Ames Narrows First-Quarter Loss by $1 Million.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 8, 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 announced a narrowing of its first- quarter net loss to $5.9 million, or 28 cents loss per common share, for the quarter ended April 26, 1997, compared with a net loss of $7.0 million, or $0.34 loss per common share for the prior year's first quarter. 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 first quarter were $432.6 million, compared with net sales of $438.7 million in the prior year's first quarter. Comparable-store sales for the quarter, based on 276 stores, increased 0.1 percent. Joseph R. Ettore, president and chief executive officer, said, "We were pleased with the narrowing of our first-quarter loss, particularly in light of a difficult April selling period. Gross margin performance was above plan and inventories were well controlled. "During the first quarter we opened four new stores, in New Bedford New Bedford, city (1990 pop. 99,922), seat of Bristol co., SE Mass., at the mouth of the Acushnet River on Buzzard's Bay; settled 1640, set off from Dartmouth 1787, inc. as a city 1847. , Mass., Kingston, N.Y., Phoenixville, Pa., and Bridgeton, N.J. Our four new Ames stores, featuring the latest prototype design features, have generated strong sales and enthusiastic customer response. Ames will continue its selective expansion strategy with three additional Grand Opening events on July 24, in St. Johnsbury, Vt., Falmouth, Maine Falmouth is a town in Cumberland County, Maine, United States. The population was 10,310 at the 2000 census. This northern suburb of Portland borders Casco Bay and offers one of the largest anchorages in Maine. , and West Lebanon West Lebanon is the name of several towns in the United States:
Ames, which operates 294 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 fifth-largest discount retailer, with annual net sales of $2.2 billion. -0- For fax copies of Ames' most recent news releases, dial 1-800-758-5804, ext. 036787. 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
Weeks Ended
April 26, April 27,
1997 1996
TOTAL SALES $448,575 $455,677
Less: Leased department sales 15,974 17,010
NET SALES 432,601 438,667
COSTS, EXPENSES AND (INCOME):
Cost of merchandise sold 314,235 321,265
Selling, general and administrative expenses 128,885 127,802
Leased department and other operating income (5,305) (5,774)
Depreciation and amortization expense 2,923 2,620
Amortization of the excess of revalued net
assets over equity under fresh-start
reporting (1,538) (1,538)
Interest and debt expense, net 2,392 4,239
INCOME (LOSS) BEFORE INCOME TAXES (8,991) (9,947)
Income tax benefit 3,061 2,949
NET INCOME (LOSS) ($5,930) ($6,998)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING 20,912 20,472
NET INCOME (LOSS) PER SHARE ($0.28) ($0.34)
Results of Operations as a Percent of Net Sales:
Net sales 100.0% 100.0%
Cost of merchandise sold 72.6 73.2
Gross margin 27.4 26.8
Selling, general and administrative expenses 29.8 29.1
Leased department and other operating income (1.2) (1.3)
Depreciation and amortization expense 0.7 0.6
Amortization of the excess of revalued net
assets over equity under fresh-start
reporting (0.4) (0.4)
Interest and debt expense, net 0.6 1.0
Income (loss) before income taxes (2.1) (2.3)
Income tax benefit 0.7 0.7
Net income (loss) (1.4%) (1.6%)
(Please see the accompanying condensed notes to these consolidated
condensed financial statements.)
-0-
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In Thousands)
(Unaudited)
April 26, January 25, April 27,
1997 1997 1996
ASSETS
Current Assets:
Cash and short-term
investments $17,214 $46,119 $18,851
Receivables 26,228 19,071 24,585
Merchandise inventories 461,796 391,076 477,960
Prepaid expenses and other
current assets 14,259 12,169 20,081
Total current assets 519,497 468,435 541,477
Fixed Assets 103,451 96,114 84,965
Less - Accumulated
depreciation and amortization (34,931) (32,529) (22,547)
Net fixed assets 68,520 63,585 62,418
Other assets and deferred charges 7,271 4,773 5,806
$595,288 $536,793 $609,701
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable:
Trade $154,153 $145,737 $171,586
Other 47,109 43,180 38,944
Total accounts payable 201,262 188,917 210,530
Note payable - revolver 73,107 - 83,480
Current portion of
long-term debt and
capital lease obligations 8,182 15,578 17,001
Self-insurance reserves 33,507 34,177 37,692
Accrued expenses and other
current liabilities 61,659 66,356 51,384
Store closing reserve 19,560 24,438 22,224
Total current liabilities 397,277 329,466 422,311
Long-term debt 9,192 11,134 13,962
Capital lease obligations 26,347 27,086 31,785
Other long-term liabilities 7,366 7,565 6,144
Unfavorable lease liability 16,668 17,029 18,252
Excess of revalued net assets
over equity under fresh-start
reporting 34,789 36,327 40,942
Commitments and contingencies
Stockholders' Equity:
Common stock 213 205 205
Additional paid-in capital 89,726 88,341 80,759
Retained earnings (accumulated
deficit) 13,710 19,640 (4,659)
Total stockholders' equity 103,649 108,186 76,305
$595,288 $536,793 $609,701
(Please see the accompanying condensed notes to these consolidated
condensed financial statements.)
-0- 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. Notes to News Release Financial Statements Basis of Presentation: In the opinion of management, the accompanying consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge 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 Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the current year presentation. Due to the seasonality of the Company's operations, the results of operations for the interim period ended April 26, 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 The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed in April, 1997. Fresh Start Accounting: Upon emergence from bankruptcy in 1992, all of the Company's fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → were written off and the Company's reorganization value was less than the fair value of its remaining 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. . As a consequence, depreciation and amortization expense (approximately $3 million in each of the periods presented) is computed only on fixed asset additions since 1992. In addition, pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. includes the amortization of the excess of revalued net assets over equity (approximately $2 million in each of the periods presented). Earnings Per Common Share: Earnings per share was determined using the weighted average number of common shares outstanding. Common stock equivalents and fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were excluded as their inclusion would have reduced the reported loss per share. Inventories: Inventories are valued at the lower of cost or market lower of cost or market A method for determining an asset's value such that either the original cost or the current replacement cost, whichever is lowest, is used for financial reporting purposes. . Cost is determined by the retail last-in, first-out last-in, first-out n. A method of inventory accounting in which the most recently acquired items are assumed to have been the first sold. In a period of rising prices, this method yields a lower ending inventory, a higher cost of goods sold, a lower (LIFO (Last In-First Out) A queueing method in which the next item to be retrieved is the item most recently placed in the queue. Contrast with FIFO. LIFO - stack ) cost method. No LIFO reserve was necessary at April 26, 1997, January 25, 1997 and April 27, 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 Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility of up to $320 million, with a sublimit sub·lim·it n. A limit or ceiling placed on a subdivision of a larger category, especially of nuclear weapons: negotiating sublimits on the number of land-based, intermediate-range missiles. 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 April 26, 1997. Income Taxes: The Company's estimated annual effective income tax rate for each year was applied to the loss incurred before income taxes for the thirteen weeks ended April 26, 1997 and April 27, 1996 to compute To perform mathematical operations or general computer processing. For an explanation of "The 3 C's," or how the computer processes data, see computer. non-cash income tax benefits of $3.1 and $2.9 million, respectively. The Company currently expects that, as a result of the seasonality of the Company's business, this year's income tax benefit will be offset by non-cash income tax expense in the remaining interim periods. The income tax benefits are included in other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. in the balance sheets as of April 26, 1997 and April 27, 1996. CONTACT: Marge Wyrwas, 860/257-2659 Lynn Riemer, 860/257-2666 |
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