Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE:
ETH) today provided several updates on its business.
Preliminary Financial
Results
The Company expects to report the following
financial results for its first quarter ended September 30,
2020:
- Consolidated net sales of $151.1 million
- Retail segment written orders continued to accelerate with
growth of 10.8% over the prior year
- Wholesale segment orders, while benefitting from the strong
retail growth, were down 0.4% due to the timing of GSA and other
government orders that were negatively impacted by COVID-19
pandemic related disruptions. Excluding GSA and other government
orders, Wholesale segment orders booked were up 9.2% for the
quarter.
- Consolidated gross margin of 56.8%
- Adjusted diluted EPS in the range of $0.34 to $0.36
- Paid off all of the remaining $50 million in debt during the
quarter using available cash
- Ended the quarter with cash on hand of $62.0 million as of
September 30, 2020
- On August 4, 2020, the Company’s Board of Directors reinstated
the regular quarterly cash dividend and declared a regular
quarterly cash dividend of $0.21 per share, payable in October
2020
Farooq Kathwari, Ethan Allen’s Chairman,
President and CEO commented, “Our fundamentals remain
strong. Retail written orders and backlogs continue to grow,
with significant growth both in our design centers and from our
e-commerce business. With our manufacturing production now reaching
pre-COVID-19 levels, we are increasing capacity and production. Our
unique vertical structure, whereby we produce about 75% of what we
sell, mostly on a custom made-to-order basis in our own North
American manufacturing plants, allows us to maintain stronger
service levels with greater control over inventory. We plan to
continue our marketing efforts and are well positioned to grow with
our relevant offerings as well as our complimentary personal
interior design service combined with technology and in-home
white-glove delivery.”
“Our teams remain focused on serving our clients
and keeping our workplaces safe. I am personally proud of the
incredible effort and positive attitude put forth by our associates
under the most trying of circumstances,” concluded Mr.
Kathwari.
Fiscal First Quarter Analyst Conference
Call
The Company also announced today that it will
release its financial and operating results for the fiscal 2021
first quarter ended September 30, 2020, after the market closes on
Thursday, October 29, 2020.
Following the release, the Company will host an
analyst conference call 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.
To access the conference call, dial 877-705-2976
(or 201-689-8798 for international participants), and enter Meeting
Number 13711572. 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, manufacturer and retailer in the
home furnishings marketplace. Today the Company is a global luxury
international home fashion brand that is vertically integrated from
design through delivery, which affords its clientele a value
proposition of style, quality and price. The Company provides
complimentary interior design service to its clients and sells a
full range of furniture products and decorative accents through a
retail network of approximately 300 design centers in the United
States and abroad as well as online at ethanallen.com. The design
centers represent a mix of independent licensees and Company-owned
and operated locations. The Company operates retail design
centers located in the United States and Canada. The
independently operated design centers are located in the United
States, Asia, the Middle East and Europe. 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: Matt McNulty Vice President,
Finance IR@ethanallen.com
ABOUT NON-GAAP FINANCIAL
MEASURES
In this news release the Company has included a
financial measure that is 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 GAAP diluted EPS to remove the impact of certain charges
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 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 (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 news release
incorporated herein by reference by use of 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 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; 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.
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