Calloway's Nursery Announces Results for Quarter Ended June 30,
2004 FORT WORTH, Texas, Aug. 18 /PRNewswire-FirstCall/ --
Calloway's Nursery, Inc. (OTC Pink Sheets: CLWY) today reported
revenues and operating results for the quarter and nine month
periods ended June 30, 2004. Results for the Quarter Sales * Sales
were $18.4 million for 2004, compared to sales of $20.1 million for
2003. Results of Operations * Income from continuing operations was
$2.3 million for 2004, compared to income from continuing
operations of $2.3 million for 2003. * Net income was $2.3 million
for 2004, compared to net income of $1.7 million for 2003. Results
per Share * Diluted income per common share from continuing
operations was $.33 for 2004, compared to diluted income per common
share from continuing operations of $.32 for 2003. * Diluted net
income per common share was $.33 for 2004, compared to diluted net
income per common share of $.23 for 2003. Results for the Nine
Month Period Sales * Sales were $40.0 million for 2004, compared to
sales of $40.2 million for 2003. Results of Operations * Income
from continuing operations was $1.3 million for 2004, compared to
income from continuing operations of $0.6 million for 2003. * Net
income was $1.3 million for 2004, compared to net loss of $0.2
million for 2003. Results per Share * Diluted income per common
share from continuing operations was $.19 for 2004, compared to
diluted income per common share from continuing operations of $.04
for 2003. * Diluted net income per common share was $.19 for 2004,
compared to diluted net loss per common share of $.07 for 2003.
Founded in 1986, Calloway's Nursery, Inc. operates 27 retail garden
centers in the three largest metropolitan areas in Texas: Dallas -
Fort Worth, San Antonio and Houston, reaching a combined population
of 11.5 million. CALLOWAY'S NURSERY, INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED) (amounts in thousands, except
per share amounts) Nine-months Ended Three-months Ended June 30,
June 30, 2004 2003 2004 2003 Net sales $39,989 $40,174 $18,443
$20,090 Cost of goods sold 21,167 21,226 9,838 10,034 Gross profit
18,822 18,948 8,605 10,056 Operating expenses 12,287 13,004 4,586
4,689 Occupancy expenses 2,566 2,492 846 871 Advertising expenses
1,416 1,508 511 525 Depreciation and amortization 356 457 112 150
Interest expense 852 580 274 175 Interest income (11) (15) (7) (8)
Total expenses 17,466 18,026 6,322 6,402 Income from continuing
operations before income taxes 1,356 922 2,283 3,654 Income tax
expense 66 359 --- 1,401 Income from continuing operations 1,290
563 2,283 2,253 Discontinued operations: Loss from discontinued
operations, net of income tax benefits --- (626) --- (51) Loss on
disposal of discontinued operations, net of income tax benefits ---
(117) --- (537) Loss from discontinued operations --- (743) ---
(588) Net income (loss) 1,290 (180) 2,283 1,665 Accretion of
preferred stock --- (308) --- (102) Net income (loss) attributable
to common shareholders $1,290 ($488) $2,283 $1,563 Weighted average
number of common shares outstanding Basic 6,957 6,663 6,954 6,758
Diluted 6,957 6,663 6,954 6,758 Basic net income (loss) per common
share Income from continuing operations $.19 $.04 $.33 $.32 Loss
from discontinued operations --- (.11) --- (.09) Net income (loss)
$.19 ($.07) $.33 $.23 Diluted net income (loss) per common share
Income from continuing operations $.19 $.04 $.33 $.32 Loss from
discontinued operations --- (.11) --- (.09) Net income (loss) $.19
($.07) $.33 $.23 CALLOWAY'S NURSERY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In Thousands)
ASSETS June 30, September 30, June 30, 2004 2003 2003 Cash and cash
equivalents $3,598 $ 1,921 $ 4,131 Accounts receivable 185 232 498
Inventories 5,013 4,802 4,507 Prepaids and other assets 95 19 36
Deferred income taxes, current --- --- 219 Current assets of
discontinued operations --- --- 931 Total current assets 8,891
6,974 10,322 Property and equipment, net 10,499 10,841 10,959
Goodwill, net --- --- 631 Deferred income taxes --- --- 1,568 Other
assets 160 182 189 Total assets $19,550 $17,997 $23,669 LIABILITIES
AND SHAREHOLDERS' EQUITY Accounts payable $4,186 $ 2,919 $ 4,296
Accrued expenses 1,478 2,368 1,648 Current portion of long-term
debt 472 474 390 Non-voting preferred stock, with mandatory
redemption provisions 3,302 2,949 Current liabilities of
discontinued operations --- --- 193 Total current liabilities 9,438
8,710 6,527 Deferred rent payable 481 641 680 Long-term debt, net
of current portion 6,381 6,695 7,079 Total liabilities 16,300
16,046 14,286 Commitments and contingencies Non-voting preferred
stock, with mandatory redemption provisions --- --- 2,846
Shareholders' equity: Common stock 72 72 71 Additional paid-in
capital 10,221 10,201 10,127 Accumulated deficit (5,636) (6,926)
(2,265) 4,657 3,347 7,933 Less: Treasury stock, at cost (1,407)
(1,396) (1,396) Total shareholders' equity 3,250 1,951 6,537 Total
liabilities and shareholders' equity $19,550 $17,997 $23,669
CALLOWAY'S NURSERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (UNAUDITED) (In thousands) Nine-months Ended June 30, 2004
2003 Cash flows from operating activities: Net income (loss) $1,290
($180) Adjustments to reconcile net loss to net cash provided by
operating activities: Loss from discontinued operations (net of
tax) --- 748 Depreciation and amortization 356 457 Accretion of
preferred stock included in interest expense 353 Net change in
operating assets and liabilities (1) 673 Net cash provided by
operating activities 1,998 1,698 Cash flows from investing
activities - Additions to property and equipment (14) (74) Cash
flows from financing activities: Net proceeds from issuance
(repurchases) of common stock 9 245 Repayments of debt (316)
(1,278) Net cash used for financing activities (307) (1,033) Net
increase in cash and cash equivalents from continuing operations
1,677 591 Net increase in cash and cash equivalents from
discontinued operations --- 1,065 Net increase in cash and cash
equivalents 1,677 1,656 Cash and cash equivalents at beginning of
period 1,921 2,475 Cash and cash equivalents at end of period
$3,598 $4,131 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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