FORT WORTH, Texas, Nov. 12, 2010 /PRNewswire-FirstCall/ -- Calloway's Nursery, Inc. (Pink Sheets: CLWY) today reported revenues and operating results for the third quarter ended September 30, 2010.

Results for the Third Quarter

  • Sales were $5.6 million for 2010, compared to sales of $5.0 million for 2009. Same-store (17 stores) sales were $4.7 million for 2010, compared to same-store sales of $4.7 million for 2009.
  • Net loss was $971,000 for 2010, compared to net loss of $1.4 million for 2009.
  • Diluted net loss per common share was $.13 for 2010, compared to diluted net loss per common share of $.20 for 2009.


Results for the Nine Month Period

  • Sales were $34.4 million for 2010, compared to sales of $30.3 million for 2009. Same-store (17 stores) sales were $29.3 million for 2010, compared to same-store sales of $28.1 million for 2009.
  • Net income was $1.3 million for 2010, compared to net loss of $788,000 for 2009. The 2010 period included a $246,000 extraordinary gain.
  • Diluted net income per common share was $.18 for 2010, compared to diluted net loss per common share of $.11 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.

CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)

(Amounts in thousands, except per share amounts)


Three-Months Ended

Nine-Months Ended


September 30,

September 30,


2010

2009

2010

2009
















Net sales

$5,619

$5,042

$34,352

$30,255

Cost of goods sold

3,117

2,919

17,562

16,850

Gross profit

2,502

2,123

16,790

13,405
















Operating expenses

2,671

2,917

10,602

10,294

Advertising expenses

90

81

798

959

Occupancy expenses

811

834

2,465

2,491

Depreciation and amortization

153

126

445

360

Net interest expense

245

177

824

476

Total expenses

3,970

4,135

15,134

14,580

Income (loss) before provision for income taxes and extraordinary gain

(1,468)

(2,012)

1,656

(1,175)

Income tax expense (benefit)

(497)

(625)

577

(387)

Net income (loss) before extraordinary gain

(971)

(1,387)

1,079

(788)

Extraordinary gain, net of income tax expense

--

--

246

--


Net income (loss)

($  971)

($ 1,387)

$ 1,325

($   788)
















Weighted average number of common shares outstanding – basic and diluted

7,338

7,025

7,268

6,980










Income (loss) before extraordinary gain per common share – basic and diluted

($0.13)

($0.20)

$0.15

($0.11)










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

--

--

0.03

--










Net income per common share - basic and diluted

($0.13)

($0.20)

$0.18

($0.11)






CALLOWAY'S NURSERY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Amounts in thousands)


ASSETS




September 30,

September 30,


2010

2009








Cash and cash equivalents

$ 1,851

$   841

Accounts receivable

325

691

Inventories

3,171

2,822

Prepaids and other assets

21

22

Deferred income taxes

--

405

Total current assets

5,368

4,781








Property and equipment, net

17,599

16,963

Deferred income taxes

167

578

Other assets

291

326

Total assets

$23,425

$22,648


LIABILITIES AND SHAREHOLDERS' EQUITY


Accounts payable and accrued expenses

$ 5,372

$ 5,063

Current portion of long-term debt

3,363

610

Total current liabilities

8,735

5,673








Deferred rent payable

14

58

Long-term debt, net of current portion

9,311

11,986








Total liabilities

18,060

17,717

Shareholders' equity:





Common stock

77

73

Additional paid-in capital

10,448

10,285

Accumulated deficit

(3,752)

(4,019)


6,773

6,339

Less: Treasury stock, at cost

(1,408)

(1,408)








Total shareholders' equity

5,365

4,931

Total liabilities and shareholders' equity

$23,425

$22,648






CALLOWAY'S NURSERY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Amounts in thousands)






Nine-Months Ended


September 30,


2010

2009

Cash flows from operating activities:





Net income (loss)

$1,325

($787)

Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:





Depreciation and amortization

445

360

Gain on involuntary conversion of assets, net of tax

(372)

--

Net change in operating assets and liabilities

(1,863)

566








Net cash provided by (used for) operating activities

(465)

139








Cash flows from investing activities:





Additions to property and equipment

(579)

(923)

Proceeds from involuntary conversion of assets

606

--

Proceeds from sales of property and equipment

680

--








Net cash provided by (used for) investing activities

707

(923)








Cash flows from financing activities:





Repayments of debt

(931)

(372)

Proceeds from issuance of common stock

131

66








Net cash used for financing activities

(800)

(306)








Net decrease in cash and cash equivalents

(558)

(1,090)

Cash and cash equivalents at beginning of period

2,409

1,931








Cash and cash equivalents at end of period

$1,851

$  841






SOURCE Calloway's Nursery, Inc.

Copyright 2010 PR Newswire

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