Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE:
ETH) today reported its business and financial results for the
fiscal 2021 third quarter ended March 31, 2021. The Company
reported GAAP EPS of $0.61 compared to $(0.01) in the prior year
third quarter and adjusted EPS of $0.58 compared to $0.02.
Farooq Kathwari, Ethan Allen’s Chairman,
President and CEO commented, “Crisis creates opportunity. In March
and April 2020 we furloughed approximately 70% of our global
workforce, temporarily closed about 250 manufacturing, logistics
and retail design center facilities in North America along with
over 100 retail locations internationally, and borrowed $100
million as a precautionary measure and to maximize financial
flexibility in light of the uncertainty surrounding the impact of
COVID-19. A year later our teams have performed well, most of our
retail workforce is back and our workforce in our manufacturing has
surpassed pre-pandemic levels, we have paid back all the
borrowings, ended the quarter with over $100 million of cash, and
earlier this week declared a special dividend of $0.75 in addition
to the regular quarterly dividend of $0.25. For the quarter ended
March 31, 2021 our retail division written orders increased 51.8%
over the prior year quarter.”
Mr. Kathwari continued, “We have performed well
due to our strong offerings, a strong network of retail design
centers, and our focus on interior design services, which are
increasingly being combined with technology. Our industry and many
others have been challenged on the supply side. We are relatively
in a much better position of focusing on manufacturing in North
America where about 75% of our products are made by our
craftspeople. About 70% of the products we make are custom-made
when an order is received.”
“In these challenging times we continue to focus
on safety and treating our associates and customers with dignity
and compassion,” Mr. Kathwari concluded.
FISCAL 2021
THIRD QUARTER HIGHLIGHTS*
- Diluted earnings
per share (“EPS”) of $0.61 compared to $(0.01); adjusted EPS of
$0.58 compared to $0.02
- Consolidated
operating margin of 10.7% compared with -0.5%; adjusted operating
margin of 11.1% compared with 0.2%
- Retail segment written order growth
of 51.8%
- Wholesale segment written orders
increased 39.0%; excluding GSA and other government orders,
wholesale segment orders grew 48.3%
- Consolidated net
delivered sales increased 18.2% to $177.0 million
- Consolidated
gross margin of 57.3% compared to 56.1%
- Strong cash flow
helped end the quarter with cash on hand of $109.0 million and no
borrowings
- Paid regular
quarterly cash dividend of $6.3 million during the quarter
The company also announced on April 27, 2021
that its Board of Directors declared a special cash dividend of
$0.75 and regular cash dividend of $0.25 payable on May 25, 2021 to
shareholders of record on May 11, 2021.
* 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 2020.
KEY FINANCIAL MEASURES*
| (Unaudited) |
| (In thousands,
except per share data) |
| |
Three
months ended |
Nine months ended |
| |
March 31, |
|
March 31, |
|
| |
|
2021 |
|
|
2020 |
|
% Change |
|
2021 |
|
|
2020 |
|
% Change |
| Net sales |
$ |
176,962 |
|
