Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE:
ETD) today reported its financial and business results for its
fiscal 2022 third quarter ended March 31, 2022.
Farooq Kathwari, Ethan Allen’s Chairman,
President and CEO commented, “We are pleased to report double-digit
growth in many key operating metrics including sales, income and
earnings per share. Our vertically integrated business continues to
produce strong results and positions us for future growth. Sales
increased 11.7% to $197.7 million, gross margin increased to 60.4%
and operating margin rose to 16.5%, resulting in diluted EPS of
$0.97, an increase of 59.0%. We paid regular quarterly cash
dividends and ended the quarter with a strong balance sheet,
including cash and investments of $104.6 million as of March 31,
2022 and no debt. We have paid an annual cash dividend every year
since 1996 and have increased our quarterly cash dividend each of
the past three years.”
Mr. Kathwari continued, “As we celebrate 90
years of innovation, we remain focused on a single enterprise model
while maintaining an entrepreneurial attitude. We introduced
several key initiatives during the just completed third quarter
including enhancing our commitment to good corporate governance
practices by adding a new Board member, new product introductions
in upholstery, home office, lighting, outdoor living, decorative
accents and a new flooring program, the expansion of our upholstery
manufacturing in North Carolina, the opening of a new concept
retail design center in Westport, CT, combining enhanced technology
and personal service, and expanding our critically important
effective marketing campaign.”
“Despite the challenges faced during the
quarter, we are managing through them to improve efficiencies, work
through our backlog and service customers and consumers while
achieving strong profitability. We also took selective price
increases to counter rising raw material, freight and labor costs.
While we are pleased with our third quarter performance, we also
recognize there are several external factors, such as record
inflation, rising interest rates, supply chain challenges and
global unrest, that have created higher levels of uncertainty. We
expect to see softening consumer interest in home furnishings and
to address this expected trend, we remain focused on maintaining
strong marketing programs, differentiation of relevant offerings,
strong and talented associates, and control over our manufacturing
and logistics. We remain cautiously optimistic,” concluded Mr.
Kathwari.
FISCAL 2022
THIRD QUARTER HIGHLIGHTS*
- Consolidated net sales increased
11.7% to $197.7 million
- Retail net sales of $166.7 million increased 17.9%
- Wholesale net sales of $121.0
million increased 12.3%
- Demand trends remain strong
- Wholesale segment written orders
declined 0.2%; up 8.4% from the third quarter of fiscal 2019 (prior
to the start of the COVID-19 pandemic)
- Retail segment
written orders declined 3.0%; up 18.2% compared with the third
quarter of fiscal 2019
- Consolidated
gross margin increased to 60.4% from strong retail segment sales,
product pricing actions, a favorable product mix and higher
manufacturing production partially offset by higher input and
freight costs
- Operating margin
of 16.5%; adjusted operating margin grew to 15.8% due to strong net
sales growth, retail gross margin expansion and cost containment
measures; selling, general and administrative expenses decreased
from 46.2% to 44.7% of net sales, reflecting the Company’s
operating leverage
- Diluted EPS of
$0.97 compared with $0.61; adjusted diluted EPS of $0.93 increased
60.3% compared with $0.58
- Generated $17.3
million of cash from operating activities; cash and investments of
$104.6 million
- Paid regular
quarterly dividends of $0.29 per share on January 5, 2022 and
February 23, 2022 totaling $14.7 million
- Announced the
strengthening of the Company’s Board of Directors through the
election of María Eugenia (Gina) Casar, effective January 25,
2022
- Expanded
manufacturing capacity in North Carolina through the purchase of
certain property, plant and equipment of Dimension Wood Products,
Inc. on February 17, 2022
- Opened the
Company’s seventh location in Connecticut, with the grand opening
of a new concept design center in Westport; more recently on April
22, 2022, a new design center in Walnut Creek, CA was opened
- Ethan Allen
Mexico was named environmentally and socially responsible in March
2022 by the Mexican Center for Corporate Philanthropy and the
Alliance for Corporate Social Responsibility
* See reconciliation of U.S. GAAP to adjusted
key financial measures in the back of this press release.
