Calloway's Nursery Announces Results For Second Quarter And Six-Months Ended June 30, 2015

Aug 05, 2015, 09:00 ET from Calloway's Nursery, Inc.

FORT WORTH, Texas, Aug. 5, 2015 /PRNewswire/ -- Calloway's Nursery, Inc. (CLWY) today reported revenues and operating results for the second quarter ended June 30, 2015.

Results for the Second Quarter

Revenue was $22.0 million for 2015, compared to revenue of $24.6 million for 2014. Same-store revenue (17 stores) was $21.4 million for 2015, compared to same-store revenue of $22.2 million for 2014. The company has closed two stores in 2015 which have not been included in the calculation of same-store revenue.

Net income was $2.7 million for 2015, compared to net income of $3.4 million for 2014.

Diluted net income per common share was $.33 for 2015, compared to diluted net income per common share of $.41 for 2014.

Earnings before income taxes, depreciation and amortization and net interest expense, a non-GAAP measure ("EBITDA"), was $4.4 million for 2015 compared to EBITDA of $5.4 million for 2014.

Year-to-date Results

Revenue was $32.2 million for 2015, compared to revenue of $34.7 million for 2014. Same-store revenue (17 stores) was $31.4 million for 2015, compared to same-store revenue of $30.8 million for 2014. The company has closed two stores in 2015 which have not been included in the calculation of same-store revenue.

Net income was $2.4 million for 2015, compared to net income of $3.3 million for 2014.

Diluted net income per common share was $.29 for 2015, compared to diluted net income per common share of $.39 for 2014.

EBITDA was $4.2 million for 2015 compared to EBITDA of $5.5 million for 2014.

Founded in 1986, Calloway's Nursery, Inc. is a 17-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)



Quarter Ended

Six-months Ended


June 30,

June 30,


2015


2014

2015


2014








Net revenue

$21,961


$24,615

$32,179


$34,660

Cost of goods sold

11,012


12,130

16,294


17,072

 

Gross profit

 

10,949


 

12,485

15,885


17,588








Operating expense

5,322


5,650

9,135


9,319

Advertising expense

446


513

891


1,003

Occupancy expense

795


897

1,654


1,758

Depreciation and amortization

141


127

272


265

Net interest expense

105


141

222


280

Total expenses

6,809


7,328

12,174


12,625

Gain on disposal of assets

26


--

26


--

Income before provision for income taxes

 

4,166


 

5,157

3,737


4,963

Income tax

1,420


1,737

1,304


1,681

 

Net income

 

$2,746


 

$3,420

$2,433


$3,282








Weighted average number of common shares outstanding – basic and diluted

 

8,378


 

8,378

8,378


8,378








Net income per common share - basic and diluted

$0.33


$0.41

$0.29


$0.39

 


CALLOWAY'S NURSERY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Amounts in thousands)


ASSETS


June 30,


June 30,


2015


2014

Cash and cash equivalents

$10,499


$ 9,230

Accounts receivable

209


496

Inventories

3,205


3,336

Prepaids and other assets

68


57

Deferred income taxes

45


90

Property held for sale

375


1,508

      Total current assets

14,401


14,717

Property and equipment, net

20,535


15,069

Restricted cash

--


--

Deferred income taxes

--


135

Other assets

125


155

      Total assets

$35,061


$30,076


LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable and accrued expenses

$7,799


$8,806

Current portion of long-term debt

914


912

      Total current liabilities

8,713


9,718

Long-term debt, net of current portion

5,217


8,914

Deferred rent payable

37


64

Deferred income taxes

2,223


--

      Total liabilities

16,190


18,696

Shareholders' equity:




   Common stock

86


86

   Additional paid-in capital

11,082


11,082

   Retained earnings

9,111


1,620


20,279


12,788

   Less: Treasury stock, at cost

(1,408)


(1,408)

      Total shareholders' equity

18,871


11,380

      Total liabilities and shareholders' equity

$35,061


$30,076

 

CALLOWAY'S NURSERY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Amounts in thousands)



Six-months Ended


June 30,


2015


2014

Cash flows from operating activities:




   Net income

$ 2,433


$ 3,282

Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

272


265

Deferred income tax

(422)


--

Gain on disposal of property held for sale

(26)



Net change in operating assets and liabilities

1,218


2,276





Net cash provided by operating activities

3,475


5,823

Cash flows from investing activities:




Additions to property and equipment

(7,470)


(35)

Decrease in restricted cash from sale of property

9,143


--

Proceeds from disposal of property held for sale

891


--

Net cash provided by (used for) investing activities

2,564


(35)

Cash flows from financing activities:




Repayments of debt

(1,661)


(445)

Proceeds from issuance of common stock

--


--

Net cash (used for) financing activities

(1,661)


(445)

 

Net increase in cash and cash equivalents

4,378


5,343

 

Cash and cash equivalents at beginning of period

6,121


3,887

 

Cash and cash equivalents at end of period

$10,499


$ 9,230

 

SOURCE Calloway's Nursery, Inc.



RELATED LINKS

http://www.calloways.com