ETHAN ALLEN REPORTS RESULTS FOR QUARTER ENDED DECEMBER 31, 2014 AND DECLARES CASH DIVIDEND
(Thomson Reuters ONE) -
DANBURY, CT - January 27, 2015 - Ethan Allen Interiors Inc. ("Ethan Allen" or
the "Company") (NYSE: ETH) today reported operating results for the fiscal 2015
three and six month periods ended December 31, 2014. Please refer to the
accompanying financial statements and reconciliation to non-GAAP measures
discussed below.
Second Quarter and First Half Highlights:
* Consolidated net sales of $197.1 million for the second quarter ending
December 31, 2014 increased 2.1% compared to the prior year second quarter.
Net sales of $387.8 for the first half fiscal 2015 increased 3.5% compared
to first half of fiscal 2014.
* Comparable written sales for the Retail Division increased 8.4% for the
second quarter of fiscal 2015 compared to the prior year second quarter, and
total written sales for the Retail Division increased 7.8% over the same
prior year period. Comparable written sales for the first half fiscal 2015
increased 4.1% compared to first half of fiscal 2014. Total written sales
for the first half iof fiscal 2015 ncreased 3.0%.
* Consolidated adjusted operating income for the second quarter was $18.7
million or 9.5% of sales compared to $20.6 million or 10.7% of sales in the
prior year second quarter. Adjusted operating income for the first half of
fiscal 2015 was $40.6 million or 10.5% of sales compared to $37.4 million or
10.0% in the prior year period.
* Adjusted earnings per diluted share (EPS) was $0.37 for the second quarter
of fiscal 2015 compared with EPS of $0.41 in second quarter of fiscal 2014.
EPS increased 9.6% to $0.80 for the first half of fiscal 2015 compared with
EPS of $0.73 in the first half of fiscal 2014; GAAP earnings per share for
the quarter was $0.34 compared with $0.39 in the comparable prior year
period. GAAP earnings per share for the first half of fiscal 2015 was $0.75
compared with $0.70 in the comparable prior year period.
* Cash and securities of $129.8 million increased $17.1 million or 15.2% from
December 31, 2013.
* Capital Expenditures were $13.1 million year to date at December 31, 2014
compared to $8.6 million prior year and inventories of $151.7 million
increased $11.8 million as planned from December 31, 2013 in support of our
new product launch and marketing initiatives.
Regular Cash Dividend:
* The Company announced today that its Board of Directors has declared a
regular quarterly cash dividend of $0.12 per share which will be payable to
shareholders of record as of Friday, April 10, 2015 and will be paid on
Monday, April 27, 2015.
First half highlights on marketing and operations:
* Product Offerings: Completed major introduction of over 600 new product
offerings. While the selloff of floor inventory impacted retail sales and
gross margins, the new product launch which is now on the floors has been
well received and helped to drive the strong 8.4% comparable written sales
growth in the second quarter.
*
* Design Centers: Major effort well underway to renovate design centers to
project a fashionable and relaxed attitude. During the second quarter new
design centers opened in Redding, CA, Las Vegas, NV, Dubai, UAE and six new
locations in China.
* Our Message: Started accelerating our message during the second quarter
spending 15% more in advertising over the prior year quarter. Strong
marketing plan in place for the second half.
* Technology: During the quarter launched our new website and continuing to
fine tune and add new features.
* Manufacturing and Logistics: Major focus to manage the transition to the new
product offerings. Continued to invest in technology in our manufacturing
operations.
Farooq Kathwari, Chairman and CEO commented, "We are continuing to make major
changes in repositioning our offerings, advertising, technology and North
American manufacturing. Despite the disruption caused by these changes we
increased our adjusted EPS by 9.6% for the six month period compared to last
year and increased our cash by 15.2% to $129.8 million compared to same period
last year."
Mr. Kathwari concluded, "Looking ahead we have another six months of major
changes as we further update our offerings and continue to strengthen our
advertising and manufacturing. We remain cautiously optimistic as we move
forward."
