Calloway's Nursery Announces Results for Second Quarter Ended March 31, 1999.FORT WORTH, Texas--(BUSINESS WIRE)--April 26, 1999-- Calloway's Nursery nursery, in horticulture, an establishment or area for the propagation, breeding, and early cultivation of plants. In North America the term nursery originally specified a place where hardy woody plants, especially fruit trees, were started; but as the market , Inc. (Nasdaq:CLWY) today reported revenues and operating results for the quarter ended March 31, 1999. For its second fiscal quarter ended March 31, 1999, Calloway's reported a sales increase of 32 percent and a 22 percent improvement in net loss. The net loss of 6 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. was less than a net loss of 8 cents per share for the corresponding quarter one year ago. Same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. are robust, showing an increase of 22 percent. Losses during the colder January January: see month. through March period are typical of the highly seasonal nursery business. The April through June June: see month. period is generally Calloway's most profitable. Year to date, Calloway's reported a sales increase of 27 percent and a 6 percent improvement in net loss. The net loss of 17 cents per share was less than a net loss of 19 cents per share for the corresponding period one year ago. Same-store sales are up 20 percent for the year. "During the first half of our fiscal 1999, we incurred expenses related to the two new stores we opened in November November: see month. 1998, and to the new lines of imported pottery pottery, the baked-clay wares of the entire ceramics field. For a description of the nature of the material, see clay. Types of Pottery It usually falls into three main classes—porous-bodied pottery, stoneware, and porcelain. that are unique to our marketplace. We believe these investments will provide an appropriate return starting this year," said Jim Estill, president and chief executive officer for Calloway's. Calloway's also announced that it has entered into a contract to acquire land for construction of a new retail store in McKinney McKinney, city (1990 pop. 21,283), seat of Collin co., N Tex.; inc. 1849. It is a shipping point for cotton, cattle, and grains. Manufacturing includes electronic equipment, leather and food products, marble items, and copper wire. , a Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. suburb suburb, a community in an outlying section of a city or, more commonly, a nearby, politically separate municipality with social and economic ties to the central city. In the 20th cent. . The company expects the store to be open for the spring 2000 season. "We are continuing to seek appropriate locations for additional stores in newly developed suburban areas of the Dallas-Fort Worth Metroplex A metroplex is large metropolitan area containing several cities and their suburbs.[1] It is also sometimes used as an alternative to metropolis or megalopolis, which is a chain of continuous metropolitan areas. ," said Estill. Calloway's Nursery, Inc. is a leading specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. retailer of lawn and garden products, with headquarters in Fort Worth, Texas Fort Worth is the fifth-largest city in the state of Texas, 18th-largest city in the United States[1], and voted one of "America’s Most Livable Communities. . Founded in 1986, Calloway's currently owns and operates 16 retail stores in the Dallas/Fort Worth Metroplex The Dallas–Fort Worth–Arlington metropolitan area, a title designated by the U.S. Census as of 2003, encompasses 12 counties within the U.S. state of Texas. The metropolitan area is further divided into two metropolitan divisions: Dallas–Plano–Irving , as well as a nursery production facility near Tyler, Texas Tyler is the county seat of Smith County in East Texas, United States. The city is named for President John Tyler in recognition of his support for Texas's admission to the United States. . More than half of Calloway's full-time full-time adj. Employed for or involving a standard number of hours of working time: a full-time administrative assistant. full employees are either Texas Certified See certification. Nursery Professionals or Texas Master Certified Nursery Professionals. Calloway's Nursery, Inc. believes its shareholders benefit from the views of management about the future of the company's business. Included herein are statements with respect to anticipated improvements in efficiency, profitability and performance of certain retail stores and product lines. Many factors affect management's views about future events and trends of the company's business. These factors involve risk and uncertainties that could cause actual results or trends to differ materially from management's view, including without limitation economic conditions, competition and weather in the Dallas-Fort Worth area. -0-
CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)
(UNAUDITED)
Three Months Ended Six Months Ended
March 31 March 31
-------- --------
1999 1998 1999 1998
---- ---- ---- ----
Net sales $ 5,597 $ 4,227 $11,072 $ 8,722
Cost of goods sold 2,903 2,105 6,020 4,571
------- -------- -------- ----------
Gross profit 2,694 2,122 5,052 4,151
------- -------- -------- ----------
Operating expenses 1,964 1,720 4,075 3,602
Occupancy expenses 684 727 1,345 1,405
Advertising expenses 300 278 677 601
Net interest expense 85 44 140 53
Depreciation and
amortization 176 113 343 228
------- -------- -------- ----------
Total expenses 3,209 2,882 6,580 5,889
------- -------- -------- ----------
Loss before income taxes (515) (760) (1,528) (1,738)
Income tax benefit (173) (324) (567) (715)
------- -------- -------- ----------
------- -------- -------- ----------
Net loss ($ 342) ($ 436) ($ 961) ($ 1,023)
------- -------- -------- ----------
------- -------- -------- ----------
Net loss per common share
Basic ($.06) ($.08) ($.17) ($.19)
Diluted ($.06) ($.08) ($.17) ($.19)
Weighted average number of
common shares outstanding 5,560 5,393 5,534 5,372
CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(UNAUDITED)
ASSETS
March 31, Sept. 30, March 31,
1999 1998 1998
---- ---- ----
Cash and cash equivalents $483 $1,649 $ 242
Property held for sale 448 448 --
Accounts receivable 134 148 655
Inventories 4,479 2,341 3,642
Deferred income taxes 1,064 496 1,150
Prepaids and other assets 255 112 24
------- ------- -------
Total current assets 6,863 5,194 $5,713
Property and equipment, net 8,049 7,815 8,317
Goodwill, net 1,011 1,065 1,119
Deferred income taxes 565 565 581
Other assets 45 46 49
------- ------- -------
Total assets $16,533 $14,685 $15,779
------- ------- -------
------- ------- -------
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $ 4,719 $ 1,913 $ 4,522
Accrued expenses 847 831 578
Current portion of long-term
debt 314 338 97
------- ------- -------
Total current liabilities 5,880 3,082 5,197
Deferred rent payable 1,108 1,093 1,077
Long-term debt, net of
current portion 2,922 3,044 2,908
------- ------- -------
Total liabilities 9,910 7,219 9,182
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Commitments and
contingencies
Shareholders' equity:
Voting convertible preferred
stock -- -- --
Preferred stock -- -- --
Common stock 58 57 56
Additional paid-in capital 8,783 8,666 8,537
Retained earnings
(accumulated deficit) (822) 139 (600)
------- ------- -------
8,019 8,862 7,993
Less: Treasury stock, at cost (1,396) (1,396) (1,396)
------- ------- -------
Total shareholders' equity 6,623 7,466 6,597
------- ------- -------
Total liabilities and
shareholders' equity $16,533 $14,685 $15,779
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