Ames Announces Second Quarter Results Which Include 105 Stores Opened in 1999.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)--Aug. 19, 1999-- 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 second quarter which ended July July: see month. 31, 1999. Excluding the impact of the Hills stores prior to their re-opening as Ames stores, Ames recorded a net profit of $6.6 million, or $0.24 per share. On 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: basis, the Company recorded a net loss of $22.2 million, or $0.80 per share which includes the pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta impact of $29.4 million in pre-opening costs. This compares to a net profit of $8.4 million, or $0.35 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the second quarter 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 quarter ended on July 31, 1999 were $856.2 million, an increase of 60.0 percent over the $535.0 million reported for the second quarter last year. These results include $138.5 million for the 104 newly converted Hills locations, 50 of which were open the entire quarter and 54 which were open during the last ten days of July, as well as $128.2 million for the Hills stores in various stages 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 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 during the quarter. The liquidation sales liquidation sale liquid (US) n → Verkauf m wegen Geschäftsaufgabe are now complete. Comparable store sales for the 13 weeks ended July 31, 1999 were $568.6 million, compared with $519.3 million reported for last year's second quarter, an increase of 9.5 percent. Comparable store sales are based on 290 stores. Excluding the impact of the Hills stores prior to their re-opening as Ames stores, for the first half of 1999 Ames reported a net profit of $3.4 million, or $0.13 per share. On a consolidated basis, the Company recorded a net loss of $48.6 million, or $1.87 per share which includes the pre-tax impact of $45.9 million in pre-opening costs. This compares to a net profit of $5.4 million, or $0.23 per diluted share, for the first half last year. Net sales for the first half, which ended on July 31, 1999, were $1,685.3 million, an increase of 63.3 percent over the $1,032.1 million reported for the first half last year. These results include $172.2 million for the 104 newly converted Hills locations open during the first half, as well as $375.6 million for the Hills stores in various stages of merchandise liquidation during the period. Comparable store sales for the 26 weeks ended July 31, 1999 were $1,098.1 million, compared with $1,004.7 million reported for last year's first half, an increase of 9.3 percent. Comparable store sales are based on 290 stores. Joseph R. Ettore, Ames' President and Chief Executive Officer said, "We have met the challenge at Ames this year and the proof is in the results we are reporting. We have had a lot on our plate, opening 105 new stores so far, and the numbers we are reporting demonstrate the success of our game plan. We maintained our gross margin rate, reduced selling, general and administrative expenses as a percentage of sales, and improved our operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . In addition, the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. comp comp See comparison. sales growth of 9.3 percent reflects the soundness of our merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. strategy." With over 450 stores, including the recently acquired Hills stores and ten former Caldor Caldor was a chain of discount department stores based in the Norwalk, CT. The chain declared bankruptcy in 1995 and closed all of its stores on May 15, 1999. History Beginning sites, 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 almost $4 billion. Ames offers a broad range of merchandise 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. 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 -0-
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(Unaudited)
For the Thirteen For the Twenty-Six
Weeks Ended Weeks Ended
---------------------------------------------
July 31, August 1, July 31, August 1,
1999 1998 1999 1998
------- ------- ------ -------
Ames net sales $728,023 $535,047 $1,309,625 $1,032,092
Hills net sales 128,175 - 375,642 -
------- ------- ------- -------
Total net sales 856,198 535,047 1,685,267 1,032,092
Costs, expenses and (income):
Ames cost of
merchandise sold 514,584 378,211 934,089 736,822
Hills cost of
merchandise sold 83,762 - 251,212 -
Ames selling,
general and
administrative
expenses 221,371 145,490 397,575 290,762
Hills operating
expenses and
agency fees 52,790 - 142,047 -
Leased department
and other income (11,590) (7,489) (20,012) (13,675)
Depreciation and
amortization expense,
net 16,304 2,257 30,687 4,178
Interest and debt
expense, net 13,621 3,192 25,543 5,246
------- ------- ------- -------
Income (loss)
before income
taxes (34,644) 13,386 (75,874) 8,759
Income tax benefit
(provision) 12,471 (5,000) 27,313 (3,316)
------- ------- ------- -------
Net income (loss) ($22,173) $8,386 ($48,561) $5,443
======= ======= ======= =======
Weighted average
number of common
shares outstanding 27,706 22,950 25,914 22,800
======= ======= ======= =======
Basic Net Income
(Loss) Per
Common Share $ (0.80) $ 0.37 $ (1.87) $ 0.24
======= ======== ======= =======
Weighted average
number of common
and common equivalent
shares outstanding 27,706 24,272 25,914 24,171
======= ======= ======= =======
Diluted Net Income
(Loss) Per
Common Share $ (0.80) $ 0.35 $ (1.87) $ 0.23
======= ======= ======= ======
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(In Thousands, Except Per Share Amounts)
(Unaudited)
For the Thirteen For the Thirteen Weeks
Weeks Ended Ended July 31, 1999
August 1, 1998 Ames Hills Other Total
-------------------- ----- ----- ----- -----
TOTAL NET
SALES $535,047 $728,023 $128,175 $ - $856,198
COSTS,
EXPENSES
AND (INCOME):
Cost of
merchandise
sold 378,211 514,584 83,762 - 598,346
Selling, general
and
administrative
expenses 145,490 191,271 52,790 30,100 274,161
Leased department
and other income (7,489) (10,248) (1,342) - (11,590)
Depreciation and
amortization
expense, net 2,257 10,606 3,813 1,885 16,304
Interest and
debt expense, net 3,192 11,439 1,388 794 13,621
----- ----- ----- ----- -----
INCOME (LOSS)
BEFORE
INCOME TAXES 13,386 10,371 (12,236)(32,779) (34,644)
Income tax
benefit
(provision) (5,000) (3,733) 4,404 11,800 12,471
----- ----- ----- ----- -----
NET INCOME (LOSS) $8,386 $6,638 ($7,832)($20,979) ($22,173)
====== ====== ====== ====== ======
Weighted average
number of common
shares
outstanding 22,950 27,706 27,706 27,706 27,706
====== ====== ====== ====== ======
Basic net income
(loss) per share $ 0.37 $ 0.24 $ (0.28)$ (0.76) $ (0.80)
====== ====== ====== ====== ======
Weighted average
number of common
and common
equivalent shares
outstanding 24,272
======
Diluted net
income per
share $ 0.35
======
Ames 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.
