Ames Department Stores Reports Fourth Quarter and Fiscal Year 2000 Results; Fourth Quarter Profitable Before Charges.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)--March 22, 2001 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 reported its financial results for the fourth quarter and fiscal year 2000. For the fourth quarter, Ames recorded a net profit of $900,000 before non-recurring charges of $151 million and the results of 32 stores in the process of closing. "Last year was very challenging for Ames," said Chairman & Chief Executive Officer Joseph R. Ettore. "We have taken many critical steps to bring our operating costs operating costs npl → gastos mpl operacionales and cash flow requirements in line with the current difficult economic environment, which we expect to continue throughout 2001." "We were adversely affected by poor weather in both spring and summer. When you combine these unseasonable un·sea·son·a·ble adj. 1. Not suitable to or appropriate for the season. 2. Not characteristic of the time of year: unseasonable weather. 3. Poorly timed; inopportune. weather patterns with sharp increases in fuel prices, the result was a significant decrease in the spending habits of our customer base," stated Ettore. "We reduced our inventories throughout the Fall season, ending the fiscal year 13 percent lower per store than the prior year. We have also reduced our planned capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. by nearly $100 million, primarily by planning to open only 5 stores in 2001 as compared to 26 new stores last year. Finally, we have significantly reduced our staffs both in the field and at headquarters. This, along with the reduction in expenses from the closed stores and some reductions in our marketing and advertising expenditures, will allow us to decrease selling, general and administrative expenses by nearly $100 million in 2001." Fourth Quarter Results For the 14-week period ended February February: see month. 3, 2001, Ames recorded a net loss of $152 million, or $5.18 per share. This includes non-recurring charges of $151 million related to the closure of 32 stores, the impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of certain assets and an extraordinary charge resulting from the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of the Company's prior credit facility. This compares to net income of $96 million or $3.23 per share for the 13 weeks ended January January: see month. 29, 2000. All amounts are reported on a 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. basis. 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 14-week fourth quarter were $1.331 billion, an increase of 4.2 percent over the $1.277 billion reported for the fourth quarter last year. Comparable store sales for the fiscal quarter declined 3.0 percent from the prior year, compared with a 3.0 percent increase reported for last year's fourth quarter. Full Year Results For fiscal year 2000, a 53-week year, Ames had a net loss of $241 million or $8.19 per share, compared with net income of $17.1 million or $0.62 per share for the 52-week period ended January 29, 2000. The fiscal 2000 amounts include non-recurring charges of $151 million or $5.15 per share. Net sales for the 53 weeks that ended on February 3, 2001 were $4.0 billion, compared with $3.8 billion last year. Comparable-store sales for the fiscal year declined 2.1 percent, measured against a 6.2 percent increase the prior year. The Company further strengthened its capital structure by announcing earlier this month that it executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. an $800 million senior secured financing agreement for which GE Capital is acting as Agent. The terms of the new agreement include both a higher borrowing base and a higher advance rate than the previous facility allowed, providing the Company with greater flexibility and liquidity during challenging and uncertain economic times. The above will be further discussed during the Company's quarterly and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. conference call at 10:30 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy today, March 22, 2001. A simultaneous web cast of the call will be available on Ames' website at www.AmesStores.com, and the audio will be archived at Ames' website from today through Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , March 30, 2001. Ames Department Stores, Inc., a FORTUNE 500(R) company, is the nation's largest regional, full-line discount retailer with annual sales of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $4 billion. With 452 stores in the Northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. , Mid-Atlantic Adj. 1. mid-Atlantic - of a region of the United States generally including Delaware; Maryland; Virginia; and usually New York; Pennsylvania; New Jersey; "mid-Atlantic states" middle Atlantic and Mid-West, Ames offers value-conscious shoppers quality, namebrand products across 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. For more information about Ames, visit www.AmesStores.com or www.espanol.AmesStores.com. 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. To find the location of the Ames store nearest you, dial 1-800-SHOP-AMES.
