Ames Reports Fourth Quarter and Year-End Results.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. , CT--(BUSINESS WIRE)--March 25, 1999-- Net income increases 39% to $48.1 million or $1.99 a share excluding the Hills acquisition related charges 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 results for the fourth quarter and fiscal year ended January January: see month. 30, 1999. For the year, the company reported net income of $33.8 million, or $1.40 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, including after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charges of $7.6 million, or $0.32 per diluted share, for restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , and other expenses related to the acquisition of Hills Stores Company on December December: see month. 31, 1998. The Company's results also reflect the impact of a loss of $6.6 million on operations of the acquired Hills stores during January 1999, when one third of those stores were undergoing liquidation sales liquidation sale liquid (US) n → Verkauf m wegen Geschäftsaufgabe . Without the Hills acquisition, Ames would have earned net income of $48.1 million, or $1.99 a share on a diluted basis, an increase of 39% over the prior fiscal year, when earnings were $34.5 million, or $1.46 per diluted 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 fiscal year ended January 30, 1999 were $2.507 billion, an increase of 12.3% over the $2.233 billion reported for preceding fiscal year. The latest results include $112 million contributed in January 1999 by the recently acquired Hills Stores Company. Comparable store sales for the 52 weeks ended January 30, 1999 were $2.260 billion, compared with $2.109 billion for the 52 weeks ended January 31, 1998, an increase of 7.2 percent. Comparable store sales are based on 285 stores. "The core Ames business was strong throughout the year, with particular gains in domestics, toys, ready to assemble furniture, and ladies sportswear," said Joseph R. Ettore, Ames' President and Chief Executive Officer. Commenting on the progress of the Hills acquisition, Ettore added, "Renovation of the newly acquired stores is on schedule with the first fifty Grand Openings scheduled for April 22nd and we remain confident that our acquisition of Hills will be accretive in the first year, excluding one time charges, as we introduce the Ames quality and marketing strategy into these stores." For the fourth quarter of its latest fiscal year, Ames reported net income of $21.3 million, or $0.87 per diluted share including after-tax charges for restructuring and other expenses related to the acquisition of Hills as well as the results of operations for the acquired Hills stores in January 1999. Without the Hills acquisition, Ames would have had fourth quarter net income of $35.6 million, or $1.46 a share on a fully diluted basis, an increase of 20% over the $29.6 million, or $1.23 per diluted share, earned in the preceding fiscal year. Sales for the fourth quarter ended January 30, 1999 were $872.7 million, an increase of 13% over the comparable prior year period. Comparable store sales for the 13 weeks ended January 30, 1999 were $715.6 million, compared with $675.6 million in the 13 weeks ended January 31, 1998, an increase of 5.9 percent. With 300 Ames stores and 153 newly acquired Hills 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 a full-line discount retailer with combined annual sales of almost $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. 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)
Thirteen Fourteen Fifty-two Fifty-three
weeks Ended Weeks Ended Weeks Ended Weeks Ended
----------- ----------- ----------- -----------
January 30, January 31, January 30, January 31,
1999 1998 1999 1998
-------- -------- -------- --------
Ames net sales $760,559 $769,377 $2,395,092 $2,233,118
Hills net sales 112,126 - 112,126 -
-------- -------- ---------- ----------
TOTAL NET SALES 872,685 769,377 2,507,218 2,233,118
COSTS, EXPENSES AND
(INCOME)
Ames cost of merchandise sold 543,742 553,682 1,719,907 1,603,636
Hills cost of merchandise sold 66,324 - 66,324 -
Ames selling, general and
administrative expenses 166,317 171,293 608,653 581,659
Hills operating expenses and
agency fees 51,940 - 51,940 -
Leased department and other
income (9,721) (7,185) (30,164) (25,069)
Depreciation and amortization
expense 7,114 2,244 14,478 6,659
Interest and debt expense,
net 6,160 2,241 15,253 11,600
Store closing charge 8,222 1,000 8,222 1,000
----- ----- ----- -----
INCOME BEFORE INCOME
TAXES 32,587 46,102 52,605 53,633
Income tax provision (11,252) (16,523) (18,775) (19,087)
-------- -------- -------- --------
NET INCOME $21,335 $29,579 $33,830 $34,546
======= ======= ======= =======
BASIC NET INCOME PER COMMON
SHARE
Net income $0.91 $1.32 $1.47 $1.59
===== ===== ===== =====
Weighted average number
of common shares 23,344 22,404 23,010 21,723
====== ====== ====== ======
DILUTED NET INCOME PER COMMON
SHARE
Net income $0.87 $1.23 $1.40 $1.46
===== ===== ===== =====
Weighted average common
and common equivalent
shares 24,401 24,003 24,216 23,649
====== ====== ====== ======
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
For the 13 weeks ended January 30, 1999
(In Thousands, Except Per Share Amounts)
Ames Hills Other Total
---- ----- ----- -----
TOTAL NET SALES $760,559 $112,126 $ - $872,685
COSTS, EXPENSES AND (INCOME):
Cost of merchandise sold 543,742 66,324 - 610,066
Selling, general and
administrative expenses 164,576 51,940 1,741 218,257
Leased department and other
income (8,717) (1,004) - (9,721)
Depreciation and amortization
expense 3,897 3,217 - 7,114
Interest and debt expense, net 2,330 1,935 1,895 6,160
Store closing charge - - 8,222 8,222
----- ----- ----- -----
INCOME (LOSS) BEFORE INCOME TAXES 54,731 (10,286)(11,858) 32,587
Income tax (provision) benefit (19,157) 3,672 4,233 (11,252)
-------- ----- ----- --------
NET INCOME (LOSS) $35,574 ($6,614)($7,625) $21,335
======= ================ =======
DILUTED NET INCOME (LOSS)
PER COMMON SHARE
Net income (loss) $1.46 ($0.27) ($0.32) $0.87
===== ======= ======= =====
Weighted average common and common
equivalent shares 24,401 24,401 24,401 24,401
====== ====== ====== ======
Hills represents the results of operations for the newly acquired
Hills locations for the four weeks ended January 30, 1999.
