Ames reports second quarter profit, improved operating performance.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. 16, 1995--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 net income of $3.19 million, or 15 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for the second quarter (13 weeks ended July July: see month. 29, 1995), compared with net income of $6.61 million, or 31 cents per share, for the same period last year (13 weeks ended July 30, 1994). This year's second quarter operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. was $0.53 million, a $3.43 million improvement compared with a $3.96 million operating loss in the same period last year. This year's results included property gains of $5.1 million from the sale of two closed facilities. Last year's second quarter results included a non-recurring gain of $12.0 million in connection with a litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement. The net loss for the 26 weeks ended July 29, 1995 was $7.95 million, or 40 cents loss per share, compared with a net loss of $8.53 million, or 42 cents loss per share (including an extraordinary charge of $1.5 million, or 7 cents extraordinary loss per share, in connection with the pre-payment of certain long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. ). 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 $504.2 million, compared with net sales of $491.3 million in the prior year's second quarter, an increase of 2.6 percent. Net sales for the year to date were $945.9 million, an increase of 2.0 percent compared with the prior year. Comparable-store sales for the quarter were $502.1 million, an increase of 2.8 percent. Comparable-store sales for the year to date were $942.0 million, an increase of 2.4 percent. Joseph R. Ettore, Ames president and chief executive officer, said, "We were pleased with the improvement in second quarter operating performance, which was more than $1 million better than plan and more than $3 million better than last year. Also, despite a soft economic environment and increasing competition, comparable store sales increased for the third straight quarter. "Apparel sales, while below plan, were better than last year, particularly in Ladies' and Men's. We also continue to streamline our operations, resulting in this year's second quarter selling, general and administrative expense being $4.4 million less than last year. "During the second quarter, we completed the remodelling of 11 of 21 stores to be fully remodelled in 1995. Initial customer response to these improved, easier-to-shop formats has been extremely positive. In addition, we announced that Mt. Olive, N.J. will be the site of the second of two new stores Ames will open this year. This store and a new store in Dudley Dudley, city (1991 pop. 186,513) and metropolitan district, W central England. Dudley's famed iron, coal, and limestone industries began declining c.1870. Other industries include engineering works, steelworks, metallurgy, glass cutting, textiles, and leatherworking. , Mass., will hold grand-opening celebrations September 14," Ettore said. Ames, which operates 305 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 chain with total annual 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 29, July 30, July 29, July 30,
1995 1994 1995 1994
Total Sales
Less: Leased
department sales $530,601 $517,685 $991,049 $973,838
Net sales 26,437 26,385 45,193 46,783
504,164 491,300 945,856 927,055
Costs, expenses and (income): Cost of merchandise sold 368,164 355,090 694,511 674,806 Selling, general and administrative expenses 137,217 141,599 270,258 280,451 Leased department and other operating income (7,708) (7,771) (13,962) (13,993) Depreciation and amortization expense 2,143 1,082 4,084 2,021 Amortization of the excess of revalued net assets over equity under fresh-start reporting (1,539) (1,538) (3,077) (3,076) Interest and debt expense, net 6,415 6,802 11,536 12,759 Operating income (loss) (528) (3,964) (17,494) (25,913) Gain on disposition of properties 5,099 1,733 6,090 3,535 Nonrecurring gain -- litigation settlement -- 12,001 -- 12,001 Income (loss) before income taxes and extraordinary item 4,571 9,770 (11,404) (10,377) Income tax benefit (provision) (1,383) (3,161) 3,451 3,362 Income (loss) before extraordinary item 3,188 6,609 (7,953) (7,015) Extraordinary item-gain (loss) on early extinguishment of debt (net of tax benefit of $727) - - - (1,517) Net income (loss) $3,188 $6,609 ($7,953) ($8,532) Weighted average number of common shares outstanding 21,531 21,541 20,127 20,127 Income (loss) per share before extraordinary item $0.15 $0.31 ($0.40) ($0.35) Extraordinary gain (loss) per share - - - (0.07) Net income (loss) per share $0.15 $0.31 ($0.40) ($0.42) Results of operations as a percent of net sales: Net sales 100.0% 100.0% 100.0% 100.0% Cost of merchandise sold 73.0 72.3 73.4 72.8 Gross margin 27.0 27.7 26.6 