Calloway's Nursery Announces Results For First Quarter Ended March 31, 2013

FORT WORTH, Texas, May 14, 2013 /PRNewswire/ -- Calloway's Nursery, Inc. (PK:CLWY) today reported revenues and operating results for the First quarter and year ended March 31, 2013.

Results for the First Quarter

Revenue was $10.6 million for 2013, compared to revenue of $12.2 million for 2012. Same-store revenue (18 stores) was $10.6 million for 2013, compared to same-store revenue of $11.8 million for 2012.
Net income was $0.2 million for 2013, compared to net income of $0.7 million for 2012.
Diluted net income per common share was $.03 for 2013, compared to diluted net income per common share of $.08 for 2012.

Founded in 1986, Calloway's Nursery, Inc. is an 18-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)



	Three-Months Ended
	March 31,
	2013	2012

Net revenue	$10,627	$12,186
Cost of goods sold	5,051	5,788
Gross profit	5,576	6,398

Operating expenses	3,755	3,735
Advertising expenses	399	467
Occupancy expenses	794	858
Depreciation and amortization	131	134
Net interest expense	150	198
Total expenses	5,229	5,392
Income before provision for income taxes	347	1,006
Income tax expense	129	352
Net income	$ 218	$ 654
Weighted average number of common shares outstanding – basic and diluted	8,304	7,998

Net income per common share - basic and diluted	$0.03	$0.08

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

ASSETS
	March 31,	March 31,
	2013	2012
Cash and cash equivalents	$ 3,795	$ 5,292
Accounts receivable	1,541	1,429
Inventories	4,715	5,277
Prepaids and other assets	15	34
Deferred income taxes	52	87
Property held for sale	1,508	--
Total current assets	11,626	12,119
Property and equipment, net	15,007	16,853
Deferred income taxes	257	247
Other assets	182	235
Total assets	$27,072	$29,454
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses	$8,720	$10,762
Current portion of long-term debt	857	826
Total current liabilities	9,577	11,588
Long-term debt, net of current portion	10,022	10,808
Deferred rent payable	21	8
Total liabilities	19,620	22,404
Shareholders' equity:
Common stock	86	83
Additional paid-in capital	11,045	10,819
Accumulated deficit	(2,271)	(2,444)
	8,860	8,458
Less: Treasury stock, at cost	(1,408)	(1,408)
Total shareholders' equity	7,452	7,050
Total liabilities and shareholders' equity	$27,072	$29,454

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

	Three-Months Ended
	March 31,
	2013	2012
Cash flows from operating activities:
Net income	$ 218	$ 654
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	131	134
Net change in operating assets and liabilities	(83)	1,189
Net cash provided by operating activities	266	1,977
Cash flows from investing activities:
Additions to property and equipment	(477)	--
Net cash (used for) investing activities	(477)	--
Cash flows from financing activities:
Net repayments of debt	(207)	(199)
Proceeds from issuance of common stock	45	50
Net cash (used for) financing activities	(162)	(149)
Net increase (decrease) in cash and cash equivalents	(373)	1,828
Cash and cash equivalents at beginning of period	4,168	3,464
Cash and cash equivalents at end of period	$3,795	$5,292