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): December 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 February 1, 1996, 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 December
30, 1995 (fiscal December), 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, second quarter, and third 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
48 weeks ended December 30, 1995 (fiscal December)
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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: February 1, 1996 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. DECEMBER INCOME STATEMENTS
(Amounts in 000's)
<TABLE>
<CAPTION>
1995 1995 | 1994
DECEMBER DECEMBER | DECEMBER
ACTUAL REV. PLAN| ACTUAL
<S> <C> <C> <C>
|
Gross Sales 89,342 98,629 | 99,663
Less: Lease department sales 2,316 2,643 | 2,687
Net Sales 87,026 95,986 | 96,976
|
FIFO Gross Margin 19,106 24,636 | 21,202
% to Sales 21.95% 25.67% | 21.86%
|
Leased Department Income 626 691 | 695
SG&A 8,458 13,345 | 13,852
_________________________________________________________________________________________
EBITDA - PRE-LIFO 11,274 11,982 | 8,045
_________________________________________________________________________________________
Depreciation & Amortization Expense (Benefit) (287) (314) | 718
Interest Expense 484 442 | 280
LIFO Expense (Benefit) - - | (353)
Reorganization Costs (Benefit) - - | 912
Non-cash Income Tax Expense (Benefit) 4,209 4,504 | -
________________________________________________________________________________________
NET INCOME (LOSS) 6,868 7,350 | 6,488
________________________________________________________________________________________
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.
Note (3): December 1995 Actual SG&A includes a gain of $4,701 reflecting the effect of the
termination of post-retirement health care benefits.
</TABLE>
PAGE
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Exhibit 20
Page 2 of 4
ROSE'S STORES, INC. DECEMBER YTD INCOME STATEMENTS
(Amounts in 000's)
<TABLE>
<CAPTION>
1995 1995 | 1994
DECEMBER DECEMBER | DECEMBER
YTD YTD | YTD
ACTUAL REV. PLAN| ACTUAL
|
<S> <C> <C> <C>
Gross Sales 665,380 676,483 | 717,920
Less: Lease department sales 20,538 21,574 | 23,502
Net Sales 644,842 654,909 | 694,418
|
FIFO Gross Margin 154,846 162,759 | 167,911
% to Sales 24.01% 24.85% | 24.18%
|
Leased Department Income 4,654 4,731 | 5,021
SG&A 138,603 144,691 | 147,204
____________________________________________________________________________________________
EBITDA - PRE-LIFO 20,897 22,799 | 25,728
____________________________________________________________________________________________
Depreciation & Amortization Expense (Benefit) (454) (351) | 8,547
Interest Expense 5,678 5,871 | 5,661
LIFO Expense (Benefit) (364) (364) | (2,776)
Reorganization Costs (69,644) (69,644) | 57,427
Non-cash Income Tax Expense (Benefit) 5,888 6,498 | -
____________________________________________________________________________________________
NET INCOME (LOSS) 79,793 80,789 | (43,131)
____________________________________________________________________________________________
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
pro forma basis of approximately $10,764.
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.
Note (4): December 1995 Actual SG&A includes a gain of $4,701 reflecting the effect of the
termination of post-retirement health care benefits.
</TABLE>
PAGE
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Exhibit 20
Page 3 of 4
ROSE'S STORES, INC. BALANCE SHEETS
(Amounts in 000's)
<TABLE>
<CAPTION>
1995 1995 | 1994
DECEMBER DECEMBER | DECEMBER
ACTUAL REV. PLAN| ACTUAL
ASSETS |
<S> <C> <C> <C>
CASH 768 3,000 | 17,375
INVENTORIES 153,187 158,514 | 114,239
OTHER CURRENT ASSETS 10,047 12,228 | 23,031
_______ _______ | ______
TOTAL CURRENT ASSETS 164,002 173,742 | 154,645
|
NET PROPERTY 4,737 5,205 | 35,173
|
LONG TERM ASSETS 221 - | 6,716
|
TOTAL ASSETS 168,960 178,947 | 196,534
======= ======= | =======
|
LIABILITIES & EQUITY |
ACCOUNTS PAYABLE 26,959 29,985 | 26,497
SHORT-TERM DEBT 23,980 26,836 | -
OTHER CURRENT LIABILITIES 26,917 21,690 | 31,490
_______ _______ | _______
TOTAL CURRENT LIABILITIES 77,856 78,511 | 57,987
|
PRE-PETITION CLAIMS - - | 156,571
EXCESS OF ASSETS OVER VALUE 38,387 41,680 | -
OTHER LIABILITIES 1,194 5,668 | 6,951
DEFERRED INCOME 1,030 987 | 2,060
STOCKHOLDERS' EQUITY (DEFICIT) 50,493 52,101 | (27,035)
|
TOTAL DEBT & EQUITY 168,960 178,947 | 196,534
======= ======= | =======
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. DECEMBER YTD CHANGES IN CASH
(Amounts in 000's)
<TABLE>
<CAPTION>
1995 1995 | 1994
DECEMBER DECEMBER | DECEMBER
YTD YTD | YTD
ACTUAL REV. PLAN| ACTUAL
|
<S> <C> <C> <C>
Net earnings (loss) 79,793 80,789 | (43,131)
Closed store provision - - | 43,000
Non-cash income tax expense (benefit) 5,888 6,498 | -
Non-cash fresh start adjustments (73,491) (73,491) | -
Non-cash cancellation of retirement benefit (4,701) - | -
Other (865) (718) | 5,493
_______ _______ | _______
CASH PROVIDED (USED) BY OPERATIONS |
BEFORE ASSET & LIABILITY CHANGES 6,624 13,078 | 5,362
|
(Inc.) dec. in Inventories (8,349) (13,676) | 91,687
Inc. (dec.) in Accounts Payable 3,678 6,704 | (13,814)
All other (5,393) (6,008) | (9,605)
_______ _______ | _______
CASH PROVIDED (USED) BY OPERATIONS (3,440) 98 | 73,630
|
INVESTING ACTIVITIES (4,944) (5,486) | (857)
|
FINANCING ACTIVITIES |
Proceeds (payments) of pre-petition claims (30,381) (30,329) | (65,437)
Proceeds (payments) of short-term debt 23,380 26,236 | -
Capital lease payments (597) (609) | (1,916)
Other 15,400 11,740 | -
_______ _______ | _______
CASH PROVIDED (USED) BY FINANCING 7,802 7,038 | (67,353)
|
(DECREASE) INCREASE IN CASH (582) 1,650 | 5,420
======== ======== | ========
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>
