Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”)
(NYSE:ETH) today reported operating results for the three months
ended September 30, 2009.
Net delivered sales for the quarter ended September 30, 2009
amounted to $136.2 million as compared to $205.8 million in the
prior year quarter. Net delivered sales for the Company’s Retail
division were $103.2 million compared with $155.9 million the prior
year quarter. Wholesale sales were $81.3 million versus $121.3
million the prior year quarter. Comparable Ethan Allen design
center delivered sales were down 35.3% as compared to the prior
year quarter.
For the quarter ended September 30, 2009, diluted loss per share
amounted to $0.47 on a loss of $13.6 million, which includes $8.5
million in plant transition costs and a $0.8 million restructuring
and impairment charge for previously announced actions. This
compares to diluted earnings per share and net income of $0.26 and
$7.4 million, respectively, for the prior year, which included a
restructuring benefit of $1.6 million due to the gain on the sale
of properties closed in fiscal 2008. Excluding the impact of the
plant transition costs and restructuring and impairment charges in
both periods and the impact of tax valuation allowances recorded in
the current quarter, diluted loss per share amounted to $0.20 in
the current period compared to diluted earnings per share of $0.22
in the prior year comparable period.
Farooq Kathwari, Chairman and CEO, commented, “The downturn has
enabled us to reposition our business in all major areas. We have
consolidated our US manufacturing and logistics to make it more
efficient while we have reduced our cost structure in all areas of
our enterprise during the last year. We have now started to
selectively increase our associates both at manufacturing and at
retail.”
Mr. Kathwari further stated, “Our focus during this period has
been to increase our cash position, implement initiatives to help
increase sales and also position us well as the economy starts to
improve. We increased our cash by $19.5 million to $72.5 million
during the quarter. In addition, we announced this week that we
added an additional $20 million to our secured revolving credit
facility increasing the line to $60 million.”
Commenting on the business, Mr. Kathwari continued, “While we
have increased our written backlog by 19% during the quarter and
reduced the decline in booked written orders by half to 19.5% in
the quarter from a 38% decline from January to June 2009, we still
remain cautious for the near term. As I mentioned earlier, we are
well positioned as the economy improves to grow our sales and
profitability.”
Analyst Conference Call
The Company will conduct a Conference Call at 11:00 AM (Eastern)
on Thursday, October 29th. The live webcast and replay are
accessible via the Company’s website at
http://ethanallen.com/investors.
About Ethan Allen
Ethan Allen Interiors Inc. is a leading interior design company
and manufacturer and retailer of quality home furnishings. The
Company offers free interior design service to its clients and
sells a full range of furniture products and decorative accessories
through ethanallen.com and a network of approximately 300 Design
Centers in the United States and abroad. Ethan Allen owns and
operates six manufacturing facilities in the United States, which
includes one sawmill, and one manufacturing facility in Mexico, and
manufactures approximately sixty-five percent of its products in
its United States plants. For more information on Ethan Allen’s
products and services, visit ethanallen.com.
This press release should be read in conjunction with the
Company’s Annual Report on Form 10-K/A for the year ended June 30,
2009 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 the 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 Inc. Selected Financial
Information Unaudited (in thousands, except per share
amounts)
Three Months
Ended 09/30/09
09/30/08
Net sales $ 136,190 $ 205,841 Cost of sales
77,881 93,900 Gross
profit 58,309 111,941 Operating expenses: Selling 33,605 55,302
General and administrative 39,980 46,058 Restructuring and
impairment charge
812
(1,630 ) Total operating expenses
74,397 99,730
Operating income (loss) (16,088 ) 12,211 Interest and other
miscellaneous income 797 1,100 Interest expense and other related
financing costs
2,981
2,901 Income (loss) before income taxes (18,272
) 10,410 Income tax expense (benefit)
(4,693
) 2,988 Net income (loss)
$ (13,579 ) $
7,422 Basic earnings per common share:
Net income (loss) per basic share $ (0.47 ) $ 0.26 Basic weighted
average shares outstanding 28,926 28,703 Diluted earnings
per common share: Net income (loss) per diluted share $ (0.47 ) $
0.26 Diluted weighted average shares outstanding 28,926 28,847
Ethan Allen Interiors Inc. Condensed Consolidated Balance
Sheets Unaudited (in thousands)
September 30, June 30,
2009 2009
Assets Current assets: Cash and cash equivalents $ 72,452 $
52,960 Accounts receivable, net 13,053 13,086 Inventories 146,661
