Calloway's Nursery Announces Results for Fourth Quarter Ended December 31, 2011

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Mar 15, 2012, 09:00 ET

FORT WORTH, Texas, March 15, 2012 /PRNewswire/ -- Calloway's Nursery, Inc. (PK:CLWY) today reported revenues and operating results for the fourth quarter ended December 31, 2011.

Results for the Fourth Quarter

Revenue was $9.6 million for 2011, compared to revenue of $8.9 million for 2010. 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 year.
Net income was $57,000 for 2011, compared to net loss of $0.6 million for 2010.
Diluted net income per common share was $.01 for 2011, compared to diluted net loss per common share of $.09 for 2010.

Results for the Year

Revenue was $46.6 million for 2011, compared to revenue of $43.3 million for 2010. 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 year.
Net income was $1.3 million for 2011, compared to net income of $0.7 million for 2010. The 2010 period included a $246,000 extraordinary gain.
Diluted net income per common share was $.17 for 2011, compared to diluted net income per common share of $.09 for 2010. The 2010 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,
	2011	2010		2011	2010

Net sales	$9,582	$8,930		$46,589	$43,282
Cost of goods sold	4,956	4,837		24,216	22,399
Gross profit	4,626	4,093		22,373	20,883

Operating expenses	3,309	3,460		14,565	14,062
Advertising expenses	379	388		1,306	1,186
Occupancy expenses	778	820		3,337	3,285
Depreciation and amortization	145	149		590	594
Net interest expense	225	238		831	1,062
Total expenses	4,836	5,055		20,629	20,189
Income (loss) before provision for income taxes and extraordinary gain	(210)	(962)		1,744	694
Income tax expense (benefit)	(267)	(321)		449	256
Net income (loss) before extraordinary gain	57	(641)		1,295	438
Extraordinary gain, net of income tax expense	--	--		--	246
Net income (loss)	$ 57	($ 641)		$ 1,295	$ 684

Weighted average number of common shares outstanding – basic and diluted	7,926		7,390	7,779		7,335

Income (loss) before extraordinary gain per common share – basic and diluted	$0.01		($0.09)	$0.17		$0.06

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

Net income (loss) per common share - basic and diluted	$0.01		($0.09)	$0.17		$0.09

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

ASSETS

	December 31,	December 31,
	2011	2010

Cash and cash equivalents	$ 3,464	$ 2,465
Accounts receivable	115	67
Inventories	2,166	2,097
Prepaids and other assets	11	68
Deferred income taxes	87	547
Total current assets	5,843	5,244

Property and equipment, net	16,987	17,449
Deferred income taxes	247	--
Other assets	245	317
Total assets	$23,322	$23,010

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable and accrued expenses	$ 5,137	$ 5,680
Current portion of long-term debt	816	759
Total current liabilities	5,953	6,439

Long-term debt, net of current portion	11,017	11,756
Deferred rent payable	6	--
Deferred income taxes	--	51
Total liabilities	16,976	18,246
Shareholders' equity:
Common stock	82	78
Additional paid-in capital	10,770	10,487
Accumulated deficit	(3,098)	(4,393)
	7,754	6,172
Less: Treasury stock, at cost	(1,408)	(1,408)
Total shareholders' equity	6,346	4,764
Total liabilities and shareholders' equity	$23,322	$23,010

CALLOWAY'S NURSERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Amounts in thousands)
	Year Ended
	December 31,
	2011	2010
Cash flows from operating activities:
Net income	$1,295	$ 684
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	590	594
Gain on involuntary conversion of property and equipment	--	(372)
Deferred income taxes	162	352
Gain on sale of property and equipment	--	(113)
Net change in operating assets and liabilities	(525)	(1,042)
Net cash provided by operating activities	1,522	103

Cash flows from investing activities:
Additions to property and equipment	(40)	(578)
Proceeds from involuntary conversion of assets	--	769
Proceeds from sales of property and equipment	--	681
Net cash provided by (used for) investing activities	(40)	872

Cash flows from financing activities:
Repayments of debt	(770)	(1,090)
Proceeds from issuance of common stock	287	171
Net cash used for financing activities	(483)	(919)
Net increase in cash and cash equivalents	$ 999	56
Cash and cash equivalents at beginning of period	$2,465	2,409

Cash and cash equivalents at end of period	$3,464	$2,465