$ |
149,774 |
|
18.2 |
% |
$ |
506,846 |
|
$ |
498,269 |
|
1.7 |
% |
| GAAP gross profit |
$ |
101,409 |
|
$ |
83,949 |
|
20.8 |
% |
$ |
288,511 |
|
$ |
275,264 |
|
4.8 |
% |
|
Adjusted gross profit* |
$ |
101,409 |
|
$ |
83,944 |
|
20.8 |
% |
$ |
288,900 |
|
$ |
279,788 |
|
3.3 |
% |
| GAAP gross margin |
|
57.3 |
% |
|
56.1 |
% |
|
|
56.9 |
% |
|
55.2 |
% |
|
|
Adjusted gross margin* |
|
57.3 |
% |
|
56.0 |
% |
|
|
57.0 |
% |
|
56.2 |
% |
|
| GAAP operating income |
$ |
18,987 |
|
$ |
(754 |
) |
2618.2 |
% |
$ |
53,223 |
|
$ |
27,091 |
|
96.5 |
% |
|
Adjusted operating income* |
$ |
19,580 |
|
$ |
353 |
|
5446.7 |
% |
$ |
55,251 |
|
$ |
22,054 |
|
150.5 |
% |
| GAAP operating margin |
|
10.7 |
% |
|
(0.5 |
%) |
|
|
10.5 |
% |
|
5.4 |
% |
|
|
Adjusted operating margin* |
|
11.1 |
% |
|
0.2 |
% |
|
|
10.9 |
% |
|
4.4 |
% |
|
| GAAP net income |
$ |
15,608 |
|
$ |
(223 |
) |
7099.1 |
% |
$ |
41,844 |
|
$ |
20,969 |
|
99.6 |
% |
|
Adjusted net income* |
$ |
14,675 |
|
$ |
613 |
|
2294.8 |
% |
$ |
41,126 |
|
$ |
17,166 |
|
150.5 |
% |
| Effective tax rate |
|
17.8 |
% |
|
58.8 |
% |
|
|
20.2 |
% |
|
23.4 |
% |
|
| GAAP diluted EPS |
$ |
0.61 |
|
$ |
(0.01 |
) |
6200.0 |
% |
$ |
1.65 |
|
$ |
0.80 |
|
106.3 |
% |
|
Adjusted diluted EPS* |
$ |
0.58 |
|
$ |
0.02 |
|
2800.0 |
% |
$ |
1.63 |
|
$ |
0.65 |
|
150.8 |
% |
| Capital expenditures |
$ |
4,464 |
|
$ |
4,470 |
|
- |
|
$ |
10,342 |
|
$ |
12,457 |
|
(16.9 |
%) |
| Cash flows from operating
activities |
$ |
36,202 |
|
$ |
15,296 |
|
136.7 |
% |
$ |
102,120 |
|
$ |
38,684 |
|
164.0 |
% |
* See reconciliation of U.S. GAAP to adjusted
key financial measures in the back of this press release
DIVIDEND
DECLARED
On April 27, 2021, the Company announced that
its Board of Directors had declared a special cash dividend
of $0.75 per share, payable on May 25, 2021 to
shareholders of record at the close of business on May 11, 2021 and
had also declared a regular quarterly cash dividend
of $0.25 per share, payable on May 25, 2021 to
shareholders of record at the close of business on May 11,
2021.
ANALYST CONFERENCE
CALL
Ethan Allen will host an analyst conference call
today, April 29, 2021 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: 13718964
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: ETH) is a
leading interior design company, manufacturer and retailer in the
home furnishings marketplace. The Company provides complimentary
interior design service to its clients and sells a full range of
furniture products and decorative home accents through a retail
network of approximately 300 design centers in the United States
and abroad as well as online at ethanallen.com. Ethan Allen owns
and operates nine manufacturing facilities, including six
manufacturing plants in the United States, two manufacturing plants
in Mexico and one manufacturing plant in Honduras. 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: Corey WhitelyExecutive Vice President,
Administration, 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
not 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 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. The
presentation of these non-GAAP financial measures is not intended