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
For the 14 For the 13 For the 53 For the 52
Weeks Ended Weeks Ended Weeks Ended Weeks Ended
February 3, January 29, February 3, January 29,
2001 2000 2001 2000
Net sales $1,330,573 $1,277,220 $3,953,585 $3,836,854
Leased department
and other income 12,022 12,446 46,413 41,690
Total revenue 1,342,595 1,289,666 3,999,998 3,878,544
Costs and expenses:
Cost of merchandise
sold 1,008,684 898,336 2,932,251 2,715,386
Selling, general and
administrative
expenses 301,231 266,242 1,058,668 1,068,175
Depreciation and
amortization expense,
net 25,500 17,292 79,689 65,495
Interest and debt
expense, net 23,118 17,564 87,961 60,843
Store closing charge 129,806 - 129,806 -
(Loss) income before
income taxes,
cumulative effect
adjustment and
extraordinary item (145,744) 90,232 (288,377) (31,355)
Income tax benefit 552 5,819 54,753 49,589
(Loss) income before
cumulative effect
adjustment
and extraordinary item (145,192) 96,051 (233,624) 18,234
Cumulative effect
adjustment,
net of tax - - - (1,107)
Net (loss) income
before
extraordinary item (145,192) 96,051 (233,624) 17,127
Extraordinary item,
net of tax (6,964) - (6,964) -
Net (loss) income $(152,156) $ 96,051 $ (240,588) $ 17,127
Basic net (loss) income
per common share
Before cumulative
effect
adjustment and
extraordinary item $ (4.94) $ 3.30 $ (7.95) $ 0.66
Cumulative effect
adjustment, net of tax - - - (0.04)
Extraordinary item,
net of tax (0.24) - (0.24) -
Net (loss) income
per share $ (5.18) $ 3.30 $ (8.19) $ 0.62
Diluted net (loss)
income per common
share
Before cumulative
effect
adjustment and
extraordinary item $ (4.94) $ 3.23 $ (7.95) $ 0.66
Cumulative effect
adjustment, net of tax - - - (0.04)
Extraordinary item,
net of tax (0.24) - (0.24) -
Net (loss) income
per share $ (5.18) $ 3.23 $ (8.19) $ 0.62
Basic weighted average
number of common
shares outstanding 29,401 29,147 29,383 27,517
Diluted weighted
average number of
common and
common equivalent
shares outstanding (a) 29,710 (a) 27,658
(a) Common equivalent shares have not been included because the
effect would be anti-dilutive.
Ames Department Stores, Inc. and Subsidiaries
Supplemental Information
(In Millions, Except Per Share Amounts)
For the 14 Weeks Ended February 3, 2001 For the
Closing Closed 13 Weeks
Ongoing 32-Store Store Charge Ended
Operations Results & Other Total Jan 29, 2000
TOTAL NET SALES $ 1,261.7 $ 68.9 $ - $1,330.6 $1,277.2
Leased department
and other income 11.3 0.7 - 12.0 12.5
TOTAL REVENUE 1,273.0 69.6 - 1,342.6 1,289.7
COSTS AND
EXPENSES
Cost of
merchandise sold 945.3 54.0 9.4 1,008.7 898.3
Selling, general
and
administrative
expenses 285.2 16.0 - 301.2 266.3
Depreciation and
amortization
expense, net 18.7 1.8 5.0 25.5 17.3
Interest and
debt expense, net 22.3 0.8 - 23.1 17.6
Store closing
charge - - 129.8 129.8 -
Income (loss)
before
income taxes,
cumulative effect
adjustment and
extraordinary item 1.5 (3.0)(144.2) (145.7) 90.2
Income tax
(provision)
benefit (0.6) 1.1 - 0.5 5.8
Income (loss)
before cumulative
effect adjustment
and extraordinary
item 0.9 (1.9)(144.2) (145.2) 96.0
Cumulative effect
adjustment,
net of tax - - - - -
Net income (loss)
before
extraordinary item 0.9 (1.9)(144.2) (145.2) 96.0
Extraordinary item,
net of tax - - (7.0) (7.0) -
NET INCOME (LOSS) $ 0.9 $ (1.9)$(151.2) $(152.2) $ 96.0
Net income (loss)
per diluted share $ 0.03 $ (0.07)$(5.14) $ (5.18) $ 3.23
"Closing 32-Store Results" reflects the results of operations for
the 32 closing stores prior to the completion of the liquidation
period.
