Ames reports third-quarter 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. , Conn.--(BUSINESS WIRE)--November 14, 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 a net loss of $4.9 million, or $0.24 loss per share, for the third quarter (13 weeks ended Oct. 28, 1995), compared with a net loss of $5.1 million, or $0.25 loss per share, for the same period last year (13 weeks ended Oct. 29, 1994). This year's third-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 $7.0 million, compared with a $5.0 million operating loss in the same period last year. The net loss for the year to date (39 weeks ended Oct. 28, 1995) was $12.8 million, or a $0.64 loss per share, compared with a net loss of $13.6 million, or a $0.68 loss per share last year (39 weeks ended Oct. 29, 1994). Last year's results included a $12.0 million nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. gain from 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, a $2.5 million charge for the closing of a distribution center; and an extraordinary charge of $1.5 million (net of tax) 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. . The operating loss, which excludes the items mentioned above, for the year to date was $24.5 million, compared with an operating loss of $31.0 million last year. 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 $505.9 million, compared with net sales of $511.3 million in the prior year's third quarter, a decrease of 1.1 percent. Comparable-store sales for the quarter were $501.6 million, a decrease of 1.6 percent. Net sales for the year to date were $1.452 billion, an increase of 0.9 percent compared with the prior year. Comparable-store sales for the year to date were $1.444 billion, an increase of 1.0 percent. Joseph R. Ettore, Ames president and chief executive officer, said, "We were disappointed with third-quarter results. Results were affected, in part, by a continuing industry-wide weakness in apparel, as well as the impact of warm weather on fall and winter merchandise. "We have taken action to minimize the effect of recent trends on fourth-quarter results, including emphasizing that inventory levels will be maintained in line with the anticipated level of sales and by continuing to effectively reduce expense levels and improve operating efficiencies. Third-quarter selling, general and administrative (SG&A) expenses were $3.0 million below the same period last year and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. SG&A was $13.2 million below last year. "During the quarter, we held Grand Openings at two new Ames stores 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., and Mt. Olive, N.J., and earlier this month we announced our plans to open a new store in Lowell, Mass., in February 1996. Initial customer response to the new stores, which feature improved, easier-to-shop formats, has been enthusiastic and positive," Ettore said. Ames, which operates 307 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 Thirty-nine
Weeks Ended Weeks Ended
Oct. 28, Oct. 29, Oct. 28, Oct. 29,
1995 1994 1995 1994
TOTAL SALES $528,803 $537,093 $1,519,852 $1,510,931 Less: Leased department sales 22,871 25,825 68,064 72,608 NET SALES 505,932 511,268 1,451,788 1,438,323 COSTS, EXPENSES AND (INCOME): Cost of merchandise sold 371,795 374,092 1,066,306 1,048,898 Selling, general and administrative expenses 140,504 143,488 410,762 423,939 Leased department and other operating income (7,182) (8,204) (21,144) (22,197) Depreciation and amortization expense 2,343 1,590 6,427 3,611 Amortization of the excess of revalued net assets over equity under fresh-start reporting (1,538) (1,538) (4,615) (4,614) Interest and debt expense, net 7,014 6,887 18,550 19,646 OPERATING INCOME (LOSS) (7,004) (5,047) (24,498) (30,960) Gain on disposition of properties -- -- 6,090 3,535 Nonrecurring gain - litigation settlement -- -- -- 12,001 Distribution center closing costs -- (2,500) -- (2,500) INCOME (LOSS) BEFORE INCOME TAXES AND EXTRAORDINARY ITEM (7,004) (7,547) (18,408) (17,924) Income