FORT WORTH , Texas, May 10 /PRNewswire-FirstCall/ -- Calloway's Nursery, Inc. (OTC Pink Sheets: CLWY) today reported revenues and operating results for the first quarter ended March 31, 2006 .
Results for the First Quarter
* Sales were $8.6 million for 2006, compared to sales of $9.5 million
for 2005.
* Same-store sales were $8.6 million for 2006, compared to same-store
sales of $9.5 million for 2005.
* Net loss was $0.8 million for 2006, compared to net loss of $0.2
million for 2005.
* Diluted net loss per common share was $.12 for 2006, compared to
diluted net loss per common share of $.03 for 2005.
Founded in 1986, Calloway's Nursery, Inc. operates 23 retail garden centers in the three largest metropolitan areas in Texas: Dallas - Fort Worth , San Antonio and Houston , reaching a combined population of over 11.5 million.
CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(amounts in thousands, except per share amounts)
Three-Month
Period Ended
March 31,
2006 2005
Net sales $8,627 $9,515
Cost of goods sold 4,464 4,840
Gross profit 4,163 4,675
Operating expenses 3,509 3,505
Occupancy expenses 850 859
Advertising expenses 372 303
Depreciation and amortization 88 99
Interest expense (net) 177 148
Total expenses 4,996 4,914
Net loss ($833) ($239)
Weighted average number of common shares
outstanding - basic and diluted 6,950 6,950
Net loss per common share - basic and diluted ($.12) ($.03)
CALLOWAY'S NURSERY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In Thousands)
ASSETS
March 31, Dec. 31, March 31,
2006 2005 2005
Cash and cash equivalents $3,137 $5,062 $4,733
Accounts receivable 453 167 440
Inventories 4,722 2,956 5,469
Prepaids and other assets 98 132 80
Total current assets 8,410 8,317 10,722
Property and equipment, net 10,122 10,159 10,394
Other assets 302 308 310
Total assets $18,834 $18,784 $21,426
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses $6,956 $4,128 $7,849
Current portion of long-term debt 522 522 487
Preferred stock classified as liability --- 1,789 3,245
Total current liabilities 7,478 6,439 11,581
Deferred rent payable 254 276 366
Long-term debt, net of current portion 9,076 9,210 8,350
Total liabilities 16,808 15,925 20,297
Commitments and contingencies
Shareholders' equity:
Common stock 72 72 72
Additional paid-in capital 10,220 10,220 10,220
Accumulated deficit (6,858) (6,025) (7,755)
3,434 4,267 2,537
Less: Treasury stock, at cost (1,408) (1,408) (1,408)
Total shareholders' equity 2,026 2,859 1,129
Total liabilities and
shareholders' equity $18,834 $18,784 $21,426
CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
Three-Months
Period Ended
March 31,
2006 2005
Cash flows from operating activities:
Net loss ($833) ($239)
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 88 99
Net change in operating assets and liabilities 794 1,263
Net cash flows provided by operating activities 49 1,123
Cash flows from investing activities -
Additions to property and equipment (51) (84)
Cash flows from financing activities:
Retirement of preferred stock (1,789) ---
Net proceeds from issuance/repayments of
long-term debt (134) (82)
Net cash used for financing activities (1,923) (82)
Net increase (decrease) in cash and cash
equivalents from continuing operations (1,925) 957
Cash and cash equivalents at beginning of period 5,062 3,776
Cash and cash equivalents at end of period $3,137 $4,733
SOURCE Calloway's Nursery, Inc.
