Ames Reports Better-Than-Plan Second-Quarter Income; Income Before Other Gains Increases 5.2 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)--Aug. 7, 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 that its second-quarter net income increased to $7.4 million, or $0.31 per fully 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 period ended July 26, 1997, compared with last year's second-quarter net income of $4.5 million, or $0.21 per fully diluted share. This year's second-quarter income before other gains was $11.2 million, compared to $6.0 million last year, a $5.2 million improvement. Net income for the 26 weeks ended July 26, 1997, was $1.4 million, or $0.06 per fully diluted share, compared with a net loss of $2.5 million, or a loss of $0.12 per fully diluted share, last year. The year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. income before other gains was $2.2 million, a $6.1 million improvement compared with last year's loss before other gains of $3.9 million. 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 second quarter were $503.6 million, compared with $499.1 million in the prior year's second quarter, an increase of 0.9 percent. Net sales for the year to date were $936.2 million, compared with $937.8 million last year. Comparable-store sales for the quarter increased 0.3 percent while comparable-store sales for the year-to-date period increased 0.2 percent. Joseph R. Ettore, President and Chief Executive Officer, said, "We are pleased with Ames' second quarter performance. Ames' year-to-date net income of $1.4 million represents the first positive net income result for the first half of the year since 1988 - a new milestone. "Despite operating in a competitive northeastern sales environment, we are generating positive bottom line figures and maintaining gross margin. At the same time, we are focusing our efforts on refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar established 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. programs such as 55 Gold(R) and Special Buy, and incorporating targeted, store-by-store micromarketing efforts that take into account the specific characteristics of each Ames location. "Selective, controlled store growth is an important element of our progress. We opened four new stores in April and three new stores in July. Two more Grand Opening events will take place in October, in Mercerville, N.J., and Manchester, N.H., bringing the number of new stores opened in 1997 to nine," Ettore said. "We continue to upgrade our existing locations and incorporate improvements into the chain, with the goal in mind of exceeding customers' expectations when they visit Ames." Ames, which operates 296 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 retail chain, with annual net sales of $2.2 billion. -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 26, July 27, July 26, July 27,
1997 1996 1997 1996
TOTAL SALES $530,059 $525,217 $978,634 $980,894
Less: Leased
department sales 26,492 26,110 42,466 43,120
NET SALES 503,567 499,107 936,168 937,774
COSTS, EXPENSES AND (INCOME):
Cost of
merchandise sold 357,219 359,382 671,454 680,647
Selling, general and
administrative expenses 137,482 134,609 266,367 262,411
Leased department and
other operating income (7,253) (7,221) (12,558) (12,995)
Depreciation and
amortization expense 3,264 2,649 6,187 5,269
Amortization of the excess
of revalued net assets
over equity under
fresh-start reporting (1,539) (1,539) (3,077) (3,077)
Interest and debt
expense, net 3,208 5,206 5,600 9,445
INCOME (LOSS) BEFORE OTHER
GAINS 11,186 6,021 2,195 (3,926)
Gain on disposition
of properties - 395 - 395
INCOME (LOSS) BEFORE
INCOME TAXES 11,186 6,416 2,195 (3,531)
Income tax (provision)
benefit (3,808) (1,902) (747) 1,047
NET INCOME (LOSS) $7,378 $4,514 $1,448 ($2,484)
PRIMARY NET INCOME (LOSS)
PER COMMON SHARE
Net income (loss) $0.31 $0.21 $0.06 ($0.12)
Weighted average common
and common equivalent
shares 23,455 21,680 23,354 20,465
FULLY DILUTED NET INCOME
(LOSS) PER COMMON SHARE
Net income (loss) $0.31 $0.21 $0.06 ($0.12)
Weighted average common
and common equivalent
shares 23,715 21,680 23,629 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 70.9 72.0 71.7 72.6
Gross margin 29.1 28.0 28.3 27.4
Selling, general and
administrative expenses 27.3 27.0 28.5 28.0
Leased department and
other operating income (1.4) (1.4) (1.3) (1.4)
Depreciation and
amortization expense 0.6 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 0.6 1.0 0.6 1.0
Income (loss) before other
gains 2.2 1.2 0.2 (0.4)
Gain on disposition
of properties - 0.1 - -
Income (loss) before
income taxes 2.2 1.3 0.2 (0.4)
Income tax (provision) benefit (0.7) (0.4) (0.1) 0.1
Net income (loss) 1.5 % 0.9 % 0.1 % (0.3)%
-0-
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In Thousands)
(Unaudited)
July 26, January 25, July 27,
1997 1997 1996
ASSETS
Current Assets:
Cash and short-term
investments $17,548 $46,119 $18,226
Receivables 26,386 19,071 25,544
Merchandise inventories 443,827 391,076 458,940
Prepaid expenses and
other current assets 15,167 12,169 16,051
Total current assets 502,928 468,435 518,761
Fixed Assets 114,147 96,114 85,915
Less - Accumulated
depreciation and
amortization (38,168) (32,529) (25,233)
Net fixed assets 75,979 63,585 60,682
Other assets and
deferred charges 8,264 4,773 5,665
-------- -------- --------
$587,171 $536,793 $585,108
======== ======== ========
-0-
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable:
Trade $153,403 $145,737 $137,595
Other 45,884 43,180 39,846
Total accounts
payable 199,287 188,917 177,441
Note payable - revolver 65,302 - 100,720
Current portion of
long-term debt and
capital lease
obligations 7,426 15,578 16,241
Self-insurance reserves 32,647 34,177 36,081
Accrued expenses and
other current
liabilities 59,753 66,356 49,969
Store closing reserve 19,007 24,438 19,827
Total current
liabilities 383,422 329,466 400,279
Long-term debt 9,251 11,134 13,267
Capital lease obligations 24,731 27,086 27,525
Other long-term liabilities 7,461 7,565 5,968
Unfavorable lease liability 16,048 17,029 17,847
Excess of revalued net
assets over equity under
fresh-start reporting 33,250 36,327 39,404
Commitments and contingencies
Stockholders' Equity:
Common stock 218 205 204
Additional paid-in
capital 91,702 88,341 80,759
Retained earnings
(accumulated deficit) 21,088 19,640 (145)
Total stockholders'
equity 113,008 108,186 80,818
------- ------- -------
$587,171 $536,793 $585,108
======= ======= =======
(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 July 26, 1997 may not be indicative of total results for the full fiscal year. Certain information normally included in financial statements prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. 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 there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. 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 bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most 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 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. 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 twenty-six weeks ended July 27, 1996, 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 July 26, 1997, January 25, 1997 and July 27, 1996. Debt: The Company has an agreement with BankAmerica Business Credit, Inc., as agent, and a syndicate Syndicate organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018] See : Gangsterism 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 July 26, 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 To perform mathematical operations or general computer processing. For an explanation of "The 3 C's," or how the computer processes data, see computer. a non-cash income tax provision/benefit. The income tax benefit is 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 sheet as of July 27, 1996. -0- For fax copies of Ames' most-recent news releases, dial 1-800-758-5804 Ext. 036787 http://www.AmesStores.com CONTACT: Ames Department Stores Marge Wyrwas, 860/257-2659 Lynn Riemer, 860/257-2666 |
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