Calloway's Nursery Announces Results For First Quarter And Year Ended March 31, 2015

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May 13, 2015, 11:06 ET

FORT WORTH, Texas, May 13, 2015 /PRNewswire/ -- Calloway's Nursery, Inc. (CLWY) today reported revenues and operating results for the first quarter ended March 31, 2015.

Results for the First Quarter

Revenue was $10.2 million for 2015, compared to revenue of $10.0 million for 2014. Same-store revenue (18 stores) was $10.2 million for 2015, compared to same-store revenue of $8.8 million for 2014. The company closed one store in early January 2015 which has not been included in the calculation of same-store revenue.

Net loss was $0.3 million for 2015, compared to net loss of $0.1 million for 2014.

Diluted net loss per common share was $.04 for 2015, compared to diluted net loss per common share of $.02 for 2014.

Earnings before income taxes, depreciation and amortization and net interest expense, a non-GAAP measure ("EBITDA"), was negative $0.2 million for 2015 compared to EBITDA of $0.1 million for 2014.

Founded in 1986, Calloway's Nursery, Inc. is an 18-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)

	Three-Months Ended
	March 31,
	2015	2014

Net revenue	$10,218	$10,045
Cost of goods sold	5,282	4,942
Gross profit	4,936	5,103

Operating expense	3,813	3,669
Advertising expense	445	490
Occupancy expense	859	861
Depreciation and amortization	131	138
Net interest expense	117	139
Total expenses	5,365	5,297

Loss before provision for income taxes	(429)	(194)
Income tax (benefit)	(116)	(56)
Net loss	($ 313)	($ 138)

Weighted average number of common shares outstanding – basic and diluted	8,378	8,378

Net loss per common share - basic and diluted	($0.04)	($0.02)

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

ASSETS
	March 31,	March 31,
	2015	2014
Cash and cash equivalents	$4,664	$ 2,017
Accounts receivable	1,471	2,258
Inventories	4,796	5,347
Prepaids and other assets	80	114
Deferred income taxes	348	161
Property held for sale	1,240	1,508
Total current assets	12,599	11,405
Property and equipment, net	14,827	15,186
Restricted cash	7,730	--
Deferred income taxes	--	135
Other assets	150	161
Total assets	$35,306	$26,887

LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses	$8,724	$8,818
Current portion of long-term debt	956	905
Total current liabilities	9,680	9,723
Long-term debt, net of current portion	6,606	9,145
Deferred rent payable	78	59
Deferred income taxes	2,817	--
Total liabilities	19,181	18,927
Shareholders' equity:
Common stock	86	86
Additional paid-in capital	11,082	11,082
Retained earnings (accumulated deficit)	6,365	(1,800)
	17,533	9,368
Less: Treasury stock, at cost	(1,408)	(1,408)
Total shareholders' equity	16,125	7,960
Total liabilities and shareholders' equity	$35,306	$26,887

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

	Three-Months Ended
	March 31,
	2015	2014
Cash flows from operating activities:
Net loss	($ 313)	($ 138)
Adjustments to reconcile net loss to net cash (used for) operating activities:
Depreciation and amortization	131	138
Deferred income tax	(131)	(71)
Net change in operating assets and liabilities	(706)	(1,553)

Net cash (used for) operating activities	(1,019)	(1,624)
Cash flows from investing activities:
Additions to property and equipment	(208)	(25)
Net cash (used for) investing activities	(208)	(25)
Cash flows from financing activities:
Repayments of debt	(230)	(221)
Proceeds from issuance of common stock	--	--
Net cash (used for) financing activities	(230)	(221)
Net increase (decrease) in cash and cash equivalents	(1,457)	(1,870)
Cash and cash equivalents at beginning of period	6,121	3,887
Cash and cash equivalents at end of period	$ 4,664	$ 2,017