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ETHAN ALLEN
REPORTS FISCAL 2018 THIRD QUARTER RESULTS
DANBURY, CT -
April 26, 2018 - Ethan Allen Interiors Inc. ("Ethan Allen" or
the "Company") (NYSE: ETH) today reported operating results for the
fiscal 2018 third quarter ended March 31, 2018. Please refer to the
accompanying financial statements and reconciliation to non-GAAP
measures discussed below.
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Consolidated net sales of $181.4 million
increased 0.5% compared to the prior year third quarter.
-
Retail written orders increased 2.6% compared to
the prior year third quarter.
-
Backlogs increased 15% in the retail division
and 70% in the wholesale division compared to March 31, 2017.
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GAAP diluted earnings per share of $0.09
compared to $0.08 in the prior year third quarter and adjusted
diluted earnings per share of $0.11 compared to $0.23 in the prior
year third quarter.
-
Paid $24.3 million in dividends fiscal year to
date, a 64.7% increase over the same period last year.
Farooq Kathwari, Chairman and CEO,
commented, "As we discussed during our recent investor meeting, we
are well positioned to grow our sales and profits as many of our
major initiatives are in place. During the third quarter, our
stronger wholesale shipments, which increased 7.3% compared to
prior year quarter, reflects the diminishing effects of
inefficiencies due to start-up of production on new products and
the government contract orders." Mr. Kathwari continued, "We expect
our major marketing campaign to help build traffic to our retail
network and to our digital mediums in the fourth quarter. We remain
cautiously optimistic."
FISCAL 2018 THIRD QUARTER
FINANCIAL RESULTS:
Consolidated
Net sales
were $181.4 million for the three months ended March 31, 2018
compared to $180.5 million for the same period in the prior year,
an increase of 0.5%. Wholesale segment sales increased
progressively each month during the March 2018 quarter, as the
disruptions diminished in the manufacturing processes related to
first production runs and government contract orders. Although
shipments from wholesale to fill retail orders increased 3%, they
were weighted towards the end of the quarter, which translated into
lower sales for the retail segment given less time to ship the
product to customers.
Gross profit was $96.7
million for the three months ended March 31, 2018 compared to $94.7
million in the comparable prior year period. The prior year
included an inventory write-down associated with an inventory
donation. Gross profit for wholesale was negatively impacted by an
increase in raw materials costs. Consolidated gross margin for the
quarter was 53.3% compared to 52.5%. Adjusted gross margin was
53.3% compared to 56.0%. Retail sales as a percent of total
consolidated sales was 75.5% for the quarter compared to 78.6% in
the prior year quarter, decreasing our consolidated gross margin
due to this reduced percentage.
Operating
expenses for the three months ended March 31, 2018 were $92.8
million or 51.2% of sales compared to $90.8 million or 50.3% of
sales in the comparable prior year period. This was primarily due
to an increase in advertising costs and insurance retention,
partially offset by a decrease in performance-based incentive
compensation.
Operating income for the
three months ended March 31, 2018 was $3.9 million or 2.1% of sales
compared to $3.9 million or 2.2% of sales in the comparable prior
year period. Adjusted operating income for the three months
ended March 31, 2018 was $4.4 million or 2.4% of sales compared to
$10.3 million or 5.7% of sales in the comparable prior year period.
The primary causes for the change in operating income was lower
sales in retail, partially offset by the positive effects of the
increase in wholesale sales during the quarter, and the prior year
inventory write-down associated with an inventory donation. (See
Exhibit 1 for a reconciliation of GAAP to non-GAAP
presentation)
Income taxes were $1.2
million for the three months ended March 31, 2018 and $1.3 million
in the comparable prior year period. The effective rate this
quarter was 31.2% compared to 35.6%. The effective tax rate for the
quarter was lower due to the 2017 tax act.
