Ames Announces First Quarter Results.Business Editors 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)--May 11, 2000 Ames Ames, city (1990 pop. 47,198), Story co., central Iowa, on the Skunk River; inc. 1870. Its chief manufactures are electronic, water-analysis, and water-treatment equipment; motor vehicles; construction materials; and machinery. Iowa State Univ. 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 announced its results for the first quarter, which ended April 29, 2000. Ames recorded a consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net loss of $29.1 million, or $0.99 per share. This compares to a consolidated net loss of $29.7 million, or $1.24 for the comparable period last year. Excluding the results relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Hills stores in liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy and other costs related to the acquisition, last year's results amounted to a loss of $5.9 million or $0.24 per share. 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 quarter ended on April 29, 2000 were $830.7 million, an increase of 1.8 percent over the $816.2 million reported for the first quarter last year which included the Grand Opening results from the Phase I Hills stores and $80.9 million in proceeds from the liquidation sales liquidation sale liquid (US) n → Verkauf m wegen Geschäftsaufgabe at Phase II and III Hills stores. Comparable store sales for the 13 weeks ended April 29, 2000 were $525.8 million, compared with $519.8 million reported for last year's first quarter, an increase of 1.2 percent. Comparable store sales are based on 290 stores. Joseph R. Ettore, Ames' Chairman and Chief Executive Officer said, "Unfavorable weather, particularly during the critical month of April, reduced customer traffic in our stores resulting in lower sales and gross profit than planned. As the weather has improved in the early part of May, we have seen a significant rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in traffic and sales and we remain confident that we can attain current analyst estimates for the next three quarters." In addition, Mr. Ettore commented, "Our former Hills stores continue to develop and we remain confident that those stores as a whole will meet our performance expectations as they mature over an 18 to 24 month period." With 460 stores located in 19 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). , Ames is the nation's largest regional, full-line discount retailer with annual sales of $4 billion. Ames offers a broad range of merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain categories including family apparel, housewares house·wares pl.n. Cooking utensils, dishes, and other small articles used in a household, especially in the kitchen. , domestics, electronics, ready-to-assemble and patio furniture pa´ti`o fur´ni`ture 1. Furniture such as chairs, tables, settees or loungers, suited for use on a patio , i.e. such that will not be damaged by exposure to rain, sun or other outdoor elements. , jewelry jewelry, personal adornments worn for ornament or utility, to show rank or wealth, or to follow superstitious custom or fashion. The most universal forms of jewelry are the necklace, bracelet, ring, pin, and earring. , craft and pet supplies, health and beauty care items, stationery The term for boilerplate in the Eudora mail client, starting with Version 3.0. Stationery files are stored on disk and brought into new messages or added to replies. See boilerplate. , sporting goods Noun 1. sporting goods - sports equipment sold as a commodity commodity, trade good, good - articles of commerce sports equipment - equipment needed to participate in a particular sport , toys, seasonal products and more. Cautionary Statement Regarding Forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. Information Statements, other than those based on historical facts which address activities, events, or developments that the Company expects or anticipates may occur in the future are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. which are based upon a number of assumptions concerning further conditions that may ultimately prove to be inaccurate. Actual events and results may materially differ from anticipated results described in any forward-looking statements. The Company's ability to achieve such results is subject to certain risks and uncertainties. Consequently, these cautionary statements qualify all of the forward-looking statements and there can be no assurance that the results or developments anticipated by the Company will be realized or that they will have the expected effects on the Company or its business or operations. For fax copies of Ames' most recent news releases, dial 1 800 925 7792. To find the location of the Ames store nearest you, dial 1-800-SHOP-AMES. http://www.AmesStores.com http://espanol.AmesStores.com (in Spanish Spanish, river, c.150 mi (240 km) long, issuing from Spanish Lake, S Ont., Canada, NW of Sudbury, and flowing generally S through Biskotasi and Agnew lakes to Lake Huron opposite Manitoulin island. There are several hydroelectric stations on the river. )
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(Unaudited)
For the Thirteen
Weeks Ended
-----------------------
April 29, May 1,
2000 1999
---------- ----------
Ames net sales $830,657 $567,217
Hills net sales - 248,942
-------- --------
Total net sales 830,657 816,159
Leased department and other income 9,259 8,400
-------- --------
Total revenue 839,916 824,559
Costs and expenses:
Ames cost of merchandise sold 602,924 409,250
Hills cost of merchandise sold - 168,323
Ames selling, general and administrative
expenses 247,415 176,171
Hills operating expenses and agency fees - 89,257
Depreciation and amortization expense 17,697 14,383
Interest and debt expense, net 18,792 11,922
-------- --------
Net loss before income taxes (46,912) (44,747)
Income tax benefit 17,827 16,108
-------- --------
Net loss before cumulative effect of
accounting change (29,085) (28,639)
Cumulative effect of accounting change, net
of tax - (1,107)
-------- --------
Net loss ($29,085) ($29,746)
======== ========
Net loss per common share (a) :
Before accounting change ($0.99) ($1.19)
Cumulative effect of accounting change,
net of tax - (0.05)
-------- --------
Net loss ($0.99) ($1.24)
======== ========
Weighted average number of common shares
outstanding 29,336 23,990
======== ========
(a) Basic and diluted shares outstanding and earnings per share were
the same for both periods presented as the inclusion of common
stock equivalents would have reduced the reported loss per
share.
