Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE:
ETD) today reported its financial and business results for its
fiscal 2022 fourth quarter and full year ended June 30, 2022.
Fourth quarter sales were $229.7 million, an increase of 28.8% over
the prior year while diluted EPS increased 73.2% to a quarterly
record of $1.23. For the full fiscal year ended June 30, 2022,
sales rose 19.4% to $817.8 million and diluted EPS increased 70.9%
to $4.05.
Farooq Kathwari, Ethan Allen’s Chairman,
President and CEO commented, “In what was a dynamic and volatile
fiscal year marked by rising costs and global supply chain
challenges, we delivered strong sales growth and record earnings
for the full fiscal year. We are pleased with the strong results
showing the strength of our vertical integration, strong order
backlogs, increased production capacity and the excellent work of
our interior designers combining personal service and technology.
We continue to develop relevant product offerings, of which about
75% are made in our North American manufacturing workshops.”
Mr. Kathwari continued, “Yesterday we announced
a special cash dividend of $0.50 per share and our regular
quarterly cash dividend of $0.32 per share, both payable on August
30, 2022. We have increased our regular quarterly cash dividend
each of the past three years. We ended the quarter with a strong
balance sheet, including cash and investments of $121.1 million as
of June 30, 2022 and no debt.”
“As we celebrate 90 years of innovation, we
remain focused on constant reinvention and maintaining an
entrepreneurial attitude. In the near-term, we remain focused on
managing the business to work through higher backlog at the end of
our fiscal year and to service our customers. We believe we
are well-positioned with our relevant product offerings, a major
advantage of vertical integration including our North American
manufacturing, our interior design focused retail network, a strong
logistics network and a healthy balance sheet to maximize our
opportunities during fiscal 2023, while recognizing the impact of a
slower economy and continued inflation,” concluded Mr.
Kathwari.
FISCAL 2022
FOURTH QUARTER HIGHLIGHTS*
- Consolidated net sales increased
28.8% to $229.7 million
- Retail net sales of $188.6 million increased 25.2%
- Wholesale net sales of $137.4
million increased 29.2%
- Written order trends
- Wholesale segment written orders
decreased 10.7%; up 14.2% from the pre-pandemic fourth quarter of
fiscal 2019
- Retail segment
written orders declined 19.5%; up 12.9% compared with the fourth
quarter of fiscal 2019
- Consolidated
gross margin of 58.2% compared with 58.7% a year ago due to a
change in sales mix and higher input costs partially offset by
strong retail segment sales, product pricing actions taken and
higher manufacturing production
- Operating margin
of 18.3%; adjusted operating margin grew from 14.1% last year to
18.5% due to strong net sales growth, wholesale and retail gross
margin expansion and controlling costs by leveraging cost
reductions; selling, general and administrative expenses decreased
from 44.7% of net sales to 39.8%, reflecting the Company’s
operating leverage
- Diluted EPS of
$1.23 compared with $0.71; adjusted diluted EPS of $1.25 increased
68.9% compared with $0.74
- Generated $29.4
million of cash from operating activities; cash and investments of
$121.1 million
- Increased the
regular quarterly dividend by 10% to $0.32 per share on April 26,
2022; paid on May 25, 2022, to shareholders of record at the close
of business on May 10, 2022
- Opened the
Company’s 16th location in California, with the grand opening of a
new concept design center in Walnut Creek, CA
- Celebrated the
Company’s 90 Years of Innovation by holding a Virtual Convention on
June 23, 2022 under the theme of “Vertical Integration: the Key to
Our Service” which highlighted key areas of manufacturing,
logistics, retail, merchandising and marketing
- Launched the
state-of-the-art immersive 3D Ethan Allen Virtual Design Center
which showcases the timeless aesthetic of Ethan Allen’s vast
product portfolio while fostering collaboration between interior
designers and clients, furthering the Company’s commitment to
combining personal service and technology
FULL FISCAL
YEAR 2022 HIGHLIGHTS*
- Consolidated net sales increased
19.4% to $817.8 million
- Retail net sales of $689.9 million increased 24.3%
- Wholesale net sales of $483.8
million increased 17.1%
- Written order trends
- Wholesale segment written orders
decreased 0.5%
- Retail segment
written orders declined 4.6%
- Consolidated
gross margin rose to 59.3%; Operating margin improved to 16.9%
- Diluted EPS of
$4.05 compared with $2.37; adjusted diluted EPS of $3.93 increased
65.8%
- Generated $69.4
million of cash from operating activities
- Paid cash
dividends of $48.3 million, an increase from $43.3 million last
year
- Strengthened the
Company’s Board of Directors through the election of four new
directors in the past 12 months
- 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 multiple
new design centers during fiscal 2022 that showcase the Company’s
unique vision of American style while combining complimentary
interior design services with technology
- Reaffirmed the
Company’s commitment to maintain and grow its North American
manufacturing where customization helps create relevant and quality
products; steps taken included new job openings and increases in
wages
* See reconciliation of U.S. GAAP to adjusted
key financial measures in the back of this press release.