to be considered in isolation or as a substitute for, or superior
to, the financial measures presented 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 the 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 news 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, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which represent management's beliefs and assumptions
concerning future events based on information currently available
to the Company relating to its future results. Such forward-looking
statements are identified in this news release and incorporated
herein by reference by use of certain forward-looking 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 similar expressions and
the negatives of such forward-looking words. These forward-looking
statements are subject to management decisions and various
assumptions about future events, including projections about future
financial growth and trends with respect to the Company’s business
and results of operations, and are not guarantees of future
performance. 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 ongoing global COVID-19 pandemic may continue to
materially adversely affect the Company’s business, its results of
operations and overall financial performance; additional funding
from external sources may not be available at the levels required,
or may cost more than expected; declines in certain economic
conditions, which impact consumer confidence and consumer spending;
a decline in the health of the economy and consumer spending may
affect consumer purchases of discretionary items; financial or
operational difficulties due to competition in the residential
furniture industry; a significant shift in consumer preference
toward purchasing products online; ability to maintain and enhance
the Ethan Allen brand; failure to successfully anticipate or
respond to changes in consumer tastes and trends; global and local
economic uncertainty may materially adversely affect manufacturing
operations or sources of merchandise and international operations;
competition from overseas manufacturers and domestic retailers;
disruptions in the supply chain; the number of manufacturing and
logistics sites may increase exposure to business disruptions and
could result in higher transportation costs; fluctuations in
the price, availability and quality of raw materials could
result in increased costs or cause production delays; 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; reliance
on information technology systems to process transactions,
summarize results, and manage its 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;
changes in United States trade and tax policy; reliance on certain
key personnel; loss of key personnel or inability to hire
additional qualified personnel; additional asset impairment charges
that could reduce profitability; access to consumer credit could be
interrupted; inability to maintain current design center locations
at current costs; failure to successfully select and secure
design center locations; changes to tax policies; hazards and risks
which may not be fully covered by insurance; possible failure to
protect the Company’s intellectual property; and other factors
