Calloway's Nursery Announces Results For Third Quarter And Nine-Months Ended September 30, 2015

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Nov 18, 2015, 02:00 ET

FORT WORTH, Texas, Nov. 18, 2015 /PRNewswire/ -- Calloway's Nursery, Inc. (CLWY) today reported revenues and operating results for the third quarter ended September 30, 2015.

Results for the Third Quarter

Revenue was $7.7 million for 2015, compared to revenue of $7.7 million for 2014. Same-store revenue (17 stores) was $7.7 million for 2015, compared to same-store revenue of $6.8 million for 2014. The company has closed two stores in 2015 which have not been included in the calculation of same-store revenue.

Net loss was $0.4 million for 2015, compared to net loss of $0.6 million for 2014.

Diluted net loss per common share was $.05 for 2015, compared to diluted net loss per common share of $.07 for 2014.

Earnings before income taxes, depreciation and amortization and net interest expense, a non-GAAP measure ("EBITDA"), was negative $0.5 million for 2015 compared to EBITDA of negative $0.6 million for 2014.

Year-to-date Results

Revenue was $39.9 million for 2015, compared to revenue of $42.4 million for 2014. Same-store revenue (17 stores) was $39.2 million for 2015, compared to same-store revenue of $37.6 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 $2.0 million for 2015, compared to net income of $2.7 million for 2014.

Diluted net income per common share was $.23 for 2015, compared to diluted net income per common share of $.32 for 2014.

EBITDA was $3.7 million for 2015 compared to EBITDA of $4.9 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		Nine-months Ended
	September 30,		September 30,
	2015	2014	2015	2014

Net revenue	$7,738	$7,748	$39,917	$42,408
Cost of goods sold	3,998	3,990	20,292	21,062
Gross profit	3,740	3,758	19,625	21,346

Operating expense	3,237	3,304	12,372	12,623
Advertising expense	170	110	1,061	1,113
Occupancy expense	791	918	2,445	2,676
Depreciation and amortization	134	125	406	390
Net interest expense	85	138	307	418
Total expenses	4,417	4,595	16,591	17,220
Income (loss) before provision for income taxes	(677)	(837)	3,034	4,126
Income tax (benefit)	(235)	(277)	1,069	1,404
Net income (loss)	($442)	($560)	$1,965	$2,722
Weighted average number of common shares outstanding – basic and diluted	8,378	8,378	8,378	8,378

Net income (loss) per common share - basic and diluted	($0.05)	($0.07)	$0.23	$0.32

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

ASSETS
	September 30,	September 30,
	2015	2014
Cash and cash equivalents	$ 7,503	$ 6,448
Accounts receivable	267	268
Inventories	4,056	4,027
Prepaids and other assets	55	58
Deferred income taxes	45	90
Property held for sale	--	1,508
Total current assets	11,926	12,399
Property and equipment, net	20,526	14,954
Deferred income taxes	--	135
Other assets	121	150
Total assets	$32,573	$27,638
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses	$6,460	$7,148
Current portion of long-term debt	924	920
Total current liabilities	7,384	8,068
Long-term debt, net of current portion	4,523	8,681
Deferred rent payable	40	69
Deferred income taxes	2,223	--
Total liabilities	14,170	16,818
Shareholders' equity:
Common stock	86	86
Additional paid-in capital	11,082	11,082
Retained earnings	8,643	1,060
	19,811	12,228
Less: Treasury stock, at cost	(1,408)	(1,408)
Total shareholders' equity	18,403	10,820
Total liabilities and shareholders' equity	$32,573	$27,638

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

	Nine-months Ended
	September 30,
	2015	2014
Cash flows from operating activities:
Net income	$1,965	$2,722
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	406	390
Deferred income tax	(422)	--
Gain on disposal of property held for sale	(47)	--
Net change in operating assets and liabilities	(1,010)	164
Net cash provided by operating activities	892	3,276
Cash flows from investing activities:
Additions to property and equipment	(7,595)	(45)
Decrease in restricted cash from sale of property	9,143	--
Proceeds from disposal of property held for sale	1,287	--
Net cash provided by (used for) investing activities	2,835	(45)
Cash flows from financing activities:
Repayments of debt	(2,345)	(670)
Net cash (used for) financing activities	(2,345)	(670)
Net increase in cash and cash equivalents	1,382	2,561
Cash and cash equivalents at beginning of period	6,121	3,887
Cash and cash equivalents at end of period	$7,503	$6,448