Net income
was $2.6 million or $0.09 per diluted share for the three months
ended March 31, 2018 and $2.3 million or $0.08 per diluted share in
the prior year comparable period. Adjusted net income was $3.0
million or $0.11 per diluted share for the three months ended March
31, 2018 and $6.3 million or $0.23 per diluted share in the prior
year comparable period. (See Exhibit 1 for a reconciliation of GAAP
to non-GAAP presentation)
Retail
Segment
Net sales for
the three months ended March 31, 2018 were $136.9 million compared
to $141.9 million in the prior year comparable period, a decrease
of 3.6% compared to the prior year. Comparative net sales were
$134.9 million compared to $140.9 million in the prior year period.
Comparable design centers are those which have been operating for
at least 15 months, including relocated design centers provided the
original and relocated design center location had been operating
for at least 15 months on a combined basis.
Total written
orders for the retail division for the third quarter of fiscal
2018 were up 2.6% compared to the same prior year period, and
comparable Design Center written orders were up 1.6% over the same
period. Written orders were driven primarily by increased marketing
efforts.
Operating
income was a loss of $2.9 million for the three months ended
March 31, 2018, an improvement of $4.4 million from a loss of $7.3
million over the same prior year period. The reduced operating loss
in the current quarter was driven primarily by the prior year
inventory write-down.
Wholesale
Segment
Net sales of $118.9 million
compared to $110.8 million in the prior year quarter, an increase
of 7.3%. The increase in sales is due to increases to our retail
segment, domestic independent retailers and the government
contract, partially offset by decreases to our international
dealers.
Operating income of $7.9
million compared to $9.7 million in the prior year quarter. The
decrease was largely due to the increase in current period
operating expenses, raw material cost increases and manufacturing
inefficiencies mentioned previously, partially offset by the prior
year inventory write-down.
FISCAL 2018
YEAR-TO-DATE FINANCIAL RESULTS:
Net sales for the nine months
ended March 31, 2018 were $561.2 million, a decrease of 1.3%
compared to $568.5 million. Sales for the retail and wholesale
segments were negatively affected mostly in the first quarter of
fiscal 2018 by the hurricanes and disruptions in the manufacturing
processes due to first production runs of new product lines, as
discussed previously. While wholesale net sales increased compared
to the prior year period, overall, an increase in wholesale net
sales was more than offset by a decrease in retail sales
Gross profit was $304.8
million for the nine months ended March 31, 2018 compared to $311.3
million. The decrease was primarily due to the lower retail sales
and increased wholesale costs of raw materials partially offset by
the prior year inventory write down associated with an inventory
donation, and increased wholesale sales. Consolidated gross margin
year to date was 54.3% compared to 54.8%. Adjusted gross margin was
54.3% compared to 55.9% in the prior year period. Retail sales as a
percent of total consolidated sales was 76.9% year to date compared
to 79.2% in the prior year period, decreasing our consolidated
gross margin due to mix. (See Exhibit 1 for a reconciliation of
GAAP to non-GAAP presentation).
Operating
expenses for the nine months ended March 31, 2018 were $271.9
million or 48.4% of sales compared to $272.0 million or 47.8% of
sales in the comparable prior year period. The decrease in fiscal
2018 expenses is primarily due to a reduction in performance-based
incentive compensation expense in the current period, partially
offset by higher advertising costs in the current year.
Operating
income for the nine months ended March 31, 2018 was $33.0
million or 5.9% of sales compared to $39.4 million or 6.9% of sales
in the comparable prior year period. Adjusted operating margin of
6.1% compared to 8.2% in the prior year. Adjusted operating income
for the nine months ended March 31, 2018 was $34.0 million compared
to $46.4 million for the prior nine months. The primary causes for
the decrease in operating income were lower retail sales in fiscal
2018 caused in part by the negative effects of the first production
runs and government contracts. (See Exhibit 1 for a reconciliation
of GAAP to non-GAAP presentation)
Income taxes
year-to-date totaled $8.0 million compared to $14.1 million. Our
effective tax rate was 24.4% in the period compared to 36.6%. The
effective tax rate for the current year-to-date period was lower
due to the 2017 tax act.