Comparisons are to the fourth quarter and full fiscal 2021
year.
KEY FINANCIAL MEASURES*
(Unaudited) |
(In thousands,
except per share data) |
|
Three months ended |
Twelve months ended |
|
June 30, |
|
June 30, |
|
|
|
2022 |
|
|
2021 |
|
% Change |
|
2022 |
|
|
2021 |
|
% Change |
Net sales |
$ |
229,683 |
|
$ |
178,323 |
|
28.8 |
% |
$ |
817,762 |
|
$ |
685,169 |
|
19.4 |
% |
GAAP gross profit |
$ |
133,785 |
|
$ |
104,596 |
|
27.9 |
% |
$ |
484,706 |
|
$ |
393,107 |
|
23.3 |
% |
Adjusted gross profit* |
$ |
133,785 |
|
$ |
104,846 |
|
27.6 |
% |
$ |
484,706 |
|
$ |
393,746 |
|
23.1 |
% |
GAAP gross margin |
|
58.2 |
% |
|
58.7 |
% |
|
|
59.3 |
% |
|
57.4 |
% |
|
Adjusted gross margin* |
|
58.2 |
% |
|
58.8 |
% |
|
|
59.3 |
% |
|
57.5 |
% |
|
GAAP operating income |
$ |
41,945 |
|
$ |
24,062 |
|
74.3 |
% |
$ |
138,250 |
|
$ |
77,285 |
|
78.9 |
% |
Adjusted operating income* |
$ |
42,438 |
|
$ |
25,084 |
|
69.2 |
% |
$ |
134,240 |
|
$ |
80,335 |
|
67.1 |
% |
GAAP operating margin |
|
18.3 |
% |
|
13.5 |
% |
|
|
16.9 |
% |
|
11.3 |
% |
|
Adjusted operating margin* |
|
18.5 |
% |
|
14.1 |
% |
|
|
16.4 |
% |
|
11.7 |
% |
|
GAAP net income |
$ |
31,519 |
|
$ |
18,161 |
|
73.6 |
% |
$ |
103,280 |
|
$ |
60,005 |
|
72.1 |
% |
Adjusted net income* |
$ |
31,888 |
|
$ |
18,933 |
|
68.4 |
% |
$ |
100,277 |
|
$ |
60,059 |
|
67.0 |
% |
Effective tax rate |
|
24.9 |
% |
|
24.3 |
% |
|
|
25.2 |
% |
|
21.5 |
% |
|
GAAP diluted EPS |
$ |
1.23 |
|
$ |
0.71 |
|
73.2 |
% |
$ |
4.05 |
|
$ |
2.37 |
|
70.9 |
% |
Adjusted diluted EPS* |
$ |
1.25 |
|
$ |
0.74 |
|
68.9 |
% |
$ |
3.93 |
|
$ |
2.37 |
|
65.8 |
% |
Cash flows from operating
activities |
$ |
29,355 |
|
$ |
27,792 |
|
5.6 |
% |
$ |
69,356 |
|
$ |
129,912 |
|
(46.6 |
%) |
* 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 $109.9 million at June 30, 2022,
compared with $104.6 million a year ago. Cash on hand increased
$5.3 million during fiscal 2022 due to net cash provided by
operating activities of $69.4 million and $10.6 million in proceeds
received from sales of property, plant and equipment partially
offset by $48.3 million in cash dividends paid, including a special
dividend of $19.0 million, capital expenditures of $13.4 million
and net purchases of investments of $11.2 million.