Comparisons are to the third quarter of fiscal 2021.
KEY FINANCIAL MEASURES*
(Unaudited) |
(In thousands,
except per share data) |
|
Three months ended |
Nine months ended |
|
March 31, |
|
March 31, |
|
|
|
2022 |
|
|
2021 |
|
% Change |
|
2022 |
|
|
2021 |
|
% Change |
Net sales |
$ |
197,659 |
|
$ |
176,962 |
|
11.7 |
% |
$ |
588,079 |
|
$ |
506,846 |
|
16.0 |
% |
GAAP gross profit |
$ |
119,460 |
|
$ |
101,409 |
|
17.8 |
% |
$ |
350,921 |
|
$ |
288,511 |
|
21.6 |
% |
Adjusted gross profit* |
$ |
119,460 |
|
$ |
101,409 |
|
17.8 |
% |
$ |
350,921 |
|
$ |
288,900 |
|
21.5 |
% |
GAAP gross margin |
|
60.4 |
% |
|
57.3 |
% |
|
|
59.7 |
% |
|
56.9 |
% |
|
Adjusted gross margin* |
|
60.4 |
% |
|
57.3 |
% |
|
|
59.7 |
% |
|
57.0 |
% |
|
GAAP operating income |
$ |
32,653 |
|
$ |
18,987 |
|
72.0 |
% |
$ |
96,305 |
|
$ |
53,223 |
|
80.9 |
% |
Adjusted operating income* |
$ |
31,302 |
|
$ |
19,580 |
|
59.9 |
% |
$ |
91,802 |
|
$ |
55,251 |
|
66.2 |
% |
GAAP operating margin |
|
16.5 |
% |
|
10.7 |
% |
|
|
16.4 |
% |
|
10.5 |
% |
|
Adjusted operating margin* |
|
15.8 |
% |
|
11.1 |
% |
|
|
15.6 |
% |
|
10.9 |
% |
|
GAAP net income |
$ |
24,714 |
|
$ |
15,608 |
|
58.3 |
% |
$ |
71,761 |
|
$ |
41,844 |
|
71.5 |
% |
Adjusted net income* |
$ |
23,702 |
|
$ |
14,675 |
|
61.5 |
% |
$ |
68,388 |
|
$ |
41,126 |
|
66.3 |
% |
Effective tax rate |
|
24.2 |
% |
|
17.8 |
% |
|
|
25.4 |
% |
|
20.2 |
% |
|
GAAP diluted EPS |
$ |
0.97 |
|
$ |
0.61 |
|
59.0 |
% |
$ |
2.81 |
|
$ |
1.65 |
|
70.3 |
% |
Adjusted diluted EPS* |
$ |
0.93 |
|
$ |
0.58 |
|
60.3 |
% |
$ |
2.68 |
|
$ |
1.63 |
|
64.4 |
% |
Cash flows from operating
activities |
$ |
17,300 |
|
$ |
36,202 |
|
(52.2 |
%) |
$ |
40,001 |
|
$ |
102,120 |
|
(60.8 |
%) |
* See reconciliation of U.S. GAAP to adjusted
key financial measures in the back of this press release.
BALANCE SHEET
and CASH FLOW
Total cash and cash
equivalents were $95.0 million at March 31, 2022,
compared with $104.6 million at June 30, 2021. Cash decreased $9.6
million during the first nine months of fiscal 2022 due to $40.1
million in cash dividends paid, including a special dividend of
$19.0 million, capital expenditures of $9.0 million and net
purchases of investments of $9.5 million partially offset by net
cash provided by operating activities of $40.0 million and $10.6
million in proceeds received from sales of property, plant and
equipment.
Cash from operating activities
totaled $40.0 million, a decrease from $102.1 million in the prior
year period primarily due to an increase in working capital
partially offset by higher net income generated during the period.