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(In Thousands)
(Unaudited)
For the Thirteen
Weeks Ended For the Thirteen Weeks Ended May 1, 1999
----------------------------------------
April 29, 2000 Ames Hills Other Total
------------- -------- -------- --------- --------
Net sales $830,657 $567,217 $248,942 $816,159
Leased
department and
other income 9,259 6,374 2,026 8,400
--------- -------- -------- --------
Total revenue 839,916 573,591 250,968 824,559
Costs and
expenses:
Cost of
merchandise
sold 602,924 409,250 168,323 - 577,573
Selling,
general and
administrative
expenses 247,415 159,599 89,257 16,572 265,428
Depreciation
and
amortization
expense, net 17,697 5,917 6,580 1,886 14,383
Interest and
debt expense,
net 18,792 7,978 2,774 1,170 11,922
--------- -------- -------- --------- --------
Income (loss)
before income
taxes and
cumulative
effect (46,912) (9,153) (15,966) (19,628) (44,747)
Income tax
(provision)
benefit 17,827 3,295 5,747 7,066 16,108
--------- -------- -------- --------- --------
Income before
cumulative
effect of
accounting
change (29,085) (5,858) (10,219) (12,562) (28,639)
Cumulative
Effect of
Accounting
Change, net of
tax (1,107) (1,107)
--------- -------- -------- --------- --------
Net loss ($29,085) ($5,858) ($10,219) ($13,669) ($29,746)
========= ======== ======== ========= ========
Weighted average
number of
common shares
outstanding 29,336 23,990 23,990 23,990 23,990
========= ======== ======== ========= ========
Net loss per
share ($0.99) ($0.24) ($0.43) ($0.57) ($1.24)
========= ======== ======== ========= ========
The Ames column, represents ( a ) the results of the Ames store base,
( b ) the results of the converted Hills stores and ( c ) certain
expenses associated with the acquisition of Hills, including the
interest expense on the acquired Hills senior notes and a pro rata
share of the amortization of the goodwill recorded in connection
with the acquisition.
The Hills column represents ( a ) the results of operations for the
Hills stores during the period that these stores were operated
pursuant to the Gordon Brothers/ Nassi Agency Agreement, including
depreciation and interest expense directly associated with such
stores and (b ) Hills corporate overhead expenses principally the
Canton, MA facility.
The Other column represents the expenses incurred during the period of
remodeling the Hills stores ( for example, preopening expenses
incurred during the conversion or "dark" period ) as well as
certain other expenses.
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In Thousands)
(Unaudited)
April 29, January 29, May 1,
2000 2000 1999
--------- ---------- ---------
ASSETS
Current Assets:
Cash and short-term
investments $44,045 $30,612 $46,315
Receivables 26,911 25,302 33,987
Merchandise inventories 987,919 831,387 702,288
Deferred taxes, net 46,681 28,854 16,108
Prepaid expenses and other
current assets 32,367 36,772 26,333
---------- ---------- ----------
Total current assets 1,137,923 952,927 825,031
---------- ---------- ----------
Fixed Assets 669,316 629,979 471,916
Less - Accumulated depreciation
and amortization (147,884) (128,229) (80,016)
---------- ---------- ----------
Net fixed assets 521,432 501,750 391,900
---------- ---------- ----------
Other assets and deferred charges 62,557 57,256 48,973
Deferred taxes, net 346,055 346,055 102,406
Beneficial lease rights, net 55,589 56,280 58,195
Goodwill, net 60,388 61,026 228,142
---------- ---------- ----------
$2,183,944 $1,975,294 $1,654,647
========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable:
Trade $328,441 $325,356 $275,552
Other 86,113 96,224 75,767
---------- ---------- ----------
Total accounts payable 414,554 421,580 351,319
---------- ---------- ----------
Current portion of capital
lease and financing
obligations 22,057 22,086 17,799
Self-insurance reserves 26,489 29,827 29,176
Accrued expenses and other
current liabilities 136,405 133,110 256,011
Store closing reserves 54,303 55,468 58,789
---------- ---------- ----------
Total current liabilities 653,808 662,071 713,094
---------- ---------- ----------
Long-term debt 673,782 421,769 333,486
Capital lease and financing
obligations 176,020 180,404 184,901
Other long-term liabilities 56,708 57,916 105,844
Excess of revalued net assets
over equity under fresh-start
reporting 16,329 17,868 22,483
Commitments and contingencies
Stockholders' Equity:
Preferred stock - - -
Common stock 296 293 240
Additional paid-in capital 531,857 530,744 237,243
Retained earnings 76,058 105,143 58,270
Treasury stock, at cost (914) (914) (914)
---------- ---------- ----------
Total stockholders'
equity 607,297 635,266 294,839
---------- ---------- ----------
$2,183,944 $1,975,294 $1,654,647
========== ========== ==========
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