Ames reports better-than-plan second-quarter income.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. 14, 1996--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: AMES) today reported that its second-quarter net income increased to $4.5 million, or $0.21 per share, for the period ended July July: see month. 27, 1996, compared with last year's second-quarter net income of $3.2 million, or $0.15 per share. Last year's second-quarter results included property gains of $5.1 million, compared with $0.4 million this year. This year's second-quarter income before other gains was $6.0 million, a $6.5 million improvement compared with last year's loss of $0.5 million. The net loss for the 26 weeks ended July 27, 1996, was $2.5 million, or $0.12 per share, compared with a net loss of $8.0 million, or $0.40 per 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. loss before other gains was $3.9 million, a $13.6 million improvement compared with last year's loss before other gains of $17.5 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 $499.1 million, compared with $500.2 million in the prior year's second quarter, a decrease of 0.2 percent. Net sales for the year to date were $937.8 million, compared with $938.5 million last year. Comparable-store sales for the quarter decreased 1.2 percent while comparable-store sales for the year to date decreased 1.4 percent. Joseph R. Ettore, President and Chief Executive Officer, said, "Our second-quarter net income was nearly twice the $2.3 million projected in the business plan, an improvement primarily attributable to a better-than-plan gross margin rate and continued stringent expense control. In addition, despite below-plan sales, merchandise inventories are well-controlled and at the end of the quarter were $39 million below the same period last year. "We expect that the second half of the fiscal year, especially the holiday season, will be extremely competitive and have planned a strong advertising and 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. program to take advantage of promotional opportunities. At the same time, our intention is to minimize margin exposure to the fullest extent possible by ensuring that inventories are maintained in line with anticipated sales levels and by continuing to reduce expenses and improve operating efficiencies," he said. The company's business plan, filed on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. with the Securities and Exchange Commission on June June: see month. 11, 1996, anticipates a third-quarter net loss of approximately $3.3 million and fourth-quarter net income of approximately $26.7 million, Ettore noted. "On August 1, we opened a new store in Sussex Sussex, county, SE England, since 1888 divided for administrative purposes into East Sussex (1991 pop. 670,600), 693 sq mi (1,795 sq km), and West Sussex (1991 pop. 692,800), 768 sq mi (1,990 sq km). , N.J., and reopened a store in Huntingdon
Contraction of we will. we'll we will or we shall we'll will ~shall hold grand openings in Dover Dover, town, England Dover (dō`vər), town (1991 pop. 33,461), Kent, SE England, on the Strait of Dover, beneath chalk cliffs (the "White Cliffs of Dover") c.375 ft (114 m) high. The small Dour River flows through the town. , N.J., and Trexlertown, Pa., bringing the number of new stores in 1996 to 13, the most Ames has opened in one year since 1989," Ettore said. Ames, which operates 301 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 total sales of $2.1 billion. For fax copies of Ames' most-recent news releases, dial 800/758-5804, ext. 036787 -- http://www.AmesStores.com.
