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AMES REPORTS FIRST QUARTER RESULTS

 AMES REPORTS FIRST QUARTER RESULTS
 ROCKY HILL, Conn., June 5 /PRNewswire/ -- Ames Department Stores,


Inc. (NYSE: ADD) today reported a net loss of $37.7 million, or a $1.09 loss per share, for the first quarter ended April 25, 1992, compared with a net loss of $47.8 million, or a $1.36 loss per share, for the first quarter ended April 27, 1991.
 The variance in the net loss for the current year is principally the result of curtailing the interest accrual on certain pre-petition debt, partially offset by an increase in bankruptcy expenses. The EBIT loss (earnings before interest, taxes, restructuring, and bankruptcy expenses) was $29.3 million, compared with last year's first quarter EBIT loss of $30.3 million.
 Net sales for the recent quarter were $482.1 million, a $158.1 million decrease, compared with net sales of $640.2 million in the prior year. Approximately $98 million of the decrease was attributable to the continued restructuring of the company's operations. Last year's net sales included the results from 77 closed stores -- $86 million; M&B, a wholesale sporting goods subsidiary sold in January -- $8 million; and 15 freestanding Crafts & More stores to be closed or sold -- $4 million. Comparable same-store sales declined 11.1 percent over the prior year's first quarter on a 371-store base, in part due to a reduction in the number of promotional circulars.
 Stephen L. Pistner, chairman and chief executive officer, said, "The shortfall in sales can, in part, be attributed to the effect of colder-than-normal weather in March and April, which had a significant negative impact on some spring categories, primarily apparel and seasonal goods. Additionally, we tested a reduced program of weekly circulars during the first quarter. Unfortunately, the impact on sales was greater than we had anticipated, and we are adjusting our promotional program for the balance of the year accordingly."
 Ames, which filed for Chapter 11 bankruptcy protection in April 1990, operates 371 discount department stores in 15 Northeastern states.
 AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
 (Operating as debtor-in-possession)
 Consolidated Condensed Statements of Operations
 (Dollars in thousands omitted, unaudited)
 First quarter ended 4/25/92 4/27/91(A)
 Total sales $504,277 $670,293
 Less: Leased department sales 22,181 30,058
 Net sales 482,096 640,235
 Cost of goods sold, transportation
 and buying expenses 357,993 476,267
 Gross profit 124,103 163,968
 Leased department income 3,993 5,410
 Other operating income 1,460 3,153
 Total 129,556 172,531
 Store operating, administrative and
 general expenses, including leased
 department expenses 147,232 188,637
 Depreciation and amortization 11,673 14,192
 Loss before interest, taxes,
 restructuring and bankruptcy expenses (29,349) (30,298)
 Bankruptcy expenses (10,000) (6,000)
 Restructuring charges -- --
 Interest and debt expense (2,433) (17,763)
 Interest income 4,045 6,269
 Income taxes -- --
 Net loss (37,737) (47,792)
 Weighted average common shares outstanding(B) 37,582 37,582
 Net loss per common share(B) (1.09) (1.36)
 (A) -- Includes the results of 77 department stores, M&B (the company's former wholesale sporting goods subsidiary), and 15 freestanding Crafts & More stores closed or sold subsequent to the prior year's first quarter (as part of the company's continued restructuring) and not included in this year's results.
 (B) -- Earnings per share are computed based on the average common shares outstanding and reflect preferred stock dividends (as if accrued) of $3,392 for the first quarter of both years presented. The convertible preferred stock is not included as a common stock equivalent because the effect would be to decrease the loss per common share otherwise computed.
 CONDENSED BALANCE SHEETS
 (000's omitted)
 4/25/92 1/25/92 4/27/91
 Assets
 Current assets:
 Cash, short-term investments
 and receivables $385,369 $494,632 $415,093
 Inventories 585,544 439,959 656,709
 Net assets held for disposition 19,905 50,570 48,066
 Other current assets 13,284 12,375 14,917
 Total current assets 1,004,102 997,536 1,134,785
 Net property 319,414 326,856 416,702
 Other assets 64,230 65,253 86,168
 Total assets 1,387,746 1,389,645 1,637,655
 Liabilities and Stockholders' Deficit
 Current liabilities:
 Accounts payable and current
 portion of capital lease
 obligations 162,526 112,674 189,956
 Accrued expenses 106,500 105,071 92,387
 Restructuring reserve 15,518 33,812 14,162
 Other current liabilities 15,263 10,558 5,705
 Total current liabilities 299,807 262,115 302,210
 Liabilities subject to settlement
 under the reorganization case 1,775,620 1,776,634 1,730,110
 Capital lease obligations 63,605 64,445 83,136
 Other long-term liabilities 5,843 5,842 7,000
 Stockholders' deficit (757,129) (719,391) (484,801)
 Total liabilities and
 stockholders' deficit 1,387,746 1,389,645 1,637,655
 -0- 6/5/92
 /CONTACT: Marge Wyrwas or Bill Roberts of Ames Department Stores, 203-257-2659, or 203-257-2666, or Andrea Priest of Ogilvy Adams & Rinehart, 212-557-0100, for Ames Department Stores/
 (ADD) CO: Ames Department Stores, Inc. ST: Connecticut IN: REA SU: ERN


TS-OS -- NY009 -- 7365 06/05/92 09:59 EDT
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Date:Jun 5, 1992
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