CALLOWAY'S NURSERY, INC. 
By
Results for the First quarter
-- Sales were $9.8 million for the 2008 quarter, compared to sales of
$10.3 million for the 2007 quarter. Same-store (18 stores) sales
were $8.4 million for the 2008 quarter, compared to same-store sales
of $9.0 million for the 2007 quarter.
-- Net loss was $124,000 for the 2008 quarter, compared to net loss of
$11,000 for the 2007 quarter.
-- Diluted net loss per common share was $.02 for the 2008 quarter,
compared to diluted net loss per common share of $.00 for the
2007 quarter.
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
March 31,
2008 2007
Net sales $9,768 $10,292
Cost of goods sold 4,978 5,115
Gross profit 4,790 5,177
Operating expenses 3,543 3,824
Advertising expenses 432 266
Occupancy expenses 759 839
Depreciation and amortization 90 110
Net interest expense 154 154
Total expenses 4,978 5,193
Loss before provision for income taxes (188) (16)
Income tax benefit 64 5
Net loss ($124) ($11)
Weighted average number of common shares
outstanding - basic and diluted 6,950 6,950
Net loss per common share - basic and diluted ($.02) ($.--)
CALLOWAY'S NURSERY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In Thousands)
ASSETS
March March
31, 31,
2008 2007
Cash and cash equivalents $2,701 $4,327
Accounts receivable 1,368 907
Inventories 5,599 6,461
Prepaids and other assets 147 113
Deferred income taxes 324 154
Total current assets 10,139 11,962
Property and equipment, net 14,376 11,381
Deferred income taxes 387 585
Other assets 318 306
Total assets $25,220 $24,234
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses $8,557 $9,439
Current portion of long-term debt 577 555
Total current liabilities 9,134 9,994
Deferred rent payable 126 172
Long-term debt, net of current portion 11,059 9,430
Total liabilities 20,319 19,596
Shareholders' equity:
Common stock 72 72
Additional paid-in capital 10,220 10,220
Accumulated deficit (3,983) (4,246)
6,309 6,046
Less: Treasury stock, at cost (1,408) (1,408)
Total shareholders' equity 4,901 4,638
Total liabilities and shareholders' equity $25,220 $24,234
CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
Quarter Ended
March 31,
2008 2007
Cash flows from operating activities:
Net loss ($124) ($11)
Adjustments to reconcile net loss to
net cash provided by operating activities:
Depreciation and amortization 90 110
Net change in operating assets and liabilities 542 231
Net cash provided by operating activities 508 330
Cash flows from investing activities:
Additions to property and equipment (2,576) (1,406)
Proceeds from sale of property and equipment -- 693
Net cash used for investing activities (2,576) (713)
Cash flows from financing activities:
Proceeds from issuance of debt 1,706 867
Repayments of debt (144) (124)
Net cash provided by financing activities 1,562 743
Net increase (decrease) in cash and cash equivalents (506) 360
Cash and cash equivalents at beginning of period 3,207 3,967
Cash and cash equivalents at end of period $2,701 $4,327
SOURCE Calloway's