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 27, July 29, July 27, July 29,
1996 1995 1996 1995
TOTAL SALES $525,217 $526,625 $980,894 $983,693 Less: Leased department sales 26,110 26,437 43,120 45,193 NET SALES 499,107 500,188 937,774 938,500 COSTS, EXPENSES AND (INCOME): Cost of merchandise sold 359,382 364,188 680,647 687,155 Selling, general and administrative expenses 134,609 137,217 262,411 270,258 Leased department and other operating income (7,221) (7,708) (12,995) (13,962) Depreciation and amortization expense 2,649 2,143 5,269 4,084 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 5,206 6,415 9,445 11,536 INCOME (LOSS) BEFORE OTHER (CHARGES) AND GAINS 6,021 (528) (3,926) (17,494) Gain on disposition of properties 395 5,099 395 6,090 INCOME (LOSS) BEFORE INCOME TAXES 6,416 4,571 (3,531) (11,404) Income tax benefit (provision) (1,902) (1,383) 1,047 3,451 NET INCOME (LOSS) $4,514 $3,188 ($2,484) ($7,953) WEIGHTED AVERAGE NUMBER OF COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 21,680 21,531 20,465 20,127 NET INCOME (LOSS) PER SHARE $0.21 $0.15 ($0.12) ($0.40) Results of Operations as a Percent of Net Sales: Net sales 100.0% 100.0% 100.0% 100.0% Cost of merchandise sold 72.0 72.8 72.6 73.2 Gross margin 28.0 27.2 27.4 26.8 Selling, general and administrative expenses 27.0 27.4 28.0 28.8 Leased department and other operating income (1.4) (1.5) (1.4) (1.5) Depreciation and amortization expense 0.5 0.4 0.5 0.4 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 1.0 1.3 1.0 1.2 Income (loss) before other (charges) and gains 1.2 (0.1) (0.4) (1.8) Gain on disposition of properties 0.1 1.0 -- 0.6 Income (loss) before income taxes 1.3 0.9 (0.4) (1.2) Income tax benefit (provision) (0.4) (0.3) 0.1 0.4 Net income (loss) 0.9% 0.6% (0.3)% (0.8)% (Please see the accompanying condensed notes to these consolidated condensed financial statements.)
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AMES DEPARTMENT STORES INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
July 27, Jan. 27, July 29,
1996 1996 1995
ASSETS
Current assets: Cash and short-term investments $18,226 $14,185 $19,783 Receivables 25,544 14,478 23,388 Merchandise inventories 458,940 402,177 498,260 Prepaid expense and other current assets 16,051 12,793 13,249 Total current assets 518,761 443,633 554,680 Fixed assets 85,915 78,487 59,607 Less -- Accumulated depreciation and amortization (25,233) (20,259) (11,828) Net fixed assets 60,682 58,228 47,779
Other assets and deferred charges 5,665 3,965 4,834
$585,108 $505,826 $607,293
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable: Trade $137,595 $112,682 $126,210 Other 39,846 43,636 34,202 Total accounts payable 177,441 156,318 160,412 Note payable - revolver 100,720 4,284 114,051 Current portion of long-term debt and capital lease obligations 16,241 17,347 19,485 Self-insurance reserves 36,081 39,003 43,850 Accrued expenses and other current liabilities 49,969 54,943 54,994 Restructuring reserve 19,827 30,623 1,227 Total current liabilities 400,279 302,518 394,019 Long-term debt 13,267 23,159 25,919 Capital lease obligations 27,525 29,372 34,799 Other long-term liabilities 5,968 6,322 8,074 Unfavorable lease liability 17,847 18,672 21,961 Excess of revalued net assets over equity under fresh-start reporting 39,404 42,480 45,557 Commitments and contingencies
Stockholders' equity:
Common stock 204 205 201
Additional paid-in capital 80,759 80,759 80,759
Retained earnings (accumulated deficit) (145) 2,339 (3,996)
Total stockholders' equity 80,818 83,303 76,964
$585,108 $505,826 $607,293
(Please see the accompanying condensed notes to these consolidated condensed financial statements) 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 condensed financial statements 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 27, 1996 may not be indicative of total results for the full 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 1996. Earnings Per Common Share: Earnings per share was determined using the weighted average number of common and common equivalent 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 for the periods with net losses as their inclusion would have reduced the reported loss per share. Fully diluted earnings per share was equal to primary earnings per share for the quarters ended July 27, 1996 and July 29, 1995. 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 for all inventories. No LIFO reserve was necessary at July 27, 1996, Jan. 27, 1996 and July 29, 1995. 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 $300 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 22, 1997, 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 27, 1996. 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 twenty-six weeks ended July 27, 1996 and July 29, 1995 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 $1.0 million and $3.5 million, respectively. The same method was used to compute income tax provisions of $1.9 and $1.4 million for the second quarters of 1996 and 1995, 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 July 27, 1996 and July 29, 1995. CONTACT: Ames Department Stores Inc., Rocky Hill Marge Wyrwas, 860/257-2659 Bill Roberts, 860/257-2666 Lynn Riemer, 860/257-2655 |
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