EXHIBIT 99
DATE: May 7, 2003 MEDIA, INVESTOR, Dan Reynolds
FOR RELEASE: Immediately ANALYST CONTACT: (817) 222-1122
CALLOWAY'S NURSERY ANNOUNCES RESULTS
FOR QUARTER ENDED MARCH 31, 2003
FORT WORTH, TX -- May 7, 2003 -- Calloway's Nursery, Inc. (NASDAQ: CLWY) today
reported revenues and operating results for the quarter and six month periods
ended March 31, 2003.
RESULTS FOR THE QUARTER
SALES
o Sales were $9.3 million for 2003, compared to sales of $7.0 million
for 2002.
RESULTS OF OPERATIONS
o Loss from continuing operations was $0.8 million for 2003, compared to
a loss from continuing operations of $0.7 million for 2002.
o Net loss was $0.5 million for 2003, compared to a net loss of $0.7
million for 2002. The 2003 net loss included a gain from discontinued
operations of $0.2 million.
RESULTS PER SHARE
o Diluted loss per common share from continuing operations was $.14 for
2003, compared to a diluted loss per common share from continuing
operations of $.13 for 2002.
o Diluted net loss per common share was $.10 for 2003, compared to a
diluted net loss per common share of $.13 for 2002. The 2003 net loss
included a gain from discontinued operations of $.04 per diluted
common share,
RESULTS FOR THE SIX MONTH PERIOD
SALES
o Sales were $20.1 million for 2003, compared to sales of $17.2 million
for 2002.
RESULTS OF OPERATIONS
o Loss from continuing operations was $1.7 million for 2003, compared to
a loss from continuing operations of $1.1 million for 2002.
o Net loss was $1.8 million for 2003, compared to a net loss of $1.1
million for 2002. The 2003 net loss included a loss from discontinued
operations of $0.1 million.
RESULTS PER SHARE
o Diluted loss per common share from continuing operations was $.29 for
2003, compared to a diluted loss per common share from continuing
operations of $.20 for 2002.
o Diluted net loss per common share was $.31 for 2003, compared to a
diluted net loss per common share of $.21 for 2002. The 2003 net loss
included a loss from discontinued operations of $.02 per diluted
common share, and the 2002 net loss included a loss from discontinued
operations of $.01 per diluted common share.
Founded in 1986, Calloway's Nursery, Inc. operates 26 retail garden centers in
the three largest metropolitan areas in Texas: Dallas - Fort Worth, San Antonio
and Houston, reaching a combined population of 11.5 million.
CALLOWAY'S NURSERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<Table>
<Caption>
SIX MONTHS ENDED THREE MONTHS ENDED
MARCH 31, MARCH 31,
---------------------------- ----------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
Net sales $ 20,115 $ 17,220 $ 9,252 $ 6,992
Cost of goods sold 11,207 9,457 4,729 3,563
------------ ------------ ------------ ------------
Gross profit 8,908 7,763 4,523 3,429
------------ ------------ ------------ ------------
Operating expenses 8,306 6,377 4,137 3,076
Occupancy expenses 1,690 1,460 869 773
Advertising expenses 984 725 430 253
Depreciation and amortization 318 464 136 228
Interest expense 405 443 205 216
Interest income (7) (9) (3) (6)
------------ ------------ ------------ ------------
Total expenses 11,696 9,460 5,774 4,540
------------ ------------ ------------ ------------
Loss from continuing operations before income (2,788) (1,697) (1,251) (1,111)
taxes
Income tax benefit (1,064) (596) (460) (373)
------------ ------------ ------------ ------------
Loss from continuing operations (1,724) (1,101) (791) (738)
Discontinued operations:
Loss from discontinued operations, net of
income tax benefits of $330, $22, $80 and $2 (542) (41) (171) (4)
Gain on disposal of discontinued operations,
net of income tax expense of $257, $--,
$257, and $-- 420 -- 420 --
------------ ------------ ------------ ------------
Gain (loss) from discontinued operations (122) (41) 249 (4)
------------ ------------ ------------ ------------
Net loss (1,846) (1,142) (542) (742)
Accretion of preferred stock (205) (166) (102) (88)
------------ ------------ ------------ ------------
Net loss attributable to common shareholders $ (2,051) $ (1,308) $ (644) $ (830)
============ ============ ============ ============
Weighted average number of common shares
outstanding - basic and diluted 6,615 6,317 6,663 6,353
Net loss per common share - basic and diluted
Loss from continuing operations $ (.29) $ (.20) $ (.14) $ (.13)
Income (loss) from discontinued operations (.02) (.01) $ .04 --
------------ ------------ ------------ ------------
Net loss $ (.31) $ (.21) $ (.10) $ (.13)
============ ============ ============ ============
</Table>
CALLOWAY'S NURSERY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(IN THOUSANDS)
<Table>
<Caption>
MARCH 31, SEPTEMBER 30, MARCH 31,
2003 2002 2002
------------ -------------- ------------
ASSETS
Cash and cash equivalents $ 787 $ 2,475 $ 597
Accounts receivable 971 356 1,031
Inventories 7,418 5,017 6,056
Prepaids and other assets 122 59 108
Deferred income taxes, current 1,226 263 758
Income taxes receivable -- 119 --
Current assets of discontinued operations -- 1,333 1,685
------------ -------------- ------------
Total current assets 10,524 9,622 10,235
Property and equipment, net 11,852 12,093 12,363
Goodwill, net 631 631 686
Deferred income taxes 1,568 1,568 1,301
Other assets 197 211 226
Noncurrent assets of discontinued operations -- -- 1,209
------------ -------------- ------------
Total assets $ 24,772 $ 24,125 $ 26,020
============ ============== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $ 5,489 $ 2,749 $ 4,378
Accrued expenses 3,351 2,019 1,953
Notes payable, current -- -- 70
Current portion of long-term debt 390 501 574
Deferred income taxes, current -- -- 74
Current liabilities of discontinued operations -- 487 400
------------ -------------- ------------
Total current liabilities 9,230 5,756 7,449
Deferred rent payable 720 805 872
Long-term debt, net of current portion 7,191 8,246 8,630
------------ -------------- ------------
Total liabilities 17,141 14,807 16,951
------------ -------------- ------------
Commitments and contingencies
Non-voting preferred stock, with mandatory redemption
provisions 2,743 2,538 2,346
Shareholders' equity:
Voting convertible preferred stock -- -- --
Preferred stock -- -- --
Common stock 69 68 66
Additional paid-in capital 10,043 9,885 9,749
Accumulated deficit (3,828) (1,777) (1,696)
------------ -------------- ------------
6,284 8,176 8,119
Less: Treasury stock, at cost (1,396) (1,396) (1,396)
------------ -------------- ------------
Total shareholders' equity 4,888 6,780 6,723
------------ -------------- ------------
Total liabilities and shareholders' equity $ 24,772 $ 24,125 $ 26,020
============ ============== ============
</Table>