Results for the Second Quarter
-- Sales were $18.1 million for the second quarter of 2007, compared to
sales of $20.0 million for the June 2006 quarter. Same-store sales were
$17.9 million for the June 2007 quarter, compared to same-store sales
of $19.7 for the June 2006 quarter.
-- Net income was $1.3 million for the second quarter of 2007, compared to
net income of $3.9 million for the June 2006 quarter. The June 2007
quarter results included $0.7 million income tax expense, compared to
no income tax expense for the June 2006 quarter.
-- Diluted net income per common share was $.18 for the second quarter of
2007, compared to diluted net income per common share of $.56 for the
June 2006 quarter. The June 2007 quarter results included $.10
per-share income tax expense, compared to no income tax expense for the
June 2006 quarter.
Results for the Six-Month Period
-- Sales were $28.4 million for 2007, compared to sales of $28.6 million
for 2006. Same-store sales were $28.1 million for the June 2007 period,
compared to same-store sales of $28.2 for the June 2006 period.
-- Net income was $1.2 million for 2007, compared to net income of $3.1
million for 2006. The June 2007 period results included $0.7 million
income tax expense, compared to no income tax expense for the June 2006
period.
-- Diluted net income per common share was $.18 for 2007, compared to
diluted net income per common share of $.44 for 2006. The June 2007
period results included $.10 per-share income tax expense, compared to
no income tax expense for the June 2006 period.
Founded in 1986, Calloway's Nursery, Inc. operates 22 retail garden centers in the three largest metropolitan areas in Texas: Dallas - Fort Worth, San Antonio and Houston, reaching a combined population over 11.5 million.
CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(amounts in thousands, except per share amounts)
Six-Months Ended Three-Months Ended
June 30, June 30,
2007 2006 2007 2006
Net sales $28,401 $28,649 $18,109 $20,022
Cost of goods sold 15,259 14,275 10,144 9,811
Gross profit 13,142 14,374 7,965 10,211
Operating expenses 8,253 8,265 4,429 4,756
Advertising expenses 785 886 519 514
Occupancy expenses 1,654 1,727 815 877
Depreciation and amortization 193 177 83 89
Net interest expense 279 260 125 83
Total expenses 11,164 11,315 5,971 6,319
Income before provision for
income taxes 1,978 3,059 1,994 3,892
Provision for income taxes 732 -- 737 --
Net income $1,246 $3,059 $1,257 $3,892
Weighted average number of
common shares outstanding
-- basic and diluted 6,950 6,950 6,950 6,950
Net income per common share
-- basic and diluted $0.18 $0.44 $0.18 $0.56
CALLOWAY'S NURSERY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In Thousands)
ASSETS
June 30, December 31, June 30,
2007 2006 2006
Cash and cash equivalents $4,225 $3,967 $6,222
Accounts receivable 278 109 217
Inventories 4,434 3,612 3,989
Prepaids and other assets 179 276 156
Deferred income taxes -- 149 --
Total current assets 9,116 8,113 10,584
Property and equipment, net 11,413 10,778 10,050
Deferred income taxes 585 585 --
Other assets 286 299 358
Total assets $21,400 $19,775 $20,992
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses $5,485 $5,696 $5,358
Current portion of long-term debt 540 555 522
Total current liabilities 6,025 6,251 5,880
Deferred rent payable 158 188 231
Long-term debt, net of current portion 9,322 8,687 8,963
Total liabilities 15,505 15,126 15,074
Shareholders' equity:
Common stock 72 72 72
Additional paid-in capital 10,220 10,220 10,220
Accumulated deficit (2,989) (4,235) (2,966)
7,303 6,057 7,326
Less: Treasury stock, at cost (1,408) (1,408) (1,408)
Total shareholders' equity 5,895 4,649 5,918
Total liabilities and
shareholders' equity $21,400 $19,775 $20,992
CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
Six-Months Ended
June 30,
2007 2006
Cash flows from operating activities:
Net income $1,246 $3,059
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 193 177
Net change in operating assets and liabilities (973) 28
Net cash provided by operating activities 466 3,264
Cash flows from investing activities:
Additions to property and equipment (1,521) (68)
Proceeds from sale of property and equipment 693 --
Net cash used for investing activities (828) (68)
Cash flows from financing activities:
Proceeds from issuance of debt 867 --
Repayments of debt (247) (247)
Retirement of preferred stock -- (1,789)
Net cash provided by (used for) financing activities 620 (2,036)
Net increase in cash and cash equivalents from
continuing operations 258 1,160
Cash and cash equivalents at beginning of period 3,967 5,062
Cash and cash equivalents at end of period $4,225 $6,222
