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AMES REPORTS FOURTH-QUARTER, YEAR-END RESULTS

 AMES REPORTS FOURTH-QUARTER, YEAR-END RESULTS
 ROCKY HILL, Conn., April 24 /PRNewswire/ -- Ames Department Stores,


Inc. (NYSE: ADD) today reported a net income of $8.1 million, or 13 cents earnings per share, for the fourth quarter ended Jan. 25, 1992, compared with a net loss of $26.8 million, or 80 cents loss per share, for the fourth quarter ended Jan. 26, 1991.
 The prior year's net loss of $26.8 million included a $19.5 million restructuring charge. At the same time, net sales for the period were $816.4 million. On a pro-forma 371-store chain base, last year's fourth quarter adjusted net sales were $798.6 million. Comparable-same-store sales increased 2.4 percent over the prior year's quarter.
 For the fourth quarter, EBIT (earnings before interest, taxes, restructuring and Chapter 11 expenses) was $27.5 million compared with last year's fourth quarter EBIT loss of $4.2 million. The fourth quarter EBIT was positively impacted by an $11.8 million LIFO credit vs. no adjustment in the fourth quarter of last year.
 For the year ended Jan. 25, 1992, Ames reported a net loss of $282.4 million, or $7.87 loss per share, compared with a net loss of $793.5 million, or $21.47 loss per share, for the prior year. Ames recorded net sales of $2.8 billion for the fiscal year, compared with net sales of $3.1 billion in the prior year. The net sales decline was attributable to store closings. Comparable-same-store sales increased 9 percent over the prior fiscal year on a 371-store base.
 For the full fiscal year, the EBIT loss narrowed from last year's $317.1 million to $63.2 million, representing a $253.9 million turnaround.
 Stephen L. Pistner, Ames' chairman and chief executive officer, said, "We are pleased with our fiscal 1992 fourth-quarter performance -- our first profitable quarter since filing for Chapter 11. Through reducing expenses, managing inventory shrink, the beneficial effects of partial store remodels and other improvements, the company finished the fiscal year with inventory levels and a gross margin that were better than the prior year. The dedication of 28,000 employees and the commitment of our vendor community has empowered Ames to test new merchandise strategies and to achieve improved operating performance.
 "Ames continues to negotiate with its creditors with the intent of achieving a consensual plan of reorganization. Our fourth-quarter results, combined with our improvement in EBIT for the fiscal year, encourage us that we are moving toward our goal of emerging from Chapter 11 as a financially sound and competitively viable company," Pistner added.
 Ames, which filed for protection under Chapter 11 of the U.S. Bankruptcy Code in April 1990, operates 371 discount department stores in 15 Northeastern states.
 AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
 (Operating as Debtor-in-Possession)
 Consolidated Statements of Operations
 (000s omitted, except per-share amounts)
 Periods ended 13 Weeks Fiscal Year
 1/25/92 1/26/91 1/25/92 1/26/91
 Total sales $850,290 $984,085(B) $2,956,762(A) $3,275,395(C)
 Less: Leased
 dept. sales 33,902 38,287 137,327 166,315
 Net sales 816,388 945,798(B) 2,819,435(A) 3,109,080(C)
 Cost of goods sold,
 transportation and
 buying expenses 600,917 710,390 2,097,136 2,470,504
 Gross profit 215,471 235,408 722,299 638,576
 Leased department
 income 6,102 6,892 24,719 29,937
 Other operating
 income 4,916 5,015 17,402 14,313
 Total 226,489 247,315 764,420 682,826
 Store operating, admin.
 and general expenses,
 including leased
 dept. exps. 185,100 239,078 771,148 922,234
 Depr. & amort. 13,856 12,435 56,473 77,727
 Bankruptcy
 expenses 10,000 7,500 28,000 22,500
 Restructuring
 charges -- 19,500 147,200 373,500
 Profit (loss)
 from operations 17,533 (31,198) (238,401) (713,135)
 Interest and
 debt expense (13,502) (17,081) (64,019) (109,516)
 Interest income 4,102 7,129 20,038 16,641
 Profit (loss) before
 income taxes 8,133 (41,150) (282,382) (806,010)
 Income tax benefit -- 14,353 -- 12,551
 Net profit (loss) 8,133 (26,797) (282,382) (793,459)
 Wtd. avg. common shrs.
 outstg. (D) 37,582 37,582 37,582 37,582
 Net profit (loss)
 per common share
 (D) $0.13 $(0.80) $(7.87) $(21.47)
