Ethan Allen Declares Cash Dividend and Comments on Financial Results
April 21 2009 - 6:07PM
Business Wire
Ethan Allen Interiors Inc. (�Ethan Allen� or the �Company�)
(NYSE:ETH) today declared a regular quarterly cash dividend of
$0.05 per share which will be payable to shareholders of record as
of July 10, 2009 and paid on July 24, 2009.
Farooq Kathwari, Chairman and CEO commented, "We are pleased
that we have been able to maintain a strong cash position and
continue paying this cash dividend despite a very challenging
quarter ended March 31, 2009. We reduced the cash dividend to
further enhance the cash position of the Company. During the last
two quarters many manufacturers and retailers in a wide spectrum of
industries were compelled to resort to major discounting to manage
an excessive build-up of inventories. We decided to maintain a
strong national advertising presence during the period focusing on
our competitive advantages; providing exceptional interior design
service supported by our stylish and affordable home furnishings at
our every day best value prices. Our sales declined by 40.6% while
we maintained a strong gross margin at 47.1% and reduced our
inventories by $13.5 million during the quarter. Our inventories
remain under control benefiting from a lower lead time due to our
everyday best price initiative and also major downtime in our
manufacturing facilities."
Mr. Kathwari further stated, �The preliminary net loss for the
quarter is approximately $17 to $18 million or $0.59 to $0.63 per
diluted share. Excluding restructuring and impairment charges ($4.6
million net of tax) the net loss is approximately $12.5 to $13.5
million or $0.43 to $0.47 per diluted share. During the quarter we
also took other charges after taxes amounting to approximately
$0.26 per diluted share. We are in final stages of evaluating
potential impairment of our goodwill and long-lived assets. The
financial impact, if any, from this evaluation has not been
reflected in these results. We plan to report our earnings on April
30th and will discuss the financial results and all of these
elements in detail at that time."
Mr. Kathwari commenting on business trends stated, "Our March
written business showed improvements from February while
significantly lower than March of last year. Our focus remains to
manage and reduce our costs and also to prepare for the next cycle
of business growth. On an annual basis we have reduced over $100
million from our underlying cost structure. We have also taken many
steps to strengthen our marketing and operations and despite a
tough environment have maintained a positive attitude among our
associates and we are ready to grow our business. So far this
fiscal year, we and our licensees have opened fourteen design
centers and plan to open an additional fourteen in the next nine
months. We look forward to discussing our initiatives in detail
after our earnings release on April 30th".
About Ethan Allen
Ethan Allen Interiors Inc. is a leading manufacturer and
retailer of quality home furnishings. The Company sells a full
range of furniture products and decorative accessories through a
network of 290 design centers in the United States and abroad, of
which 159 are Company owned. Ethan Allen owns eight manufacturing
facilities in the United States, which include two sawmills, and
one cut and sew factory in Mexico. For more information on Ethan
Allen�s products and services, visit ethanallen.com.
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