CALLOWAY'S NURSERY, INC. 
By
Results for the Fourth Quarter
-- Sales were $11.0 million for the 2007 quarter, compared to sales of
$11.0 million for the 2006 quarter. Same-store sales were $11.0
million for the 2007 quarter, compared to same-store sales of $10.9
million for the 2006 quarter.
-- Net loss was $80,000 for the 2007 quarter, compared to net income of
$111,000 for the 2006 quarter. The 2007 quarter included $22,000
income tax benefit, compared to $663,000 income tax benefit for the
2006 quarter.
-- Diluted net loss per common share was $.01 for the 2007 quarter,
compared to diluted net income per common share of $.02 for the 2006
quarter. The 2007 quarter results included less than $.01 per-share
income tax benefit, compared to $.10 per-share income tax benefit for
the 2006 quarter.
Results for the Year
-- Sales were $46.4 million for 2007, compared to sales of $46.6 million
for 2006. Same-store sales were $46.1 million for 2007, compared to
same-store sales of $45.9 million for 2006.
-- Net income was $0.4 million for 2007, compared to net income of $1.8
million for 2006. The 2007 results included $0.3 million income tax
expense, compared to $0.7 million income tax benefit for 2006.
-- Diluted net income per common share was $.05 for 2007, compared to
diluted net income per common share of $.26 for 2006. The 2007 results
included $.04 per-share income tax expense, compared to $.10 per-share
income tax benefit for 2006.
Founded in 1986, Calloway's Nursery, Inc. operates 22 retail garden
centers in the three largest metropolitan areas in Texas:
CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
(amounts in thousands, except per share amounts)
Year Ended Three-Months Ended
December 31, December 31,
2007 2006 2007 2006
Net sales $46,426 $46,606 $10,975 $11,021
Cost of goods sold 25,275 24,536 6,333 6,450
Gross profit 21,151 22,070 4,642 4,571
Operating expenses 15,025 15,096 3,422 3,601
Advertising expenses 1,505 1,552 504 469
Occupancy expenses 3,040 3,448 635 861
Depreciation and
amortization 384 340 94 82
Net interest expense 525 507 89 110
Total expenses 20,479 20,943 4,744 5,123
Income (loss) before
provision for income
taxes 672 1,127 (102) (552)
Income tax expense
(benefit) 296 (663) (22) (663)
Net income (loss) $376 $1,790 ($80) $111
Weighted average number
of common shares
outstanding - basic
and diluted 6,950 6,950 6,950 6,950
Net income (loss) per
common share - basic
and diluted $.05 $.26 ($.01) $.02
CALLOWAY'S NURSERY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In Thousands)
ASSETS
December 31, December 31,
2007 2006
Cash and cash equivalents $3,207 $3,967
Accounts receivable 148 109
Inventories 3,324 3,612
Prepaids and other assets 88 276
Deferred income taxes 259 149
Total current assets 7,026 8,113
Property and equipment, net 11,890 10,778
Deferred income taxes 387 585
Other assets 288 299
Total assets $19,591 $19,775
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses $4,355 $5,696
Current portion of long-term debt 577 555
Total current liabilities 4,932 6,251
Deferred rent payable 137 188
Long-term debt, net of current portion 9,497 8,687
Total liabilities 14,566 15,126
Shareholders' equity:
Common stock 72 72
Additional paid-in capital 10,220 10,220
Accumulated deficit (3,859) (4,235)
6,433 6,057
Less: Treasury stock, at cost (1,408) (1,408)
Total shareholders' equity 5,025 4,649
Total liabilities and shareholders' equity $19,591 $19,775
CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
Year Ended
December 31,
2007 2006
Cash flows from operating activities:
Net income $376 $1,790
Adjustments to reconcile net income to
net cash provided by (used for) operating
activities:
Depreciation and amortization 384 340
Net change in operating assets and liabilities (856) 13
Net cash provided by (used for) operating
activities (96) 2,143
Cash flows from investing activities:
Additions to property and equipment (2,246) (959)
Proceeds from sale of property and equipment 750 --
Net cash used for investing activities (1,496) (959)
Cash flows from financing activities:
Proceeds from issuance of debt 3,098 --
Repayments of debt (2,266) (490)
Retirement of preferred stock -- (1,789)
Net cash provided by (used for) financing
activities 832 (2,279)
Net decrease in cash and cash equivalents
from continuing operations (760) (1,095)
Cash and cash equivalents at beginning of period 3,967 5,062
Cash and cash equivalents at end of period $3,207 $3,967
SOURCE Calloway's Nursery, Inc.
