CALLOWAY'S NURSERY, INC. 
By Results for the second quarter
-- Sales were
-- Net income was
-- Diluted net income per common share was
Results for the six months
-- Sales were
-- Net income was
-- Diluted net income per common share was
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 Six-Months Ended
June 30, June 30,
2008 2007 2008 2007
Net sales $20,274 $18,109 $30,042 $28,401
Cost of goods sold 10,642 10,144 15,620 15,259
Gross profit 9,632 7,965 14,422 13,142
Operating expenses 4,869 4,429 8,412 8,253
Advertising expenses 668 519 1,100 785
Occupancy expenses 909 815 1,668 1,654
Depreciation and amortization 97 83 187 193
Net interest expense 141 125 295 279
Total expenses 6,684 5,971 11,662 11,164
Income before provision for
income taxes 2,948 1,994 2,760 1,978
Income tax expense 1,027 737 963 732
Net income 1,921 1,257 1,797 1,246
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 $.28 $.18 $.26 $.18
CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
ASSETS
June 30, June 30,
2008 2007
Cash and cash equivalents $4,803 $4,225
Accounts receivable 437 278
Inventories 3,556 4,434
Prepaids and other assets 273 179
Total current assets 9,069 9,116
Property and equipment, net 16,827 11,413
Deferred income taxes 387 585
Other assets 316 286
Total assets $26,599 $21,400
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses $6,290 $5,485
Current portion of long-term debt 541 540
Total current liabilities 6,831 6,025
Deferred rent payable 114 158
Long-term debt, net of current portion 12,832 9,322
Total liabilities 19,777 19,505
Shareholders' equity:
Common stock 72 72
Additional paid-in capital 10,220 10,220
Accumulated deficit (2,062) (2,989)
8,230 7,303
Less: Treasury stock, at cost (1,408) (1,408)
Total shareholders' equity 6,822 5,895
Total liabilities and shareholders' equity $26,599 $21,400
CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
Six-Months Ended
June 30,
2008 2007
Cash flows from operating activities:
Net income $1,797 $1,246
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 187 193
Net change in operating assets and liabilities 1,437 (973)
Net cash provided by operating activities 3,421 466
Cash flows from investing activities:
Additions to property and equipment (5,124) (1,578)
Proceeds from sale of property and equipment -- 750
Net cash used for investing activities (5,124) (828)
Cash flows from financing activities:
Proceeds from issuance of debt 3,652 867
Repayments of debt (353) (247)
Net cash provided by financing activities 3,299 620
Net increase in cash and cash equivalents 1,596 258
Cash and cash equivalents at beginning of period 3,207 3,967
Cash and cash equivalents at end of period $4,803 $4,225
SOURCE Calloway's