Cash from operating activities
totaled $69.4 million, a decrease from $129.9 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 a reduction in
customer deposits as net shipments outpaced written orders, higher
inventory to increase material availability to support expanded
manufacturing and distribution capacity to service the strong
backlog and increased accounts receivable arising from strong sales
in the Company’s wholesale segment, especially from higher contract
business sales.
Inventories, net increased
to $176.5 million at June 30, 2022, compared with $144.0 million a
year ago, as the Company increased its manufacturing productivity
and service center inventory to support higher levels of production
as well as to help protect against future supply chain disruptions
and price increases.
Customer deposits from
written orders decreased $9.6 million during fiscal 2022 and
totaled $121.1 million at June 30, 2022. Increased manufacturing
capacity and related deliveries combined with the pace of written
orders slowing led to the reduction in customer deposits. Wholesale
order backlog is down 14.7% compared to the beginning of the fiscal
2022 year.
No
debt outstanding as of June 30,
2022.
DIVIDENDS
On August 2, 2022, the Company’s Board of
Directors declared a $0.50 per share special cash dividend to
shareholders of record on August 16, 2022, payable on August 30,
2022. The Board also declared a regular quarterly cash dividend of
$0.32 per share, payable on August 30, 2022, to shareholders of
record at the close of business on August 16, 2022. Ethan Allen has
a long history of returning capital to shareholders and is pleased
to pay a special cash dividend, which highlights the Company’s
strong balance sheet and operating results.
CONFERENCE CALL
Ethan Allen will host an analyst conference call
today, August 3, 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: 13730394
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 risks and uncertainties disclosed in Part
I, Item 1A. Risk Factors, in the Company’s 2021 Annual Report on
Form 10-K and other factors identified in its reports filed with
the Securities and Exchange Commission (the “SEC”), available on
the SEC's website at www.sec.gov.
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 Company
is including this cautionary note to make applicable and take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 for forward-looking statements. 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 June 30, |
Twelve months ended June 30, |
|
|
2022 |
|
2021 |
|
2022 |
|
|
2021 |
Net sales |
$ |
229,683 |
$ |
178,323 |
$ |
817,762 |
|
$ |
685,169 |
Cost of sales |
|
95,898 |
|
73,727 |
|
333,056 |
|
|
292,062 |
Gross profit |
|
133,785 |
|
104,596 |
|
484,706 |
|
|
393,107 |
Selling, general and administrative expenses |
|
91,460 |
|
79,762 |
|
350,917 |
|
|
313,411 |
Restructuring and other impairment charges, net of gains |
|
380 |
|
772 |
