Calloway's Nursery Announces Results for Third Quarter Ended September 30, 2011
FORT WORTH, Texas, Nov. 16, 2011 /PRNewswire/ -- Calloway's Nursery, Inc. (Pink Sheets: CLWY) today reported revenues and operating results for the third quarter ended September 30, 2011.
Results for the Third Quarter
- Revenue was $5.9 million for 2011, compared to revenue of $5.6 million for 2010. That was also the same-store revenue comparison since all nineteen retail stores have been open for more than twelve months at the start of the current year.
- Net loss was $1.1 million for 2011, compared to net loss of $1.0 million for 2010.
- Diluted net loss per common share was $.15 for 2011, compared to diluted net loss per common share of $.13 for 2010.
Results for the Nine Month Period
- Revenue was $37.0 million for 2011, compared to revenue of $34.4 million for 2010. That was also the same-store revenue comparison since all nineteen retail stores have been open for more than twelve months at the start of the current year.
- Net income was $1.2 million for 2011, compared to net income of $1.3 million for 2010. The 2010 period included a $246,000 extraordinary gain.
- Diluted net income per common share was $.16 for 2011, compared to diluted net income per common share of $.18 for 2010. 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) |
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Three-Months Ended |
Nine-Months Ended |
|||||||
September 30, |
September 30, |
|||||||
2011 |
2010 |
2011 |
2010 |
|||||
Net sales |
$5,860 |
$5,619 |
$37,007 |
$34,352 |
||||
Cost of goods sold |
3,416 |
3,117 |
19,260 |
17,562 |
||||
Gross profit |
2,444 |
2,502 |
17,747 |
16,790 |
||||
Operating expenses |
2,807 |
2,671 |
11,256 |
10,602 |
||||
Advertising expenses |
115 |
90 |
927 |
798 |
||||
Occupancy expenses |
856 |
811 |
2,559 |
2,465 |
||||
Depreciation and amortization |
148 |
153 |
445 |
445 |
||||
Net interest expense |
200 |
245 |
606 |
824 |
||||
Total expenses |
4,126 |
3,970 |
15,793 |
15,134 |
||||
Income (loss) before provision for income taxes and extraordinary gain |
(1,682) |
(1,468) |
1,954 |
1,656 |
||||
Income tax expense (benefit) |
(533) |
(497) |
716 |
577 |
||||
Net income (loss) before extraordinary gain |
(1,149) |
(971) |
1,238 |
1,079 |
||||
Extraordinary gain, net of income tax expense |
-- |
-- |
-- |
246 |
||||
Net income (loss) |
($1,149) |
($ 971) |
$ 1,238 |
$ 1,325 |
||||
Weighted average number of common shares outstanding – basic and diluted |
7,886 |
7,338 |
7,769 |
7,268 |
||||
Income (loss) before extraordinary gain per common share – basic and diluted |
($0.15) |
($0.13) |
$0.16 |
$0.15 |
||||
Extraordinary gain, net of tax, per common share - basic and diluted |
-- |
-- |
-- |
0.03 |
||||
Net income (loss) per common share - basic and diluted |
($0.15) |
($0.13) |
$0.16 |
$0.18 |
||||
CALLOWAY'S NURSERY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Amounts in thousands) ASSETS |
||||
September 30, |
September 30, |
|||
2011 |
2010 |
|||
Cash and cash equivalents |
$ 2,531 |
$ 1,851 |
||
Accounts receivable |
243 |
325 |
||
Inventories |
3,690 |
3,171 |
||
Prepaids and other assets |
21 |
21 |
||
Deferred income taxes |
547 |
-- |
||
Total current assets |
7,032 |
5,368 |
||
Property and equipment, net |
17,090 |
17,599 |
||
Deferred income taxes |
-- |
167 |
||
Other assets |
299 |
291 |
||
Total assets |
$24,421 |
$23,425 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||
Accounts payable and accrued expenses |
$ 6,126 |
$ 5,372 |
||
Current portion of long-term debt |
801 |
3,363 |
||
Total current liabilities |
6,927 |
8,735 |
||
Deferred rent payable |
4 |
14 |
||
Long-term debt, net of current portion |
11,202 |
9,311 |
||
Deferred income taxes |
51 |
-- |
||
Total liabilities |
18,184 |
18,060 |
||
Shareholders' equity: |
||||
Common stock |
82 |
77 |
||
Additional paid-in capital |
10,718 |
10,448 |
||
Accumulated deficit |
(3,155) |
(3,752) |
||
7,645 |
6,773 |
|||
Less: Treasury stock, at cost |
(1,408) |
(1,408) |
||
Total shareholders' equity |
6,237 |
5,365 |
||
Total liabilities and shareholders' equity |
$24,421 |
$23,425 |
||
CALLOWAY'S NURSERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Amounts in thousands) |
||||
Nine-Months Ended |
||||
September 30, |
||||
2011 |
2010 |
|||
Cash flows from operating activities: |
||||
Net income |
$1,238 |
$1,325 |
||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: |
||||
Depreciation and amortization |
445 |
445 |
||
Gain on involuntary conversion of assets |
-- |
(372) |
||
Net change in operating assets and liabilities |
(1,254) |
(1,863) |
||
Net cash provided by (used for) operating activities |
429 |
(465) |
||
Cash flows from investing activities: |
||||
Additions to property and equipment |
(86) |
(579) |
||
Proceeds from involuntary conversion of assets |
-- |
606 |
||
Proceeds from sales of property and equipment |
-- |
680 |
||
Net cash provided by (used for) investing activities |
(86) |
707 |
||
Cash flows from financing activities: |
||||
Proceeds from issuance of debt |
56 |
-- |
||
Repayments of debt |
(568) |
(931) |
||
Proceeds from issuance of common stock |
235 |
131 |
||
Net cash used for financing activities |
(277) |
(800) |
||
Net increase (decrease) in cash and cash equivalents |
66 |
(558) |
||
Cash and cash equivalents at beginning of period |
2,465 |
2,409 |
||
Cash and cash equivalents at end of period |
$2,531 |
$1,851 |
||
SOURCE Calloway's Nursery, Inc.
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