-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, IER2W2CwGR9kHJzZmujVGJbkaO+tfzGtI3RsyCOg8mVBnBYtet48hseZ8XTXPPRQ +ULAlJZ87HsaxIPG+DTDWA== 0000085149-95-000016.txt : 19950609 0000085149-95-000016.hdr.sgml : 19950609 ACCESSION NUMBER: 0000085149-95-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950429 ITEM INFORMATION: Changes in control of registrant FILED AS OF DATE: 19950608 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: ROSES STORES INC CENTRAL INDEX KEY: 0000085149 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-VARIETY STORES [5331] IRS NUMBER: 560382475 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-00631 FILM NUMBER: 95545684 BUSINESS ADDRESS: STREET 1: PO DRAWER 947 STREET 2: 218 S GARNETT ST CITY: HENDERSON STATE: NC ZIP: 27536 BUSINESS PHONE: 9194302600 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 29, 1995 ROSE'S STORES, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation) 0-631 56-0382475 (Commission File Number) (IRS Employer Identification No.) 218 S. Garnett Street Henderson, North Carolina 27536 (Address of principal executive offices) (Zip Code) (919) 430-2600 (Registrant's telephone number, including area code) Item 5: OTHER EVENTS On April 26, 1995, Roses Stores, Inc. (the "Company") filed with the Securities and Exchange Commission its annual report on Form 10K for fiscal year ended January 28, 1995 (fiscal 1994). On May 1, 1995, the Company announced that it had satisfied all conditions required under its plan of reorganization and had emerged from chapter 11 of the United States Bankruptcy Code on April 28, 1995. Beginning June 9, 1995, the Company will distribute to its banks and other lenders, principal trade vendors and factors, summaries of its financial plan (referred to herein as the "Plan") for the year ending January 27, 1996 (fiscal 1995). The Plan is attached as Exhibit 20 and is incorporated by reference herein. The Plan reflects the actual results for the first quarter and beginning with April 28, 1995, reflects the application of the provisions of the American Institute of Certified Public Accountants' Statement of Position 90-7,"Financial Reporting by Entities in Reorganization under the Bankruptcy Code" ("SOP 90- 7"). The application of SOP 90-7 (sometimes called "Fresh Start Accounting") changed the Company's basis of accounting for financial reporting purposes. Specifically, SOP 90-7 required the adjustment of the Company's assets and liabilities to reflect their estimated fair market value at the effective date of the Company's reorganization. At the same time, the Company made certain reclassifications between gross margin and expenses and changed the method of accruing certain expenses between periods. Accordingly, the results of operations and changes in cash flows commencing May, 1995 and the balance sheets beginning with April, 1995 will not be comparable to the financial information for prior periods. The Plan is being reported publicly solely because it is being distributed to a large number of the Company's principal trade vendors, banks, and other lenders and factors to facilitate credit analyses. The Plan should not be relied upon for any other purpose and should be read in conjunction with the Company's Form 10-K for fiscal 1994. Although the Company is publicly reporting the Plan and its monthly results during fiscal 1995, the Company does not believe it is obligated to provide such information indefinitely and may cease making such disclosures and updates at any time. Moreover, the Company does not believe that it is obligated to update the Plan to reflect subsequent events or developments. The Plan was not prepared with a view toward compliance with guidelines established by the American Institute of Certified Public Accountants and may not comply with the rules and