AMES Year End Results -
biz.yahoo.com
ROCKY HILL, CT--(BUSINESS WIRE)--March 25, 1999-- Ames Department Stores, Inc. (NASDAQ:AMES - news) today reported its results for the fourth quarter and fiscal year ended January 30, 1999. For the year, the company reported net income of $33.8 million, or $1.40 per diluted share, including after-tax charges of $7.6 million, or $0.32 per diluted share, for restructuring, and other expenses related to the acquisition of Hills Stores Company on December 31, 1998. The Company's results also reflect the impact of a loss of $6.6 million on operations of the acquired Hills stores during January 1999, when one third of those stores were undergoing liquidation sales.
Without the Hills acquisition, Ames would have earned net income of $48.1 million, or $1.99 a share on a diluted basis, an increase of 39% over the prior fiscal year, when earnings were $34.5 million, or $1.46 per diluted share.
Net sales for the fiscal year ended January 30, 1999 were $2.507 billion, an increase of 12.3% over the $2.233 billion reported for preceding fiscal year. The latest results include $112 million contributed in January 1999 by the recently acquired Hills Stores Company.
Comparable store sales for the 52 weeks ended January 30, 1999 were $2.260 billion, compared with $2.109 billion for the 52 weeks ended January 31, 1998, an increase of 7.2 percent. Comparable store sales are based on 285 stores.
''The core Ames business was strong throughout the year, with particular gains in domestics, toys, ready to assemble furniture, and ladies sportswear,'' said Joseph R. Ettore, Ames' President and Chief Executive Officer. Commenting on the progress of the Hills acquisition, Ettore added, ''Renovation of the newly acquired stores is on schedule with the first fifty Grand Openings scheduled for April 22nd and we remain confident that our acquisition of Hills will be accretive in the first year, excluding one time charges, as we introduce the Ames quality and marketing strategy into these stores.''
For the fourth quarter of its latest fiscal year, Ames reported net income of $21.3 million, or $0.87 per diluted share including after-tax charges for restructuring and other expenses related to the acquisition of Hills as well as the results of operations for the acquired Hills stores in January 1999. Without the Hills acquisition, Ames would have had fourth quarter net income of $35.6 million, or $1.46 a share on a fully diluted basis, an increase of 20% over the $29.6 million, or $1.23 per diluted share, earned in the preceding fiscal year.
Sales for the fourth quarter ended January 30, 1999 were $872.7 million, an increase of 13% over the comparable prior year period.
Comparable store sales for the 13 weeks ended January 30, 1999 were $715.6 million, compared with $675.6 million in the 13 weeks ended January 31, 1998, an increase of 5.9 percent.
With 300 Ames stores and 153 newly acquired Hills stores located in 19 states and the District of Columbia, Ames is a full-line discount retailer with combined annual sales of almost $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. |
