIMS - - | 182,304
EXCESS OF ASSETS OVER VALUE 30,687 30,688 | -
OTHER LIABILITIES 5,578 5,655 | 6,973
DEFERRED INCOME 1,199 1,188 | 1,297
STOCKHOLDERS' EQUITY (DEFICIT) 33,972 33,637 | (39,018)
|
TOTAL DEBT & EQUITY 213,012 214,086 | 235,055
======= ======= | =======
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>
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Exhibit 20
Page 4 of 4
ROSE'S STORES, INC. SEPTEMBER YTD CHANGES IN CASH
(Amounts in 000's)
<TABLE>
<CAPTION>
1995 1995 | 1994
SEPTEMBER SEPTEMBER| SEPTEMBER
YTD YTD | YTD
ACTUAL REV. PLAN| ACTUAL
|
<S> <C> <C> <C> <C>
Net earnings (loss) 69,158 68,823 | (55,113)
Closed store provision - - | 43,000
Non-cash income tax expense (benefit) - - | -
Non-cash fresh start adjustments (73,491) (73,491) | -
Other 133 149 | 4,303
_______ _______ | _______
CASH PROVIDED (USED) BY OPERATIONS |
BEFORE ASSET & LIABILITY CHANGES (4,200) (4,519) | (7,810)
|
(Inc.) dec. in Inventories (44,567) (44,586) | 49,536
Inc. (dec.) in Accounts Payable 5,783 7,081 | (12,288)
All other (12,939) (14,265) | (22,699)
_______ _______ | _______
CASH PROVIDED (USED) BY OPERATIONS (55,923) (56,289) | 6,739
|
INVESTING ACTIVITIES (3,248) (3,686) | (346)
|
FINANCING ACTIVITIES |
Proceeds (payments) of pre-petition claims (29,642) (29,823) | (38,769)
Proceeds (payments) of short-term debt 82,979 86,865 | 17,600
Capital lease payments (505) (507) | (1,493)
Other 5,618 2,740 | 4,947
_______ _______ | _______
CASH PROVIDED (USED) BY FINANCING 58,450 59,275 | (17,715)
|
(DECREASE) INCREASE IN CASH (721) (700) | (11,322)
======== ======== | ========
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>