disclosed in Part I, Item 1A. Risk Factors, in the Company’s 2020
Annual Report on Form 10-K.
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. These forward-looking statements
speak only as of the date of this news release. Other than as
required by law, the Company undertakes no obligation to update or
revise its forward-looking statements, whether because of new
information, future events, or otherwise. Accordingly, actual
circumstances and results could differ materially from those
contemplated by the forward-looking statements.
|
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, |
|
|
|
2021 |
|
2020 |
|
|
2021 |
|
2020 |
|
|
Net sales |
$ |
176,962 |
$ |
149,774 |
|
$ |
506,846 |
$ |
498,269 |
|
|
Cost of sales |
|
75,553 |
|
65,825 |
|
|
218,335 |
|
223,005 |
|
|
Gross profit |
|
101,409 |
|
83,949 |
|
|
288,511 |
|
275,264 |
|
|
Selling, general and administrative expenses |
|
81,829 |
|
83,841 |
|
|
233,649 |
|
258,346 |
|
|
Restructuring and other impairment charges, net of gains |
|
593 |
|
862 |
|
|
1,639 |
|
(10,173 |
) |
|
Operating income |
|
18,987 |
|
(754 |
) |
|
53,223 |
|
27,091 |
|
|
Other expenses Interest and other financing costs |
|
51 |
|
85 |
|
433 |
|
184 |
|
|
Other income (expense), net |
|
57 |
|
298 |
|
|
(378) |
|
479 |
|
|
Income before income taxes |
|
18,993 |
|
(541 |
) |
|
52,412 |
|
27,386 |
|
|
Income tax expense |
|
3,385 |
|
(318 |
) |
|
10,568 |
|
6,417 |
|
|
Net income |
$ |
15,608 |
|
(223 |
) |
$ |
41,844 |
$ |
20,969 |
|
|
|
|
|
|
|
|
Per share data |
|
|
|
|
|
Diluted earnings per common share: |
|
|
|
|
|
Net income per diluted share |
$ |
0.61 |
$ |
(0.01 |
) |
$ |
1.65 |
$ |
0.80 |
|
|
Diluted weighted average common shares |
|
25,400 |
|
25,703 |
|
|
25,305 |
|
26,362 |
|
|
|
|
|
|
|
| Ethan Allen Interiors
Inc. |
|
|
| Condensed Consolidated
Balance Sheets |
|
|
| (Unaudited) |
|
|
| (In thousands) |
|
|
| |
March 31, |
June 30, |
| ASSETS |
|
2021 |
|
|
2020 |
|
| Current assets: |
|
|
| Cash and cash equivalents |
$ |
108,956 |
|
$ |
72,276 |
|
| Accounts receivable, net |
|
11,573 |
|
|
8,092 |
|
| Inventories, net |
|
135,686 |
|
|
126,101 |
|
| Prepaid expenses and other
current assets |
|
34,905 |
|
|
23,483 |
|
| Total current assets |
|
291,120 |
|
|
229,952 |
|
| |
|
|
| Property, plant and equipment,
net |
|
233,331 |
|
|
236,678 |
|
| Goodwill |
|
25,388 |
|
|
25,388 |
|
| Intangible assets |
|
19,740 |
|
|
19,740 |
|
| Operating lease right-of-use
assets |
|
114,583 |
|
|
109,342 |
|
| Deferred income taxes |
|
1,745 |
|
|
137 |
|
| Other assets |
|
1,639 |
|
|
1,552 |
|
| Total ASSETS |
$ |
687,546 |
|
$ |
622,789 |
|
| |
|
|
| LIABILITIES AND SHAREHOLDERS’
EQUITY |
|
|
| Current liabilities: |
|
|
| Accounts payable and accrued
expenses |
$ |
38,716 |
|
$ |
25,595 |
|
| Customer deposits and deferred
revenue |
|
115,250 |
|
|
64,031 |
|
| Accrued compensation and
benefits |
|
25,821 |
|
|
18,278 |
|
| Current operating lease
liabilities |
|
34,537 |
|
|
27,366 |
|
| Other current liabilities |
|
11,622 |
|
|
3,708 |
|
| Total current liabilities |
|
225,946 |
|
|
138,978 |
|
| |
|
|
| Long-term debt |
|
- |
|
|
50,000 |
|
| Operating lease liabilities,
long-term |
|
97,467 |
|
|
102,111 |
|