 NOTE: Pro forma statements of operations are attached to present estimated results without closed stores.
 (A) -- Includes sales of 77 closed stores only through September 1991, (pre-announcement).
 (B) -- Includes sales of 84 stores closed subsequent to January 1991, and not included in the current quarter's results.
 (C) -- Includes sales of 234 stores (221 stores through April 1990) closed last year and not included in the current year's results. Also, includes sales of the 77 stores excluded from this year's sales after September 1991.
 (D) -- Earnings per share are computed-based on the average common shares outstanding and reflect preferred stock dividends (as if accrued) of $3,392 and $13,567 for the 13 and 52 weeks ended Jan. 25, 1992, and $3,331 and $13,567 for the comparable prior-year periods. The convertible preferred stock is not included as a common stock equivalent because the effect would be to decrease the loss per common share otherwise computed.
 Balance Sheets
 (000s omitted)
 1/25/92 1/26/91
 Assets
 Current assets:
 Cash, short-term investments
 and receivables $494,632 $498,401
 Inventories 439,959 552,471
 Net assets held for disposition 16,758 39,022
 Other current assets 12,375 15,581
 Total current assets 963,724 1,105,475
 Net property 326,856 424,571
 Other assets 65,253 87,402
 Total assets 1,355,833 1,617,448
 Liabilities and stockholders' equity
 Current liabilities:
 Accounts payable and current portion
 of capital lease obligations 112,674 149,182
 Accrued expenses 105,071 81,611
 Other current liabilities 10,558 5,971
 Total current liabilities 228,303 236,764
 Liabilities subject to settlement
 under the reorganization case 1,776,634 1,726,621
 Capital lease obligations 64,445 84,002
 Other long-term liabilities 5,842 7,070
 Stockholders' equity (deficit) (719,391) (437,009)
 Total liabilities and stockholders'
 equity 1,355,833 1,617,448
 NOTE: The entry to record the disposition of the 77 stores' assets is included in the Jan. 25, 1992, balance sheet.
 Pro Forma Consolidated Statement of Operations
 (000s omitted, except per-share amounts; unaudited)
 Pro Forma
 Periods ended 13 weeks Fiscal year
 1/25/92 1/26/91 1/25/92 1/26/91
 Total sales $850,290 $831,678 $2,687,332 $2,477,373
 Less: Leased department
 sales 33,902 33,043 125,475 126,978
 Net sales 816,388 798,635 2,561,857 2,350,395
 Cost of goods sold,
 transportation and
 buying expenses 600,917 593,442 1,902,919 1,883,923
 Gross profit 215,471 205,193 658,938 466,472
 Leased department
 income 6,102 5,949 22,586 22,857
 Other operating income 4,916 4,234 16,309 10,597
 Total 226,489 215,376 697,833 499,926
 Store operating, admin.
 & general expenses,
 including leased
 department expenses 185,100 201,702 697,651 693,973
 Depr. and amort. 13,856 10,458 50,987 61,864
 Bankruptcy expenses 10,000 7,500 28,000 22,500
 Profit (loss) from
 operations 17,533 (4,284) (78,805) (278,411)
 Interest and debt exp. (13,502) (15,757) (62,502) (92,604)
 Interest income 4,102 8,678 23,670 27,579
 Profit (loss) from
 operations before
 income taxes 8,133 (11,363) (117,637) (343,436)
 Income tax benefit -- 14,353 -- 12,551
 Net profit (loss)
 from operations 8,133 2,990 (117,637) (330,885)
 Restructuring charges -- (21,477) (152,686) (389,363)
 Net profit (loss) 8,133 (18,487) (270,323) (720,248)
 Wtd. avg. common shares
 outstanding 37,582 37,582 37,582 37,582
 Net profit (loss)
 from operations per
 common share $.13 $(0.01) $(3.49) $(9.17)
 Net profit (loss) per
 common share 0.13 (0.58) (7.55) (19.53)
 NOTE: Pro forma worksheets are included in the Oct. 26, 1991 Form 10-Q, although there were reductions made in overhead costs in connection with the store closings, no estimates of such reductions have been included in the retroactive (pro forma) adjustments. Only expenses directly attributable to the closed stores' operations have been removed from the historical expense totals.
 -0- 4/24/92
 /CONTACT: Marge Wyrwas or Bill Roberts of Ames Department Stores, 203-257-2659, or 203-257-2666, or Andrea Priest of Ogilvy Adams & Rinehart, 212-557-0100, for Ames Department Stores/
 (ADD) CO: Ames Department Stores, Inc. ST: Connecticut IN: REA SU: ERN


CK-OS -- NY013 -- 2426 04/24/92 11:54 EDT
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Date:Apr 24, 1992
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