Calloway's Nursery Announces Results for Fourth Quarter Ended December 31, 2010

News provided by

Feb 16, 2011, 01:36 ET

FORT WORTH, Texas, Feb. 16, 2011 /PRNewswire/ -- Calloway's Nursery, Inc. (Pink Sheets: CLWY) today reported revenues and operating results for the fourth quarter ended December 31, 2010.

Results for the Fourth Quarter

Sales were $9.4 million for 2010, compared to sales of $7.6 million for 2009. Same-store (17 stores) sales were $7.4 million for 2010, compared to same-store sales of $6.7 million for 2009.
Net loss was $321,000 for 2010, compared to net loss of $1.1 million for 2009. The 2009 period included a $227,000 extraordinary gain.
Diluted net loss per common share was $.04 for 2010, compared to diluted net loss per common share of $.15 for 2009.

Results for the Year

Sales were $43.8 million for 2010, compared to sales of $37.9 million for 2009. Same-store (17 stores) sales were $36.7 million for 2010, compared to same-store sales of $34.8 million for 2009.
Net income was $1.0 million for 2010, compared to net loss of $1.8 million for 2009. The 2010 period included a $246,000 extraordinary gain and the 2009 period included a $227,000 extraordinary gain.
Diluted net income per common share was $.14 for 2010, compared to diluted net loss per common share of $.26 for 2009. The 2010 period included a $.03 per-share extraordinary gain and the 2009 period included a $.03 per-share extraordinary gain.

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		Year Ended
	December 31,		December 31,
	2010	2009	2010	2009

Net sales	$9,415	$7,623	$43,767	$37,878
Cost of goods sold	4,837	4,535	22,399	21,385
Gross profit	4,578	3,088	21,368	16,493

Operating expenses	3,460	3,190	14,062	13,484
Advertising expenses	388	373	1,186	1,332
Occupancy expenses	820	878	3,285	3,369
Depreciation and amortization	149	128	594	488
Net interest expense	238	165	1,062	641
Total expenses	5,055	4,734	20,189	19,314
Income (loss) before provision for income taxes and extraordinary gain	(477)	(1,646)	1,179	(2,821)
Income tax expense (benefit)	(156)	(362)	421	(749)
Net income (loss) before extraordinary gain	(321)	(1,284)	758	(2,072)
Extraordinary gain, net of income tax expense	-	227	246	227
Net income (loss)	($ 321)	($ 1,057)	$ 1,004	($ 1,845)

Weighted average number of common shares outstanding – basic and diluted	7,390	7,099	7,299	7,010

Income (loss) before extraordinary gain per common share – basic and diluted	($0.04)	($0.18)	$0.11	($0.29)

Extraordinary gain, net of tax, per common share - basic and diluted	-	0.03	0.03	0.03

Net income (loss) per common share - basic and diluted	($0.04)	($0.15)	$0.14	($0.26)

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

	December 31,	December 31,
	2010	2009

Cash and cash equivalents	$ 2,465	$ 2,409
Accounts receivable	67	801
Inventories	2,097	1,110
Prepaids and other assets	68	66
Deferred income taxes	331	241
Assets held for sale	-	568
Total current assets	5,028	5,195

Property and equipment, net	17,449	17,465
Deferred income taxes	-	607
Other assets	317	308
Total assets	$22,794	$23,575

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable and accrued expenses	$ 5,195	$ 6,014
Current portion of long-term debt	759	1,105
Total current liabilities	5,954	7,119

Deferred rent payable	-	47
Long-term debt, net of current portion	11,756	12,500

Total liabilities	17,710	19,666
Shareholders' equity:
Common stock	78	74
Additional paid-in capital	10,487	10,320
Accumulated deficit	(4,073)	(5,077)
	6,492	5,317
Less: Treasury stock, at cost	(1,408)	(1,408)

Total shareholders' equity	5,084	3,909
Total liabilities and shareholders' equity	$22,794	$23,575

CALLOWAY'S NURSERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Amounts in thousands)
	Year Ended
	December 31,
	2010	2009
Cash flows from operating activities:
Net income (loss)	$1,004	($1,845)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	594	488
Gain on involuntary conversion of property and equipment	(372)	(344)
Gain on sales of property and equipment	(113)	-
Deferred income taxes	517	(283)
Net change in operating assets and liabilities	(1,527)	3,223
Net cash provided by operating activities	103	1,239

Cash flows from investing activities:
Additions to property and equipment	(578)	(912)
Proceeds from involuntary conversion of assets	769	621
Proceeds from sales of property and equipment	681	-
Net cash provided by (used for) investing activities	872	(291)

Cash flows from financing activities:
Repayments of debt	(1,090)	(572)
Proceeds from issuance of common stock	171	102
Net cash used for financing activities	(919)	(470)
Net increase in cash and cash equivalents	56	478
Cash and cash equivalents at beginning of period	2,409	1,931

Cash and cash equivalents at end of period	$2,465	$2,409