The increase in working capital was primarily from higher inventory
to increase material availability to support expanded manufacturing
and distribution capacity to meet written order growth. The
combination of growing our inventory balance to support high demand
and the change in customer deposits from increased net shipments
led to the significant year-over-year change in working
capital.
Inventories, net increased
to $182.7 million at March 31, 2022, compared with $144.0 million
at June 30, 2021, as the Company continues to increase its
manufacturing productivity and service center inventory. The higher
levels of inventory increased material availability to support
increased production as well as to help protect against future
supply chain disruptions and price increases.
Customer deposits from
written orders increased $5.8 million during the first nine months
and totaled $136.4 million at March 31, 2022. While manufacturing
capacity has increased, demand continues to be well above
pre-pandemic levels, which drove up customer deposits. Due to the
strong written orders taken at both the retail and wholesale
segments, order backlog increased and is up approximately 5%
compared to the beginning of the fiscal year.
No
debt outstanding as of March 31,
2022.
DIVIDENDS
On April 26, 2022, the Company’s Board of
Directors declared and increased the regular quarterly cash
dividend to $0.32 per share, payable on May 25, 2022, to
shareholders of record at the close of business on May 10, 2022.
Ethan Allen has a long history of returning capital to shareholders
and is pleased to increase its regular quarterly cash dividend by
10%, which highlights the Company’s strong balance sheet and
operating results.
CONFERENCE CALL
Ethan Allen will host an analyst conference call
today, April 28, 2022, at 5:00 PM (Eastern Time) to discuss its
results. The analyst conference call will be webcast live from the
Company’s Investor Relations website at
https://ir.ethanallen.com.
The following information is provided for those
who would like to participate:
- U.S.
Participants:
877-705-2976
- International
Participants:
201-689-8798
- Meeting
Number:
13727696
For those unable to listen live, an archived
recording of the call will be made available on the Company’s
website referenced above for at least 60 days.
ABOUT ETHAN ALLEN
Ethan Allen Interiors Inc. (NYSE: ETD) is a
leading interior design company, manufacturer and retailer in the
home furnishings marketplace. The Company is a global luxury home
fashion brand that is vertically integrated from product design
through home delivery, which offers its customers stylish product
offerings, artisanal quality, and personalized service. The Company
provides complimentary interior design service to its clients and
sells a full range of home furnishings through a retail network of
design centers located throughout the United States and abroad as
well as online at ethanallen.com. Ethan Allen owns and operates ten
manufacturing facilities located in the United States, Mexico and
Honduras, including one sawmill, one rough mill and a lumberyard.
Approximately 75% of its products are manufactured or assembled in
these North American facilities.
For more information on Ethan Allen's products
and services, visit www.ethanallen.com.
Investor / Media Contact:
Matt McNultySenior Vice President, Chief Financial Officer and
TreasurerIR@ethanallen.com
ABOUT NON-GAAP
FINANCIAL MEASURES
This press release is intended to supplement,
rather than to supersede, the Company's consolidated financial
statements, which are prepared and presented in accordance with
U.S. generally accepted accounting principles (“GAAP”). In this
press release the Company has included financial measures that are
derived from the consolidated financial statements but are not
presented in accordance with GAAP. The Company uses non-GAAP
financial measures, including adjusted gross profit and margin,
adjusted operating income and margin, adjusted net income, and
adjusted diluted EPS (collectively “non-GAAP financial measures”).
The Company computes these non-GAAP financial measures by adjusting
the comparable GAAP measure to remove the impact of certain charges
and gains and the related tax effect of these adjustments.
Investors should consider these non-GAAP financial measures in
addition to, and not as a substitute for, or superior to, the
financial performance measures prepared in accordance with
GAAP. The Company uses these non-GAAP financial measures for
financial and operational decision making and to evaluate
period-to-period comparisons. The Company believes that they
provide useful information about operating results, enhance the
overall understanding of past financial performance and prospects,
and allow for greater transparency with respect to key metrics used
by management in its financial and operational decision making. A
reconciliation of these non-GAAP financial measures to the most
directly comparable financial measure reported in accordance with
GAAP is provided at the end of this press release.
FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). Generally, forward-looking statements represent
management’s beliefs and assumptions concerning current
expectations, projections or trends relating to results of
operations, financial results, financial condition, strategic
objectives and plans, expenses, dividends, share repurchases,
liquidity, use of cash and cash requirements, investments, future
economic performance, business and industry and the effect of the
COVID-19 pandemic on the business operations and financial results.
Such forward-looking statements can be identified by the fact that
they do not relate strictly to historical or current
facts. These forward-looking statements may include words such
as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,”
“believe,” “continue,” “may,” “will,” “short-term,” “target,”
“outlook,” “forecast,” “future,” “strategy,” “opportunity,”
“would,” “guidance,” “non-recurring,” “one-time,” “unusual,”
“should,” “likely,” “COVID-19 impact,” and other words and terms of
similar meaning in connection with any discussion of the timing or
nature of future operating or financial performance or other
events. The Company derives many of its forward-looking statements
from operating budgets and forecasts, which are based upon many
detailed assumptions. While the Company believes that its
assumptions are reasonable, it cautions that it is very difficult
to predict the impact of known factors and it is impossible for the
Company to anticipate all factors that could affect actual results
and matters that are identified as “short term,” “non-recurring,”
“unusual,” “one-time,” or other words and terms of similar meaning
may in fact recur in one or more future financial reporting
periods.
Forward-looking statements are subject to risks
and uncertainties that may cause actual results to differ
materially from those that are expected. Actual results could
differ materially from those anticipated in the forward-looking
statements due to a number of risks and uncertainties including,
but not limited to the following: the global COVID-19 pandemic
has, and could continue to have, a materially adverse
effect on the Company’s business and its results of operations; a
resurgence of COVID-19 and resulting containment measures could
negatively impact its ability to fulfill existing order backlog or
cause changes in consumer demand; a resurgence of COVID-19 could
lead to temporary closures, including distribution centers; the
Company may require additional funding from external sources, which
may not be available at the levels required, or may cost more than
expected; declines in certain economic conditions, which impact
consumer confidence and spending; financial or operational
difficulties due to competition in the residential home furnishings
industry; a significant shift in consumer preference toward
purchasing products online; an overall decline in the health of the
economy and consumer spending may reduce consumer purchases of
discretionary items; inability to
maintain and enhance the Ethan Allen brand;
failure to successfully anticipate or respond to changes in
consumer tastes and trends in a timely manner; inability
to maintain current design center locations at current costs;
failure to select and secure appropriate retail locations;
disruptions in the supply chain and supply chain management;
fluctuations in the price, availability and quality of raw
materials resulting in increased costs and production delays, and
which could result in a decline in sales; competition from overseas
manufacturers and domestic retailers; the number of
manufacturing and distribution sites may increase exposure to
business disruptions and could result in higher transportation
costs; current and former manufacturing and retail operations and
products are subject to increasingly stringent environmental,
health and safety requirements; product recalls or product
safety concerns; extensive reliance on information technology
systems to process transactions, summarize results, and manage the
business and that of certain independent retailers;
disruptions in both primary and back-up systems; successful
cyber-attacks and the ability to maintain adequate cyber-security
systems and procedures; loss, corruption and misappropriation of
data and information relating to customers;
global and local economic uncertainty may materially
adversely affect manufacturing operations or sources of merchandise
and international operations; changes in United States trade and
tax policies; the phasing out of LIBOR and the impact on interest
rates used in future borrowings; reliance on certain key personnel,
loss of key personnel or inability to hire additional qualified
personnel; potential future asset impairment charges resulting from
changes to estimates or projections used to assess assets’ fair
value, financial results that are lower than current estimates or
determinations to close underperforming locations; access
to consumer credit could be interrupted as a result of
external conditions; failure to protect the Company’s intellectual
property; hazards and risks which may not be fully covered by
insurance; significant labor competition, wage pressure, and at
times, a shortage of qualified talent; labor disruptions resulting
from COVID-19 vaccination mandates; and other factors disclosed in
Part I, Item 1A. Risk Factors, in the Company’s 2021 Annual Report
on Form 10-K.