Net income of
$24.9 million compared to $24.5 million, and excluding special
items, adjusted net income was $25.7 million for the current year
and $29.0 million in the prior year. Earnings per diluted share of
$0.90 compared to $0.88, and excluding special items, adjusted EPS
of $0.93 compared to $1.04. (See Exhibit 1 for a reconciliation of
GAAP to non-GAAP presentation)
Balance Sheet and
Cash Flow
Total debt of
$1.7 million decreased $12.6 million from June 30, 2017 primarily
due to a $13.3 million early payoff of our term loan, reducing
borrowings under our credit facility to zero.
Total cash and
securities, including restricted cash, of $52.1 million
decreased $13.0 million from June 30, 2017, reflecting
extinguishment of $14.3 million of debt and paying out $24.3
million in dividends. Our cash used in operating activities for the
March 2018 quarter was $20.9 million from $26.3 million for the
prior year March quarter. Working capital decreased $9.8 million
from June 30, 2017, primarily due to the $14.3 million paydown of
debt.
Inventories
of $163.7 million increased by $14.3 million from June 30, 2017, to
support the order backlog.
Capital
expenditures were $9.1 million fiscal year to date at March 31,
2018 compared to $15.1 million for the same prior year period.
Expenditures were primarily at retail design centers.
Dividends and
share repurchases; During the year to date period ended March
31, 2018, we paid $24.3 million of dividends, a 64.7% increase over
the prior fiscal year. This included a special dividend of $0.31
per share paid in the January 2018.
Analyst
Conference Call
Ethan Allen will conduct an
analyst conference call at 5:00 PM (Eastern) on Thursday, April 26
to discuss its financial results and business initiatives. The live
webcast is accessible via the Company's website at
http://ethanallen.com/investors. To participate in the call, dial
844-822-0103 (or 614-999-9166 for international callers) and
provide conference ID# 50728594. An archived recording of the call
will be made available for at least 60-days on the Company's
website.
About Ethan
Allen
Ethan Allen Interiors Inc. (NYSE:
ETH) is a leading interior design company and manufacturer and
retailer of quality home furnishings. The company offers
complimentary 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 300 Design Centers in
the United States and abroad. Ethan Allen owns and operates nine
manufacturing facilities including six manufacturing plants and one
sawmill in the United States plus one plant each in Mexico and
Honduras. Approximately 75% of its products are made in its North
American plants. For more information on Ethan Allen's products and
services, visit ethanallen.com.
Investor Relations Contact
Corey Whitely
Executive Vice President, Administration
Chief Financial Officer and Treasurer
IR@ethanallen.com
Non-GAAP
Financial Information
This press release is intended to
supplement, rather than to supersede, the Company's condensed
consolidated financial statements, which are prepared and presented
in accordance with U.S. Generally Accepted Accounting Principles
("GAAP"). In this press release we have included financial measures
that are not prepared in accordance with GAAP. The Company uses the
following non-GAAP financial measures: "adjusted operating
expenses", "adjusted operating income", "adjusted operating
margin", "adjusted net income", "adjusted earnings per share", and
earnings before interest, taxes, depreciation and amortization
("EBITDA") (collectively "non-GAAP financial measures"). We compute
these non-GAAP financial measures by adjusting the GAAP measures to
remove the impact of certain recurring and non-recurring charges
and gains and the tax effect of these adjustments. The
presentation of this financial information is not intended to be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with
GAAP. The Company uses these non-GAAP financial measures for
financial and operational decision making and as a means 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 future
prospects, and allow for greater transparency with respect to key
metrics used by management in its financial and operational
decision making. The non-GAAP financial measures used by the
Company in this press release may be different from the non-GAAP
financial measures, including similarly titled measures, used by
other companies. A reconciliation of these financial measures to
the most directly comparable financial measure reported in
accordance with GAAP is also provided at the end of this press
release.
Forward-Looking
Information
This press release and any related webcasts,
conference calls and other related discussions should also be read
in conjunction with the Company's Annual Report on Form 10-K for
the year ended June 30, 2017 and other reports filed with the
Securities and Exchange Commission.
