Calloway's Nursery Announces Results for Fourth Quarter Ended December 31, 2010
FORT WORTH, Texas, Feb. 16, 2011 /PRNewswire/ -- Calloway's Nursery, Inc. (Pink Sheets: CLWY) today reported revenues and operating results for the fourth quarter ended December 31, 2010.
Results for the Fourth Quarter
- Sales were $9.4 million for 2010, compared to sales of $7.6 million for 2009. Same-store (17 stores) sales were $7.4 million for 2010, compared to same-store sales of $6.7 million for 2009.
- Net loss was $321,000 for 2010, compared to net loss of $1.1 million for 2009. The 2009 period included a $227,000 extraordinary gain.
- Diluted net loss per common share was $.04 for 2010, compared to diluted net loss per common share of $.15 for 2009.
Results for the Year
- Sales were $43.8 million for 2010, compared to sales of $37.9 million for 2009. Same-store (17 stores) sales were $36.7 million for 2010, compared to same-store sales of $34.8 million for 2009.
- Net income was $1.0 million for 2010, compared to net loss of $1.8 million for 2009. The 2010 period included a $246,000 extraordinary gain and the 2009 period included a $227,000 extraordinary gain.
- Diluted net income per common share was $.14 for 2010, compared to diluted net loss per common share of $.26 for 2009. The 2010 period included a $.03 per-share extraordinary gain and the 2009 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) |
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Three-Months Ended |
Year Ended |
||||||||
December 31, |
December 31, |
||||||||
2010 |
2009 |
2010 |
2009 |
||||||
Net sales |
$9,415 |
$7,623 |
$43,767 |
$37,878 |
|||||
Cost of goods sold |
4,837 |
4,535 |
22,399 |
21,385 |
|||||
Gross profit |
4,578 |
3,088 |
21,368 |
16,493 |
|||||
Operating expenses |
3,460 |
3,190 |
14,062 |
13,484 |
|||||
Advertising expenses |
388 |
373 |
1,186 |
1,332 |
|||||
Occupancy expenses |
820 |
878 |
3,285 |
3,369 |
|||||
Depreciation and amortization |
149 |
128 |
594 |
488 |
|||||
Net interest expense |
238 |
165 |
1,062 |
641 |
|||||
Total expenses |
5,055 |
4,734 |
20,189 |
19,314 |
|||||
Income (loss) before provision for income taxes and extraordinary gain |
(477) |
(1,646) |
1,179 |
(2,821) |
|||||
Income tax expense (benefit) |
(156) |
(362) |
421 |
(749) |
|||||
Net income (loss) before extraordinary gain |
(321) |
(1,284) |
758 |
(2,072) |
|||||
Extraordinary gain, net of income tax expense |
- |
227 |
246 |
227 |
|||||
Net income (loss) |
($ 321) |
($ 1,057) |
$ 1,004 |
($ 1,845) |
|||||
Weighted average number of common shares outstanding – basic and diluted |
7,390 |
7,099 |
7,299 |
7,010 |
|||||
Income (loss) before extraordinary gain per common share – basic and diluted |
($0.04) |
($0.18) |
$0.11 |
($0.29) |
|||||
Extraordinary gain, net of tax, per common share - basic and diluted |
- |
0.03 |
0.03 |
0.03 |
|||||
Net income (loss) per common share - basic and diluted |
($0.04) |
($0.15) |
$0.14 |
($0.26) |
|||||
CALLOWAY'S NURSERY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Amounts in thousands) |
||||
ASSETS |
||||
December 31, |
December 31, |
|||
2010 |
2009 |
|||
Cash and cash equivalents |
$ 2,465 |
$ 2,409 |
||
Accounts receivable |
67 |
801 |
||
Inventories |
2,097 |
1,110 |
||
Prepaids and other assets |
68 |
66 |
||
Deferred income taxes |
331 |
241 |
||
Assets held for sale |
- |
568 |
||
Total current assets |
5,028 |
5,195 |
||
Property and equipment, net |
17,449 |
17,465 |
||
Deferred income taxes |
- |
607 |
||
Other assets |
317 |
308 |
||
Total assets |
$22,794 |
$23,575 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||
Accounts payable and accrued expenses |
$ 5,195 |
$ 6,014 |
||
Current portion of long-term debt |
759 |
1,105 |
||
Total current liabilities |
5,954 |
7,119 |
||
Deferred rent payable |
- |
47 |
||
Long-term debt, net of current portion |
11,756 |
12,500 |
||
Total liabilities |
17,710 |
19,666 |
||
Shareholders' equity: |
||||
Common stock |
78 |
74 |
||
Additional paid-in capital |
10,487 |
10,320 |
||
Accumulated deficit |
(4,073) |
(5,077) |
||
6,492 |
5,317 |
|||
Less: Treasury stock, at cost |
(1,408) |
(1,408) |
||
Total shareholders' equity |
5,084 |
3,909 |
||
Total liabilities and shareholders' equity |
$22,794 |
$23,575 |
||
CALLOWAY'S NURSERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Amounts in thousands) |
||||
Year Ended |
||||
December 31, |
||||
2010 |
2009 |
|||
Cash flows from operating activities: |
||||
Net income (loss) |
$1,004 |
($1,845) |
||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||
Depreciation and amortization |
594 |
488 |
||
Gain on involuntary conversion of property and equipment |
(372) |
(344) |
||
Gain on sales of property and equipment |
(113) |
- |
||
Deferred income taxes |
517 |
(283) |
||
Net change in operating assets and liabilities |
(1,527) |
3,223 |
||
Net cash provided by operating activities |
103 |
1,239 |
||
Cash flows from investing activities: |
||||
Additions to property and equipment |
(578) |
(912) |
||
Proceeds from involuntary conversion of assets |
769 |
621 |
||
Proceeds from sales of property and equipment |
681 |
- |
||
Net cash provided by (used for) investing activities |
872 |
(291) |
||
Cash flows from financing activities: |
||||
Repayments of debt |
(1,090) |
(572) |
||
Proceeds from issuance of common stock |
171 |
102 |
||
Net cash used for financing activities |
(919) |
(470) |
||
Net increase in cash and cash equivalents |
56 |
478 |
||
Cash and cash equivalents at beginning of period |
2,409 |
1,931 |
||
Cash and cash equivalents at end of period |
$2,465 |
$2,409 |
||
SOURCE Calloway's Nursery, Inc.
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