All forward-looking statements attributable to
the Company, or persons acting on its behalf, are expressly
qualified in their entirety by these cautionary statements, as well
as other cautionary statements. A reader should evaluate all
forward-looking statements made in this press release in the
context of these risks and uncertainties. Given the risks and
uncertainties surrounding forward-looking statements, you should
not place undue reliance on these statements. Many of these factors
are beyond the Company’s ability to control or predict. The
forward-looking statements included in this press release are made
only as of the date hereof. The Company undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise, except as
otherwise required by law.
Ethan Allen Interiors Inc. |
Consolidated Statements of Comprehensive
Income |
(Unaudited) |
(In thousands, except per share data) |
|
Three months ended
March 31, |
Nine months ended
March 31, |
|
|
2022 |
|
|
2021 |
|
2022 |
|
|
2021 |
Net sales |
$ |
197,659 |
|
$ |
176,962 |
$ |
588,079 |
|
$ |
506,846 |
Cost of sales |
|
78,199 |
|
|
75,553 |
|
237,158 |
|
|
218,335 |
Gross profit |
|
119,460 |
|
|
101,409 |
|
350,921 |
|
|
288,511 |
Selling, general and administrative expenses |
|
88,270 |
|
|
81,829 |
|
259,457 |
|
|
233,649 |
Restructuring and other impairment charges, net of gains |
|
(1,463 |
) |
|
593 |
|
(4,841 |
) |
|
1,639 |
Operating income |
|
32,653 |
|
|
18,987 |
|
96,305 |
|
|
53,223 |
Other expenses Interest and other financing costs Other income
(expense), net |
51 (10) |
|
5157 |
147 (8) |
433(378) |
Income before income taxes |
|
32,592 |
|
|
18,993 |
|
96,150 |
|
|
52,412 |
Income tax expense |
|
7,878 |
|
|
3,385 |
|
24,389 |
|
|
10,568 |
Net income |
$ |
24,714 |
|
$ |
15,608 |
$ |
71,761 |
|
$ |
41,844 |
|
|
|
|
|
Per share data |
|
|
|
|
Diluted earnings per common share: |
|
|
|
|
Net income per diluted share |
$ |
0.97 |
|
$ |
0.61 |
$ |
2.81 |
|
$ |
1.65 |
Diluted weighted average common shares |
|
25,549 |
|
|
25,400 |
|
25,504 |
|
|
25,305 |
|
|
|
|
|
Ethan Allen Interiors
Inc. |
|
|
Condensed Consolidated
Balance Sheets |
|
|
(Unaudited) |
|
|
(In thousands) |
|
|
|
March 31, |
June 30, |
ASSETS |
|
2022 |
|
|
2021 |
|
Current assets: |
|
|
Cash and cash equivalents |
$ |
95,045 |
|
$ |
104,596 |
|
Investments |
|
9,525 |
|
|
- |
|
Accounts receivable, net |
|
11,549 |
|
|
9,026 |
|
Inventories, net |
|
182,689 |
|
|
143,978 |
|
Prepaid expenses and other
current assets |
|
42,041 |
|
|
37,679 |
|
Total current assets |
|
340,849 |
|
|
295,279 |
|
|
|
|
Property, plant and equipment,
net |
|
223,067 |
|
|
231,446 |
|
Goodwill |
|
25,388 |
|
|
25,388 |
|
Intangible assets |
|
19,740 |
|
|
19,740 |
|
Operating lease right-of-use
assets |
|
102,477 |
|
|
108,730 |
|
Deferred income taxes |
|
566 |
|
|
1,078 |
|
Other assets |
|
2,816 |