| Deferred income taxes |
|
2,058 |
|
|
1,074 |
|
| Other long-term liabilities |
|
5,497 |
|
|
2,562 |
|
| Total LIABILITIES |
$ |
330,968 |
|
$ |
294,725 |
|
| |
|
|
| Shareholders’ equity: |
|
|
|
Ethan Allen Interiors Inc. shareholders’ equity |
$ |
356,602 |
|
$ |
328,065 |
|
|
Noncontrolling interests |
|
(24 |
) |
|
(1 |
) |
| Total shareholders’ equity |
$ |
356,578 |
|
$ |
328,064 |
|
| Total LIABILITIES AND
SHAREHOLDERS’ EQUITY |
$ |
687,546 |
|
$ |
622,789 |
|
| Ethan Allen Interiors
Inc. |
|
|
|
| Design Center
Activity |
|
|
|
| (Unaudited) |
|
|
|
| |
Independent |
Company- |
|
| Design Center activity |
Retailers |
Operated |
Total |
| Balance at June 30, 2020 |
160 |
|
144 |
|
304 |
|
|
New locations |
12 |
|
3 |
|
15 |
|
|
Closures |
(12 |
) |
(3 |
) |
(15 |
) |
|
Transfers |
- |
|
- |
|
- |
|
| Balance at March 31, 2021 |
160 |
|
144 |
|
304 |
|
| Relocations (in new and
closures) |
- |
|
1 |
|
1 |
|
| |
|
|
|
| U.S. |
34 |
|
139 |
|
173 |
|
| International |
126 |
|
5 |
|
131 |
|
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, adjusted retail operating income and margin, adjusted
wholesale 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 show a reconciliation
of non-GAAP financial measures used in this newsrelease 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, |
|
| |
|
2021 |
|
|
2020 |
|
% Change |
|
|
2021 |
|
|
2020 |
|
% Change |
| Consolidated
Adjusted Gross Profit / Gross Margin |
| GAAP Gross profit |
$ |
101,409 |
|
$ |
83,949 |
|
20.8 |
% |
|
$ |
288,511 |
|
$ |
275,264 |
|
4.8 |
% |
| Adjustments (pre-tax) * |
|
- |
|
|
(5 |
) |
|
|
|
389 |
|
|
4,524 |
|
|
|
Adjusted gross profit * |
$ |
101,409 |
|
$ |
83,944 |
|
20.8 |
% |
|
$ |
288,900 |
|
$ |
279,788 |
|
3.3 |
% |
|
Adjusted gross margin * |
|
57.3 |
% |
|
56.0 |
% |
|
|
|
57.0 |
% |
|
56.2 |
% |
|
| |
|
|
|
|
|
|
| Consolidated
Adjusted Operating Income / Operating Margin |
| GAAP Operating income |
$ |
18,987 |
|
$ |
(754 |
) |
2618.2 |
% |
|
$ |
53,223 |
|
$ |
27,091 |
|
96.5 |
% |
| Adjustments (pre-tax)* |
|
593 |
|
|
1,107 |
|
|
|
|
2,028 |
|
|
(5,037 |
) |
|
|
Adjusted operating income* |
$ |
19,580 |
|
$ |
353 |
|
5446.7 |
% |
|
$ |
55,251 |
|
$ |
22,054 |
|
150.5 |
% |
| |
|
|
|
|
|
|
|
| Consolidated Net sales |
$ |
176,962 |
|
$ |
149,774 |
|
18.2 |
% |
|
$ |
506,846 |
|
$ |
498,269 |
|
1.7 |
% |
| GAAP Operating margin |
|
10.7 |
% |
|
(0.5 |
%) |
|
|
|
10.5 |
% |
|
5.4 |
% |
|
|
Adjusted operating margin* |
|
11.1 |
% |
|
0.2 |
% |
|
|
|
10.9 |
% |
|
4.4 |
% |
|
| |
|
|
|
|
|
|
|
| Consolidated
Adjusted Net Income / Adjusted Diluted EPS |
| GAAP Net income |
$ |
15,608 |
|
($ |
223 |
) |
7099.1 |
% |
|
$ |
41,844 |
|
$ |
20,969 |
|
99.6 |
% |
| Adjustments, net of tax* |
|
(933 |
) |
|
836 |
|
|
|
|
(718 |
) |
|
(3,803 |
) |
|
|
Adjusted net income |
$ |
14,675 |
|
$ |
613 |
|
2294.8 |
% |
|
$ |
41,126 |
|
$ |
17,166 |
|
139.6 |
% |
| Diluted weighted average common
shares |
|
25,400 |
|
|
25,703 |
|
|
|
|
25,305 |
|
|
26,362 |
|
|
| GAAP Diluted EPS |
$ |
0.61 |
|
($ |
0.1 |
) |
6200.0 |
% |
|
$ |
1.65 |
|
$ |
0.80 |
|
106.3 |
% |
|
Adjusted diluted EPS* |
$ |
0.58 |
|
$ |
0.02 |
|
2800.0 |
% |
|
$ |
1.63 |
|
$ |
0.65 |
|
150.8 |
% |
|
|
|
|
|
|
|
