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CALLOWAY'S NURSERY ANNOUNCES RESULTS FOR PERIODS ENDED JUNE 30, 1993

 FORT WORTH, Texas, Aug. 12 /PRNewswire/ -- Calloway's Nursery, Inc. (NASDAQ: CLWY) today announced revenues and operating results for the periods ended June 30, 1993.
 Results for the Quarter Ended June 30, 1993
 The company posted a 16 percent increase in net income to $1.3 million, or $.28 per share, on improved sales of $13.2 million for the third fiscal quarter, compared to net income of $1.1 million, or $.23 per share on sales of $12.8 million for the same quarter in 1992.
 Results for the Nine Month Period Ended June 30, 1993
 Improved sales of $23.7 million for the nine month period in 1993 resulted in net income of $481,000, or $.10 per share. This compares to net income of $1.2 million, or $.23 per share on sales of $23.5 million for the comparable nine month period in 1992.
 Historically, the company has recorded a loss for the fourth fiscal quarter ending September 30. The company has no reason to expect the results for the 1993 fourth quarter to be significantly improved from previous years.
 Jim Estill, president, stated that: "The third quarter of our fiscal year, which includes the major portion of the spring selling season, is always critical to Calloway's financial performance for the fiscal year. Though we did not achieve the kind of sales increase that we would have liked, we were pleased by the strong improvement in net income for this important period.
 "We are looking forward to the opening of our 17th Metroplex store, in a north Dallas suburb, this fall."
 The accompanying financial statements include a condensed statement of operations and balance sheet.
 The company also announced that it has paid General Host Corporation approximately $1.2 million in settlement of its obligations under a tax sharing agreement between the two companies. The agreement has been terminated, and General Host has dropped its lawsuit against the company. The company's obligations under the now-terminated tax sharing agreement had been fully accrued for by the company.
 CALLOWAY'S NURSERY, INC.
 Condensed Statements Of Operations
 (Unaudited, amounts in thousands, except per share data)
 Quarter Ended Nine Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Net sales $13,168 $12,837 $23,674 $23,518
 Cost of goods sold 7,099 7,227 13,536 13,402
 Gross profit 6,069 5,610 10,138 10,116
 Operating expenses 2,515 2,364 5,895 5,159
 Occupancy expenses 732 516 2,189 1,530
 Advertising 605 768 1,405 1,558
 Other, net 82 9 320 19
 Income before provision for
 income taxes, extraordinary
 item, and cumulative effect
 of a change in accounting
 principle 2,135 1,953 329 1,850
 Provision for income taxes 823 821 127 780
 Income before extraordinary
 item and cumulative effect
 of a change in accounting
 principle 1,312 1,132 202 1,070
 Extraordinary item -- gain on
 early extinguishment of
 debt, net of related income
 tax expense of $62,000 -- -- -- 93
 Income before cumulative
 effect of a change in
 accounting principle 1,312 1,132 202 1,163
 Cumulative effect on prior
 years (to Sept. 30, 1992)
 of change in accounting
 for income taxes -- -- 279 --
 Net income $ 1,312 $ 1,132 $ 481 $ 1,163
 Income per common share:
 Income before
 extraordinary item and
 cumulative effect of a
 change in accounting
 principle $ .28 $ .23 $ .04 $ .21
 Extraordinary item -- -- -- .02
 Cumulative effect on
 prior years
 (to Sept. 30, 1992) of
 change in accounting for
 income taxes -- -- .06 --
 Net income $ .28 $ .23 $ .10 $ .23
 Weighted average number
 of common shares
 outstanding 4,750 4,988 4,750 4,995
 CALLOWAY'S NURSERY, INC.
 Condensed Balance Sheets
 (In thousands, except share data)
 June 30, Sept. 30,
 1993 1992
 (Unaudited)
 ASSETS
 Cash and cash equivalents $ 5,649 $ 82
 Marketable securities -- 3,959
 Accounts receivable 164 123
 Inventories 2,975 3,398
 Prepaid expenses 60 56
 Total current assets 8,848 7,618
 Property and equipment, net 8,272 6,525
 Goodwill, net 1,634 1,715
 Deferred income taxes 279 --
 Other assets 68 29
 Total $19,101 $15,887
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Accounts payable $ 5,608 $ 3,410
 Accrued expenses 745 962
 Accrued income taxes 1,323 1,388
 Total current liabilities 7,676 5,760
 Deferred rent payable 824 659
 Long-term debt 652 --
 Total liabilities 9,152 6,419
 Shareholders' equity:
 Voting convertible preferred stock;
 par value $.625 per share; 3,200,000
 shares authorized; no shares issued
 or outstanding -- --
 Preferred stock; par value $.01 per
 share; 10,000,000 shares authorized;
 no shares issued or outstanding -- --
 Common stock; par value $.01 per share;
 30,000,000 shares authorized;
 5,000,000 shares issued and outstanding 50 50
 Additional paid-in capital 7,871 7,871
 Retained earnings 3,424 2,943
 Total 11,345 10,864
 Less: Treasury stock, at cost
 (250,000 shares) (1,396) (1,396)
 Total shareholders' equity 9,949 9,468
 Total $19,101 $15,887
 -0- 8/12/93
 /CONTACT: Dan Reynolds of Calloway's Nursery, Inc., 817-624-8222/
 (CLWY)


CO: Calloway's Nursery, Inc. ST: Texas IN: SU: ERN

TS-MG -- NY052 -- 2162 08/12/93 14:01 EDT
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Date:Aug 12, 1993
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