Ames reports third-quarter profit; Year-to-date performance shows improvement.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)--Nov. 12, 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 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 third-quarter net income of $421,000, or $0.02 per share, for the period ended Oct. 26, 1996, compared with last year's third-quarter net loss of $4.9 million, or $0.24 loss per share. The net loss for the 39 weeks ended Oct. 26, 1996, was $2.1 million, or $0.10 loss per share, compared with a net loss of $12.8 million, or $0.64 loss 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 $3.3 million, a $21.2 million improvement compared with last year's loss before other gains of $24.5 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 third quarter were $516.9 million, compared with $501.6 million in the prior year's third quarter, an increase of 3.1 percent. Net sales for the year to date were $1.455 billion, compared with $1.440 billion last year. Comparable-store sales for the quarter increased 1.2 percent while comparable-store sales for the year to date decreased 0.5 percent. Joseph R. Ettore, president and chief executive officer, said, "Our third-quarter net income was a significant improvement over the $3.3 million loss projected in the business plan. This third quarter improvement is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a combination of factors, including better-than-plan sales and gross margin rate as well as controlled levels of merchandise inventories. Merchandise inventories at the end of the quarter were $41.5 million below the same period last year. "On Sept. 26, we opened two new stores 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., to enthusiastic customer response," Ettore said. "In total, we opened 13 new stores during 1996 -- the largest number of store openings since 1989. The combination of these 13 productive new locations, combined with the early 1996 closing of 17 unprofitable store locations, has contributed to our improved operating performance." "We expect that the fourth quarter 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," Ettore said. "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," he said. "With the added contributions of our new stores and an increase in consumer optimism, we look forward to a strong holiday season." Ames, which operates 303 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. -0- For fax copies of Ames' most-recent news releases, dial 800/758-5804, ext. 036787. http://www.AmesStores.com -0-
AMES DEPARTMENT STORES INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
For the Thirteen For the Thirty-Nine
Weeks Ended Weeks Ended
Oct. 26, Oct. 28, Oct. 26, Oct. 28,
1996 1995 1996 1995
TOTAL SALES $540,607 $524,421 $1,521,501 $1,508,114
Less: Leased department
sales 23,731 22,871 66,851 68,064
NET SALES 516,876 501,550 1,454,650 1,440,050
COSTS, EXPENSES AND (INCOME):
Cost of merchandise sold 375,652 367,413 1,056,299 1,054,568
Selling, general and
administrative expenses 141,163 140,504 403,574 410,762
Leased department and other
operating income (7,466) (7,182) (20,461) (21,144)
Depreciation and amortization
expense 2,646 2,343 7,915 6,427
Amortization of the excess of
revalued net assets over
equity under fresh-start
reporting (1,538) (1,538) (4,615) (4,615)
Interest and debt expense, net 5,821 7,014 15,266 18,550
INCOME (LOSS) BEFORE OTHER
(CHARGES) AND GAINS 598 (7,004) (3,328) (24,498)
Gain on disposition of
properties -- -- 395 6,090
INCOME (LOSS) BEFORE INCOME
TAXES 598 (7,004) (2,933) (18,408)
Income tax benefit (provision) (177) 2,120 870 5,571
NET INCOME (LOSS) $ 421 ($4,884) ($2,063) ($12,837)
WEIGHTED AVERAGE NUMBER OF
COMMON AND COMMON
EQUIVALENT SHARES
OUTSTANDING 21,974 20,127 20,465 20,127
NET INCOME (LOSS) PER SHARE $0.02 ($0.24) ($0.10) ($0.64)
Results of Operations as a
Percent of Net Sales:
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of merchandise sold 72.7 73.3 72.6 73.2
Gross margin 27.3 26.7 27.4 26.8
Selling, general and
administrative expenses 27.3 28.0 27.7 28.5
Leased department and other
operating income (1.4) (1.4) (1.4) (1.5)
Depreciation and amortization
expense 0.5 0.5 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 1.1 1.4 1.0 1.3
Income (loss) before other
(charges) and gains 0.1 (1.4) (0.2) (1.7)
Gain on disposition of
properties -- -- -- 0.4
Income (loss) before income taxes 0.1 (1.4) (0.2) (1.3)
Income tax benefit (provision) -- 0.4 0.1 0.4
Net income (loss) 0.1% (1.0)% (0.1)% (0.9)%
(Please see the accompanying condensed notes to these consolidated
condensed financial statements.)
-0-
AMES DEPARTMENT STORES INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
Oct. 26, Jan. 27, Oct. 28,
1996 1996 1995
ASSETS
Current assets:
Cash and short-term investments $20,577 $14,185 $19,998
Receivables 45,055 14,478 39,293
Merchandise inventories 558,727 402,177 600,230
Prepaid expenses and other
current assets 15,620 12,793 19,017
Total current assets 639,979 443,633 678,538
Fixed assets 91,597 78,487 69,316
Less -- Accumulated depreciation and
amortization (27,919) (20,259) (14,239)
Net fixed assets 63,678 58,228 55,077
Other assets and deferred charges 4,792 3,965 4,176
$708,449 $505,826 $737,791
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable:
Trade $218,439 $112,682 $203,134
Other 40,919 43,636 38,119
Total accounts payable 259,358 156,318 241,253
Note payable -- revolver 141,507 4,284 175,747
Current portion of long-term debt
and capital lease obligations 16,260 17,347 19,049
Self-insurance reserves 35,395 39,003 43,808
Accrued expenses and other current
liabilities 55,509 54,943 51,868
Restructuring reserve 18,515 30,623 1,144
Total current liabilities 526,544 302,518 532,869
Long-term debt 12,599 23,159 25,445
Capital lease obligations 26,966 29,372 33,967
Other long-term liabilities 5,793 6,322 7,922
Unfavorable lease liability 17,442 18,672 21,491
Excess of revalued net assets over
equity under fresh-start reporting 37,865 42,480 44,018
Commitments and contingencies
Stockholders' equity:
Common stock 205 205 201
Additional paid-in capital 80,759 80,759 80,759
Retained earnings
(accumulated deficit) 276 2,339 (8,881)
Total stockholders' equity 81,240 83,303 72,079
$708,449 $505,826 $737,791
(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 ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. 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 Oct. 26, 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 quarter ended Oct. 26, 1996. 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 Oct. 26, 1996, January January: see month. 27, 1996 and Oct. 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 June: see month. 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 Oct. 26, 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 thirty-nine weeks ended Oct. 26, 1996 and Oct. 28, 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 $0.9 million and $5.6 million, respectively. The same method was used to compute the income tax provision of $0.2 million for the third quarter of 1996 and the non-cash income tax benefit of $2.1 million for the third quarter of 1995. 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 Oct. 26, 1996 and Oct. 28, 1995. CONTACT: Ames Department Stores, Rocky Hill Marge Wyrwas, 860/257-2659 Lynn Lynn, city (1990 pop. 81,245), Essex co., E Mass.; inc. as a town 1631, as a city 1850. Lynn is an old industrial center. The first ironworks (1643) and the first fire engine (1654) in the country were built there. Riemer, 860/257-2666 |
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