|
|
| Wholesale Adjusted
Operating Income / Adjusted Operating Margin |
| Wholesale GAAP operating
income |
$ |
14,508 |
|
$ |
8,936 |
|
62.4 |
% |
|
$ |
40,366 |
|
$ |
31,594 |
|
27.8 |
% |
| Adjustments (pre-tax)* |
|
(389 |
) |
|
601 |
|
|
|
|
- |
|
|
(5,691 |
) |
|
|
Adjusted wholesale operating income* |
$ |
14,119 |
|
$ |
9,537 |
|
48.0 |
% |
|
$ |
40,366 |
|
$ |
25,903 |
|
55.8 |
% |
| |
|
|
|
|
|
|
|
| Wholesale net sales |
$ |
107,820 |
|
$ |
93,139 |
|
15.8 |
% |
|
$ |
306,704 |
|
$ |
286,357 |
|
7.1 |
% |
| Wholesale GAAP operating
margin |
|
13.5 |
% |
|
9.6 |
% |
|
|
|
13.2 |
% |
|
11.0 |
% |
|
|
Adjusted wholesale operating margin* |
|
13.1 |
% |
|
10.2 |
% |
|
|
|
13.2 |
% |
|
9.0 |
% |
|
| |
|
|
|
|
|
|
| Retail Adjusted
Operating Income / Adjusted Operating Margin |
| Retail GAAP operating income |
$ |
4,962 |
|
$ |
(8,772 |
) |
156.6 |
% |
|
$ |
16,854 |
|
$ |
(7,343 |
) |
329.5 |
% |
| Adjustments (pre-tax)* |
|
982 |
|
|
506 |
|
|
|
|
2,028 |
|
|
654 |
|
|
|
Adjusted retail operating income* |
$ |
5,944 |
|
$ |
(8,266 |
) |
171.9 |
% |
|
$ |
18,882 |
|
$ |
(6,689 |
) |
382.3 |
% |
| |
|
|
|
|
|
|
|
| Retail net sales |
$ |
141,396 |
|
$ |
115,698 |
|
22.2 |
% |
|
$ |
404,295 |
|
$ |
392,065 |
|
3.1 |
% |
| Retail GAAP operating margin |
|
3.5 |
% |
|
(7.6 |
%) |
|
|
|
4.2 |
% |
|
1.9 |
% |
|
|
Adjusted retail operating margin* |
|
4.2 |
% |
|
(7.1 |
%) |
|
|
|
4.7 |
% |
|
1.7 |
% |
|
| * 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, |
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| Inventory reserves and
write-downs (wholesale) |
$ |
- |
|
$ |
- |
|
$ |
389 |
|
$ |
3,209 |
|
| Manufacturing overhead costs
and other (wholesale) |
|
- |
|
|
(5 |
) |
|
- |
|
|
1,315 |
|
|
Adjustments to gross profit |
$ |
- |
|
$ |
(5 |
) |
$ |
389 |
|
$ |
4,524 |
|
| |
|
|
|
|
| Inventory reserves and
write-downs (wholesale) |
$ |
- |
|
$ |
- |
|
$ |
389 |
|
$ |
3,209 |
|
| Optimization of manufacturing
and logistics (wholesale) |
|
- |
|
|
363 |
|
|
- |
|
|
2,148 |
|
| Gain on sale of Passaic, New
Jersey property and other (wholesale) |
|
(697 |
) |
|
- |
|
|
(697 |
) |
|
(11,497 |
) |
| Severance and other
professional fees (wholesale) |
|
308 |
|
|
238 |
|
|
308 |
|
|
449 |
|
| (Gain) on sale of property,
plant and equipment (retail) |
|
(746 |
) |
|
- |
|
|
(473 |
) |
|
- |
|
| Retail acquisition costs,
severance and other charges (retail) |
|
322 |
|
|
- |
|
|
472 |
|
|
148 |
|
| Lease exit costs |
|
1,406 |
|
|
- |
|
|
1,406 |
|
|
- |
|
| Impairment of long-lived
assets (retail) |
|
- |
|
|
506 |
|
|
623 |
|
|
506 |
|
|
Adjustments to operating income |
|
593 |
|
|
1,107 |
|
|
2,028 |
|
|
(5,037 |
) |
|
Adjustments to income before income taxes |
|
593 |
|
|
1,107 |
|
|
2,028 |
|
|
(5,037 |
) |
| Related income tax effects on
non-recurring items (1) |
|
(145 |
) |
|
(271 |
) |
|
(497 |
) |
|
1,234 |
|
| Income tax benefit from
valuation allowance adjustment |
|
(1,381 |
) |
|
- |
|
|
(2,249 |
) |
|
- |
|
|
Adjustments to net income |
$ |
(933 |
) |
$ |
836 |
|
$ |
(718 |
) |
$ |
(3,803 |
) |
(1) Calculated using a tax rate of 24.5% in all
periods presented.
Grayscale Ethere (NYSE:ETH)
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