Hills 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 corporate facility.
Other represents the expenses incurred during the period of
remodeling the Hills stores (i.e., pre-opening expenses
incurred during the conversion or "dark" period).
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(In Thousands, Except Per Share Amounts)
(Unaudited)
For the Twenty-Six
Weeks Ended For the Twenty-Six Weeks Ended July 31, 1999
August 1, 1998 Ames Hills Other Total
------------------------------------------------------------
TOTAL
NET SALES $ 1,032,092 $ 1,309,625 $ 375,642 $ -- $ 1,685,267
COSTS, EXPENSES
AND (INCOME):
Cost of
merchandise
sold 736,822 934,089 251,212 -- 1,185,301
Selling,
general and
administrative
expenses 290,762 350,903 142,047 46,672 539,622
Leased
department
and other
income (13,675) (16,644) (3,368) -- (20,012)
Depreciation
and
amortization
expense, net 4,178 16,523 10,393 3,771 30,687
Interest and
debt
expense, net 5,246 19,417 4,162 1,964 25,543
-------- ----------- --------- --------- -----------
INCOME (LOSS)
BEFORE INCOME
TAXES 8,759 5,337 (28,804) (52,407) (75,874)
Income tax
benefit
(provision) (3,316) (1,921) 10,368 18,866 27,313
-------- ----------- --------- --------- -----------
NET INCOME
(LOSS) $ 5,443 $ 3,416 ($ 18,436)($ 33,541)($ 48,561)
======== =========== ========= ========= ===========
Weighted
average
number of
common shares 22,800 25,914 25,914 25,914 25,914
outstanding ======== =========== ========= ========= ===========
Basic net income
(loss) per
share $ 0.24 $ 0.13 $ (0.71) $(1.29) $ (1.87)
======== =========== ========= ========= ===========
Weighted average
number of common
and common
equivalent shares
outstanding 24,171
======
Diluted net
income per
share $ 0.23
======
Ames 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.
Hills 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 corporate facility.
Other represents the expenses incurred during the period of
remodeling the Hills stores (i.e., pre-opening expenses
incurred during the conversion or "dark" period).
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In Thousands)
(Unaudited)
July 31, January 30, August 1,
1999 1999 1998
-----------------------------------------
ASSETS
Current Assets:
Cash and
short-term investments $ 36,404 $ 35,744 $ 20,859
Receivables 47,038 30,244 22,662
Merchandise
inventories 795,440 621,509 502,157
Prepaid expenses
and other current assets 57,173 16,075 11,776
----------- ----------- -----------
Total current assets 936,055 703,572 557,454
Fixed Assets 527,345 437,834 165,692
Less - Accumulated
depreciation
and amortization (95,737) (66,205) (53,283)
----------- ----------- -----------
Net fixed assets 431,608 371,629 112,409
Other assets
and deferred charges 63,232 16,447 5,900
Deferred taxes, net 102,406 102,406 7,406
Beneficial
lease rights, net 57,507 58,885 --
Goodwill, net 197,471 230,454 --
=========== =========== ===========
$ 1,788,279 $ 1,483,393 $ 683,169
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable:
Trade $ 343,981 $ 313,280 $ 176,147
Other 67,557 83,485 43,060
----------- ----------- -----------
Total accounts
payable 411,538 396,765 219,207
Short-term debt -- -- 70,525
Current portion of
long-term debt,
capital lease and
financing obligations 19,801 17,799 4,638
Self-insurance reserves 29,085 29,115 14,584
Accrued expenses
and other current
liabilities 215,638 211,827 74,581
Store closing reserves 56,130 59,768 10,301
----------- ----------- -----------
Total current liabilities 732,192 715,274 393,836
Long-term debt 257,085 95,810 --
Capital lease
and financing
obligations 183,559 191,904 37,378
Other long-term
liabilities 130,766 132,376 38,995
Excess of revalued
net assets over
equity under
fresh-start reporting 20,944 24,021 27,097
Commitments
and contingencies
Stockholders' Equity:
Preferred stock -- -- --
Common stock 292 239 233
Additional
paid-in capital 424,900 236,667 126,001
Retained earnings 39,455 88,016 59,629
Treasury stock, at cost (914) (914) --
----------- ----------- -----------
Total stockholders'
equity 463,733 324,008 185,863
----------- ----------- -----------
$ 1,788,279 $ 1,483,393 $ 683,169
=========== =========== ===========
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