ETHAN ALLEN INTER : Ethan Allen Reports Results for Quarter and Fiscal Year Ended June 30, 2010
08/04/2010| 07:30pm US/Eastern
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Ethan Allen Interiors Inc. (?Ethan Allen? or the ?Company?) (NYSE:ETH)
reported operating results for the three and twelve months ended June
30, 2010.
Farooq Kathwari, Chairman, President and CEO commented, ?We are
gratified that our positive operating results reflect the impact of the
many major initiatives undertaken during this ?Great Recession'. Net
income excluding restructuring, impairment, and related transition costs
as well as benefits primarily from deferred commissions and a non-cash
$34 million tax asset valuation charge during the quarter was $4.6
million or $0.16 per diluted share compared to a loss of $6.8 million or
$0.23 per diluted share the prior year also excluding similar charges.?
Mr. Kathwari further stated, ?Our focus has been to position the Company
for growth in sales and profitability. Our initiatives in our vertically
integrated structure have helped us to reduce costs, improve the
efficiency of our manufacturing, logistics and retail while at the same
time improving quality and personal service. While pleased with the
recent results, we remain cautious due to uncertain economic times.?
Three Months Ended June 30, 2010
Net delivered sales for the quarter ended June 30, 2010 were $163.3
million, up 17.8% from the prior year quarter. The Company's Retail
division delivered net sales of $121.2 million increased 18.5% from the
prior year quarter. Total written orders booked for the Retail division
increased 23.5% while comparable design center orders were 31.3% higher
than the prior year quarter.
The net loss for the quarter ended June 30, 2010 was $26.5 million or a
loss of $0.91 per diluted share. This compares with a net loss the prior
year quarter of $16.9 million or $0.58 per diluted share. Net income
excluding restructuring, impairment, and related transition costs as
well as benefits primarily from deferred commissions and a non-cash $34
million tax asset valuation was $4.6 million or $0.16 per diluted share
compared to a loss of $6.8 million or $0.23 per diluted share in the
prior year quarter also excluding similar charges.
Twelve Months Ended June 30, 2010
For the twelve months ended June 30, 2010, net delivered sales totaled
$590.1 million as compared to $674.3 million the prior year. Net
delivered sales for the Company's Retail division were $438.5 million
versus $508.6 million the prior year. Wholesale net sales were $362.5
million versus $403.4 million the prior year.
The fiscal year loss was $44.3 million or $1.53 per diluted share
compared with a loss the prior year of $52.7 million or $1.83 per
diluted share. The net loss excluding restructuring, impairment, and
related transition costs as well as deferred commission impacts and tax
asset valuation charges from both years was $4.2 million or $0.15 per
diluted share compared to $4.5 million or $0.16 per diluted share in the
prior year.
Analyst Conference Call
The Company will conduct a Conference Call at 11:00 AM (Eastern) on
Thursday, August 5th. 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 280 Design Centers in the
United States and abroad. Ethan Allen owns and operates seven
manufacturing facilities in North America, including five manufacturing
plants and one sawmill in the United States and one manufacturing plant
in Mexico. Approximately seventy percent of its products are made 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)
Selected Consolidated Financial
Data:
Three Months Ended
Twelve Months Ended
06/30/10
06/30/09
06/30/10
06/30/09
Net sales
$163.3
$138.7
$590.1
$674.3
Gross margin
49.5%
48.7%
47.5%
51.5%
Operating margin
7.6%
-14.7%
-2.0%
-10.8%
Operating margin (excluding special charges*)
5.6%
-5.4%
0.2%
0.2%
Net income (loss)
($26.5)
($16.9)
($44.3)
($52.7)
Net income (loss) (excluding special charges* and
unusual income tax impacts)
$4.6
($6.8)
($4.2)
($4.5)
Operating cash flow
$17.7
$8.1
$51.3
$21.9
Capital expenditures
$2.3
$2.1
$9.9
$22.5
Acquisitions
$0.1
$0.6
$0.1
$1.4
Treasury stock repurchases (settlement
date basis)
$0.0
$0.0
$0.0
$0.0
EBITDA
$19.8
($13.9)
$21.5
($45.1)
EBITDA as % of net sales
12.2%
-10.0%
3.6%
-6.7%
EBITDA (excluding special charges*)
$15.5
($1.0)
$27.0
$28.9
EBITDA as % of net sales (excluding special charges*)
9.5%
-0.7%
4.6%
4.3%
Selected Financial Data by Business
Segment:
Three Months Ended
Twelve Months Ended
06/30/10
06/30/09
06/30/10
06/30/09
Retail
Net sales
$121.2
$102.3
$438.5
$508.6
Operating margin
2.3%
-13.6%
-6.6%
-18.1%
Operating margin (excluding special charges*)
-1.6%
-12.3%
-7.1%
-7.0%
Wholesale
Net sales
$100.1
$85.2
$362.5
$403.4
Operating margin
11.1%
-9.1%
3.9%
1.7%
Operating margin (excluding special charges*)
12.5%
4.5%
8.2%
6.0%
* Special charges consist of restructuring, impairment, transition
charges and impact from commission plan
changes. Related tax effects are calculated using a normalized
income tax rate.
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