|
(4,461 |
) |
|
2,411 |
Operating income |
|
41,945 |
|
24,062 |
|
138,250 |
|
|
77,285 |
Other expenses Interest and other financing costs Other income
(expense), net |
|
5480 |
48(15) |
|
20172 |
|
481(393) |
Income before income taxes |
|
41,971 |
|
23,999 |
|
138,121 |
|
|
76,411 |
Income tax expense |
|
10,452 |
|
5,838 |
|
34,841 |
|
|
16,406 |
Net income |
$ |
31,519 |
$ |
18,161 |
$ |
103,280 |
|
$ |
60,005 |
|
|
|
|
|
Per share data |
|
|
|
|
Diluted earnings per common share: |
|
|
|
|
Net income per diluted share |
$ |
1.23 |
$ |
0.71 |
$ |
4.05 |
|
$ |
2.37 |
Diluted weighted average common shares |
|
25,574 |
|
25,493 |
|
25,522 |
|
|
25,352 |
|
|
|
|
|
Ethan Allen Interiors
Inc. |
|
|
Condensed Consolidated
Balance Sheets |
|
|
(Unaudited) |
|
|
(In thousands) |
|
|
|
June 30, |
June 30, |
ASSETS |
|
2022 |
|
|
2021 |
|
Current assets: |
|
|
Cash and cash equivalents |
$ |
109,919 |
|
$ |
104,596 |
|
Investments |
|
11,199 |
|
|
- |
|
Accounts receivable, net |
|
17,019 |
|
|
9,026 |
|
Inventories, net |
|
176,504 |
|
|
143,978 |
|
Prepaid expenses and other
current assets |
|
32,108 |
|
|
37,679 |
|
Total current assets |
|
346,749 |
|
|
295,279 |
|
|
|
|
Property, plant and equipment,
net |
|
223,530 |
|
|
231,446 |
|
Goodwill |
|
25,388 |
|
|
25,388 |
|
Intangible assets |
|
19,740 |
|
|
19,740 |
|
Operating lease right-of-use
assets |
|
100,782 |
|
|
108,730 |
|
Deferred income taxes |
|
820 |
|
|
1,078 |
|
Other assets |
|
2,886 |
|
|
1,584 |
|
Total ASSETS |
$ |
719,895 |
|
$ |
683,245 |
|
|
|
|
LIABILITIES AND SHAREHOLDERS’
EQUITY |
|
|
Current liabilities: |
|
|
Accounts payable and accrued
expenses |
$ |
37,370 |
|
$ |
37,786 |
|
Customer deposits and deferred
revenue |
|
121,080 |
|
|
130,635 |
|
Accrued compensation and
benefits |
|
22,700 |
|
|
23,866 |
|
Current operating lease
liabilities |
|
25,705 |
|
|
27,395 |
|
Other current liabilities |
|
8,788 |
|
|
4,220 |
|
Total current liabilities |
|
215,643 |
|
|
223,902 |
|
|
|
|
Operating lease liabilities,
long-term |
|
89,506 |
|
|
97,911 |
|
Deferred income taxes |
|
4,418 |
|
|
5,028 |
|
Other long-term liabilities |
|
3,005 |
|
|
4,986 |
|
Total LIABILITIES |
$ |
312,572 |
|
$ |
331,827 |
|
|
|
|
Shareholders’ equity: |
|
|
Ethan Allen Interiors Inc. shareholders’ equity |
$ |
407,349 |
|
$ |
351,443 |
|
Noncontrolling interests |
|
(26 |
) |
|
(25 |
) |
Total shareholders’ equity |
$ |
407,323 |
|
$ |
351,418 |
|
Total LIABILITIES AND
SHAREHOLDERS’ EQUITY |
$ |
719,895 |
|
$ |
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 |
|
|
Twelve months ended |
|
|
June 30, |
|
|
June 30, |
|
|
|
2022 |
|
|
2021 |
|
% Change |
|
|
2022 |
|
|
2021 |
|
% Change |
Consolidated
Adjusted Gross Profit / Gross Margin |
GAAP Gross profit |
$ |
133,785 |
|
$ |
104,596 |
|
27.9 |
% |
|
$ |
484,706 |
|
$ |
393,107 |
|
23.3 |
% |
Adjustments (pre-tax) * |
|
- |
|
|
250 |
|
|
|
|
- |
|
|
639 |
|
|
Adjusted gross profit * |
$ |
