Ethan Allen reports sales, net income down

first_img$(21,141) 127,333 Three Months Ended Six Months Ended $395,399Operating margin $108,848 152,159 23,236 2,780 -2.1%Retail operating margin (excluding restructuring, $(606) 305,923 -3.7% -10.1% 112,463 5.2%Net income (loss) 12/31/09 18,330 14,899 Operating income (loss) $17.3 251,702 213,742 5.3% $395,399Adjusted EBITDA as % of net sales 33,801 48,721 Operating expenses: $0.19 General and administrative 340,562 Wholesale Operating Income / Operating Margin Retail operating income (loss) 89,025 8.9%Operating margin (ex restructuring, impairment & 1,817 $0.45Earnings (loss) per diluted share (excluding restructuring, 5.2% Interest expense and other related financing costs 4,677 91,714 $20,873Wholesale net sales 191,444 $(0.12) $143,302 26 $(0.12) 4,677 Interest and other miscellaneous income 28,721 Net income (loss) $12.9Net income (loss) (ex restructuring, impairment & December 31, impairment and plant transition charges) (5,283) ($1.6) 6,490 $20.8 Income (loss) before income taxes $0.19 39,729 $20,694 12/31/09 – Income tax expense (benefit) $84,499 Wholesale 58,531Total current liabilities Net income (loss) $0.0 Current liabilities: 2009 2009 28,739 Net income (loss) per basic share $0.45 $395,399 $632,470 $0.45 Basic weighted average shares outstanding $646,485 $10,113 $646,485 101,801 (3,903) $279.5 $2.8 56,251 $(0.58) EBITDA 28,917 $3.9 28,739 28,922 13,086Inventories 28,721 1,154 1,589 8.8% 24,993Total liabilities ($16.9) 28,917 $1,123 impairment and plant transition charges) $5,679 $(8,249)Retail net sales $5.1 4.0% 22,199Accrued expenses & other current liabilities $5.7 5,073Add: income tax expense (benefit) $(16,917) 8,077Total current assets 28,922 Earnings (loss) per diluted share $(5,283) 313,528 $11.8 ($7.3) 156,519Prepaid expenses & other current assets 17,669 67,406 (1,604)Adjusted EBITDA $632,470 10,087 Liabilities and Shareholders’ Equity 5,833 Current maturities of long-term debt Three Months Ended ($1.7) $210,273 45,128Other assets 287,879 (2,012)Retail operating income (loss) (excluding restructuring, 256,145 $17,323 116,103 74,278 5.3% $(16,917) 203,106Other long-term liabilities $230,143Wholesale operating margin Net income (loss) 5.6%Operating margin (ex restructuring, impairment & -9.1% 28,739 $8,580 (25,513) $1,022 $10,087 $17,349 $(3,185) Net sales $(19,325) -2.7% 12/31/09 12/31/08 impairment and plant transition charges (credit)) 3,523 Net sales $143.3 5.2% -7.6% -2.2% 48.2% Cash and cash equivalents 45.6% $(21,371) Property, plant and equipment, net -7.6% 5.3% $(0.58) $(1,628) Retail Operating Income / Operating Margin -2.7% Net sales 148,704 Long-term debt $12,910 and plant transition charges) 777 9.2%EBITDA (ex restructuring, impairment and Assets $5.5 45,128 $76,138 $0.0 2,932 $5,488 $84.5 1,816 $17.3 December 31, 2008 -9.1% impairment and plant transition charges ) 31,691Accounts payable Total Liabilities and Shareholders’ Equity $(7,376) Diluted weighted average shares outstanding Ethan Allen Interiors Inc.Selected Financial InformationUnaudited(in thousands, except per share amounts) accelerated depreciation) Six Months Ended $(0.58) $(8,638) 18,678 $(0.06) $0.19 $36.6EBITDA as % of net sales December 31, 9.1% $0.19 charges (credit) $395.4Gross margin $36,559Net sales 1,113 10,536 21,060Deferred income taxes 28,917 -9.2% 9.1% 12/31/09 28,739 1,710 74,307 $189,558 $0.0 12/31/08 charges (credit) $5,800 $(0.25) $107.1center_img $147.2 -2.1% $0.0 $0.0 -2.2% 2,213 -2.1%Operating margin (ex restructuring, impairment & $5.5 9.1% $8,541 ($3.3) $12,910Add: restructuring, impairment and plant transition charges 28,922 0.8% plant transition charges ) $108.8 $165.8 $230.1Operating margin $43 -8.1% $(3,338) Restructuring and impairment charge $42Customer deposits Ethan Allen Interiors Inc.GAAP ReconciliationThree and Six Months Ended December 31, 2009 and 2008Unaudited(in thousands, except per share amounts) Three Months Ended $16.1Acquisitions 26 344,591 Three Months Ended -2.6% 333,599Intangible assets, net $0.6Treasury