CLWY Calloways Nursery Inc (CE)

CALLOWAY'S NURSERY, INC.

CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)

(Amounts in thousands, except per share amounts)

Three-Months Ended

March 31,

2014

2013

Net revenue

$10,045

$10,627

Cost of goods sold

4,942

5,051

Gross profit

5,103

5,576

Operating expenses

3,669

3,755

Advertising expenses

490

399

Occupancy expenses

861

794

Depreciation and amortization

138

131

Net interest expense

139

150

Total expenses

5,297

5,229

Income (loss) before provision for income taxes

(194)

347

Income tax expense (benefit)

(56)

129

Net income (loss)

$   218

Weighted average number of common shares outstanding – basic and diluted

8,378

8,304

Net income (loss) per common share - basic and diluted

($0.02)

$0.03

CALLOWAY'S NURSERY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Amounts in thousands)

ASSETS

March 31,

March 31,

2014

2013

Cash and cash equivalents

$ 2,017

$ 3,795

Accounts receivable

2,258

1,541

Inventories

5,347

4,715

Prepaids and other assets

114

15

Deferred income taxes

161

52

Property held for sale

1,508

1,508

      Total current assets

11,405

11,626

Property and equipment, net

15,186

15,007

Deferred income taxes

135

257

Other assets

161

182

      Total assets

$26,887

$27,072

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable and accrued expenses

$8,818

$8,720

Current portion of long-term debt

905

857

      Total current liabilities

9,723

9,577

Long-term debt, net of current portion

9,145

10,022

Deferred rent payable

59

21

      Total liabilities

18,927

19,620

Shareholders' equity:

   Common stock

86

86

   Additional paid-in capital

11,082

11,045

   Accumulated deficit

(1,800)

(2,271)

9,368

8,860

   Less: Treasury stock, at cost

(1,408)

(1,408)

      Total shareholders' equity

7,960

7,452

      Total liabilities and shareholders' equity

$26,887

$27,072

CALLOWAY'S NURSERY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Amounts in thousands)

Three-Months Ended

March 31,

2014

2013

Cash flows from operating activities:

   Net income (loss)

$ (138)

$  218

Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:

Depreciation and amortization

138

131

Deferred income taxes

(71)

--

Net change in operating assets and liabilities

(1,553)

(83)

Net cash provided by (used for) operating activities

(1,624)

266

Cash flows from investing activities:

Additions to property and equipment

(25)

(477)

Net cash (used for) investing activities

(25)

(477)

Cash flows from financing activities:

Net repayments of debt

(221)

(207)

Proceeds from issuance of common stock

--

45

Net cash (used for) financing activities

(221)

(162)

Net (decrease) in cash and cash equivalents

(1,870)

(373)

Cash and cash equivalents at beginning of period

3,887

4,168

Cash and cash equivalents at end of period

$2,017

$3,795