133,785 |
|
$ |
104,846 |
|
27.6 |
% |
|
$ |
484,706 |
|
$ |
393,746 |
|
23.1 |
% |
Adjusted gross margin * |
|
58.2 |
% |
|
58.8 |
% |
|
|
|
59.3 |
% |
|
57.5 |
% |
|
|
|
|
|
|
|
|
Consolidated
Adjusted Operating Income / Operating Margin |
GAAP Operating income |
$ |
41,945 |
|
$ |
24,062 |
|
74.3 |
% |
|
$ |
138,250 |
|
$ |
77,285 |
|
78.9 |
% |
Adjustments (pre-tax)* |
|
493 |
|
|
1,022 |
|
|
|
|
(4,010 |
) |
|
3,050 |
|
|
Adjusted operating income* |
$ |
42,438 |
|
$ |
25,084 |
|
69.2 |
% |
|
$ |
134,240 |
|
$ |
80,335 |
|
67.1 |
% |
|
|
|
|
|
|
|
|
Consolidated Net sales |
$ |
229,683 |
|
$ |
178,323 |
|
28.8 |
% |
|
$ |
817,762 |
|
$ |
685,169 |
|
19.4 |
% |
GAAP Operating margin |
|
18.3 |
% |
|
13.5 |
% |
|
|
|
16.9 |
% |
|
11.3 |
% |
|
Adjusted operating margin* |
|
18.5 |
% |
|
14.1 |
% |
|
|
|
16.4 |
% |
|
11.7 |
% |
|
|
|
|
|
|
|
|
|
Consolidated
Adjusted Net Income / Adjusted Diluted EPS |
GAAP Net income |
$ |
31,519 |
|
$ |
18,161 |
|
73.6 |
% |
|
$ |
103,280 |
|
$ |
60,005 |
|
72.1 |
% |
Adjustments, net of tax* |
|
369 |
|
|
772 |
|
|
|
|
(3,003 |
) |
|
54 |
|
|
Adjusted net income |
$ |
31,888 |
|
$ |
18,933 |
|
68.4 |
% |
|
$ |
100,277 |
|
$ |
60,059 |
|
67.0 |
% |
Diluted weighted average common
shares |
|
25,574 |
|
|
25,493 |
|
|
|
|
25,522 |
|
|
25,352 |
|
|
GAAP Diluted EPS |
$ |
1.23 |
|
$ |
0.71 |
|
73.2 |
% |
|
$ |
4.05 |
|
$ |
2.37 |
|
70.9 |
% |
Adjusted diluted EPS* |
$ |
1.25 |
|
$ |
0.74 |
|
68.9 |
% |
|
$ |
3.93 |
|
$ |
2.37 |
|
65.8 |
% |
* 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 |
Twelve months ended |
(In thousands) |
June 30, |
June 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Inventory reserves and
write-downs |
$ |
- |
|
$ |
196 |
|
$ |
- |
|
$ |
585 |
|
Optimization of manufacturing
and logistics |
|
- |
|
|
54 |
|
|
- |
|
|
54 |
|
Adjustments to gross profit |
$ |
- |
|
$ |
250 |
|
$ |
- |
|
$ |
639 |
|
|
|
|
|
|
Inventory reserves and
write-downs |
$ |
- |
|
$ |
196 |
|
$ |
- |
|
$ |
585 |
|
Optimization of manufacturing
and logistics |
|
- |
|
|
356 |
|
|
- |
|
|
356 |
|
Gain on sales of property,
plant and equipment |
|
- |
|
|
- |
|
|
(5,431 |
) |
|
(473 |
) |
Severance and other
charges |
|
380 |
|
|
339 |
|
|
970 |
|
|
422 |
|
Impairment of long-lived
assets and lease exit costs |
|
113 |
|
|
131 |
|
|
451 |
|
|
2,160 |
|
Adjustments to operating income |
$ |
493 |
|
$ |
1,022 |
|
$ |
(4,010 |
) |
$ |
3,050 |
|
Adjustments to income before income taxes |
$ |
493 |
|
$ |
1,022 |
|
$ |
(4,010 |
) |
$ |
3,050 |
|
Related income tax effects on
non-recurring items(1) |
|
(124 |
) |
|
(250 |
) |
|
1,007 |
|
|
(747 |
) |
Income tax benefit from
valuation allowance change |
|
- |
|
|
- |
|
|
- |
|
|
(2,249 |
) |
Adjustments to net income |
$ |
369 |
|
$ |
772 |
|
$ |
(3,003 |
) |
$ |
54 |
|
(1) Calculated using a tax rate of 25.1% in the
current year and 24.5% in the prior year.
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