Calloway's Nursery Announces Results For Third Quarter And Nine-Months Ended September 30, 2015

Nov 18, 2015, 14:00 ET from Calloway's Nursery, Inc.

FORT WORTH, Texas, Nov. 18, 2015 /PRNewswire/ -- Calloway's Nursery, Inc. (CLWY) today reported revenues and operating results for the third quarter ended September 30, 2015.

Results for the Third Quarter

Revenue was $7.7 million for 2015, compared to revenue of $7.7 million for 2014. Same-store revenue (17 stores) was $7.7 million for 2015, compared to same-store revenue of $6.8 million for 2014. The company has closed two stores in 2015 which have not been included in the calculation of same-store revenue.

Net loss was $0.4 million for 2015, compared to net loss of $0.6 million for 2014.

Diluted net loss per common share was $.05 for 2015, compared to diluted net loss per common share of $.07 for 2014.

Earnings before income taxes, depreciation and amortization and net interest expense, a non-GAAP measure ("EBITDA"), was negative $0.5 million for 2015 compared to EBITDA of negative $0.6 million for 2014.

Year-to-date Results

Revenue was $39.9 million for 2015, compared to revenue of $42.4 million for 2014. Same-store revenue (17 stores) was $39.2 million for 2015, compared to same-store revenue of $37.6 million for 2014. The company has closed two stores in 2015 which have not been included in the calculation of same-store revenue.

Net income was $2.0 million for 2015, compared to net income of $2.7 million for 2014.

Diluted net income per common share was $.23 for 2015, compared to diluted net income per common share of $.32 for 2014.

EBITDA was $3.7 million for 2015 compared to 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 NURSERY, INC.

CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)

 (Amounts in thousands, except per share amounts)



Quarter Ended


Nine-months Ended


September 30,


September 30,


2015


2014


2015


2014









Net revenue

$7,738


$7,748


$39,917


$42,408

Cost of goods sold

3,998


3,990


20,292


21,062

 

Gross profit

 

3,740


 

3,758


19,625


21,346









Operating expense

3,237


3,304


12,372


12,623

Advertising expense

170


110


1,061


1,113

Occupancy expense

791


918


2,445


2,676

Depreciation and amortization

134


125


406


390

Net interest expense

85


138


307


418

Total expenses

4,417


4,595


16,591


17,220

Income (loss) before provision for income taxes

 

(677)


 

(837)


3,034


4,126

Income tax (benefit)

(235)


(277)


1,069


1,404

 

Net income (loss)

 

($442)


 

($560)


$1,965


$2,722

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

 

($0.05)


 

($0.07)


$0.23


$0.32

    

CALLOWAY'S NURSERY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Amounts in thousands)


ASSETS


September 30,


September 30,


2015


2014

Cash and cash equivalents

$ 7,503


$ 6,448

Accounts receivable

267


268

Inventories

4,056


4,027

Prepaids and other assets

55


58

Deferred income taxes

45


90

Property held for sale

--


1,508

      Total current assets

11,926


12,399

Property and equipment, net

20,526


14,954

Deferred income taxes

--


135

Other assets

121


150

      Total assets

$32,573


$27,638

 

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable and accrued expenses

$6,460


$7,148

Current portion of long-term debt

924


920

      Total current liabilities

7,384


8,068

Long-term debt, net of current portion

4,523


8,681

Deferred rent payable

40


69

Deferred income taxes

2,223


--

      Total liabilities

14,170


16,818

Shareholders' equity:




   Common stock

86


86

   Additional paid-in capital

11,082


11,082

   Retained earnings

8,643


1,060


19,811


12,228

   Less: Treasury stock, at cost

(1,408)


(1,408)

      Total shareholders' equity

18,403


10,820

      Total liabilities and shareholders' equity

$32,573


$27,638

 

CALLOWAY'S NURSERY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(Amounts in thousands)



Nine-months Ended


September 30,


2015


2014

Cash flows from operating activities:




   Net income

$1,965


$2,722

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




Depreciation and amortization

406


390

Deferred income tax

(422)


--

Gain on disposal of property held for sale

(47)


--

Net change in operating assets and liabilities

(1,010)


164

Net cash provided by operating activities

892


3,276

Cash flows from investing activities:




Additions to property and equipment

(7,595)


(45)

Decrease in restricted cash from sale of property

9,143


--

Proceeds from disposal of property held for sale

1,287


--

Net cash provided by (used for) investing activities

2,835


(45)

Cash flows from financing activities:




Repayments of debt

(2,345)


(670)

Net cash (used for) financing activities

(2,345)


(670)

 

Net increase in cash and cash equivalents

1,382


2,561

 

Cash and cash equivalents at beginning of period

6,121


3,887

 

Cash and cash equivalents at end of period

$7,503


$6,448

 

SOURCE Calloway's Nursery, Inc.



RELATED LINKS

http://www.calloways.com