Calloway's Nursery Announces Results for Second Quarter Ended June 30, 2010
FORT WORTH, Texas, Aug. 11 /PRNewswire-FirstCall/ -- Calloway's Nursery, Inc. (Pink Sheets: CLWY) today reported revenues and operating results for the second quarter ended June 30, 2010.
Results for the Second Quarter
- Sales were $20.5 million for 2010, compared to sales of $16.5 million for 2009. Same-store (17 stores) sales were $17.8 million for 2010, compared to same-store sales of $15.3 million for 2009.
- Net income was $2.3 million for 2010, compared to net income of $856,000 for 2009.
- Diluted net income per common share was $.32 for 2010, compared to diluted net income per common share of $.12 for 2009.
Results for the Six Month Period
- Sales were $28.7 million for 2010, compared to sales of $25.2 million for 2009. Same-store (17 stores) sales were $24.6 million for 2010, compared to same-store sales of $23.4 million for 2009.
- Net income was $2.3 million for 2010, compared to net income of $599,000 for 2009. The 2010 period included a $246,000 extraordinary gain.
- Diluted net income per common share was $.32 for 2010, compared to diluted net income per common share of $.09 for 2009. 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. |
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CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED) |
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(Amounts in thousands, except per share amounts) |
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Three-Months Ended |
Six-Months Ended |
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June 30, |
June 30, |
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2010 |
2009 |
2010 |
2009 |
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Net sales |
$20,456 |
$16,531 |
$28,733 |
$25,213 |
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Cost of goods sold |
10,446 |
9,564 |
14,445 |
13,931 |
||||
Gross profit |
10,010 |
6,967 |
14,288 |
11,282 |
||||
Operating expenses |
4,846 |
4,077 |
7,931 |
7,377 |
||||
Advertising expenses |
410 |
421 |
708 |
878 |
||||
Occupancy expenses |
822 |
843 |
1,654 |
1,657 |
||||
Depreciation and amortization |
152 |
131 |
292 |
234 |
||||
Net interest expense |
252 |
188 |
579 |
299 |
||||
Total expenses |
6,482 |
5,660 |
11,164 |
10,445 |
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Income before provision for income taxes and extraordinary gain |
3,528 |
1,307 |
3,124 |
837 |
||||
Income tax expense |
1,208 |
451 |
1,074 |
238 |
||||
Net income before extraordinary gain |
2,320 |
856 |
2,050 |
599 |
||||
Extraordinary gain, net of income tax expense |
-- |
-- |
246 |
-- |
||||
Net income |
$2,320 |
$856 |
$2,296 |
$599 |
||||
Weighted average number of common shares outstanding – basic and diluted |
7,277 |
6,950 |
7,232 |
6,950 |
||||
Income before extraordinary gain per common share – basic and diluted |
$0.29 |
$0.12 |
$0.29 |
$0.09 |
||||
Extraordinary gain, net of tax, per common share - basic and diluted |
0.03 |
-- |
0.03 |
-- |
||||
Net income per common share - basic and diluted |
$0.32 |
$0.12 |
$0.32 |
$0.09 |
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CALLOWAY'S NURSERY, INC. |
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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
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(Amounts in thousands) |
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ASSETS |
||||
June 30, |
June 30, |
|||
2010 |
2009 |
|||
Cash and cash equivalents |
$4,248 |
$3,612 |
||
Accounts receivable |
498 |
741 |
||
Inventories |
2,141 |
2,709 |
||
Prepaids and other assets |
35 |
36 |
||
Deferred income taxes |
241 |
-- |
||
Assets held for sale |
568 |
-- |
||
Total current assets |
7,731 |
7,098 |
||
Property and equipment, net |
17,750 |
16,632 |
||
Deferred income taxes |
609 |
621 |
||
Other assets |
296 |
331 |
||
Total assets |
$26,386 |
$24,682 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||
Accounts payable and accrued expenses |
$7,251 |
$5,593 |
||
Current portion of long-term debt |
3,388 |
497 |
||
Total current liabilities |
10,639 |
6,090 |
||
Deferred rent payable |
25 |
69 |
||
Long-term debt, net of current portion |
9,432 |
12,248 |
||
Total liabilities |
20,096 |
18,407 |
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Shareholders' equity: |
||||
Common stock |
76 |
73 |
||
Additional paid-in capital |
10,402 |
10,243 |
||
Accumulated deficit |
(2,780) |
(2,633) |
||
7,698 |
7,683 |
|||
Less: Treasury stock, at cost |
(1,408) |
(1,408) |
||
Total shareholders' equity |
6,290 |
6,275 |
||
Total liabilities and shareholders' equity |
$26,386 |
$24,682 |
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CALLOWAY'S NURSERY, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
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(Amounts in thousands) |
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Three- Months Ended |
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June 30, |
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2010 |
2009 |
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Cash flows from operating activities: |
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Net income |
$2,297 |
$599 |
||
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization |
292 |
234 |
||
Gain on involuntary conversion of assets, net of tax |
(372) |
-- |
||
Net change in operating assets and liabilities |
294 |
1,513 |
||
Net cash provided by operating activities |
2,511 |
2,346 |
||
Cash flows from investing activities: |
||||
Additions to property and equipment |
(577) |
(1,117) |
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Proceeds from involuntary conversion of assets |
606 |
-- |
||
Net cash provided by (used for) investing activities |
29 |
(1,117) |
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Cash flows from financing activities: |
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Proceeds from issuance of debt |
-- |
1,460 |
||
Repayments of debt |
(785) |
(1,032) |
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Proceeds from issuance of common stock |
84 |
24 |
||
Net cash provided by (used for) financing activities |
(701) |
452 |
||
Net increase in cash and cash equivalents |
1,839 |
1,681 |
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Cash and cash equivalents at beginning of period |
2,409 |
1,931 |
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Cash and cash equivalents at end of period |
$4,248 |
$3,612 |
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SOURCE Calloway's Nursery, Inc.
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