Ames Announces Second Quarter Results
Business Wire - August 10, 2000 08:31
ROCKY HILL, Conn.--(BUSINESS WIRE)--Aug. 10, 2000--Ames Department Stores,
Inc. (NASDAQ: AMES) today announced its results for the second quarter, which ended
July 29, 2000.
Ames recorded a consolidated net loss of $22.1 million, or $0.75 per share. This compares
to a consolidated net loss of $21.5 million, or $0.78 per share, for the comparable period last
year.
Net sales for the quarter ended on July 29, 2000 were $872.0 million, an increase of 1.4
percent over the $860.0 million reported for the second quarter last year. Comparable store
sales for the 13 weeks ended July 29, 2000 were $632.6 million, compared with $648.8
million reported for last year's second quarter. This decrease of 2.5 percent is measured
against a 9.5 percent increase last year.
For the first half of 2000 Ames reported a net loss of $51.2 million, or $1.74 per share. This
compares to a net loss of $51.2 million, or $1.98 per share, for the same period last year.
Last year's loss of $1.98 per share included a negative adjustment of $0.04 which reflected
the cumulative effect of the adoption of SAB No. 101 with respect to the method of
accounting for layaway sales.
Net sales for the first half, which ended on July 29, 2000, were $1.703 billion, compared
with $1.676 billion in the year-earlier period, an increase of 1.6 percent. Comparable-store
sales for the 26-week period were $1.160 billion against $1.171 billion last year. This
decrease of 0.9 percent is measured against a 9.3 percent increase last year.
Joseph R. Ettore, Ames' Chairman and Chief Executive Officer said, "During the second
quarter we suffered from the continuing effects of unseasonably cool and wet weather in our
operating area, which included one of the coolest Julys on record. We are pleased to report
that in spite of the lower than expected sales reported, we maintained control over both
inventories and overhead during the period thereby cushioning the impact of the sales
shortfall. Our current inventory levels and ability to respond quickly to changes in the
marketplace position us well for the rest of the year."
"In July," continued Mr. Ettore, "we opened seven more stores, including one in the Chicago
market, a new territory for Ames. The reception we received in these communities was
phenomenal and we look forward to bringing the Ames brand of A+ service to these and
many other new customers."
In light of results to date, the Company expects its fiscal 2000 earnings to be between $1.35
and $1.50 per share.
With 467 stores located in 19 states and the District of Columbia, Ames is the nation's largest
regional, full-line discount retailer with annual sales of $4 billion. Ames offers a broad range
of merchandise categories including family apparel, housewares, domestics, electronics,
ready-to-assemble and patio furniture, jewelry, craft and pet supplies, health and beauty care
items, stationery, sporting goods, toys, seasonal products and more.
Cautionary Statement Regarding Forward-looking Information
Statements, other than those based on historical facts which address activities, events, or
developments that the Company expects or anticipates may occur in the future are
forward-looking statements which are based upon a number of assumptions concerning
further conditions that may ultimately prove to be inaccurate. Actual events and results may
materially differ from anticipated results described in any forward-looking statements. The
Company's ability to achieve such results is subject to certain risks and uncertainties.
Consequently, these cautionary statements qualify all of the forward-looking statements and
there can be no assurance that the results or developments anticipated by the Company will
be realized or that they will have the expected effects on the Company or its business or
operations.
For fax copies of Ames' most recent news releases, dial
1 800 925 7792. To find the location of the Ames store
nearest you, dial 1-800-SHOP-AMES.
amesstores.com
espanol.amesstores.com (in Spanish)
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 31, July 29, July 31,
2000 1999 2000 1999
Ames net sales $ 872,034 $ 731,800 $ 1,702,691 $1,299,017 Hills net sales - 128,175 -
377,117 Total net sales 872,034 859,975 1,702,691 1,676,134 Leased department and
other income 10,544 11,570 19,803 19,970 Total revenue 882,578 871,545 1,722,494
1,696,104
Costs and expenses: Ames cost of merchandise sold 630,881 517,260 1,233,805 926,510
Hills cost of merchandise sold - 83,762 - 252,085 Ames selling, general and administrative
expenses 248,166 221,366 495,581 397,537 Hills operating expenses and agency fees -
52,790 - 142,047 Depreciation and amortization expense, net 17,240 16,304 34,937
30,687 Interest and debt expense, net 21,953 13,621 40,745 25,543
Loss before income taxes (35,662) (33,558) (82,574) (78,305) Income tax benefit
(provision) 13,551 12,080 31,378 28,188
Loss before cumulative effect adjustment ($22,111) ($21,478) ($51,196) ($50,117)
Cumulative effect adjustment, net of tax - - - (1,107)
Net loss ($22,111) ($21,478) ($51,196) ($51,224)
Basic net loss per common share: Before cumulative effect adjustment $ (0.75) $ (0.78) $
(1.74) $ (1.94) Cumulative effect adjustment - - - (0.04) Net loss per share $ (0.75) $
(0.78) $ (1.74) $ (1.98) Basic weighted average number of common shares outstanding
29,404 27,706 29,365 25,914
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(In Thousands)
July 29, January 29, July 31,
2000 2000 1999
ASSETS
Current Assets: Cash and short-term investments $ 31,305 $ 30,612 $ 36,404 Receivables
32,262 25,302 32,771 Merchandise inventories 885,894 831,387 807,357 Deferred taxes,
net 60,232 28,854 28,188 Prepaid expenses and other current assets 41,402 36,772
31,147 Total current assets 1,051,095 952,927 935,867
Fixed assets 706,522 629,979 527,345 Less - Accumulated depreciation and amortization
(167,245) (128,229) (95,737) Net fixed assets 539,277 501,750 431,608 Other assets and
deferred charges 60,850 57,256 63,232 Deferred taxes, net 346,055 346,055 102,406
Beneficial lease rights, net 54,899 56,280 57,507 Goodwill, net 59,750 61,026 197,471
$ 2,111,926 $ 1,975,294 $ 1,788,091
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities: Accounts payable: Trade $ 227,834 $ 325,356 $ 343,981 Other 93,152
96,224 72,315 Total accounts payable 320,986 421,580 416,296
Current portion of capital lease and financing obligations 22,057 22,086 19,801
Self-insurance reserves 28,346 29,827 29,085 Accrued expenses and other current liabilities
112,144 133,110 229,101 Store closing reserves 52,667 55,468 56,130 Total current
liabilities 536,200 662,071 750,413
Long-term debt 752,761 421,769 257,085 Capital lease and financing obligations 170,220
180,404 183,559 Other long-term liabilities 52,761 57,916 115,020 Excess of revalued net
assets over equity under fresh-start reporting 14,791 17,868 20,944
Commitments and contingencies
Stockholders' Equity: Preferred stock - - - Common stock 296 293 292 Additional paid-in
capital 531,872 530,744 424,900 Retained earnings 53,947 105,143 36,792 Treasury
stock (922) (914) (914) Total stockholders' equity 585,193 635,266 461,070
$ 2,111,926 $ 1,975,294 $ 1,788,091
CONTACT: Ames Department Stores, Inc.
Carolyn Skahill, 860/257-5078
cskahill@ameshome.com |