|
|
1,584 |
|
Total ASSETS |
$ |
714,903 |
|
$ |
683,245 |
|
|
|
|
LIABILITIES AND SHAREHOLDERS’
EQUITY |
|
|
Current liabilities: |
|
|
Accounts payable and accrued
expenses |
$ |
42,696 |
|
$ |
37,786 |
|
Customer deposits and deferred
revenue |
|
136,425 |
|
|
130,635 |
|
Accrued compensation and
benefits |
|
19,974 |
|
|
23,866 |
|
Current operating lease
liabilities |
|
26,269 |
|
|
27,395 |
|
Other current liabilities |
|
5,073 |
|
|
4,220 |
|
Total current liabilities |
|
230,437 |
|
|
223,902 |
|
|
|
|
Operating lease liabilities,
long-term |
|
91,157 |
|
|
97,911 |
|
Deferred income taxes |
|
6,223 |
|
|
5,028 |
|
Other long-term liabilities |
|
3,147 |
|
|
4,986 |
|
Total LIABILITIES |
$ |
330,964 |
|
$ |
331,827 |
|
|
|
|
Shareholders’ equity: |
|
|
Ethan Allen Interiors Inc. shareholders’ equity |
$ |
383,976 |
|
$ |
351,443 |
|
Noncontrolling interests |
|
(37 |
) |
|
(25 |
) |
Total shareholders’ equity |
$ |
383,939 |
|
$ |
351,418 |
|
Total LIABILITIES AND
SHAREHOLDERS’ EQUITY |
$ |
714,903 |
|
$ |
683,245 |
|
Reconciliation of
Non-GAAP
Financial Measures
To supplement the financial measures prepared in
accordance with GAAP, the Company uses non-GAAP financial measures,
including adjusted gross profit and margin, adjusted operating
income and margin, adjusted net income, and adjusted diluted
earnings per share. The reconciliations of these non-GAAP financial
measures to the most directly comparable financial measures
calculated and presented in accordance with GAAP are shown in
tables below.
These non-GAAP measures are derived from the
consolidated financial statements but are not presented in
accordance with GAAP. The Company believes these non-GAAP measures
provide a meaningful comparison of its results to others in its
industry and prior year results. Investors should consider
these non-GAAP financial measures in addition to, and not as a
substitute for, its financial performance measures prepared in
accordance with GAAP. Moreover, these non-GAAP financial
measures have limitations in that they do not reflect all the items
associated with the operations of the business as determined in
accordance with GAAP. Other companies may calculate similarly
titled non-GAAP financial measures differently than the Company
does, limiting the usefulness of those measures for comparative
purposes.
Despite the limitations of these non-GAAP
financial measures, the Company believes these adjusted financial
measures and the information they provide are useful in viewing its
performance using the same tools that management uses to assess
progress in achieving its goals. Adjusted measures may also
facilitate comparisons to historical performance.
The following tables below provide a
reconciliation of non-GAAP financial measures used in this release
to the most directly comparable GAAP financial measures.
