Calloway's Nursery Announces Results For Third Quarter Ended September 30, 2012

  Calloway's Nursery Announces Results For Third Quarter Ended September 30,
                                     2012

PR Newswire

FORT WORTH, Texas, Nov. 14, 2012

FORT WORTH, Texas, Nov. 14, 2012 /PRNewswire/ --Calloway's Nursery, Inc.
(PK:CLWY) today reported revenues and operating results for the third quarter
ended September 30, 2012.

Results for the Third Quarter

  oRevenue was $6.3 million for 2012, compared to revenue of $5.9 million for
    2011. Same-store revenue (18 stores) was $6.3 million for 2012, compared
    to same-store revenue of $5.7 million for 2011.
  oNet loss was $1.1 million for 2012, compared to net loss of $1.1 million
    for 2011.
  oDiluted net loss per common share was $.13 for 2012, compared to diluted
    net loss per common share of $.15 for 2011.
  oThe 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

  oRevenue was $36.1 million for 2012, compared to revenue of $37.0 million
    for 2011. Same-store revenue (18 stores) was $35.2 million for 2012,
    compared to same-store revenue of $35.8 million for 2011.
  oNet income was $1.0 million for 2012, compared to net income of $1.2
    million for 2011.
  oDiluted net income per common share was $.13 for 2012, compared to diluted
    net income per common share of $.16 for 2011.
  oThe 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 an 18-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,
                                        2012      2011       2012     2011
Net revenue                             $6,338    $5,860     $36,104  $37,007
Cost of goods sold                      3,477     3,416      18,602   19,260
Gross profit                            2,861     2,444      17,502   17,747
Operating expenses                      2,666     2,807      10,843   11,256
Advertising expenses                    85        115        990      927
Occupancy expenses                      821       856        2,521    2,559
Depreciation and amortization           136       148        397      445
Net interest expense                    190       200        585      606
Impairment of property held for sale    558       --         558      --
Total expenses                          4,456     4,126      15,894   15,793
Income (loss) before provision for      (1,595)   (1,682)    1,608    1,954
income taxes
Income tax expense (benefit)            (536)     (533)      594      716
Net income (loss)                       ($1,059)  ($1,149)   $ 1,014  $ 1,238
Weighted average number of common       8,181     7,886      8,097    7,769
shares outstanding – basic and diluted
Net income (loss) per common share -    ($0.13)   ($0.15)    $0.13    $0.16
basic and diluted





CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Amounts in thousands)
ASSETS
                                                 September 30,  September 30,
                                                 2012           2011
Cash and cash equivalents                        $ 3,602        $ 2,531
Accounts receivable                              378            243
Inventories                                      3,947          3,690
Prepaids and other assets                        121            21
Deferred income taxes                            87             547
Property held for sale                           1,508          --
 Total current assets                       9,643          7,032
Property and equipment, net                      14,635         17,090
Deferred income taxes                            247            --
Other assets                                     214            299
 Total assets                               $24,739        $24,421
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses            $5,927         $6,126
Current portion of long-term debt                852            801
 Total current liabilities                  6,779          6,927
Long-term debt, net of current portion           10,403         11,202
Deferred income taxes                            --             51
Deferred rent payable                            13             4
 Total liabilities                          17,195         18,184
Shareholders' equity:
 Common stock                                  85             82
 Additional paid-in capital                    10,951         10,718
 Accumulated deficit                           (2,084)        (3,155)
                                                 8,952          7,645
 Less: Treasury stock, at cost                 (1,408)        (1,408)
 Total shareholders' equity                 7,544          6,237
 Total liabilities and shareholders' equity $24,739        $24,421





CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Amounts in thousands)
                                                             Nine-Months Ended
                                                             September 30,
                                                             2012      2011
Cash flows from operating activities:
 Net income                                                $1,014    $1,238
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization                                397       445
Deferred income taxes                                        --        --
Impairment of property held for sale                         558       --
Net change in operating assets and liabilities               (1,326)   (1,254)
Net cash provided by operating activities                    643       429
Cash flows from investing activities:
Additions to property and equipment                          (85)      (30)
Net cash (used for) investing activities                     (85)      (30)
Cash flows from financing activities:
Repayments of debt                                           (604)     (568)
Proceeds from issuance of common stock                       184       235
Net cash (used for) financing activities                     (420)     (333)
Net increase in cash and cash equivalents                    138       66
Cash and cash equivalents at beginning of period             3,464     2,465
Cash and cash equivalents at end of period                   $ 3,602   $ 2,531



SOURCE Calloway's Nursery, Inc.

Website: http://www.calloways.com
Contact: Dan Reynolds, +1-817-222-1122
 
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