FORT WORTH, Texas, May 9 /PRNewswire-FirstCall/ -- Calloway's Nursery, Inc. (Pink Sheets: CLWY) today reported revenues and operating results for the first quarter ended March 31, 2008. Results for the First quarter -- Sales were $9.8 million for the 2008 quarter, compared to sales of $10.3 million for the 2007 quarter. Same-store (18 stores) sales were $8.4 million for the 2008 quarter, compared to same-store sales of $9.0 million for the 2007 quarter. -- Net loss was $124,000 for the 2008 quarter, compared to net loss of $11,000 for the 2007 quarter. -- Diluted net loss per common share was $.02 for the 2008 quarter, compared to diluted net loss per common share of $.00 for the 2007 quarter. Founded in 1986, Calloway's Nursery, Inc. operates retail garden centers in Texas: Calloway's Nursery in Dallas - Fort Worth and Cornelius Nursery in Houston. CALLOWAY'S NURSERY, INC. CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED) (amounts in thousands, except per share amounts) Three-Months Ended March 31, 2008 2007 Net sales $9,768 $10,292 Cost of goods sold 4,978 5,115 Gross profit 4,790 5,177 Operating expenses 3,543 3,824 Advertising expenses 432 266 Occupancy expenses 759 839 Depreciation and amortization 90 110 Net interest expense 154 154 Total expenses 4,978 5,193 Loss before provision for income taxes (188) (16) Income tax benefit 64 5 Net loss ($124) ($11) Weighted average number of common shares outstanding - basic and diluted 6,950 6,950 Net loss per common share - basic and diluted ($.02) ($.--) CALLOWAY'S NURSERY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In Thousands) ASSETS March March 31, 31, 2008 2007 Cash and cash equivalents $2,701 $4,327 Accounts receivable 1,368 907 Inventories 5,599 6,461 Prepaids and other assets 147 113 Deferred income taxes 324 154 Total current assets 10,139 11,962 Property and equipment, net 14,376 11,381 Deferred income taxes 387 585 Other assets 318 306 Total assets $25,220 $24,234 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable and accrued expenses $8,557 $9,439 Current portion of long-term debt 577 555 Total current liabilities 9,134 9,994 Deferred rent payable 126 172 Long-term debt, net of current portion 11,059 9,430 Total liabilities 20,319 19,596 Shareholders' equity: Common stock 72 72 Additional paid-in capital 10,220 10,220 Accumulated deficit (3,983) (4,246) 6,309 6,046 Less: Treasury stock, at cost (1,408) (1,408) Total shareholders' equity 4,901 4,638 Total liabilities and shareholders' equity $25,220 $24,234 CALLOWAY'S NURSERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands) Quarter Ended March 31, 2008 2007 Cash flows from operating activities: Net loss ($124) ($11) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 90 110 Net change in operating assets and liabilities 542 231 Net cash provided by operating activities 508 330 Cash flows from investing activities: Additions to property and equipment (2,576) (1,406) Proceeds from sale of property and equipment -- 693 Net cash used for investing activities (2,576) (713) Cash flows from financing activities: Proceeds from issuance of debt 1,706 867 Repayments of debt (144) (124) Net cash provided by financing activities 1,562 743 Net increase (decrease) in cash and cash equivalents (506) 360 Cash and cash equivalents at beginning of period 3,207 3,967 Cash and cash equivalents at end of period $2,701 $4,327 DATASOURCE: Calloway's Nursery, Inc. CONTACT: Dan Reynolds of Calloway's Nursery, Inc., +1-817-222-1122 Web site: http://www.calloways.com/

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