Ethan Allen Comments on Business and Announces Earnings Release Date for Fiscal 2020 First Quarter Results
18 October 2019 - 7:30AM
Ethan Allen Interiors Inc. (“Ethan Allen” or “the Company”)
(NYSE:ETH) commented today on its fiscal first quarter ended
September 30, 2019.
The Company expects to report for the
quarter:
- Consolidated net sales of $174 million
- GAAP diluted EPS in the range of $0.51 to $0.53
- Adjusted diluted EPS in the range of $0.33 to $0.35
- Cash of $46 million increased 120% from June 30, 2019
Farooq Kathwari, Ethan Allen’s Chairman,
President and CEO commented, “We have continued strengthening our
product and marketing programs and believe we are well positioned
to continue to increase our profits and to grow sales. We launched
our new membership program in October with a 68-page direct mail
magazine and have in place an aggressive advertising campaign in
digital, print and other mediums.” Mr. Kathwari continued, “We were
pleased to close on the sale of our Passaic, New Jersey property
during our first quarter, which sold for $12.3 million and is
reflected in our GAAP results. This sale, together with our strong
operating results, increased our cash on hand at the end of the
quarter by 120% to $46 million compared to the June 30, 2019
quarter end.”
Mr. Kathwari concluded, “While our wholesale
orders from China declined 38% mainly due to the imposition of
tariffs by China, total wholesale orders excluding our China
business increased 1%. As expected, our contract business, driven
by the GSA contract, had another strong quarter. We believe
our new format of reporting on wholesale orders booked through all
channels provides a more holistic view of our business than our
previous reporting of the change in only the company retail
division written orders.”
The Company also announced it will release its
financial results for the fiscal 2020 first quarter ended September
30, 2019, after the market closes on Monday, November 4, 2019.
Following the release, the Company will host an analyst conference
call at 5 PM (Eastern Time) to discuss its financial results. The
analyst conference call will be webcast from the “Events and
Presentations” page at http://www.ethanallen.com/investors. To
access the conference call, dial 844-822-0103 (or 614-999-9166 for
international participants), and enter conference ID 9079098. For
those unable to listen live, an archived recording of the call will
be made available on the company's website for at least 60
days.
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 six manufacturing
facilities including three 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 www.ethanallen.com.
Investor/Media Contact:
Corey WhitelyExecutive Vice President,
AdministrationChief Financial Officer and
TreasurerIR@ethanallen.com
ABOUT NON-GAAP FINANCIAL
MEASURES
In this press release the Company has included
financial measures that are not prepared in accordance with U.S.
generally accepted accounting principles (“GAAP”). The Company
computes the non-GAAP financial measure of adjusted diluted EPS by
adjusting the GAAP diluted EPS to remove the impact of certain
charges and gains and the related tax effect of these adjustments.
The presentation of this non-GAAP financial measure is not intended
to be considered in isolation or as a substitute for, or superior
to, the financial measure presented in accordance with GAAP. The
Company uses this non-GAAP financial measure for financial and
operational decision making and to evaluate period-to-period
comparisons. The Company believes that it provides useful
information about operating results, enhances the overall
understanding of past financial performance and prospects, and
allows for greater transparency with respect to key metrics used by
management in its financial and operational decision making.
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, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), 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 press
release and the 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: a
volatile retail environment and changing economic conditions may
further adversely affect consumer demand and spending; global and
local economic uncertainty may materially adversely affect
manufacturing operations or sources of merchandise and
international operations; disruptions of supply chain; changes in
United States trade and tax policy; competition from overseas
manufacturers and domestic retailers; failure to successfully
anticipate or respond to changes in consumer tastes and trends in a
timely manner; ability to maintain and enhance the Ethan Allen
brand, marketing and advertising efforts and pricing strategies;
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
environment, health and safety requirements; the use of emerging
technologies as well as unanticipated changes in the pricing and
other practices of competitors; 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; product recalls or product safety
concerns; cyber-attacks and the ability to maintain adequate
cyber-security systems and procedures; loss, corruption and
misappropriation of data and information relating to customers;
loss of key personnel; additional asset impairment charges that
could reduce profitability; access to consumer credit could be
interrupted as a result of conditions outside of the Company’s
control; its 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; materially adverse
changes to fiscal and tax policies; its operations present hazards
and risks which may not be fully covered by insurance; and possible
failure to protect its intellectual property.
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 press 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.
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