Calloway's Nursery Announces Results For Third Quarter Ended September 30, 2014

News provided by

Nov 19, 2014, 12:32 ET

FORT WORTH, Texas, Nov. 19, 2014 /PRNewswire/ -- Calloway's Nursery, Inc. (PK: CLWY) today reported revenues and operating results for the third quarter ended September 30, 2014.

Results for the Third Quarter

Revenue was $7.7 million for 2014, compared to revenue of $6.7 million for 2013. Same-store revenue (18 stores) was $7.4 million for 2014, compared to same-store revenue of $6.5 million for 2013.
Net loss was $0.6 million for 2014, compared to net loss of $0.9 million for 2013.
Diluted net loss per common share was $.07 for 2014, compared to diluted net loss per common share of $.11 for 2013.
Earnings before income taxes, depreciation and amortization and net interest expense, a non-GAAP measure ("EBITDA"), was negative $0.6 million for 2014 compared to EBITDA of negative $1.1 million for 2013.

Results for the Nine Months

Revenue was $42.4 million for 2014, compared to revenue of $37.0 million for 2013. Same-store revenue (18 stores) was $40.6 million for 2014, compared to same-store revenue of $36.8 million for 2013.
Net income was $2.7 million for 2014, compared to net income of $1.4 million for 2013.
Diluted net income per common share was $.32 for 2014, compared to diluted net income per common share of $.17 for 2013.
EBITDA was $4.9 million for 2014 compared to EBITDA of $3.0 million for 2013.

Founded in 1986, Calloway's Nursery, Inc. is a 19-store garden center chain serving the Dallas - Fort Worth and Houston markets as Calloway's Nursery in D/FW and Cornelius Nursery in Houston. 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; 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,
	2014	2013	2014	2013

Net revenue	$7,748	$6,688	$42,408	$37,007
Cost of goods sold	3,990	3,478	21,062	18,530
Gross profit	3,758	3,213	21,346	18,477

Operating expense	3,304	3,036	12,623	11,507
Advertising expense	110	155	1,113	1,119
Occupancy expense	918	868	2,676	2,456
Depreciation and amortization	125	122	390	380
Net interest expense	138	148	418	449
Proxy contest expense	--	298	--	373
Total expenses	4,595	4,627	17,220	16,284
Income (loss) before provision for income taxes	(837)	(1,414)	4,126	2,193
Provision for income taxes	(277)	(474)	1,404	783
Net income (loss)	($ 560)	($ 940)	$ 2,722	$ 1,410

Weighted average number of common shares outstanding – basic and diluted	8,378	8,378	8,378	8,351

Net income (loss) per common share - basic and diluted	($0.07)	($0.11)	$0.32	$0.17

CALLOWAY'S NURSERY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Amounts in thousands)

ASSETS
	September 30,	September 30,
	2014	2013
Cash and cash equivalents	$ 6,448	$ 3,346
Accounts receivable	268	485
Inventories	4,027	4,196
Prepaids and other assets	58	16
Deferred income taxes	90	52
Property held for sale	1,508	1,508
Total current assets	12,399	9,603
Property and equipment, net	14,954	15,404
Deferred income taxes	135	257
Other assets	150	171
Total assets	$27,638	$25,435

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable and accrued expenses	$7,148	$6,236
Current portion of long-term debt	920	886
Total current liabilities	8,068	7,122
Long-term debt, net of current portion	8,681	9,601
Deferred rent payable	69	31
Total liabilities	16,818	16,754
Shareholders' equity:
Common stock	86	86
Additional paid-in capital	11,082	11,082
Retained earnings (accumulated deficit)	1,060	(1,079)
	12,228	10,089
Less: Treasury stock, at cost	(1,408)	(1,408)
Total shareholders' equity	10,820	8,681
Total liabilities and shareholders' equity	$27,638	$25,435

CALLOWAY'S NURSERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Amounts in thousands)

	Nine-Months Ended
	September 30,
	2014	2013
Cash flows from operating activities:
Net income	$2,722	$1,410
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	390	380
Net change in operating assets and liabilities	164	(972)
Net cash provided by operating activities	3,276	818
Cash flows from investing activities:
Additions to property and equipment	(45)	(2,123)
Proceeds from sale/leaseback of property and equipment	--	1,000
Net cash (used for) investing activities	(45)	(1,123)
Cash flows from financing activities:
Repayments of debt	(670)	(599)
Proceeds from issuance of common stock	--	82
Net cash (used for) financing activities	(670)	(517)
Net increase (decrease) in cash and cash equivalents	2,561	(822)
Cash and cash equivalents at beginning of period	3,887	4,168
Cash and cash equivalents at end of period	$ 6,448	$ 3,346