stock repurchases (settlement 1.2% $(0.58) $189,558 2008Net Income / Earnings Per Share 2009 Wholesale operating income (loss) 2009 $279,492 12/31/09 87,757 $189.6 $(3,159) Ethan Allen Interiors Inc, a manufacturer and retailer of high-end furniture, has reported a fall in sales and a loss in operating results for the three and six months ended December 31, 2009. Some of the loss is attributable to restructuring, including the closing of the manufacturing operations in its Beecher Falls, Vermont, plant, which resulted in the loss of 260 employees last summer. The Orleans plant was not affected.Net delivered sales for the quarter ended December 31, 2009 amounted to $143.3 million as compared to $189.6 million in the prior year quarter. Net delivered sales for the Company s Retail division were $107.1 million compared with $147.2 million the prior year quarter. Wholesale net sales were $84.5 million versus $108.8 million the prior year quarter. Comparable Ethan Allen design center net delivered sales were 25.3% lower than the prior year quarter while comparable written orders were 6.1% lower. The Company s Retail backlog has increased 34% and the Wholesale backlog is up 54% from the prior year second quarter.For the quarter ended December 31, 2009, diluted loss per share amounted to $0.12 on a loss of $3.3 million, which includes $3.9 million in transition costs and a $0.8 million restructuring and impairment charge for previously announced actions. This compares to diluted earnings per share and net income of $0.19 and $5.5 million, respectively, for the prior year. Excluding the impact of the transition costs and restructuring and impairment charges and the impact of tax valuation allowances recorded, diluted loss per share amounted to $0.06 for the current quarter.Six Months Ended December 31, 2009For the six months ended December 31, 2009, net delivered sales totaled $279.5 million as compared to $395.4 million in the prior year comparable period. Net delivered sales for the Company s Retail division were $210.3 million compared with $303.1 million the prior year. Wholesale net sales were $165.8 million versus $230.1 million the prior year.For the six months ended December 31, 2009, diluted loss per share amounted to $0.58 on a loss of $16.9 million, which includes $12.4 million in transition costs and a $1.6 million restructuring and impairment charges for previously announced actions. This compares to diluted earnings per share and net income of $0.45 and $12.9 million, respectively, for the prior year, which included a restructuring benefit of $1.6 million due to the gain on the sale of properties closed in fiscal 2008. Excluding the impact of the transition costs and restructuring and impairment charges in both periods and the impact of tax valuation allowances recorded, diluted loss per share amounted to $0.25 in the current period compared to diluted earnings per share of $0.41 in the prior year comparable period.Farooq Kathwari, Chairman, President and CEO commented, The challenges of the past year have provided us an opportunity to significantly strengthen many elements of our vertically integrated enterprise while at the same time increasing our cash position from June 30 by 44% to $76 million at December 31, 2009.Kathwari continued, The consolidation and restructuring initiatives did result in lower delivered sales in the December quarter while increasing our backlogs. Our plants, retail and logistics have absorbed most of the operational changes and transition costs during the last six months. This includes the training of 274 new upholstery associates and the conversion of our case goods products to custom. We expect to significantly lower these costs in the third and fourth quarters of this fiscal year.”Kathwari added, We have strong marketing initiatives in place. While we need to remain cautious, we are continuing with our plans to increase production in both our domestic wood and upholstery products. We will discuss these efforts as well as our other initiatives in detail during