regulations of the Securities and Exchange Commission regarding financial projections. While presented with numerical specificity, the Plan is based upon a variety of assumptions that may not be realized and is subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company's control. Consequently, the Plan should not be regarded as a representation or warranty by the Company, or any other person, that the forecasts contained therein will be realized. Actual results may vary materially from those presented in the Plan. Item 7: PROJECTIONS, FINANCIAL STATEMENTS Exhibit 20 Fiscal 1995 Summary Financial Plan SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ROSE'S STORES, INC. Date: May , 1995 By: /s/ Jeanette R. Peters Jeanette R. Peters Senior Vice President Chief Financial Officer Exhibit 20 Page 1 of 6 ROSE'S STORES, INC. 1995 ACTUAL AND PROJECTED SPRING INCOME STATEMENTS Condensed Management Format (Amounts in 000's)
Note (1) Note (2) ACTUAL ACTUAL ACTUAL| PROJ PROJ PROJ FEB MAR APR | MAY JUNE JULY SPRING ____________________________|_______________________________________ | | Gross Sales 52,373 49,793 57,241 | 66,711 50,262 52,060 328,440 Less: Leased Sales 1,510 1,648 1,959 | 2,373 1,979 1,764 11,233 ___________________________|_______________________________________ Net Sales 50,863 48,145 55,282 | 64,338 48,283 50,296 317,207 | FIFO Gross Margin 12,142 11,069 13,877 | 16,444 12,606 12,902 79,040 % TO SALES 23.87% 22.99% 25.10%| 25.56% 26.11% 25.65% 24.92% | Leased Dept Income 366 348 400 | 466 351 364 2,295 SG&A 12,236 11,395 11,855 | 15,455 12,715 13,024 76,680 __________________________________________________|______________________________________ EBITDA - PRE-LIFO 272 22 2,422 | 1,455 242 242 4,655 __________________________________________________|______________________________________ Depreciation & | Amortization 621 605 586 | (256) (246) (236) 1,074 Interest Expense 280 212 234 | 480 507 515 2,228 LIFO Expense (Benefit) (131) (108) (125)| 100 100 100 (64) Reorganization Cost 967 1,050 1,830 | 0 0 0 3,847 Non-cash Income Tax | Expense (Benefit) 0 0 0 | 430 (45) (52) 333 __________________________________________________|______________________________________ NET INCOME (LOSS) (1,465) (1,737) (103)| 701 (74) (85) (2,763) __________________________________________________|______________________________________
Note (1): EBITDA for the first quarter was less than the Company's prior projections by $468, primarily due to higher than projected promotional markdowns. Note (2): The Company adopted Fresh-Start accounting effective April 28, 1995 as described in Note 2 to the Consolidated Financial Statements filed on Form 10-K for year ended January 28, 1995 (fiscal 1994). Accordingly, the results of operations commencing May, 1995 will not be comparable to prior periods. Exhibit 20 Page 2 of 6 ROSE'S STORES, INC. 1995 PROJECTED FALL INCOME STATEMENTS Condensed Management Format (Amounts in 000's)
PROJ PROJ PROJ PROJ PROJ PROJ AUG SEPT OCT NOV DEC JAN FALL ANNUAL ____________________________________________________________________________ Gross Sales 67,538 51,143 53,392 86,247 98,812 37,955 395,087 723,527 Less: Leased Sales 2,424 1,588 1,842 2,724 2,659 911 12,148 23,381 ____________________________________________________________________________ Net Sales 65,114 49,555 51,550 83,523 96,153 37,044 382,939 700,146 FIFO Gross Margin 15,448 13,770 14,242 21,493 23,584 3,857 92,394 171,434 % TO SALES 23.72% 27.79% 27.63% 25.73% 24.53% 10.41% 24.13% 24.49% Leased Dept Income 472 358 373 603 692 265 2,763 5,058 SG&A 14,679 12,915 12,558 16,441 15,091 11,513 83,197 159,877 _______________________________________________________________________________________________ EBITDA - PRE-LIFO 1,241 1,213 2,057 5,655 9,185 (7,391) 11,960 16,615 _______________________________________________________________________________________________ Depreciation & Amortization (226) (216) (206) (196) (186) (176) (1,206) (132) Interest Expense 651 557 630 795 416 275 3,324 5,552 LIFO Expense (Benefit) 100 100 100 100 100 100 600 536 Reorganization Cost 0 0 0 0 0 0 0 3,847 Non-cash Income Tax Expense (Benefit) 272 293 583 1,883 3,365 (2,884) 3,512 3,845 _______________________________________________________________________________________________ NET INCOME (LOSS) 444 479 950 3,073 5,490 (4,706) 5,730 2,967 _______________________________________________________________________________________________
Exhibit 20 Page 3 of 6 ROSE'S STORES, INC. 1995 ACTUAL AND PROJECTED SPRING BALANCE SHEETS Condensed Management Format (Amounts in 000's)
Note (1) ACTUAL ACTUAL | ACTUAL PROJ PROJ PROJ FEB MAR | APR MAY JUNE JULY ___________________|_______________________________________ | ASSETS | CASH 629 625 | 622 700 700 700 INVENTORIES 134,891 148,152 | 185,129 178,765 171,014 168,329 OTHER CURRENT ASSETS 23,719 26,750 | 18,810 17,210 16,405 20,752 ___________________|_______________________________________ TOTAL CURRENT ASSETS 159,239 175,527 | 204,561 196,675 188,119 189,781 | NET PROPERTY 34,216 33,072 | 0 772 1,534 2,286 | OTHER LONG TERM ASSETS 3,429 3,258 | 0 0 0 0 | TOTAL ASSETS 196,884 211,857 | 204,561 197,447 189,653 192,067 ===================|======================================= | LIABILITIES & EQUITY | ACCOUNTS PAYABLE 31,023 35,249 | 37,642 29,379 26,094 28,067 SHORT TERM DEBT 9,125 21,100 | 58,654 65,143 62,695 62,528 OTHER CURRENT LIABILITIES 28,262 26,096 | 34,149 27,994 26,321 27,535 ___________________|_______________________________________ TOTAL CURRENT LIABILITIES 68,410 82,445 | 130,445 122,516 115,110 118,130 | PRE-PETITION CLAIMS 156,525 159,286 | 0 0 0 0 | EXCESS OF ASSETS OVER VALUE 0 0 | 32,021 31,755 31,489 31,223 | OTHER LIABILITIES 6,674 6,655 | 5,614 5,631 5,695 5,559 DEFERRED INCOME 1,926 1,859 | 1,481 1,414 1,347 1,280 | STOCKHOLDERS' EQUITY (DEFICIT) (36,651) (38,388)| 35,000 36,131 36,012 35,875 | TOTAL DEBT & EQUITY 196,884 211,857 | 204,561 197,447 189,653 192,067 ===================|=======================================
Note (1): The Company adopted Fresh-Start accounting effective April 28, 1995 as described in Note 2 to the Consolidated Financial Statements filed on Form 10-K for year ended January 28, 1995 (fiscal 1994). Accordingly, the balance sheets beginning with April, 1995 will not be comparable to prior periods. Exhibit 20 Page 4 of 6 ROSE'S STORES, INC. 1995 PROJECTED FALL BALANCE SHEETS Condensed Management Format (Amounts in 000's)
PROJ PROJ PROJ PROJ PROJ PROJ AUG SEPT OCT NOV DEC JAN ___________________________________________________________ ASSETS CASH 700 700 700 3,000 3,000 700 INVENTORIES 166,527 177,936 190,792 187,055 144,573 143,919 OTHER CURRENT ASSETS 22,687 26,959 30,001 27,114 15,927 16,710 ___________________________________________________________ TOTAL CURRENT ASSETS 189,914 205,595 221,493 217,169 163,500 161,329 NET PROPERTY 2,846 3,396 3,936 4,466 4,986 5,205 OTHER LONG TERM ASSETS 0 0 0 0 0 0 TOTAL ASSETS 192,760 208,991 225,429 221,635 168,486 166,534 =========================================================== LIABILITIES & EQUITY ACCOUNTS PAYABLE 29,325 34,850 37,897 39,990 28,668 24,985 SHORT TERM DEBT 64,787 71,930 84,747 74,366 23,394 35,875 OTHER CURRENT LIABILITIES 24,264 27,324 26,834 26,641 27,200 24,509 ___________________________________________________________ TOTAL CURRENT LIABILITIES 118,376 134,104 149,478 140,997 79,262 85,369 PRE-PETITION CLAIMS 0 0 0 0 0 0 EXCESS OF ASSETS OVER VALUE 30,957 30,691 30,425 30,159 29,893 29,627 OTHER LIABILITIES 5,623 5,687 5,551 5,615 5,679 5,543 DEFERRED INCOME 1,213 1,146 1,079 1,012 945 878 STOCKHOLDERS' EQUITY 36,591 37,363 38,896 43,852 52,707 45,117 TOTAL DEBT & EQUITY 192,760 208,991 225,429 221,635 168,486 166,534 ===========================================================