Other represents certain costs and expenses incurred as a result
of the Hills acquisition.
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
For the Fiscal Year ended January 30, 1999
(In Thousands, Except Per Share Amounts)
Ames Hills Other Total
---- ----- ----- -----
TOTAL NET SALES $2,395,092 $112,126 $ - $2,507,218
COSTS, EXPENSES AND (INCOME):
Cost of
merchandise sold 1,719,907 66,324 - 1,786,231
Selling, general
and administrative
expenses 606,912 51,940 1,741 660,593
Leased department
and other
income (29,160) (1,004) - (30,164)
Depreciation and
amortization expense 11,261 3,217 - 14,478
Interest and debt
expense, net 11,423 1,935 1,895 15,253
Store closing charge - - 8,222 8,222
------ ----- ----- -----
INCOME (LOSS)
BEFORE INCOME TAXES 74,749 (10,286) (11,858) 52,605
Income tax
(provision) benefit (26,680) 3,672 4,233 (18,775)
-------- ----- ----- --------
NET INCOME (LOSS) $48,069 ($6,614) ($7,625) $33,830
======= ======== ======== =======
DILUTED NET INCOME (LOSS)
PER COMMON SHARE
Net income (loss) $1.99 ($0.27) ($0.32) $1.40
===== ======= ======= =====
Weighted average
common and common
equivalent shares 24,216 24,216 24,216 24,216
====== ====== ====== ======
Hills represents the results of operations for the newly acquired
Hills locations for the four weeks ended January 30, 1999.
Other represents certain costs and expenses incurred as a result
of the Hills acquisition.
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands)
January 30, January 31,
1999 1998
---------- ----------
ASSETS
Current Assets:
Cash and short-term investments $35,744 $57,828
Receivables:
Trade 13,315 8,977
Other 16,929 9,945
------ -----
Total receivables 30,244 18,922
Merchandise inventories 621,509 423,836
Prepaid expenses and other
current assets 16,075 12,060
------ ------
Total current assets 703,572 512,646
------- -------
Fixed Assets:
Land and buildings 22,319 3,694
Property under capital leases 159,654 7,115
Fixtures and equipment 179,766 83,335
Leasehold improvements 76,095 34,646
------- -------
437,834 128,790
Less - Accumulated depreciation and
amortization (66,205) (45,457)
-------- --------
Net fixed assets 371,629 83,333
------- ------
Beneficial lease rights, net 58,885 -
Other assets and deferred charges 16,447 6,657
Deferred taxes, net 102,406 7,406
Goodwill, net 230,454 -
---------- ----------
$1,483,393 $610,042
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable:
Trade $313,280 $180,971
Other 83,485 42,185
------ ------
Total accounts payable 396,765 223,156
------- -------
Current portion of long-term debt - 2,000
Current portion of capital lease
and financing obligations 17,799 2,177
Self-insurance reserves 29,115 16,059
Accrued compensation 48,408 31,789
Accrued expenses 163,419 41,648
Store closing reserves 59,768 12,050
------ ------
Total current liabilities 715,274 328,879
------- -------
Long-term debt 95,810 9,340
Capital lease and financing obligations 191,904 26,393
Other long-term liabilities 132,376 41,874
Excess of revalued net assets over equity
under fresh-start reporting 24,021 30,174
Commitments and contingencies
Stockholders' Equity:
Common stock 239 225
Additional paid-in capital 236,667 118,971
Retained earnings 88,016 54,186
Treasury stock, at cost (914) -
----- ----------
Total stockholders' equity 324,008 173,382
---------- ----------
$1,483,393 $610,042
========== ==========
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