our conference call.About Ethan AllenEthan 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 300 Design Centers in the United States and abroad. Ethan Allen owns and operates six manufacturing facilities in the United States, which includes one sawmill, and one manufacturing facility in Mexico, and manufactures approximately sixty-five percent of its products in its United States plants. For more information on Ethan Allen s products and services, visit ethanallen.com.At A GlanceEthan Allen Interiors Inc.Headquarters:Danbury, ConnecticutWebsite:http://www.ethanallen.com(link is external)CEO:Farooq KathwariEmployees:6,400Ticker:ETH  (NYSE)Revenues:$980 million (2008)Net Income:$58 million (2008)Source: via Business WireUpdated   08/04/2008   by company plant transition charges ) 5,497 $107,123 $35.0EBITDA as % of net sales (ex restructuring, (8,596) $189,558 9.2% -0.6% 104,023 9,603 $(6,237)Add: restructuring, impairment and plant transition (7,241) $(0.06) Cost of sales Earnings (loss) per basic share $0.41Basic weighted average shares outstanding plant transition charges) $395,399EBITDA as % of net sales $165,780 $36,559Add: restructuring, impairment and plant transition 5.3% $(0.12) Shareholders’ equity 7.9% Source: Eathan Allen. 1.28.2010. DANBURY, Conn.–(BUSINESS WIRE)–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. impairment and plant transition charges (credit)) 28,793 2008 25,323 Basic earnings per common share: 28,917 -0.4% 5.4% $5.3 408Wholesale operating income (excluding restructuring, Operating income (loss) 7.9% Ethan Allen Interiors Inc.Selected Financial InformationUnaudited(in millions) 1.2% $22,298Add: restructuring, impairment and plant transition charges (credit) 22,298 plant transition charges ) Gross profit Net sales 5,959 8,268 $12,910Add: interest expense (income), net plant transition charges ) 53.7% 8.9%Wholesale operating margin (excluding restructuring, $143,302 $143,302 $279,492 13,995 2,565 203,165 5,633 12/31/08Retail $5.8 $0.19 $143,302 -2.6% $5,488 $(3,338) $5,488 $0.3 $8,580 $(3,638) $20,465Add: restructuring, impairment and plant transition impairment and plant transition charges (credit)) (credit), net of related tax effect date basis) $(0.25) $147,183 7,365 26 1,020 Three Months Ended -9.2% $(1,686) 181,657 charges (credit) (8,596) (1,109)Net income (loss) (excluding restructuring impairment and Current assets: -2.2% Six Months Ended 16,056 12,179 $0.41Diluted weighted average shares outstanding impairment and plant transition charges) 12,581 $303.1Operating margin -10.1% $(9,792) 2,780 2.0% 69,024 28,922 -3.7% $0.45Earnings (loss) per basic share (excluding restructuring, Net income (loss) per diluted share 5,768Add: depreciation and amortization (including plant 12/31/09 5.2% Selected Financial Data by Business Segment: $0.19 2.0% 7.9% $1.1 36,573 Diluted earnings per common share: 42,967 $11,801 12/31/08 26 $(7,314) -8.1% 5.6%Operating margin (excluding restructuring, impairment 2009 141,991 Ethan Allen Interiors Inc.GAAP ReconciliationThree and Six Months Ended December 31, 2009 and 2008Unaudited(in thousands, except per share amounts) 7.9% June 30, December 31, 12/31/08 2008 $0.0 $4,545 -0.4% $15.7Capital expenditures EBITDA $210.3 4.0% 28,793 -0.6% 2,731 2,978 Selling Total Assets 8.8% Net sales 54.1%Operating margin $52,960Accounts receivable, net 9.1% EBITDA Operating cash flow plant transition charges ) Consolidated Operating Income / Operating Margin $1,123 impairment and plant transition charges) (3,903) (21,371) Selected Consolidated Financial Data: (1,604)Total operating expenses ($2.4) 9.2% 5.4% 5,768 -2.1% Six Months Ended $279,492 $(16,917) $17,323 $(1,686) Ethan Allen Interiors Inc.Condensed Consolidated Balance SheetsUnaudited(in thousands) December 31, 17 -2.2% $303,053Retail operating margin $(0.12) (1,604)Operating income (loss) (excluding restructuring, $189,558 12,808EBITDA $34,955Net sales $(3,338) 79,709 2009 12/31/08 $5,505 $279,492 9.2% 0.8% Six Months Endedlast_img

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