Calloway's Nursery Announces Results For First Quarter Ended March 31, 2012

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May 16, 2012, 02:00 ET

FORT WORTH, Texas, May 16, 2012 /PRNewswire/ -- Calloway's Nursery, Inc. (OTC-PINK: CLWY) today reported revenues and operating results for the first quarter ended March 31, 2012.

Results for the First Quarter

Revenue was $12.2 million for 2012, compared to revenue of $12.4 million for 2011. That was also the same-store revenue comparison since all nineteen retail stores had been open for more than twelve months at the start of the current year.
Net income was $654,000 for 2012, compared to net income of $754,000 for 2011.
Diluted net income per common share was $.08 for 2012, compared to diluted net income per common share of $.10 for 2011.

Founded in 1986, Calloway's Nursery, Inc. is a 19-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
	March 31,
	2012	2011
Net revenue	$12,186	$12,438
Cost of goods sold	5,788	5,991
Gross profit	6,398	6,447
Operating expenses	3,735	3,734
Advertising expenses	467	378
Occupancy expenses	858	859
Depreciation and amortization	134	148
Net interest expense	198	200
Total expenses	5,392	5,319
Income before provision for income taxes	1,006	1,128
Income tax expense	352	374
Net income	$ 654	$ 754
Weighted average number of common shares outstanding – basic and diluted	7,998	7,563
Net income per common share - basic and diluted	$0.08	$0.10


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

ASSETS
	March 31,	March 31,
	2012	2011
Cash and cash equivalents	$ 5,292	$ 5,749
Accounts receivable	1,429	489
Inventories	5,277	5,682
Prepaids and other assets	34	50
Deferred income taxes	87	415
Total current assets	12,119	12,385
Property and equipment, net	16,853	17,309
Deferred income taxes	247	--
Other assets	235	311
Total assets	$29,454	$30,005

LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses	$10,762	$12,064
Current portion of long-term debt	826	759
Total current liabilities	11,588	12,823
Long-term debt, net of current portion	10,808	11,566
Deferred income taxes	--	51
Deferred rent payable	8	--
Total liabilities	22,404	24,440
Shareholders' equity:
Common stock	83	79
Additional paid-in capital	10,819	10,533
Accumulated deficit	(2,444)	(3,639)
	8,458	6,973
Less: Treasury stock, at cost	(1,408)	(1,408)
Total shareholders' equity	7,050	5,565
Total liabilities and shareholders' equity	$29,454	$30,005


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

	Three-Months Ended
	March 31,
	2012	2011
Cash flows from operating activities:
Net income	$654	$754
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	134	148
Deferred income taxes	--	81
Net change in operating assets and liabilities	1,189	2,452
Net cash provided by operating activities	1,977	3,435
Cash flows from investing activities:
Additions to property and equipment	--	(8)
Net cash (used for) investing activities	--	(8)
Cash flows from financing activities:
Repayments of debt	(199)	(190)
Proceeds from issuance of common stock	50	47
Net cash (used for) financing activities	(149)	(143)
Net increase in cash and cash equivalents	1,828	3,284
Cash and cash equivalents at beginning of period	3,464	2,465
Cash and cash equivalents at end of period	$ 5,292	$ 5,749