tax benefit (provision) 2,120 2,445 5,571 5,807 INCOME (LOSS) BEFORE EXTRAORDINARY ITEM (4,884) (5,102) (12,837) (12,117) Extraordinary item-gain (loss) on early extinguishment of debt (net of tax benefit of $727) - - - (1,517) NET INCOME (LOSS) ($4,884) ($5,102) ($12,837) ($13,634) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 20,127 20,127 20,127 20,127 INCOME (LOSS) PER SHARE BEFORE EXTRAORDINARY ITEM ($0.24) ($0.25) ($0.64) ($0.60) EXTRAORDINARY GAIN (LOSS) PER SHARE - - - (0.08) NET INCOME (LOSS) PER SHARE ($0.24) ($0.25) ($0.64) ($0.68) Results of operations as a percent of net sales: Net sales 100.0% 100.0% 100.0% 100.0% Cost of merchandise sold 73.5 73.2 73.4 72.9 Gross margin 26.5 26.8 26.6 27.1 Selling, general and administrative expenses 27.8 28.1 28.3 29.5 Leased department and other operating income (1.4) (1.6) (1.5) (1.5) Depreciation and amortization expense 0.5 0.3 0.4 0.3 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 1.4 1.4 1.3 1.4 Operating income (loss) (1.4) (1.0) (1.7) (2.2) Gain on disposition of properties -- -- 0.4 0.3 Nonrecurring gain - litigation settlement -- -- -- 0.8 Distribution center closing costs -- (0.5) -- (0.2) Income (loss) before income taxes and extraordinary item (1.4) (1.5) (1.3) (1.3) Income tax benefit (provision) 0.4 0.5 0.4 0.4 Income (loss) before extraordinary item (1.0) (1.0) (0.9) (0.9) Extraordinary gain (loss) -- -- -- (0.1) Net income (loss) (1.0)% (1.0)% (0.9)% (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)
Oct. 28, Jan. 28, Oct. 29,
1995 1995 1994
ASSETS
Currents Assets:
Unrestricted cash and
short-term investments $19,998 $28,402 $26,910
Restricted cash and
short-term investments -- 2,047 722
Total cash and
short-term investments 19,998 30,449 27,632
Receivables 39,293 16,807 45,843
Merchandise inventories 600,230 430,152 596,926
Prepaid expense and other
current assets 19,017 8,999 17,833
Total current assets 678,538 486,407 688,234
Fixed assets 69,316 48,653 45,332
Less - accumulated
depreciation and
amortization (14,239) (7,620) (5,873)
Net fixed assets 55,077 41,033 39,459
Other assets and
deferred charges 4,176 5,948 6,633
$737,791 $533,388 $734,326
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable: Trade $203,134 $130,737 $200,480 Other 38,119 33,794 39,728 Total accounts payable 241,253 164,531 240,208 Note payable - revolver 175,747 -- 153,737 Current portion of long-term debt and capital lease obligations 19,049 19,156 18,831 Self-insurance reserves 43,808 46,413 49,908 Accrued expenses and other current liabilities 53,012 63,498 60,187 Total current liabilities 532,869 293,598 522,871 Long-term debt 25,445 39,030 41,013 Capital lease obligations 33,967 38,065 39,292 Other long-term liabilities 7,922 6,242 10,776 Unfavorable lease liability 21,491 22,903 23,426 Excess of revalued net assets over equity under fresh-start reporting 44,018 48,633 50,172
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) (8,881) 3,957 (26,703)
Total stockholders' equity 72,079 84,917 46,776
$737,791 $533,388 $734,326
(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 Oct. 28, 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 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 as their inclusion would have reduced the reported loss per share. 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 $.7 million at Oct. 29, 1994. No LIFO reserve was necessary at Oct. 28, 1995 and Jan. 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 Oct. 28, 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 thirty-nine weeks ended Oct. 28, 1995 and Oct. 29, 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 $5.6 and $5.8 million, respectively. The same method was used to compute income tax benefits of $2.1 and $2.4 million for the third 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 Oct. 28, 1995 and Oct. 29, 1994. CONTACT: Ames Department Stores, Inc. Marge Wyrwas, 203/257-2659 Bill Roberts, 203/257-2666 Lynn Riemer, 203/257-2655 |
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