Ethan Allen Announces Plan to Close and Convert Two Existing Manufacturing Facilities
September 06 2006 - 2:20PM
Business Wire
Ethan Allen Interiors Inc. (NYSE:ETH) ("Ethan Allen" or the
"Company") today announced a plan to close its Spruce Pine, North
Carolina case goods manufacturing facility and convert its Atoka,
Oklahoma upholstery manufacturing facility into a regional
distribution center. In connection with this initiative, the
Company will permanently cease production at both locations,
allocating production among its remaining domestic manufacturing
locations and selected offshore vendors. The decision impacts
approximately 465 employees. The Spruce Pine facility, which totals
approximately 280,000 square feet, was built by the Company in
1989. The Atoka facility, which totals approximately 256,000 square
feet, was built by the Company in 1973 and currently utilizes
approximately 159,000 square feet in the production of upholstery
manufacturing with the remaining 97,000 square feet utilized as
part of the Company's existing distribution operations. Ethan Allen
has 9 remaining plant locations, including 4 case goods plants, 4
upholstery plants, and 1 accessory plant. These facilities total
nearly 3.0 million square feet and employ approximately 2,300
people. Farooq Kathwari, Chairman and CEO, commented, "We sincerely
regret the impact that this decision will have on many of our
employees. We believe, however, that this action will strengthen
our logistical capabilities and improve the Company's remaining
U.S. manufacturing operations." The Company will record a pre-tax
restructuring and impairment charge of approximately $13.5 to $14.5
million ($8.4 to $9.1 million, after-tax), or $0.26 to $0.28 per
share, the majority of which will be non-cash in nature. Most of
the earnings impact is expected to occur in the Company's first
fiscal quarter ended September 30, 2006. Mr. Kathwari, will be
making a presentation at the Goldman Sachs Global Retail Conference
on September 7, 2006. The presentation, which will include a
question and answer session, is scheduled to begin at 11:55 am
Eastern time. The audio portion of this presentation will be
webcast and can be accessed at http://www.ethanallen.com/investors.
Ethan Allen Interiors Inc. is a leading manufacturer and retailer
of quality home furnishings, selling a full range of products
through an exclusive network of more than 300 stores located in the
United States, Canada, and overseas. The Company is vertically
integrated with manufacturing facilities and sawmills located
throughout the United States. This press release should be read in
conjunction with the Company's Annual Report on Form 10-K for the
year ended June 30, 2005 and other reports filed with the
Securities and Exchange Commission. This press release and related
discussions contain forward-looking statements made pursuant to the
safe harbor provisions of Private Securities Litigation Reform Act
of 1995. Such forward-looking statements reflect management's
current expectations concerning future events and results of the
Company, and are subject to various assumptions, risks and
uncertainties. Accordingly, actual future events or results could
differ materially from those contemplated by the forward-looking
statements. The Company assumes no obligation to update or provide
revision to any forward-looking statement at any time for any
reason.
Ethan Allen Interiors (NYSE:ETH)
Historical Stock Chart
From May 2024 to Jun 2024
Ethan Allen Interiors (NYSE:ETH)
Historical Stock Chart
From Jun 2023 to Jun 2024