Fiscal 2015 Second Quarter Financial Results:
Consolidated net sales for the quarter ended December 31, 2014 increased 2.1%
over the prior year to $197.1 million. The Company's wholesale segment net sales
increased 2.7%. The Company's retail segment net sales increased 1.1% to $153.2
million including a comparable design center net sales increase of 1.8%. Net
income for the quarter ended December 31, 2014 was $10.0 million or $0.34 per
diluted share compared with $11.6 million or $0.39 per diluted share in the
prior year quarter. Excluding special items in both periods, adjusted earnings
for the quarter were $0.37 per diluted share or $10.8 million compared to $0.41
per diluted share or $11.9 million in the prior year quarter.
Fiscal 2015 Year-to-Date Financial Results:
Year to date net sales were $387.8 million, up 3.5% from $374.8 million the
prior year. Gross margin and adjusted operating profit margin were 54.4% and
10.5% respectively compared with 54.6% and 10.0% respectively the prior year.
Net income for the six months ended December 31, 2014 was $21.9 million or $0.75
per diluted share compared with $20.6 million or $0.70 per diluted share in the
prior year comparable period. Adjusted net income year to date of $23.5 million
increased 9.7% compared with $21.5 million the prior year period and our
adjusted earnings per diluted share increased 9.6% for the six months to date at
$0.80 compared with $0.73 the prior year to date period.
Analyst Conference Call
Ethan Allen will conduct a conference call at 11:00 AM (Eastern) on Wednesday,
January 28th to discuss the financial results and its business initiatives. The
live webcast and replay are accessible via the Company's website at
http://ethanallen.com/investors. To participate on the call, dial 866-238-0826
with conference ID# 1649411.
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 eight manufacturing facilities including five
manufacturing plants and one sawmill in the United States plus one plant in each
of Mexico and Honduras. Approximately seventy percent of its products are made
in its North American plants. For more information on Ethan Allen's products and
services, visit ethanallen.com.
Non-GAAP Financial Information
This press release is intended to supplement, rather than to supersede, the
Company's condensed consolidated financial statements. It contains references to
the Company's (i) consolidated operating income/operating margin, (ii) wholesale
operating income/operating margin, (iii) retail operating income/operating
margin, (iv) net income, (v) earnings per share, and (vi) earnings before
interest, taxes, depreciation and amortization ("EBITDA"), all excluding the
effects of restructuring charges as a result of the Company's previous decision
to consolidate facilities, and also excluding certain transition costs and non-
operating income adjustments in both fiscal 2015 and fiscal 2014. A
reconciliation of these financial measures to the most directly comparable
financial measure reported in accordance with generally accepted accounting
principles ("GAAP") is also provided at the end of this press release.
Management believes that excluding items which are deemed to be non-recurring in
nature from financial measures such as operating income, operating margin, net
income, and earnings per share, allows investors to more easily compare and
evaluate the Company's financial performance relative to prior periods and
industry comparables. These adjusted measures also aid investors in
understanding the operating results of the Company absent such non-recurring or
unusual events.
Management considers EBITDA an important indicator of the operational strength
and performance of its business, including the ability of the Company to pay
interest, service debt and fund capital expenditures. Given the nature of the
Company's operations, including the tangible assets necessary to carry out its
production and distribution activities, depreciation and amortization represent
Ethan Allen's largest non-cash charges. As these non-cash charges do not affect
the Company's ability to service debt or make capital expenditures, it is
important to consider EBITDA in addition to, but not as a substitute for,
operating income, net income and other measures of financial performance
reported in accordance with GAAP, including cash flow measures such as operating
cash flow.