"Closed Store Charge and Other" reflects the charge recorded by
the Company for asset writedowns and future obligations incurred in
connection with the closing of 32 stores; the impairment of long-term
assets recorded by the Company pursuant to SFAS 121; and the
extraordinary charge recorded by the Company in connection with the
termination of the Company's prior revolving credit agreement.
Ames Department Stores, Inc. and Subsidiaries
Supplemental Information
(In Millions, Except Per Share Amounts)
For the 53 Weeks Ended February 3, 2001
For the
Closed 52 Weeks
Closing Store Ended
Ongoing 32-Store Charge Jan 29,
Operations Results & Other Total 2000
TOTAL NET SALES $ 3,748.6 $ 205.0 - $ 3,953.6 $ 3,836.8
Leased department
and other income 44.0 2.4 - 46.4 41.7
TOTAL REVENUE 3,792.6 207.4 - 4,000.0 3,878.5
COSTS AND EXPENSES
Cost of merchandise
sold 2,763.5 159.3 9.4 2,932.2 2,715.4
Selling, general and
administrative
expenses 1,000.4 58.3 - 1,058.7 1,068.2
Depreciation and
amortization
expense, net 67.7 7.0 5.0 79.7 65.5
Interest and debt
expense, net 84.7 3.2 - 87.9 60.8
Store closing charge - - 129.8 129.8 -
Loss before income
taxes, cumulative
effect adjustment and
extraordinary item (123.7) (20.4) (144.2) (288.3) (31.4)
Income tax benefit 47.0 7.7 - 54.7 49.6
Net income (loss)
before cumulative
effect adjustment and
extraordinary item (76.7) (12.7) (144.2) (233.6) 18.2
Cumulative effect
adjustment, net of tax - - - - (1.1)
Net income (loss)
before extraordinary
item (76.7) (12.7) (144.2) (233.6) 17.1
Extraordinary item,
net of tax - - (7.0) (7.0) -
NET INCOME (LOSS) $ (76.7) $ (12.7) $(151.2) $(240.6) $ 17.1
Net income (loss)
per diluted share $ (2.61) $ (0.43) $ (5.15) $ (8.19) $ 0.62
"Closing 32-Store Results" reflects the results of operations for
the 32 closing stores prior to the completion of the liquidation
period.
"Closed Store Charge and Other" reflects the charge recorded by
the Company for asset writedowns and future obligations incurred
in connection with the closing of 32 stores; the impairment of
long-term assets recorded by the Company pursuant to SFAS 121; and
the extraordinary charge recorded by the Company in connection
with the termination of the Company's prior revolving credit
agreement.
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In Thousands)
February 3, January 29,
2001 2000
ASSETS
Current Assets:
Cash and short-term investments $ 49,761 $ 30,612
Receivables 17,039 25,302
Merchandise inventories 744,132 831,387
Deferred taxes, net 17,771 28,854
Prepaid expenses and other current assets 41,494 36,772
Total current assets 870,197 952,927
Fixed Assets 761,903 629,979
Less - Accumulated depreciation
and amortization (213,904) (128,229)
Net fixed assets 547,999 501,750
Other assets and deferred charges 56,490 57,256
Deferred taxes, net 411,891 346,055
Beneficial lease rights, net 50,675 56,280
Goodwill, net 58,475 61,026
$ 1,995,727 $ 1,975,294
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable:
Trade $ 345,915 $ 325,356
Other 78,371 96,224
Total accounts payable 424,286 421,580
Current portion of capital lease
and financing obligations 19,018 22,086
Self-insurance reserves 29,878 29,827
Accrued compensation 39,366 42,095
Accrued expenses 74,839 91,015
Store closing reserves 179,365 55,468
Total current liabilities 766,752 662,071
Long-term debt 606,057 421,769
Capital lease and financing obligations 165,365 180,404
Other long-term liabilities 49,256 57,916
Excess of revalued net assets over
equity under fresh-start reporting 11,715 17,868
Commitments and contingencies
Stockholders' Equity:
Preferred stock - -
Common stock 295 293
Additional paid-in capital 532,654 530,744
(Accumulated deficit) Retained earnings (135,445) 105,143
Treasury stock (922) (914)
Total stockholders' equity 396,582 635,266
$ 1,995,727 $ 1,975,294
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