156,519 Prepaid expenses & other current assets 12,075 21,060
Deferred income taxes
7,750
8,077 Total current assets 251,991 251,702
Property, plant and equipment, net 320,184 333,599 Intangible
assets, net 45,128 45,128 Other assets
21,262
16,056 Total Assets
$
638,565 $ 646,485
Liabilities and Shareholders' Equity Current
liabilities: Current maturities of long-term debt $ 42 $ 42
Customer deposits 38,885 31,691 Accounts payable 21,077 22,199
Accrued expenses & other current liabilities
58,192 58,531 Total current
liabilities 118,196 112,463 Long-term debt 203,136 203,106
Other long-term liabilities
25,449
24,993 Total liabilities 346,781 340,562
Shareholders' equity
291,784
305,923 Total Liabilities and Shareholders'
Equity
$ 638,565 $
646,485 Ethan Allen Interiors Inc. Selected
Financial Information Unaudited (in millions)
Selected Consolidated Financial Data:
Three Months Ended 09/30/09
09/30/08
Net sales $ 136.2 $ 205.8 Gross margin 42.8 % 54.4 %
Operating margin -11.8 % 5.9 % Operating margin (ex restructuring,
impairment & plant transition charges ) -5.0 % 5.1 % Net income
(loss) ($13.6 ) $ 7.4 Net income (loss) (ex restructuring,
impairment & plant transition charges ) ($5.7 ) $ 6.4
Operating cash flow $ 17.0 $ 18.1 Capital expenditures $ 2.5 $ 11.1
Acquisitions $ 0.0 $ 0.4 Treasury stock repurchases (settlement
date basis) $ 0.0 $ 0.0 EBITDA ($2.8 ) $ 19.2 EBITDA as % of
net sales -2.1 % 9.3 % EBITDA (ex restructuring, impairment and
plant transition charges ) ($0.1 ) $ 17.6 EBITDA as % of net sales
(ex restructuring, impairment and plant transition charges ) -0.1 %
8.6 %
Selected Financial Data by
Business Segment: Three Months Ended
09/30/09
09/30/08
Retail
Net sales $ 103.2 $ 155.9 Operating margin -11.0 % -2.0 % Operating
margin (ex restructuring, impairment & plant transition charges
) -10.4 % -3.3 %
Wholesale
Net sales $ 81.3 $ 121.3 Operating margin -5.7 % 9.8 % Operating
margin (ex restructuring, impairment & plant transition charges
) 4.9 % 10.1 %
Ethan Allen Interiors Inc. GAAP
Reconciliation Three Months Ended September 30, 2009 and
2008 Unaudited (in thousands, except per share amounts)
Three Months Ended September 30,
2009 2008
Net Income / Earnings Per
Share
Net income (loss) $ (13,579 ) $ 7,422 Add: restructuring,
impairment and plant transition charges (credit), net of related
tax effect 7,893 (1,037 ) Net income
(loss) (excluding restructuring impairment and plant transition
charges) $ (5,686 ) $ 6,385 Earnings (loss)
per basic share $ (0.47 ) $ 0.26 Earnings (loss) per
basic share (excluding restructuring, impairment and plant
transition charges (credit)) $ (0.20 ) $ 0.22 Basic
weighted average shares outstanding 28,926 28,703 Earnings
(loss) per diluted share $ (0.47 ) $ 0.26 Earnings
(loss) per diluted share (excluding restructuring, impairment and
plant transition charges (credit)) $ (0.20 ) $ 0.22
Diluted weighted average shares outstanding 28,926 28,847
Consolidated Operating Income / Operating
Margin
Operating income (loss) $ (16,088 ) $ 12,211 Add: restructuring,
impairment and plant transition charges (credit) 9,318
(1,630 ) Operating income (loss) (excluding
restructuring, impairment and plant transition charges) $ (6,770 )
$ 10,581 Net sales $ 136,190 $
205,841 Operating margin -11.8 % 5.9 %
Operating margin (excluding restructuring, impairment and plant
transition charges) -5.0 % 5.1 %
Wholesale Operating Income / Operating
Margin
Wholesale operating income (loss) $ (4,660 ) $ 11,885 Add:
restructuring, impairment and plant transition charges (credit)
8,656 408 Wholesale operating
income (excluding restructuring, impairment and plant transition
charges) $ 3,996 $ 12,293 Wholesale net sales
$ 81,281 $ 121,295 Wholesale operating margin
-5.7 % 9.8 % Wholesale operating margin
(excluding restructuring, impairment and plant transition charges)
4.9 % 10.1 %
Retail Operating Income / Operating
Margin
Retail operating income (loss) $ (11,349 ) $ (3,052 ) Add:
restructuring, impairment and plant transition charges (credit)
662 (2,038 ) Retail operating income
(loss) (excluding restructuring, impairment and plant transition
charges (credit)) $ (10,687 ) $ (5,090 ) Retail net sales $
103,150 $ 155,870 Retail operating margin
-11.0 % -2.0 % Retail operating margin
(excluding restructuring, impairment and plant transition charges)
-10.4 % -3.3 %
EBITDA
Net income (loss) $ (13,579 ) $ 7,422 Add: interest expense
(income), net 2,766 2,508 Add: income tax expense (benefit) (4,693
) 2,988 Add: depreciation and amortization (including plant
accelerated depreciation) 12,697 6,318
EBITDA $ (2,809 ) $ 19,236 Net sales $ 136,190
$ 205,841 EBITDA as % of net sales -2.1
% 9.3 % EBITDA $ (2,809 ) $ 19,236 Add:
restructuring, impairment and plant transition charges (credit)
2,688 (1,630 ) Adjusted EBITDA $ (121 )
$ 17,606 Net sales $ 136,190 $ 205,841
Adjusted EBITDA as % of net sales -0.1 %
8.6 %
Grayscale Ethere (NYSE:ETH)
Historical Stock Chart
From Sep 2024 to Oct 2024
Grayscale Ethere (NYSE:ETH)
Historical Stock Chart
From Oct 2023 to Oct 2024