CALLOWAY'S NURSERY, INC. 
By FORT WORTH, Texas, Nov. 12, 2013 /PRNewswire/ -- Calloway's Nursery, Inc. (PK:CLWY) today reported revenues and operating results for the third quarter ended September 30, 2013.
Results for the Third Quarter
-- Revenue was $6.7 million for 2013, compared to revenue of $6.3 million
for 2012. Same-store revenue (18 stores) was $6.5 million for 2013,
compared to same-store revenue of $6.3 million for 2012. The company
opened one new store in August 2013, and had closed one store in May
2012.
-- Net loss was $0.9 million for 2013, compared to net loss of $1.1 million
for 2012.
-- Diluted net loss per common share was $.11 for 2013, compared to diluted
net loss per common share of $.13 for 2012.
-- The 2013 period included $197,000 (net of income tax effect) proxy
contest expense ($.02 per share), and the 2012 period included a
$368,000 (net of income tax effect) impairment charge on assets held for
sale ($.05 per share).
Results for the Nine Months
-- Revenue was $37.0 million for 2013, compared to revenue of $36.1 million
for 2012. Same-store revenue (18 stores) was $36.9 million for 2013,
compared to same-store revenue of $35.2 million for 2012.
-- Net income was $1.4 million for 2013, compared to net income of $1.0
million for 2012.
-- Diluted net income per common share was $.17 for 2013, compared to
diluted net income per common share of $.13 for 2012.
-- The 2013 period included $246,000 (net of income tax effect) proxy
contest expense ($.03 per share), and the 2012 period included a
$368,000 (net of income tax effect) impairment charge on assets held for
sale ($.05 per share).
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 Nine-Months Ended
September 30, September 30,
------------- -------------
2013 2012 2013 2012
---- ---- ---- ----
Net revenue $6,688 $6,338 $37,007 $36,104
Cost of goods sold 3,475 3,477 18,530 18,602
----- ----- ------ ------
Gross profit 3,213 2,861 18,477 17,502
----- ----- ------ ------
Operating expense 3,036 2,666 11,507 10,843
Advertising expense 155 85 1,119 990
Occupancy expense 868 821 2,456 2,521
Depreciation and
amortization 122 136 380 397
Net interest expense 148 190 449 585
Proxy contest expense 298 -- 373 --
Impairment of property
held for sale -- 558 -- 558
--- --- --- ---
Total expenses 4,627 4,456 16,284 15,894
----- ----- ------ ------
Income (loss) before
provision for income
taxes (1,414) (1,595) 2,193 1,608
Income tax expense
(benefit) (474) (536) 783 594
---- ---- --- ---
Net income (loss) ($940) ($1,059) $1,410 $1,014
===== ======= ====== ======
Weighted average number
of common shares
outstanding - basic and
diluted 8,378 8,181 8,351 8,097
Net income (loss) per
common share -basic and
diluted ($0.11) ($0.13) $0.17 $0.13
CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Amounts in thousands)
ASSETS
September 30, September 30,
2013 2012
---- ----
Cash
and
cash
equivalents $3,346 $3,602
Accounts
receivable 485 378
Inventories 4,196 3,947
Prepaids
and
other
assets 16 121
Deferred
income
taxes 52 87
Property
held
for
sale 1,508 1,508
----- -----
Total
current
assets 9,603 9,643
Property
and
equipment,
net 15,404 14,635
Deferred
income
taxes 257 247
Other
assets 171 214
--- ---
Total
assets $25,435 $24,739
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts
payable
and
accrued
expenses $6,236 $5,927
Current
portion
of
long-
term
debt 886 852
--- ---
Total
current
liabilities 7,122 6,779
Long-
term
debt,
net
of
current
portion 9,601 10,403
Deferred
rent
payable 31 13
--- ---
Total
liabilities 16,754 17,195
------ ------
Shareholders' equity:
Common
stock 86 85
Additional
paid-
in
capital 11,082 10,951
Accumulated
deficit (1,079) (2,084)
------ ------
10,089 8,952
Less:
Treasury
stock,
at
cost (1,408) (1,408)
------ ------
Total
shareholders'
equity 8,681 7,544
----- -----
Total
liabilities
and
shareholders'
equity $25,435 $24,739
======= =======
CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Amounts in thousands)
Nine-Months Ended
September 30,
-------------
2013 2012
---- ----
Cash flows from operating activities:
Net income $1,410 $1,014
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 380 397
Impairment of property held for sale -- 558
Net change in operating assets and liabilities (972) (1,326)
---- ------
Net cash provided by operating activities 818 643
--- ---
Cash flows from investing activities:
Additions to property and equipment (1,123) (85)
------ ---
Net cash (used for) investing activities (1,123) (85)
------ ---
Cash flows from financing activities:
Repayments of debt (599) (604)
Proceeds from issuance of common stock 82 184
--- ---
Net cash (used for) financing activities (517) (420)
---- ----
Net increase (decrease) in cash and cash equivalents (822) 138
Cash and cash equivalents at beginning of period 4,168 3,464
----- -----
Cash and cash equivalents at end of period $3,346 $3,602
====== ======
SOURCE Calloway's Nursery, Inc.
