Calloway's Nursery Announces Results For Third Quarter Ended September 30, 2012

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Nov 14, 2012, 02:00 ET

FORT WORTH, Texas, Nov. 14, 2012 /PRNewswire/ -- Calloway's Nursery, Inc. (PK:CLWY) today reported revenues and operating results for the third quarter ended September 30, 2012.

Results for the Third Quarter

Revenue was $6.3 million for 2012, compared to revenue of $5.9 million for 2011. Same-store revenue (18 stores) was $6.3 million for 2012, compared to same-store revenue of $5.7 million for 2011.
Net loss was $1.1 million for 2012, compared to net loss of $1.1 million for 2011.
Diluted net loss per common share was $.13 for 2012, compared to diluted net loss per common share of $.15 for 2011.
The 2012 period included a $368,000 (net of income tax effect) impairment charge on assets held for sale ($.05 per share).

Results for the Nine Months

Revenue was $36.1 million for 2012, compared to revenue of $37.0 million for 2011. Same-store revenue (18 stores) was $35.2 million for 2012, compared to same-store revenue of $35.8 million for 2011.
Net income was $1.0 million for 2012, compared to net income of $1.2 million for 2011.
Diluted net income per common share was $.13 for 2012, compared to diluted net income per common share of $.16 for 2011.
The 2012 period included a $368,000 (net of income tax effect) impairment charge on assets held for sale ($.05 per share).

Founded in 1986, Calloway's Nursery, Inc. is an 18-store garden center chain serving the Dallas - Fort Worth (as Calloway's Nursery) and Houston (as Cornelius Nursery) markets. 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; weekly 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)

	Three-Months Ended		Nine-Months Ended
	September 30,		September 30,
	2012	2011	2012	2011

Net revenue	$6,338	$5,860	$36,104	$37,007
Cost of goods sold	3,477	3,416	18,602	19,260
Gross profit	2,861	2,444	17,502	17,747

Operating expenses	2,666	2,807	10,843	11,256
Advertising expenses	85	115	990	927
Occupancy expenses	821	856	2,521	2,559
Depreciation and amortization	136	148	397	445
Net interest expense	190	200	585	606
Impairment of property held for sale	558	--	558	--
Total expenses	4,456	4,126	15,894	15,793
Income (loss) before provision for income taxes	(1,595)	(1,682)	1,608	1,954
Income tax expense (benefit)	(536)	(533)	594	716
Net income (loss)	($1,059)	($1,149)	$ 1,014	$ 1,238

Weighted average number of common shares outstanding – basic and diluted	8,181	7,886	8,097	7,769

Net income (loss) per common share - basic and diluted	($0.13)	($0.15)	$0.13	$0.16

CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Amounts in thousands)

ASSETS
	September 30,	September 30,
	2012	2011
Cash and cash equivalents	$ 3,602	$ 2,531
Accounts receivable	378	243
Inventories	3,947	3,690
Prepaids and other assets	121	21
Deferred income taxes	87	547
Property held for sale	1,508	--
Total current assets	9,643	7,032
Property and equipment, net	14,635	17,090
Deferred income taxes	247	--
Other assets	214	299
Total assets	$24,739	$24,421

LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses	$5,927	$6,126
Current portion of long-term debt	852	801
Total current liabilities	6,779	6,927
Long-term debt, net of current portion	10,403	11,202
Deferred income taxes	--	51
Deferred rent payable	13	4
Total liabilities	17,195	18,184
Shareholders' equity:
Common stock	85	82
Additional paid-in capital	10,951	10,718
Accumulated deficit	(2,084)	(3,155)
	8,952	7,645
Less: Treasury stock, at cost	(1,408)	(1,408)
Total shareholders' equity	7,544	6,237
Total liabilities and shareholders' equity	$24,739	$24,421

CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Amounts in thousands)

	Nine-Months Ended
	September 30,
	2012	2011
Cash flows from operating activities:
Net income	$1,014	$1,238
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	397	445
Deferred income taxes	--	--
Impairment of property held for sale	558	--
Net change in operating assets and liabilities	(1,326)	(1,254)
Net cash provided by operating activities	643	429
Cash flows from investing activities:
Additions to property and equipment	(85)	(30)
Net cash (used for) investing activities	(85)	(30)
Cash flows from financing activities:
Repayments of debt	(604)	(568)
Proceeds from issuance of common stock	184	235
Net cash (used for) financing activities	(420)	(333)
Net increase in cash and cash equivalents	138	66
Cash and cash equivalents at beginning of period	3,464	2,465
Cash and cash equivalents at end of period	$ 3,602	$ 2,531