AMES Reports Third-Quarter Net Income of $3.5 Million; Net Income Improves $7.1 Million Y-T-D.ROCKY HILL Rocky Hill, town (1990 pop. 16,554), Hartford co., central Conn., a suburb of Hartford, on the Connecticut River; settled c.1650, inc. 1843. Chemical coatings and synthetic textiles are made there. Rocky Hill was an important river port from 1700 to 1820. , Conn.--(BUSINESS WIRE)--Nov. 6, 1997--Ames Department Stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : AMES) today reported third-quarter net income of $3.5 million, or 15 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for the period ended Oct. 25, 1997, compared with last year's third-quarter net income of $421 thousand or two cents per share. The net income for the 39 weeks ended Oct. 25, 1997, was $5.0 million, or 21 cents per share, compared with a net loss of $2.1 million, or ten cents Ten Cents has several meanings:
The period beginning at the start of the calendar year up to the current date. net income before other gains was $7.5 million, compared with a loss before other gains of $3.3 million last year. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the third quarter were $527.6 million, compared with $516.9 million in the prior year's third quarter, an increase of 2.1 percent. Net sales for the year to date were $1.464 billion, compared with $1.455 billion last year. Comparable-store sales for the quarter increased 1.7 percent while comparable-store sales for the year to date increased 0.7 percent. Joseph R. Ettore, president and chief executive officer, said, "Our third-quarter net income of $3.5 million was a significant improvement over the net income of $871 thousand projected in the business plan and last year's results. The company's improvement during the quarter resulted from better-than-planned sales, gross margin rate and net interest expense. "Ames is well-prepared to meet the demands of the competitive fourth-quarter holiday selling period. Our special holiday circulars offer the sharp price-value equation sought by our customers. Ames' 298 stores have the quality merchandise that will keep shoppers coming back for more this season. Our goal is clear - to Exceed Customers' Expectations." Ames opened two stores in October October: see month. in Mercerville, N.J. and Manchester Manchester, city, England Manchester (măn`chəstər, –chĕs'tər), city and metropolitan district (1991 pop. 397,400), NW England, on the Irwell, Medlock, Irk, and Tib rivers. , N.H., bringing the total of new stores opened during 1997 to nine. Ames, which operates 298 stores in 14 Northeastern states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). , is the nation's sixth-largest discount retailer with annual total sales of $2.2 billion. -0- For fax copies of Ames' most recent news releases, dial 1-800-758-5804, Ext. 036787. To find the location of the Ames store nearest you, dial 1-800-SHOP-AMES. http://www.AmesStores.com -0-
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(Unaudited)
For the Thirteen For the Thirty-nine
Weeks Ended Weeks Ended
October 25, October 26, October 25, October 26,
1997 1996 1997 1996
TOTAL SALES $ 550,235 $540,607 $1,528,869 $1,521,501
Less: Leased
department sales 22,662 23,731 65,128 66,851
NET SALES 527,573 516,876 1,463,741 1,454,650
COSTS, EXPENSES AND
(INCOME):
Cost of merchandise
sold 379,342 375,652 1,050,796 1,056,299
Selling, general and
administrative
expenses 143,510 141,163 409,877 403,574
Leased department and
other operating
income (6,750) (7,466) (19,309) (20,461)
Depreciation and
amortization expense 3,915 2,646 10,102 7,915
Amortization of the
excess of revalued
net assets over
equity under
fresh-start reporting(1,538) (1,538) (4,615) (4,615)
Interest and debt
expense, net 3,758 5,821 9,359 15,266
INCOME (LOSS) BEFORE
OTHER GAINS 5,336 598 7,531 (3,328)
Gain on disposition
of properties - - - 395
INCOME (LOSS) BEFORE
INCOME TAXES 5,336 598 7,531 (2,933)
Income tax (provision)
benefit (1,817) (177) (2,564) 870
NET INCOME (LOSS) $3,519 $421 $4,967 ($2,063)
NET INCOME (LOSS) PER
COMMON SHARE
Net income (loss) $0.15 $0.02 $0.21 ($0.10)
Weighted average common
and common
equivalent shares 23,898 21,974 23,549 20,465
Results of Operations as
a Percent of Net Sales:
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of merchandise sold 71.9 72.7 71.8 72.6
Gross margin 28.1 27.3 28.2 27.4
Selling, general and
administrative
expenses 27.2 27.3 28.0 27.7
Leased department and
other operating
income (1.3) (1.4) (1.3) (1.4)
Depreciation and
amortization expense 0.8 0.5 0.7 0.5
Amortization of the
excess of revalued
net assets over
equity under
fresh-start
reporting (0.3) (0.3) (0.3) (0.3)
Interest and debt
expense, net 0.7 1.1 0.6 1.0
Income (loss) before
other gains 1.0 0.1 0.5 (0.2)
Gain on disposition of
properties - - - -
Income (loss) before
income taxes 1.0 0.1 0.5 (0.2)
Income tax (provision)
benefit (0.3) - (0.2) 0.1
Net income (loss) 0.7% 0.1% 0.3% (0.1%)
(Please see the accompanying condensed notes to these consolidated
condensed financial statements.)