Exhibit 20 Page 5 of 6 ROSE'S STORES, INC. 1995 ACTUAL AND PROJECTED SPRING CHANGES IN CASH Condensed Management Format (Amounts in 000's)
Note (1) ACTUAL ACTUAL ACTUAL | PROJ PROJ PROJ FEB MAR APR | MAY JUNE JULY SPRING ______________________________|____________________________________ | Net earnings (loss) (1,465) (1,737) (103) | 701 (74) (85) (2,763) Non-cash income tax | expense (benefit) 0 0 0 | 430 (45) (52) 333 Other 489 497 461 | (218) (208) (198) 823 _____________________________|_____________________________________ CASH PROV.(USED) BY OPERATIONS | BEFORE ASSET/LIABILITY CHG (976) (1,240) 358 | 913 (327) (335) (1,607) | (Inc.) dec. in Inventories (15,193) (13,153) (11,945) | 6,977 7,651 2,585 (22,867) Inc. (dec.) in AP 7,631 4,226 2,504 | (8,263) (3,285) 1,973 4,559 All other (2,650) (2,691) (2,353) | 1,006 (796) (3,260)(10,728) _____________________________|____________________________________ CASH PROV. (USED) BY OPERATIONS (11,188) (12,858) (11,436) | 633 3,243 963 (30,643) | INVESTING ACTIVITIES (146) (67) (292) | (682) (682) (682) (2,551) | FINANCING ACTIVITIES | Proceeds (payments) pre-petition | claims 51 (11) (28,056) | (5,000) 0 0 (33,016) Proceeds (payments) of short-term | debt 8,525 11,975 37,554 | 6,489 (2,448) (167) 61,928 Capital Lease payments (109) (94) (78) | (112) (113) (114) (620) Other 2,146 1,051 2,305 | (1,250) 0 0 4,252 _____________________________|____________________________________ CASH PROV.(USED) BY FINANCE 10,613 12,921 11,725 | 127 (2,561) (281) 32,544 | (DEC.) INC. IN CASH (721) (4) (3) | 78 0 0 (650) =============================|===================================
Note (1): The Company adopted Fresh-Start accounting effective April 28, 1995 as described in Note 2 to the Consolidated Financial Statements filed on Form 10-K for year ended January 28, 1995 (fiscal 1994). Accordingly, the change in cash flows beginning with May, 1995 will not be comparable to prior periods. Exhibit 20 Page 6 of 6 ROSE'S STORES, INC. 1995 PROJECTED FALL CHANGES IN CASH Condensed Management Format (Amounts in 000's)
PROJ PROJ PROJ PROJ PROJ PROJ AUG SEPT OCT NOV DEC JAN FALL ANNUAL _________________________________________________________________________ Net earnings (loss) 444 479 950 3,073 5,490 (4,706) 5,730 2,967 Non-cash income tax expense (benefit) 272 293 583 1,883 3,365 (2,884) 3,512 3,845 Other (188) (178) (168) (158) (148) (138) (978) (155) _________________________________________________________________________ CASH PROV.(USED) BY OPERATIONS BEFORE ASSET/LIABILITY CHG 528 594 1,365 4,798 8,707 (7,728) 8,264 6,657 (Inc.) dec. in Inventories 1,702 (11,509) (12,956) 3,637 42,382 554 23,810 943 Inc. (dec.) in AP 1,258 5,525 3,047 2,093 (11,322) (3,683) (3,082) 1,477 All other (5,132) (3,137) (2,656) 4,771 11,824 (3,595) 2,075 (8,653) _________________________________________________________________________ CASH PROV. (USED) BY OPERATIONS (1,644) (8,527) (11,200) 15,299 51,591 (14,452) 31,067 424 INVESTING ACTIVITIES (500) (500) (500) (500) (500) (209) (2,709) (5,260) FINANCING ACTIVITIES Proceeds (payments) pre-petition claims 0 0 0 0 0 0 0 (33,016) Proceeds (payments) of short-term debt 2,259 7,143 12,817 (10,381) (50,972) 12,481 (26,653) 35,275 Capital lease payments (115) (116) (117) (118) (119) (120) (705) (1,325) Other 0 2,000 (1,000) (2,000) 0 0 (1,000) 3,252 ________________________________________________________________________ CASH PROV.(USED) BY FINANCE 2,144 9,027 11,700 (12,499) (51,091) 12,361 (28,358) 4,186 (DEC.) INC. IN CASH 0 0 0 2,300 0 (2,300) 0 (650) ========================================================================
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