Calloway's Nursery Announces Preliminary Results For Fourth Quarter And Year Ended December 31, 2015

14 Jan, 2016, 14:56 ET from Calloway's Nursery, Inc.

FORT WORTH, Texas, Jan. 14, 2016 /PRNewswire/ -- Calloway's Nursery, Inc. (PK:CLWY) today reported preliminary revenues and operating results for the fourth quarter and year ended December 31, 2015.

Results for the Fourth Quarter

Revenue was $10.0 million for 2015, compared to revenue of $11.1 million for 2014. Same-store revenue (17 stores) was $10.0 million for 2015, compared to same-store revenue of $9.1 million for 2014. The company closed two stores in 2015. Neither of these two stores has been included in the calculation of same-store revenue.

Net loss was $0.1 million for 2015, compared to net income of $5.6 million for 2014. The 2014 results included a $5.9 million (net of income tax) gain consisting of disposal gains and impairment losses on properties.

Diluted net loss per common share was $.01 for 2015, compared to diluted net income per common share of $.67 for 2014. The 2014 results included a $0.70 per share (net of income tax) gain consisting of disposal gains and impairment losses on properties.

Earnings before income taxes, depreciation and amortization and net interest expense, a non-GAAP measure ("EBITDA"), was $0.1 million for 2015 compared to EBITDA of $8.9 million for 2014.

"Adjusted EBITDA", a non-GAAP measure, is EBITDA adjusted for the effects of disposal gains and impairment losses on properties.

Adjusted EBITDA was $0.1 million for 2015 compared to Adjusted EBITDA of $0 (break-even) for 2014.

Results for the Year

Revenue was $50.0 million for 2015, compared to revenue of $53.5 million for 2014. Same-store revenue (17 stores) was $49.2 million for 2015, compared to same-store revenue of $46.6 million for 2014.

Net income was $1.8 million for 2015, compared to net income of $8.3 million for 2014. The 2014 results included a $5.9 million (net of income tax) gain consisting of disposal gains and impairment losses on properties.

Diluted net income per common share was $.22 for 2015, compared to diluted net income per common share of $1.00 for 2014. The 2014 results included a $0.70 per share (net of income tax) gain consisting of disposal gains and impairment losses on properties.

EBITDA was $3.8 million for 2015 compared to EBITDA of $13.8 million for 2014.

Adjusted EBITDA was $3.8 million for 2015 compared to Adjusted EBITDA of $4.9 million for 2014.

Founded in 1986, Calloway's Nursery, Inc. is a 17-store garden center chain serving the Dallas - Fort Worth and Houston markets as Calloway's Nursery in D/FW and Cornelius Nursery in Houston. The company strives to make gardening fun, easy and successful for customers by offering expert advice from Texas Certified Nursery Professionals; store environments that are educational and easy to shop; gardening clinics that serve both novice and expert gardeners; displays and instructions to aid gardeners with design and color development in their yards; and a product selection of the best plant varieties available.

Calloway's has not completed its normal reporting procedures for its year-end results, and there can be no assurance that Calloway's final results will not differ from these preliminary results. Any such changes could be material. In addition, during the course of the preparation of Calloway's audited consolidated financial statements and related notes as of and for the year ended December 31, 2015, Calloway's may identify items that would require it to make material adjustments to this preliminary financial information.

The preliminary financial information included herein has been prepared by, and is the responsibility of the management of Calloway's. Calloway's independent public accounting firm has not audited, reviewed, compiled or performed any procedures with respect to the accompanying unaudited financial information for the purpose of its inclusion herein, and accordingly, Calloway's independent public accounting firm does not express an opinion or provide any form of assurance with respect thereto.


CALLOWAY'S NURSERY, INC.

CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)

 (Amounts in thousands, except per share amounts)










Three-Months Ended


Year Ended


December 31,


December 31,


2015


2014


2015


2014









Net revenue

$10,043


$11,107


$49,960


$53,515

Cost of goods sold

5,338


5,993


25,630


27,055

 

Gross profit

4,705


5,114


24,330


26,460









Operating expense

3,578


3,755


15,950


16,378

Advertising expense

340


436


1,401


1,549

Occupancy expense

724


923


3,169


3,599

Depreciation and amortization

143


128


549


518

Net interest expense

81


148


388


566

Total expenses

4,866


5,390


21,457


22,610

(Gain) on disposals and impairments of properties

--


(8,874)


--


(8,874)

Income (loss) before provision for income taxes

(161)


8,598


2,873


12,724

Income tax expense (benefit)

(44)


2,980


1,025


4,384

 

Net income (loss)

($117)


$5,618


$1,848


$8,340











Weighted average number of common shares outstanding – basic and diluted

8,378


8,378


8,378


8,378









Net income (loss) per common share - basic and diluted

($0.01)


$0.67


$0.22


$1.00

 

 

CALLOWAY'S NURSERY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Amounts in thousands)


ASSETS






December 31,


December 31,


2015


2014

Cash and cash equivalents

$ 6,481


$ 6,121

Accounts receivable

38


48

Inventories

2,462


2,069

Prepaids and other assets

72


74

Property held for sale

--


1,240

      Total current assets

9,053


9,552

Property and equipment, net

21,688


13,337

Restricted cash

--


9,143

Other assets

117


194

      Total assets

$30,858


$32,226


                                 LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable and accrued expenses

$ 5,303


$ 5,322

Current portion of long-term debt

935


942

      Total current liabilities

6,238


6,264

Long-term debt, net of current portion

4,285


6,850

Deferred rent payable

44


74

Deferred income taxes

2,005


2,600

      Total liabilities

12,572


15,788

Shareholders' equity:




   Common stock

86


86

   Additional paid-in capital

11,082


11,082

   Retained earnings

8,526


6,678


19,694


17,846

   Less: Treasury stock, at cost

(1,408)


(1,408)

      Total shareholders' equity

18,286


16,438

      Total liabilities and shareholders' equity

$30,858


$32,226

 


CALLOWAY'S NURSERY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Amounts in thousands)




             Year Ended


           December 31,


2015


2014

Cash flows from operating activities:




   Net income

$ 1,848


$ 8,340

Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

549


518

Deferred income tax

(595)


2,825

Net gain on disposals and impairments of properties

(66)


(8,874)

Net change in operating assets and liabilities

(353)


461

Net cash provided by operating activities

1,383


3,270

Cash flows from investing activities:




Additions to property and equipment

(8,900)


(117)

Restricted cash

9,143


(9,143)

Proceeds from sale of assets

1,306


9,143

Net cash provided by (used for) investing activities

1,549


(117)

Cash flows from financing activities:




Repayments of debt

(2,572)


(919)

Proceeds from issuance of common stock

--


--

Net cash (used for) financing activities

(2,572)


(919)

 

Net increase in cash and cash equivalents

360


2,234

 

Cash and cash equivalents at beginning of period

6,121


3,887

 

Cash and cash equivalents at end of period

$ 6,481


$ 6,121

 

SOURCE Calloway's Nursery, Inc.



RELATED LINKS

http://www.calloways.com