CALLOWAY'S NURSERY, INC. 
By Results for the Fourth Quarter
-- Sales were $8.6 million for 2008, compared to sales of $11.0 million for
2007. Same-store (16 stores) sales were $7.8 million for 2008, compared
to same-store sales of $7.7 million for 2007.
-- Net loss was $320,000 for 2008, compared to net loss of $80,000 for
2007. The 2008 quarter included a $268,000 extraordinary gain on the
involuntary conversion of assets.
-- Diluted net loss per common share was $.05 for 2008, compared to diluted
net loss per common share of $.01 for 2007. The 2008 quarter included
$.04 per-share extraordinary gain on the involuntary conversion of
assets.
Results for the Year
-- Sales were $44.3 million for 2008, compared to sales of $46.4 million
for 2007. Same-store (16 stores) sales were $35.2 million for 2008,
compared to same-store sales of $35.0 million for 2007.
-- Net income was $627,000 for 2008, compared to net income of $376,000 for
2007. The 2008 year included a $408,000 extraordinary gain on the
involuntary conversion of assets.
-- Diluted net income per common share was $.09 for 2008, compared to
diluted net income per common share of $.05 for 2007. The 2008 period
included $.06 per-share extraordinary gain on the involuntary conversion
of assets.
Founded in 1986, Calloway's
CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
(amounts in thousands, except per share amounts)
Year Ended Quarter Ended
December 31, December 31,
------------ ------------
2008 2007 2008 2007
---- ---- ---- ----
Net sales $44,318 $46,426 $8,564 $10,975
Cost of goods sold 24,014 25,275 5,344 6,333
Gross profit 20,304 21,151 3,220 4,642
Operating expenses 14,352 15,025 2,806 3,422
Advertising expenses 1,625 1,505 358 504
Occupancy expenses 2,965 3,040 724 635
Depreciation and
amortization 409 384 124 94
Net interest expense 586 525 117 89
Total expenses 19,937 20,479 4,129 4,744
Income (loss) before
provision for income
taxes and extraordinary
gain 367 672 (909) (102)
Income tax expense
(benefit) 148 296 (321) (22)
Net income (loss) before
extraordinary gain 219 376 (588) (80)
Extraordinary gain, net
of income tax expense
of $210, $--, $138 and
$-- 408 -- 268 --
Net income (loss) $627 $376 $(320) $(80)
Weighted average number
of common shares
outstanding - basic and
diluted 6,950 6,950 6,950 6,950
Income (loss) before
extraordinary gain per
common share - basic
and diluted $0.03 $0.05 $(0.09) $(0.01)
Extraordinary gain, net
of tax, per common
share - basic and
diluted 0.06 -- 0.04 --
Net income (loss) per
common share - basic
and diluted $0.09 $0.05 $(0.05) $(0.01)
CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
ASSETS
December 31, December 31,
2008 2007
---- ----
Cash and cash equivalents $1,931 $3,207
Accounts receivable - trade 36 148
Accounts receivable - insurance 1,077 --
Inventories 2,392 3,324
Prepaids and other assets 88 88
Deferred income taxes -- 259
Total current assets 5,524 7,026
Property and equipment, net 15,749 11,890
Deferred income taxes 616 387
Other assets 287 288
Total assets $22,176 $19,591
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses $4,116 $4,355
Current portion of long-term debt 585 577
Total current liabilities 4,701 4,932
Deferred rent payable 91 137
Long-term debt, net of current portion 11,732 9,497
Total liabilities 16,524 14,566
Shareholders' equity:
Common stock 72 72
Additional paid-in capital 10,220 10,220
Accumulated deficit (3,232) (3,859)
7,060 6,433
Less: Treasury stock, at cost (1,408) (1,408)
Total shareholders' equity 5,652 5,025
Total liabilities and
shareholders' equity $22,176 $19,591
CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
Year Ended
December 31,
------------
2008 2007
---- ----
Cash flows from operating activities:
Net income $627 $376
Adjustments to reconcile net income to net cash
provided by (used for) operating activities:
Depreciation and amortization 409 384
Net change in operating assets and liabilities (287) (856)
Net cash provided by (used for) operating
activities 749 (96)
Cash flows from investing activities:
Additions to property and equipment (10,512) (1,379)
Proceeds from involuntary conversion of property
and equipment 618 --
Proceeds from sale of property and equipment 5,626 750
Net cash used for investing activities (4,268) (629)
Cash flows from financing activities:
Proceeds from issuance of debt 7,080 2,231
Repayments of debt (4,837) (2,266)
Net cash provided by (used for) financing
activities 2,243 (35)
Net decrease in cash and cash equivalents (1,276) (760)
Cash and cash equivalents at beginning of period 3,207 3,967
Cash and cash equivalents at end of period $1,931 $3,207
SOURCE Calloway's
