FORT WORTH, Texas, Feb. 21 /PRNewswire-FirstCall/ -- Calloway's Nursery, Inc. (OTC Pink Sheets: CLWY) today reported revenues and operating results for the quarter and year ended December 31, 2006. Results for the Quarter * Sales were $11.0 million for 2006, compared to sales of $11.9 million for 2005. * Net income was $0.1 million for 2006, compared to net loss of $0.2 million for 2005. * Diluted net income per common share was $.02 for 2006, compared to diluted net loss per common share of $.03 for 2005. Results for the Year * Sales were $46.6 million for 2006, compared to sales of $47.2 million for 2005. * Net income was $1.8 million for 2006, compared to net income of $1.5 million for 2005. * Diluted net income per common share was $.26 for 2006, compared to diluted net income per common share of $.21 for 2005. Both the 2006 quarter and year included a $669,000, or $.10 per common share, credit from the elimination of valuation allowances on the company's deferred tax asset accounts. Founded in 1986, Calloway's Nursery, Inc. operates 23 retail garden centers in the three largest metropolitan areas in Texas: Dallas - Fort Worth, San Antonio and Houston, reaching a combined population of over 11.5 million. CALLOWAY'S NURSERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (amounts in thousands, except per share amounts) Year Ended Quarter Ended December 31, December 31, 2006 2005 2006 2005 Net sales $46,606 $47,209 $11,021 $11,855 Cost of goods sold 24,536 24,721 6,450 6,515 Gross profit 22,070 22,488 4,571 5,340 Operating expenses 15,096 15,044 3,601 3,868 Advertising expenses 1,552 1,474 469 415 Occupancy expenses 3,448 3,290 861 795 Depreciation and amortization 340 384 82 94 Interest expense (net) 507 569 110 122 Settlement on preferred stock --- 236 --- 236 Total expenses 20,943 20,997 5,123 5,530 Income (loss) before provision for income taxes 1,127 1,491 (552) (190) Provision for income taxes - benefit 663 --- 663 --- Net income (loss) $1,790 $1,491 $111 ($190) Weighted average number of common shares outstanding - Basic and diluted 6,950 6,950 6,950 6,950 Net income (loss) per common share - basic and diluted $.26 $.21 $.02 ($.03) CALLOWAY'S NURSERY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In Thousands) ASSETS December 31, December 31, 2006 2005 Cash and cash equivalents $3,967 $5,062 Accounts receivable 109 167 Inventories 3,612 2,956 Prepaids and other assets 276 132 Total current assets 7,964 8,317 Property and equipment, net 10,778 10,159 Deferred income taxes, noncurrent 734 --- Other assets 299 308 Total assets $19,775 $18,784 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable and accrued expenses $5,696 $4,128 Current portion of long-term debt 540 522 Preferred stock classified as liability --- 1,789 Total current liabilities 6,236 6,439 Deferred rent payable 188 276 Long-term debt, net of current portion 8,702 9,210 Total liabilities 15,126 15,925 Commitments and contingencies Shareholders' equity: Common stock 72 72 Additional paid-in capital 10,220 10,220 Accumulated deficit (4,235) (6,025) 6,057 4,267 Less: Treasury stock, at cost (1,408) (1,408) Total shareholders' equity 4,649 2,859 Total liabilities and shareholders' equity $19,775 $18,784 CALLOWAY'S NURSERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands) Year Ended December 31, 2006 2005 Cash flows from operating activities: Net income $1,790 $1,491 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 340 384 Net change in operating assets and liabilities 13 188 Net cash flows provided by operating activities 2,143 2,063 Cash flows from investing activities - Additions to property and equipment (959) (134) Cash flows from financing activities: Retirement of preferred stock (1,789) (1,456) Net proceeds from issuance/repayments of long-term debt (490) 813 Net cash (used for) financing activities (2,279) (643) Net increase (decrease) in cash and cash equivalents from continuing operations (1,095) 1,286 Cash and cash equivalents at beginning of period 5,062 3,776 Cash and cash equivalents at end of period $3,967 $5,062 DATASOURCE: Calloway's Nursery, Inc. CONTACT: Dan Reynolds of Calloway's Nursery, Inc., +1-817-222-1122 Web site: http://www.calloways.com/

Copyright