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, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), which represent our management's
beliefs and assumptions concerning future events based on
information currently available to us relating to our future
results. Such forward-looking statements are identified in this
press release and any related webcasts, conference calls and other
related discussions or documents incorporated herein by reference
by use of forward-looking words such as "anticipate", "believe",
"plan", "estimate", "expect", "intend", "will", "may", "continue",
"project", "target", "outlook", "forecast", "guidance", 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, 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:
competition from overseas manufacturers and domestic retailers; our
anticipating or responding to changes in consumer tastes and trends
in a timely manner; our ability to maintain and enhance our brand,
marketing and advertising efforts and pricing strategies; changes
in global and local economic conditions that may adversely affect
consumer demand and spending, our manufacturing operations or
sources of merchandise and international operations; changes in
U.S. policy related to imported merchandise; an economic downturn;
our limited number of manufacturing and logistics sites;
fluctuations in the price, availability and quality of raw
materials; environmental, health and safety requirements; product
safety concerns; disruption to our technology infrastructure
(including cyber-attacks); increasing labor costs, competitive
labor markets and our continued ability to retain high-quality
personnel and risks of work stoppages; loss of key personnel; our
ability to obtain sufficient external funding to finance our
operations and growth; access to consumer credit; the effect of
operating losses on our ability to pay cash dividends; our ability
to locate new design center sites and/or negotiate favorable lease
terms for additional design centers or for the expansion of
existing design centers; the effects of terrorist attacks or
conflicts or wars involving the United States or its allies or
trading partners; and those matters discussed in "Item 1A - Risk
Factors" of our Annual Report on Form 10-K for the year ended June
30, 2017, and elsewhere in this press release and our SEC filings.
Accordingly, actual circumstances and results could differ
materially from those contemplated by the forward-looking
statements.
Given the risks and uncertainties surrounding
forward-looking statements, you should not place undue reliance on
these statements. Many of these factors are beyond our ability to
control or predict. Our forward-looking statements speak only as of
the date of this press release. Other than as required by law, we
undertake no obligation to update or revise forward-looking
statements, whether as a result of new information, future events,
or otherwise.
Ethan Allen Interiors Inc. |
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Selected Financial Information |
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|
|
|
Unaudited |
|
|
|
|
(in
millions) |
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|
|
|
Selected
Consolidated Financial Data: |
|
|
|
|
|
|
|
|
|
Three Months Ended |
Nine Months Ended |
|
03/31/18 |
03/31/17 |
03/31/18 |
03/31/17 |
Net
sales |
$181.4 |
$180.5 |
$561.2 |
$568.5 |
Gross
margin |
53.3% |
52.5% |
54.3% |
54.8% |
Adjusted
gross margin * |
53.3% |
56.0% |
54.3% |
55.9% |
Operating