This press release should also be read in conjunction with the Company's Annual
Report on Form 10-K for the year ended June 30, 2014 (the "2014 Form 10-K") 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 including specifically, and without
limitation, those set forth in Part I, Item 1A "Risk Factors" of the 2014 Form
10-K. 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 millions)
Selected Consolidated Financial
Data:
Three Months Ended Six Months Ended
12/31/14 12/31/13 12/31/14 12/31/13
Net sales $197.1 $193.1 $387.8 $374.8
Gross margin 53.8% 54.9% 54.4% 54.6%
Operating margin 9.0% 10.3% 9.8% 9.6%
Operating margin (excluding
special items*) 9.5% 10.7% 10.5% 10.0%
Net income $10.0 $11.6 $21.9 $20.6
Net income (excluding special
items* and
unusual income tax effects) $10.8 $11.9 $23.5 $21.5
Operating cash flow $3.7 $1.5 $10.5 $22.6
Capital expenditures $7.7 $5.3 $13.1 $8.6
Acquisitions $0.0 $0.0 $2.0 $0.0
Treasury stock repurchases $0.0 $0.0 $0.0 $0.0
EBITDA $22.3 $24.2 $47.5 $44.4
EBITDA as % of net sales 11.3% 12.5% 12.3% 11.8%
EBITDA (excluding special
items*) $23.4 $25.0 $50.0 $46.0
EBITDA as % of net sales
(excluding special items*) 11.9% 12.9% 12.9% 12.3%
Selected Financial Data by
Business Segment:
Three Months Ended Six Months Ended
12/31/14 12/31/13 12/31/14 12/31/13
Retail
Net sales $153.2 $151.5 $298.3 $293.3
Operating margin 1.9% 2.8% 1.6% 1.4%
Operating margin (excluding
special items*) 2.0% 3.3% 1.9% 1.9%
Wholesale
Net sales $116.2 $113.1 $240.8 $226.3
Operating margin 11.3% 12.7% 14.4% 13.5%
Operating margin (excluding
special items*) 12.1% 12.7% 15.0% 13.5%
* Special items consist of restructuring, impairment, transition
charges and other certain items.
Related tax effects are calculated using a
normalized income tax rate.
Ethan Allen Interiors Inc.
Condensed Consolidated Statements of Comprehensive Income
Unaudited
(in thousands)
Three Months Ended Six Months Ended
12/31/14 12/31/13 12/31/14 12/31/13
Net sales $ 197,067 $ 193,104 $ 387,773 $ 374,763
Cost of sales 90,993 87,105 176,896 170,021
Gross profit 106,074 105,999 210,877 204,742
Selling, general and
administrative expenses 88,414 86,149 172,747 168,948
Operating income 17,660 19,850 38,130 35,794
Interest and other income 89 43 232 125
Interest expense 1,882 1,871 3,771 3,744
Income before income taxes 15,867 18,022 34,591 32,175
Income tax expense 5,829 6,467 12,674 11,586
Net income $ 10,038 $ 11,555 $ 21,917 $ 20,589
Basic earnings per common
share:
Net income per basic share $ 0.35 $ 0.40 $ 0.76 $ 0.71
Basic weighted average
shares outstanding 28,930 28,916 28,929 28,913
Diluted earnings per common
share:
Net income per diluted share $ 0.34 $ 0.39 $ 0.75 $ 0.70
Diluted weighted average
shares outstanding 29,295 29,292 29,272 29,290
Comprehensive income:
Net income $ 10,038 $ 11,555 $ 21,917 $ 20,589
Other comprehensive income
Currency translation
adjustment (1,231) (71) (2,086) (16)
Other 22 42 38 60
Other comprehensive income
(loss) net of tax (1,209) (29) (2,048) 44
Comprehensive income $ 8,829 $ 11,526 $ 19,869 $ 20,633
Ethan Allen Interiors Inc.
Condensed Consolidated Balance Sheets
Unaudited
(in thousands)
December 31, June 30,
2014 2014
Assets
Current assets:
Cash and cash equivalents $ 112,942 $ 109,176
Marketable securities 8,865 18,153
Accounts receivable, net 10,626 12,426
Inventories 151,749 146,275
Prepaid expenses & other current assets 23,023 19,599
Total current assets 307,205 305,629
Property, plant and equipment, net 284,789 288,156
Intangible assets, net 45,128 45,128
Restricted cash and investments 8,008 8,507
Other assets 6,937 7,014
Total Assets $ 652,067 $ 654,434
Liabilities and Shareholders' Equity
Current liabilities:
Current maturities of long-term debt 56,282 501
Customer deposits 52,779 59,684
Accounts payable 19,501 24,320
Accrued expenses & other current liabilities 46,374 51,542
Total current liabilities 174,936 136,047
Long-term debt 75,751 130,411
Other long-term liabilities 20,393 20,509
Total liabilities 271,080 286,967
Shareholders' equity:
Common stock 486 486
Additional paid-in-capital 366,358 365,733
Less: Treasury stock (584,041) (584,041)
Retained earnings 599,338 584,395
Accumulated other comprehensive income (1,438) 642
Total Ethan Allen Interiors Inc. shareholders'
equity 380,703 367,215
Noncontrolling interests 284 252
Total shareholders' equity 380,987 367,467
Total Liabilities and Shareholders' Equity $ 652,067 $ 654,434
Ethan Allen Interiors Inc.
