Ames Reports Fourth Quarter and Year-end Results; Net Income Increases 26.4 Percent to $60.8 Million, or $2.20 Per Share On Ames' Core Business.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 16, 2000 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 fiscal year and the fourth quarter that ended January January: see month. 29, 2000. For the year, Ames recorded net income of $60.8 million, or $2.20 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; this compares to net income of $48.1 million, or $1.99 per diluted share for the same period last year. Net income increased 26.4 percent over last year. This excludes the impact of certain pre- pre- word element [L.], before (in time or space). pre- pref. 1. Earlier; before; prior to: prenatal. 2. opening expenses and the results from the Hills stores prior to their re-opening as Ames stores as well as certain other costs and tax benefits. 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 net income of $17.1 million, or $0.62 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 29, 2000 were $3.837 billion, an increase of 53.5 percent over the $2.499 billion reported for the preceding fiscal year. Comparable store sales for the 52 weeks ended January 29, 2000 increased 6.2 percent over the prior year. Comparable store sales are based on 284 stores. "Everything came together for Ames in 1999. We 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. our growth strategy flawlessly flaw·less adj. Being entirely without flaw or imperfection. See Synonyms at perfect. flaw  less·ly adv. , expanding our geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. presence while sustaining strong same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of in our core stores," said Joseph R. Ettore, Ames' Chairman and Chief Executive Officer. "We are very pleased with our results for the quarter and the year, both of which exceeded expectations. In 1999, we clearly established a platform for continued growth and expansion." For the fourth quarter, net income was $50.2 million, or $1.69 per diluted share; this compares to net income of $36.9 million, or $1.51 per diluted share for the same period last year. Net income increased 36.0 percent over last year's fourth quarter. This excludes the impact of the change in timing of layaway An agreement between a retail seller and a consumer that provides that the seller will retain designated consumer goods for sale to the consumer at a specified price on a future date, if the consumer deposits with the seller an agreed upon sum of money. sales and certain tax benefits. During the fourth quarter of fiscal 1999, the Company adopted the Securities and Exchange Commission's Staff Accounting Bulletin No. 101 ("Revenue Recognition") with respect to the method of accounting for layaway sales. Reflecting the change in layaway sales accounting as well as the effect of certain tax benefits, net income for the fourth quarter amounted to $94.9 million, or $3.19 per diluted share compared to $22.4 million, or $0.92 per diluted share last year, an increase in net income of 324%. For the full year, the impact of the change in the method of accounting for layaway sales was negligible  This article or section is written like a personal reflection or and may require .Please [ improve this article] by rewriting this article or section in an . . Net sales for the fourth quarter ended January 29, 2000 were $1.277 billion, an increase of 46.7 percent over the prior year period. Fourth quarter sales include $63.0 million of layaway sales which shifted from the third quarter to the fourth quarter. Net sales for the prior year have not been restated to reflect any layaway sales adjustment. Comparable store sales for the 13 weeks ended January 29, 2000 increased 3.0 percent. Ames is pleased to extend an invitation to listen to a live webcast of our fourth quarter 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 today at 10:30 AM on our website at www.amesstores.com With 454 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 the nation's largest regional, full-line discount retailer with annual sales of $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
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(Audited)
For the Thirteen For the Fifty-Two
Weeks Ended Weeks Ended
------------------------- ------------------------
January 29, January 30, January 29, January 30,
2000 1999 2000 1999
----------- ----------- ----------- ------------
Ames net sales $ 1,277,220 $ 758,400 $ 3,459,737 $ 2,386,522
Hills net sales -- 112,126 377,117 112,126
----------- ----------- ----------- ------------
Total net sales 1,277,220 870,526 3,836,854 2,498,648
Leased department
and other income 12,446 9,721 41,690 30,164