margin |
2.1% |
2.2% |
5.9% |
6.9% |
Adjusted
operating margin * |
2.4% |
5.7% |
6.1% |
8.2% |
Net
income |
$2.6 |
$2.3 |
$24.9 |
$24.5 |
Adjusted
net income * |
$3.0 |
$6.3 |
$25.7 |
$29.0 |
Operating
cash flow |
$20.9 |
$26.3 |
$35.1 |
$53.8 |
Capital
expenditures |
$4.1 |
$3.9 |
$9.1 |
$15.1 |
Company
stock repurchases (trade date) |
$0.0 |
$0.0 |
$0.0 |
$3.4 |
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|
|
|
|
EBITDA |
$8.7 |
$8.8 |
$47.8 |
$54.3 |
EBITDA as
% of net sales |
4.8% |
4.9% |
8.5% |
9.5% |
|
|
|
|
|
Adjusted
EBITDA * |
$9.2 |
$15.2 |
$48.9 |
$61.3 |
Adjusted
EBITDA as % of net sales * |
5.1% |
8.4% |
8.7% |
10.8% |
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Selected
Financial Data by Business Segment: |
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|
Three Months Ended |
Nine Months Ended |
Retail |
03/31/18 |
03/31/17 |
03/31/18 |
03/31/17 |
Net
sales |
$136.9 |
$141.9 |
$431.5 |
$450.5 |
Operating
margin |
-2.1% |
-5.2% |
-1.5% |
-0.9% |
Adjusted
operating margin * |
-2.1% |
-1.0% |
-1.5% |
0.5% |
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|
|
|
|
Wholesale |
|
|
|
|
Net
sales |
$118.9 |
$110.8 |
$348.5 |
$339.1 |
Operating
margin |
6.7% |
8.8% |
10.6% |
11.9% |
Adjusted
operating margin * |
7.1% |
10.8% |
10.9% |
12.6% |
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Ethan Allen Interiors Inc. |
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Condensed Consolidated Statements of Comprehensive
Income |
|
|
|
Unaudited |
|
|
|
|
(in
thousands) |
|
|
|
|
|
Three Months Ended |
Nine Months Ended |
|
03/31/18 |
03/31/17 |
03/31/18 |
03/31/17 |
Net
sales |
$181,419 |
$180,501 |
$561,202 |
$568,460 |
Cost of
sales |
84,711 |
85,766 |
256,380 |
257,134 |
Gross
profit |
96,708 |
94,735 |
304,822 |
311,326 |
Selling,
general and administrative expenses |
92,835 |
90,815 |
271,862 |
271,975 |
Operating
income |
3,873 |
3,920 |
32,960 |
39,351 |
Interest
and other income (expense) |
-16 |
-77 |
223 |
248 |
Interest
expense |
54 |
302 |
272 |
949 |
Income
before income taxes |
3,803 |
3,541 |
32,911 |
38,650 |
Income
tax expense |
1,187 |
1,259 |
8,018 |
14,139 |
Net
income |
$2,616 |
$2,282 |
$24,893 |
$24,511 |
|
|
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|
|
Basic
earnings per common share: |
|
|
|
|
Net
income per basic share |
$0.10 |
$0.08 |
$0.91 |
$0.89 |
Basic
weighted average shares outstanding |
27,476 |
27,691 |
27,469 |
27,694 |
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Diluted
earnings per common share: |
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|
|
|
Net
income per diluted share |
$0.09 |
$0.08 |
$0.90 |
$0.88 |
Diluted
weighted average shares outstanding |
27,692 |
27,953 |
27,725 |
27,970 |
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|
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Comprehensive income: |
|
|
|
|
Net
income |
$2,616 |
$2,282 |
$24,893 |
$24,511 |
Other
comprehensive income |
|
|
|
|
Currency
translation adjustment |
1,451 |
1,998 |
(71) |
(213) |
Other |
(7) |
3 |
(39) |
(20) |
Other
comprehensive income (loss) net of tax |
1,444 |
2,001 |
(110) |
(233) |
Comprehensive income |
$4,060 |
$4,283 |
$24,783 |
$24,278 |
Ethan Allen Interiors Inc. |
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Condensed Consolidated Balance Sheets |
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Unaudited |
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(in
thousands) |
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|
|