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. BALANCE SHEETS (In Thousands) (Unaudited) October 25, January 25, October 26, 1997 1997 1996 ASSETS Current Assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. : Cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments $18,748 $46,119 $20,577 Receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed 43,964 19,071 45,055 Merchandise inventories 585,239 391,076 558,727 Prepaid expenses Prepaid Expense An asset that arises on a balance sheet because of the payment of something in advance (prepayment). Services for the payment will be received in the near future. and other current assets 17,685 12,169 15,620 Total current assets 665,636 468,435 639,979 Fixed Assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → 124,123 96,114 91,597 Less - Accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. depreciation and amortization (41,778) (32,529) (27,919) Net fixed assets 82,345 63,585 63,678 Other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. and deferred charges 6,589 4,773 4,792 $754,570 $536,793 $708,449 LIABILITIES AND STOCKHOLDERS' EQUITY Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. Current Liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. : Accounts payable: Trade $239,147 $145,737 $218,439 Other 44,112 43,180 40,919 Total accounts payable 283,259 188,917 259,358 Note payable - revolver revolver: see small arms. revolver Pistol with a revolving cylinder that provides multishot action. Some early versions, known as pepperboxes, had several barrels, but as early as the 17th century pistols were being made with a revolving chamber to 137,692 - 141,507 Current portion of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and capital lease obligations 6,617 15,578 16,260 Self-insurance self-insurance, n the setting aside of funds by an individual or organization to meet anticipated dental care expenses or dental care claims, and accumulation of a fund to absorb fluctuations in the amount of expenses and claims. reserves 33,001 34,177 35,395 Accrued expenses Accrued Expense An accounting expense recognized in the books before it is paid for. It is a liability, usually current. These expenses are typically periodic and documented upon a company's balance sheet due to the high probability of collection. and other current liabilities 70,616 66,356 55,509 Store closing reserves 11,520 24,438 18,515 Total current liabilities 542,705 329,466 526,544 Long-term debt 9,311 11,134 12,599 Capital lease obligations 25,992 27,086 26,966 Other long-term liabilities Other Long-Term Liabilities A balance sheet item that includes obligations that do not currently require interest payments. Notes: This would include items such as remaining leases, future employee benefits and deferred taxes. 9,422 7,565 5,793 Unfavorable lease liability 15,690 17,029 17,442 Excess of revalued net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. over equity under fresh-start reporting 31,712 36,327 37,865 Commitments and contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. Stockholders' Equity: Common stock 223 205 205 Additional paid-in capital 94,908 88,341 80,759 Retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. 24,607 19,640 276 Total stockholders' equity 119,738 108,186 81,240 $754,570 $536,793 708,449 (Please see the accompanying condensed notes to these consolidated condensed financial statements.) Condensed Notes to News Release Financial Statements Basis of Presentation: In the opinion of management, the accompanying consolidated financial statements of Ames Department Stores, Inc., and subsidiaries (collectively, the "Company") contain all adjustments necessary for a fair presentation of such financial statements for the periods presented. Certain prior year items have been reclassified to conform to the current year presentation. Due to the seasonality of the Company's operations, the results of operations for the interim period ended October 25, 1997 may not be indicative of total results for the full fiscal year. Certain information normally included in financial statements prepared in accordance with generally accepted accounting principles has been condensed or omitted. The accompanying financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Form 10-K filed in April, 1997. Fresh Start Accounting: Upon emergence from bankruptcy in 1992, all of the Company's fixed assets were written off and the Company's reorganization value was less than the fair value of its remaining net assets. As a consequence, depreciation and amortization expense is computed only on fixed asset additions since 1992. In addition, pretax income includes the amortization of the excess of revalued net assets over equity. Earnings Per Common Share: Earnings per share was determined using the weighted average number of common shares outstanding. Common stock equivalents were excluded for the thirty-nine weeks ended October 26, 1996, as their inclusion would have reduced the reported loss per share. Fully diluted earnings per share was equal to primary earnings per share for all periods presented. Inventories: Inventories are valued at the lower of cost or market. Cost is determined by the retail last-in, first-out (LIFO) cost method. No LIFO reserve was necessary at October 25, 1997, January 25, 1997 and October 26, 1996. Debt: The Company has an agreement with BankAmerica Business Credit, Inc., as agent, and a syndicate consisting of seven other banks and financial institutions, for a secured revolving credit facility of up to $320 million, with a sublimit of $100 million for letters of credit (the "Credit Agreement"). The Credit Agreement is in effect until June 30, 2000, is secured by substantially all of the assets of the Company, and requires the Company to meet certain quarterly financial covenants. The Company is in compliance with these financial covenants through the quarter ended October 25, 1997. Income Taxes: The Company's estimated annual effective income tax rate for each year was applied to the income (loss) before income taxes for each period to compute a non-cash income tax provision/benefit. The income tax benefit is included in other current assets in the balance sheet as of October 26, 1996. CONTACT: Marge Wyrwas, 860/257-2659 or Lynn Riemer, 860/257-2666 |
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