----------- ----------- ----------- ------------
Total revenue 1,289,666 880,247 3,878,544 2,528,812
Costs and
expenses:
Ames cost of
merchandise sold 898,336 541,579 2,463,301 1,711,337
Hills cost of
merchandise sold -- 66,324 252,085 66,324
Ames selling,
general and
administrative
expenses 262,712 164,686 915,213 608,653
Hills operating
expenses and
agency fees 3,530 51,940 152,962 51,940
Depreciation and
amortization
expense, net 17,292 7,113 65,495 14,478
Interest and debt
expense, net 17,564 6,160 60,843 15,253
Store closing
charge -- 8,222 -- 8,222
----------- ----------- ----------- ------------
Income (loss)
before income
taxes 90,232 34,223 (31,355) 52,605
Income tax benefit
(provision) 5,819 (11,836) 49,589 (18,775)
----------- ----------- ----------- ------------
Income before
cumulative effect
adjustment 96,051 22,387 18,234 33,830
Cumulative effect
adjustment, net
of tax (1,107) -- (1,107) --
----------- ----------- ----------- ------------
Net income $ 94,944 $ 22,387 $ 17,127 $ 33,830
=========== =========== =========== ============
Basic net income
per common share:
Before cumulative
effect adjustment $ 3.30 $ 0.96 $ 0.66 $ 1.47
Cumulative effect
adjustment (0.04) -- (0.04) --
----------- ----------- ----------- ------------
Net income $ 3.26 $ 0.96 $ 0.62 $ 1.47
=========== =========== =========== ============
Diluted net income
per common share:
Before cumulative
effect adjustment $ 3.23 $ 0.92 $ 0.66 $ 1.40
Cumulative effect
adjustment (0.04) -- (0.04) --
----------- ----------- ----------- ------------
Net income $ 3.19 $ 0.92 $ 0.62 $ 1.40
=========== =========== =========== ============
Basic weighted
average number
of common
shares outstanding 29,147 23,344 27,517 23,010
=========== =========== =========== ============
Diluted weighted
average number
of common
and common
equivalent shares
outstanding 29,710 24,401 27,658 24,216
=========== =========== =========== ============
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(In Millions, Except Per Share Amounts)
For the 13
Wks Ended
1/30/99 For the 13 Weeks Ended 1/29/00
---------- -----------------------------------------------
Ames Ames Hills Other Layaway Adj. Total
--------- -------- ------- ------- ---------- --------
TOTAL NET
SALES $758.4 $1,214.2 $ - $ - $63.0 $1,277.2
Leased
department
and other
income 8.7 12.4 - - 0.1 12.5
-------- -------- ------- ------ ------- --------
TOTAL
REVENUE 767.1 1,226.6 - - 63.1 1,289.7
COSTS AND
EXPENSES:
Cost of
merchan-
dise
sold 541.6 853.1 - - 45.2 898.3
Selling,
general
and ad-
ministra-
tive
expenses 162.9 260.2 3.5 2.3 0.3 266.3
Deprecia-
tion and
amorti-
zation
expense,
net 3.9 17.3 - - - 17.3
Interest
and debt
expense,
net 2.3 17.6 - - - 17.6
-------- -------- ------- ------ ------- --------
INCOME
(LOSS)
BEFORE
INCOME
TAXES 56.4 78.4 (3.5) (2.3) 17.6 90.2
Income tax
(provision)
benefit (19.5) (28.2) 1.2 39.1 (6.3) 5.8
-------- -------- ------- ------ ------- --------
INCOME (LOSS)
BEFORE
CUMULA-
TIVE
EFFECT
ADJ. 36.9 50.2 (2.3) 36.8 11.3 96.0
Cumula-
tive
effect
adjust-
ment,
net of
tax - - - - (1.1) (1.1)
-------- -------- ------- ------ ------- --------
NET
INCOME
(LOSS) $36.9 $50.2 ($2.3) $36.8 $10.2 $94.9
======== ========= ======= ====== ======= ========
Diluted
net
income (loss)
per common
share $1.51 $1.69 ($0.08) $1.24 $0.34 $3.19
======== ========= ======= ====== ======= ========
Diluted
weighted
average
number
of common
and
common
equiva-
lent
shares
outstanding 24.4 29.7 29.7 29.7 29.7 29.7
======== ========= ======= ====== ======= ========
Ames for FISCAL 1998 represents the results of the Ames store base
excluding (a) the results of operations for the Hills stores acquired
as of December 31, 1998 and (b) other costs and charges related to the
Hills acquisition. Including the effect of the Hills stores and other
costs related to the acquisition, the Company recorded consolidated
net income of $22.4 million, or $.92 per diluted share, for the
thirteen weeks ended January 30, 1999.
Ames for FISCAL 1999 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 for FISCAL 1999 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 for FISCAL 1999 represents expenses incurred during the
period of remodeling the Hills stores (i.e., pre-opening expenses
incurred during the conversion or "dark" period) as well as certain
other expenses and tax benefits.
The Layaway Adjustment represents the impact of the change in the
method of accounting for layaway sales. The Company adopted the change
in accounting for layaway sales in the fourth quarter of fiscal 1999
in consideration of the Staff Accounting Bulletin No. 101 "Revenue
Recognition" issued by the staff of the Securities and Exchange
Commission in December 1999.