March 31, |
June 30, |
Assets |
2018 |
2017 |
Current
assets: |
|
|
Cash and cash equivalents |
$44,977 |
$57,701 |
Accounts receivable, net |
15,933 |
12,293 |
Inventories |
163,748 |
149,483 |
Prepaid expenses & other current assets |
19,356 |
23,621 |
Total current assets |
244,014 |
243,098 |
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Property,
plant and equipment, net |
265,122 |
270,198 |
Intangible assets, net |
45,128 |
45,128 |
Restricted cash and investments |
7,086 |
7,330 |
Other
assets |
3,207 |
2,468 |
Total Assets |
$564,557 |
$568,222 |
Liabilities and Shareholders' Equity |
|
|
Current
liabilities: |
|
|
Current maturities of long-term debt |
586 |
2,731 |
Customer deposits |
67,626 |
62,960 |
Accounts payable |
24,680 |
16,961 |
Accrued expenses & other current liabilities |
44,317 |
43,793 |
Total current liabilities |
137,209 |
126,445 |
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Long-term
debt |
1,119 |
11,608 |
Other
long-term liabilities |
24,830 |
29,273 |
Total liabilities |
163,158 |
167,326 |
Shareholders' equity: |
|
|
Common stock |
490 |
490 |
Additional paid-in-capital |
376,911 |
377,550 |
Less: Treasury stock |
-634,532 |
-635,179 |
Retained earnings |
662,581 |
661,976 |
Accumulated other comprehensive income |
-4,202 |
-4,131 |
Total
Ethan Allen Interiors Inc. shareholders' equity |
401,248 |
400,706 |
Noncontrolling interests |
151 |
190 |
Total
shareholders' equity |
401,399 |
400,896 |
Total Liabilities and Shareholders' Equity |
$564,557 |
$568,222 |
Ethan Allen Interiors Inc. |
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Design Center Activity |
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|
Third Quarter Fiscal 2018 |
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Unaudited |
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Company |
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|
Independent |
Owned |
Total |
Balance
at beginning of period |
157 |
148 |
305 |
Additions
(includes Relocations) (1) |
5 |
0 |
5 |
Closings
(includes Relocations) (1) |
(2) |
(1) |
(3) |
Transfers |
0 |
0 |
0 |
Balance
at end of period |
160 |
147 |
307 |
|
|
|
|
United
States |
47 |
141 |
188 |
International |
113 |
6 |
119 |
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|
(1)
Relocations in additions & closing |
0 |
0 |
0 |
Ethan Allen Interiors Inc. |
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GAAP Reconciliation |
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|
Three and Nine Months Ended March 31, 2018
and 2017 |
|
Unaudited |
|
|
|
|
(in
thousands, except per share amounts) |
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
March
31, |
March
31, |
|
2018 |
2017 |
2018 |
2017 |
Net Income / Earnings Per Share |
|
|
|
|
Net
income |
$2,616 |
$2,282 |
$24,893 |
$24,511 |
Adjustments net of related tax effects * |
348 |
4,060 |
766 |
4,451 |
Normalized income tax effects * |
0 |
-33 |
0 |
32 |
Adjusted
net income |
$2,964 |
$6,309 |
$25,659 |
$28,994 |
Diluted
weighted average shares outstanding |
27,692 |
27,953 |
27,725 |
27,970 |
Earnings
per diluted share |
$0.09 |
$0.08 |
$0.90 |
$0.88 |
Adjusted
earnings per diluted share |
$0.11 |
$0.23 |
$0.93 |
$1.04 |
Consolidated Gross Profit / Gross Margin |
|
|
|
|
Gross
profit |
$96,708 |
$94,735 |
$304,822 |
$311,326 |
Add:
adjustments * |
0 |
6,394 |
0 |
6,394 |
Adjusted
gross profit * |
$96,708 |
$101,129 |
$304,822 |
$317,720 |
Net
sales |
$181,419 |
$180,501 |
$561,202 |
$568,460 |
Gross
margin |
53.3% |
52.5% |