27.2 Selling, general and administrative expenses 27.2 28.8 28.6 30.3 Leased department and other operating income (1.5) (1.6) (1.5) (1.5) Depreciation and amortization expense 0.4 0.2 0.4 0.2 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 1.3 1.4 1.2 1.4 Operating income (loss) (0.1) (0.8) (1.8) (2.9) Gain on disposition of properties 1.0 0.4 0.6 0.4 Nonrecurring gain - litigation settlement - 2.4 - 1.3 Income (loss) before income taxes and extraordinary item 0.9 2.0 (1.2) (1.2) Income tax benefit (provision) (0.3) (0.6) 0.4 0.4 Income (loss) before extraordinary item 0.6 1.4 (0.8) (0.8) Extraordinary gain (loss) - - - (0.2) Net income (loss) 0.6% 1.4% (0.8)% (1.0)% (Please see the accompanying condensed notes to these consolidated financial statements) -0-
Ames Department Stores Inc. and Subsidiaries
Consolidated Condensed Balance Sheets
(In thousands)
(Unaudited)
July 29, January 28, July 30,
1995 1995 1994
Assets
Currents Assets:
Unrestricted cash and
short-term investments $19,783 $28,402 $30,784
Restricted cash and
short-term investments -- 2,047 969
Total cash and
short-term investments 19,783 30,449 31,753
Receivables 23,388 16,807 23,410
Merchandise inventories 498,260 430,152 484,357
Prepaid expense and other
current assets 13,249 8,999 15,793
Total current assets 554,680 486,407 555,313
Fixed assets 59,607 48,653 34,265
Less - accumulated
depreciation and
amortization (11,828) (7,620) (4,218)
Net fixed assets 47,779 41,033 30,047
Other assets and
deferred charges 4,834 5,948 7,310
$607,293 $533,388 $592,670
Liabilities and Stockholders' Equity Current liabilities: Accounts payable: Trade $126,210 $130,737 $ 99,630 Other 34,202 33,794 42,779 Total accounts payable 160,412 164,531 142,409 Note payable - revolver 114,051 - 106,369 Current portions of long-term debt and capital lease obligations 19,485 19,156 18,116 Self-insurance reserves 43,850 46,413 50,204 Accrued expenses and other current liabilities 56,221 63,498 55,409 Total current liabilities 394,019 293,598 372,507 Long-term debt 25,919 39,030 41,666 Capital lease obligations 34,799 38,065 40,086 Other long-term liabilities 8,074 6,242 10,873 Unfavorable lease liability 21,961 22,903 23,950 Excess of revalued net assets over equity under fresh-start reporting 45,557 48,633 51,710
Stockholders' Equity:
Priority common stock - - 23
Common stock 201 201 178
Additional paid - in capital 80,759 80,759 73,278
Retained earnings
(accumulated deficit) (3,996) 3,957 (21,601)
Total stockholders' equity 76,964 84,917 51,878
$607,293 $533,388 $592,670
(Please see the accompanying condensed notes to these consolidated 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 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 interim 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 29, 1995 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 have 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 1995. 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 29, 1995 and July 30, 1994. Inventories: Substantially all 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 merchandise inventories. If the first-in, first-out first-in, first-out n. A method of inventory accounting in which the oldest remaining items are assumed to have been the first sold. In a period of rising prices, this method yields a higher ending inventory, a lower cost of goods sold, a higher gross (FIFO (First In First Out) A storage method that retrieves the item stored for the longest time. Contrast with LIFO. See traffic engineering methods. FIFO - first-in first-out ) cost method had been used, inventories would have increased by $.5 million at July 30, 1994. No LIFO reserve was necessary at July 29, 1995 and January 28, 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 29, 1995. The Company recorded an extraordinary charge of $1.5 million, net of tax benefit of $.7 million, in the first quarter of 1994 for the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of deferred financing costs and debt discounts related to certain debt that was prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. in
June 1994.
Income Taxes: The Company's estimated annual effective income tax rate for each year was applied to the loss incurred before income taxes and extraordinary item for the twenty-six weeks ended July 29, 1995 and July 30, 1994 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. income tax benefits of $3.5 and $3.4 million, respectively. The same method was used to compute income tax provisions of $1.4 and $3.2 million for the second quarters of 1995 and 1994, 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 29, 1995 and July 30, 1994. -0- CONTACT: Ames Department Stores Inc., Rocky Hill Marge Wyrwas, 203/257-2659 Bill Roberts, 203/257-2666 Lynn Riemer, 203/257-2655 For fax copies of Ames' most-recent news releases, dial 1-800-758-5804 Ext. 036787 |
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