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(In Millions, Except Per Share Amounts)
For the 52
Wks Ended
01/30/1999 For the 52 Weeks Ended 1/29/00
---------- -----------------------------------------------
Ames Ames Hills Other Layaway Adj. Total
---------- -------- ------- ------- ---------- ---------
TOTAL NET
SALES $2,386.5 $3,465.6 $375.6 $ - ($4.4) $3,836.8
Leased
department
and other
income 29.2 39.1 2.6 - - 41.7
---------- -------- ------- ------- ---------- ---------
TOTAL
REVENUE 2,415.7 3,504.7 378.2 - (4.4) 3,878.5
COSTS AND
EXPENSES:
Cost of
merchandise
sold 1,711.3 2,467.8 251.2 - (3.6) 2,715.4
Selling,
general and
administrative
expenses 606.9 838.7 153.0 76.5 - 1,068.2
Depreciation and
amortization
expense, net 11.4 49.1 11.1 5.3 - 65.5
Interest
and debt
expense, net 11.4 54.1 4.1 2.6 - 60.8
---------- -------- ------- ------- ---------- ---------
INCOME (LOSS)
BEFORE INCOME
TAXES 74.7 95.0 (41.2) (84.4) (0.8) (31.4)
Income tax
(provision)
benefit (26.6) (34.2) 14.8 68.7 0.3 49.6
---------- -------- ------- ------- ---------- ---------
INCOME (LOSS)
BEFORE
CUMULATIVE
EFFECT ADJ. 48.1 60.8 (26.4) (15.7) (0.5) 18.2
Cumulative effect
adjustment, net
of tax - - - - (1.1) (1.1)
---------- -------- ------- ------- ---------- ---------
NET INCOME
(LOSS) $48.1 $60.8 ($26.4) ($15.7) ($1.6) $17.1
========= ======== ======= ======= ========== =========
Diluted net
income (loss)
per common
share $1.99 $2.20 ($0.95) ($0.57) ($0.06) $0.62
========= ======== ======= ======= ========== =========
Diluted weighted
average number
of common
and common
equivalent
shares
outstanding 24.2 27.7 27.7 27.7 27.7 27.7
========= ======== ======= ======= ========== =========
Ames for FISCAL 1998 represents the results of the Ames store base
excluding (a) the results of operations for the Hills stores acquired
as of December 31, 1998 and (b) other costs and charges related to the
Hills acquisition. Including the effect of the Hills stores and other
costs related to the acquisition, the Company recorded consolidated
net income of $33.8 million, or $1.40 per diluted share, for the
fifty-two weeks ended January 30, 1999.
Ames for FISCAL 1999 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 for FISCAL 1999 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 for FISCAL 1999 represents expenses incurred during the
period of remodeling the Hills stores (i.e., pre-opening expenses
incurred during the conversion or "dark" period) as well as certain
other expenses and tax benefits.
The Layaway Adjustment represents the impact of the change in the
method of accounting for layaway sales. The Company adopted the change
in accounting for layaway sales in the fourth quarter of fiscal 1999
in consideration of the Staff Accounting Bulletin No. 101 "Revenue
Recognition" issued by the staff of the Securities and Exchange
Commission in December 1999.
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In Thousands)
(Audited)
Jan. 29, Jan. 30,
2000 1999
----------- -----------
ASSETS
Current Assets:
Cash and short-term investments $ 30,612 $ 35,744
Receivables 25,302 30,244
Merchandise inventories 831,387 621,509
Prepaid expenses and
other current assets 36,772 16,075
Deferred taxes, net 28,854 --
----------- -----------
Total current assets 952,927 703,572
----------- -----------
Fixed Assets 629,979 437,834
Less - Accumulated
depreciation and amortization (128,229) (66,205)
----------- -----------
Net fixed assets 501,750 371,629
Other assets and deferred charges 57,256 16,447
Deferred taxes, net 346,055 102,406
Beneficial lease rights, net 56,280 58,885
Goodwill, net 61,026 230,454
----------- -----------
$ 1,975,294 $ 1,483,393
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable:
Trade $ 325,356 $ 313,280
Other 96,224 87,477
----------- -----------
Total accounts payable 421,580 400,757
----------- -----------
Current portion of capital lease
and financing obligations 22,086 17,799
Self-insurance reserves 29,827 29,115
Accrued expenses and
other current liabilities 133,110 225,289
Store closing reserves 55,468 59,768
----------- -----------
Total current liabilities 662,071 732,728
----------- -----------
Long-term debt 421,769 95,810
Capital lease and financing obligations 180,404 191,904
Other long-term liabilities 57,916 114,922
Excess of revalued net assets over
equity under fresh-start reporting 17,868 24,021
Commitments and contingencies
Stockholders' Equity:
Preferred Stock -- --
Common stock 293 239
Additional paid-in capital 530,744 236,667
Retained earnings 105,143 88,016
Treasury stock, at cost (914) (914)
----------- -----------
Total stockholders' equity 635,266 324,008
----------- -----------
$ 1,975,294 $ 1,483,393
=========== ===========
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