54.3% |
54.8% |
Adjusted
gross margin * |
53.3% |
56.0% |
54.3% |
55.9% |
Consolidated Operating Income / Operating Margin |
|
|
|
|
Operating
income |
$3,873 |
$3,920 |
$32,960 |
$39,351 |
Add:
adjustments * |
500 |
6,394 |
1,035 |
7,010 |
Adjusted
operating income * |
$4,373 |
$10,314 |
$33,995 |
$46,361 |
|
|
|
|
|
Net
sales |
$181,419 |
$180,501 |
$561,202 |
$568,460 |
Operating
margin |
2.1% |
2.2% |
5.9% |
6.9% |
Adjusted
operating margin * |
2.4% |
5.7% |
6.1% |
8.2% |
Wholesale Operating Income / Operating Margin |
|
|
|
|
Wholesale
operating income |
$7,927 |
$9,729 |
$36,957 |
$40,399 |
Add:
adjustments * |
500 |
2,241 |
1,035 |
2,241 |
Adjusted
wholesale operating income * |
$8,427 |
$11,970 |
$37,992 |
$42,640 |
Wholesale
net sales |
$118,921 |
$110,819 |
$348,473 |
$339,076 |
Wholesale
operating margin |
6.7% |
8.8% |
10.6% |
11.9% |
Adjusted
wholesale operating margin * |
7.1% |
10.8% |
10.9% |
12.6% |
Retail Operating Income / Operating Margin |
|
|
|
|
Retail
operating income |
-$2,896 |
-$7,319 |
-$6,304 |
-$4,149 |
Add:
adjustments * |
0 |
5,925 |
0 |
6,541 |
Adjusted
retail operating income * |
-$2,896 |
-$1,394 |
-$6,304 |
$2,392 |
Retail
net sales |
$136,903 |
$141,948 |
$431,469 |
$450,495 |
Retail
operating margin |
-2.1% |
-5.2% |
-1.5% |
-0.9% |
Adjusted
retail operating margin * |
-2.1% |
-1.0% |
-1.5% |
0.5% |
Ethan Allen Interiors Inc. |
|
|
|
|
GAAP Reconciliation |
|
|
|
|
Three and Nine Months Ended March 31, 2018
and 2017 |
|
|
|
Unaudited |
|
|
|
|
(in
thousands, except per share amounts) |
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
March
31, |
March
31, |
|
2018 |
2017 |
2018 |
2017 |
EBITDA |
|
|
|
|
Net
income |
$2,616 |
$2,282 |
$24,893 |
$24,511 |
Add: interest expense, net |
-28 |
195 |
-46 |
604 |
income
tax expense |
1,187 |
1,259 |
8,018 |
14,139 |
depreciation and amortization |
4,915 |
5,024 |
14,955 |
15,023 |
EBITDA |
$8,690 |
$8,760 |
$47,820 |
$54,277 |
Net
sales |
$181,419 |
$180,501 |
$561,202 |
$568,460 |
EBITDA as
% of net sales |
4.8% |
4.9% |
8.5% |
9.5% |
|
|
|
|
|
EBITDA |
$8,690 |
$8,760 |
$47,820 |
$54,277 |
Add:
adjustments * |
500 |
6,394 |
1,102 |
7,010 |
Adjusted
EBITDA |
$9,190 |
$15,154 |
$48,922 |
$61,287 |
Net
sales |
$181,419 |
$180,501 |
$561,202 |
$568,460 |
Adjusted
EBITDA as % of net sales |
5.1% |
8.4% |
8.7% |
10.8% |
*
Adjustments consist of the following: |
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
March
31, |
March
31, |
|
2018 |
2017 |
2018 |
2017 |
Adjustments net of related income tax effects: |
|
|
|
|
Real
estate losses |
$0 |
$0 |
$0 |
$616 |
Inventory
write-down |
0 |
6,394 |
0 |
6,394 |
Organizational changes and other exit costs |
0 |
0 |
535 |
0 |
Contingent legal claim |
500 |
0 |
500 |
0 |
Adjustments to operating income |
500 |
6,394 |
1,035 |
7,010 |
Early
debt extinguishment |
0 |
0 |
67 |
0 |
Adjustments to EBITDA |
500 |
6,394 |
1,102 |
7,010 |
Related
tax effects |
-152 |
-2,334 |
-336 |
-2,559 |
Adjustments net of related income tax effects |
$348 |
$4,060 |
$766 |
$4,451 |
Related tax effects are calculated using a normalized tax
rate of 30.5% in the current fiscal year and 36.5% in the prior
fiscal year |
![](http://thomsonreuterscorporategroup.122.2o7.net/b/ss/trcgclientrs876/1/H.22.1--NS/0?pageName=ETHAN%20ALLEN%20REPORTS%20FISCAL%202018%20THIRD%20QUARTER%20RESULTS&c1=2188144&c2=D=Referer)
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Ethan Allen Interiors Inc. via Globenewswire
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