(Unaudited) |
(In thousands, except per share
data) |
Three months ended |
|
|
Nine months ended |
|
|
March 31, |
|
|
March 31, |
|
|
|
2022 |
|
|
2021 |
|
% Change |
|
|
2022 |
|
|
2021 |
|
% Change |
Consolidated
Adjusted Gross Profit / Gross Margin |
GAAP Gross profit |
$ |
119,460 |
|
$ |
101,409 |
|
17.8 |
% |
|
$ |
350,921 |
|
$ |
288,511 |
|
21.6 |
% |
Adjustments (pre-tax) * |
|
- |
|
|
- |
|
|
|
|
- |
|
|
389 |
|
|
Adjusted gross profit * |
$ |
119,460 |
|
$ |
101,409 |
|
17.8 |
% |
|
$ |
350,921 |
|
$ |
288,900 |
|
21.5 |
% |
Adjusted gross margin * |
|
60.4 |
% |
|
57.3 |
% |
|
|
|
59.7 |
% |
|
57.0 |
% |
|
|
|
|
|
|
|
|
Consolidated
Adjusted Operating Income / Operating Margin |
GAAP Operating income |
$ |
32,653 |
|
$ |
18,987 |
|
72.0 |
% |
|
$ |
96,305 |
|
$ |
53,223 |
|
80.9 |
% |
Adjustments (pre-tax)* |
|
(1,351 |
) |
|
593 |
|
|
|
|
(4,503 |
) |
|
2,028 |
|
|
Adjusted operating income* |
$ |
31,302 |
|
$ |
19,580 |
|
59.9 |
% |
|
$ |
91,802 |
|
$ |
55,251 |
|
66.2 |
% |
|
|
|
|
|
|
|
|
Consolidated Net sales |
$ |
197,659 |
|
$ |
176,962 |
|
11.7 |
% |
|
$ |
588,079 |
|
$ |
506,846 |
|
16.0 |
% |
GAAP Operating margin |
|
16.5 |
% |
|
10.7 |
% |
|
|
|
16.4 |
% |
|
10.5 |
% |
|
Adjusted operating margin* |
|
15.8 |
% |
|
11.1 |
% |
|
|
|
15.6 |
% |
|
10.9 |
% |
|
|
|
|
|
|
|
|
|
Consolidated
Adjusted Net Income / Adjusted Diluted EPS |
GAAP Net income |
$ |
24,714 |
|
$ |
15,608 |
|
58.3 |
% |
|
$ |
71,761 |
|
$ |
41,844 |
|
71.5 |
% |
Adjustments, net of tax* |
|
(1,012 |
) |
|
(933 |
) |
|
|
|
(3,373 |
) |
|
(718 |
) |
|
Adjusted net income |
$ |
23,702 |
|
$ |
14,675 |
|
61.5 |
% |
|
$ |
68,388 |
|
$ |
41,126 |
|
66.3 |
% |
Diluted weighted average common
shares |
|
25,549 |
|
|
25,400 |
|
|
|
|
25,504 |
|
|
25,305 |
|
|
GAAP Diluted EPS |
$ |
0.97 |
|
$ |
0.61 |
|
59.0 |
% |
|
$ |
2.81 |
|
$ |
1.65 |
|
70.3 |
% |
Adjusted diluted EPS* |
$ |
0.93 |
|
$ |
0.58 |
|
60.3 |
% |
|
$ |
2.68 |
|
$ |
1.63 |
|
64.4 |
% |
* Adjustments to
reported GAAP financial measures including gross profit and margin,
operating income and margin, net income, and diluted EPS have been
adjusted by the following: |
|
|
|
|
|
(Unaudited) |
Three months ended |
Nine months ended |
(In thousands) |
March 31, |
March 31, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Inventory reserves and
write-downs |
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
389 |
|
Adjustments to gross profit |
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
389 |
|
Gain on sales of property,
plant and equipment |
|
(1,518 |
) |
|
(1,443 |
) |
|
(5,431 |
) |
|
(1,170 |
) |
Severance and other
charges |
|
55 |
|
|
630 |
|
|
590 |
|
|
780 |
|
Impairment of long-lived
assets and lease exit costs |
|
112 |
|
|
1,406 |
|
|
338 |
|
|
2,029 |
|
Adjustments to operating income |
$ |
(1,351 |
) |
$ |
593 |
|
$ |
(4,503 |
) |
$ |
2,028 |
|
Adjustments to income before income taxes |
$ |
(1,351 |
) |
$ |
593 |
|
$ |
(4,503 |
) |
$ |
2,028 |
|
Related income tax effects on
non-recurring items(1) |
|
339 |
|
|
(145 |
) |
|
1,130 |
|
|
(497 |
) |
Income tax benefit from
valuation allowance change |
|
- |
|
|
(1,381 |
) |
|
- |
|
|
(2,249 |
) |
Adjustments to net income |
$ |
(1,012 |
) |
$ |
(933 |
) |
$ |
(3,373 |
) |
$ |
(718 |
) |
(1) Calculated using a tax rate of 25.1% in the
current year and 24.5% in the prior year.
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