GAAP Reconciliation
Three and Six Months Ended December 31, 2014 and 2013
Unaudited
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
December 31, December 31,
2014 2013 2014 2013
------------------------ ------------------------
Net Income / Earnings Per
Share
Net income $ 10,038 $ 11,555 $ 21,917 $ 20,589
Special items net of
related tax effects * 681 489 1,578 1,022
Unusual income tax effects 37 (111) 48 (158)
------------------------ ------------------------
Net income (excluding special
items* and
unusual income tax effects) $ 10,756 $ 11,933 $ 23,543 $ 21,453
------------------------ ------------------------
Diluted weighted average
shares outstanding 29,295 29,292 29,272 29,290
Earnings per diluted share $ 0.34 $ 0.39 $ 0.75 $ 0.70
------------------------ ------------------------
Earnings per diluted share
(excluding special
items* and unusual income tax
effects) $ 0.37 $ 0.41 $ 0.80 $ 0.73
------------------------ ------------------------
Consolidated Operating Income
/ Operating Margin
Operating income $ 17,660 $ 19,850 $ 38,130 $ 35,794
Add: special items * 1,072 770 2,485 1,610
------------------------ ------------------------
Operating income (excluding
special items*) $ 18,732 $ 20,620 $ 40,615 $ 37,404
------------------------ ------------------------
Net sales $ 197,067 $ 193,104 $ 387,773 $ 374,763
------------------------ ------------------------
Operating margin 9.0% 10.3% 9.8% 9.6%
------------------------ ------------------------
Operating margin (excluding
special items*) 9.5% 10.7% 10.5% 10.0%
------------------------ ------------------------
Wholesale Operating Income /
Operating Margin
Wholesale operating income $ 13,155 $ 14,366 $ 34,697 $ 30,498
Add: special items 925 - 1,419 -
------------------------ ------------------------
Wholesale operating income
(excluding special items*) $ 14,080 $ 14,366 $ 36,116 $ 30,498
------------------------ ------------------------
Wholesale net sales $ 116,210 $ 113,133 $ 240,810 $ 226,331
------------------------ ------------------------
Wholesale operating margin 11.3% 12.7% 14.4% 13.5%
------------------------ ------------------------
Wholesale operating margin
(excluding special items*) 12.1% 12.7% 15.0% 13.5%
------------------------ ------------------------
Retail Operating Income /
Operating Margin
Retail operating income $ 2,953 $ 4,206 $ 4,715 $ 4,002
Add: special items 147 770 1,066 1,610
------------------------ ------------------------
Retail operating income
(excluding special items*) $ 3,100 $ 4,976 $ 5,781 $ 5,612
------------------------ ------------------------
Retail net sales $ 153,207 $ 151,496 $ 298,250 $ 293,323
------------------------ ------------------------
Retail operating margin 1.9% 2.8% 1.6% 1.4%
------------------------ ------------------------
Retail operating margin
(excluding special items*) 2.0% 3.3% 1.9% 1.9%
------------------------ ------------------------
* Special items consist of restructuring, transition charges and certain
other items.
Related tax effects are calculated using a normalized income tax rate.
Ethan Allen Interiors Inc.
GAAP Reconciliation
Three and Six Months Ended December 31, 2014 and 2013
Unaudited
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
December 31, December 31,
2014 2013 2014 2013
------------------------ ------------------------
EBITDA
Net income $ 10,038 $ 11,555 $ 21,917 $ 20,589
Add: interest expense, net 1,761 1,750 3,519 3,500
income tax expense 5,829 6,467 12,674 11,586
depreciation and amortization 4,675 4,410 9,394 8,699
------------------------ ------------------------
EBITDA $ 22,303 $ 24,182 $ 47,504 $ 44,374
------------------------ ------------------------
Net sales $ 197,067 $ 193,104 $ 387,773 $ 374,763
------------------------ ------------------------
EBITDA as % of net sales 11.3% 12.5% 12.3% 11.8%
------------------------ ------------------------
EBITDA $ 22,303 $ 24,182 $ 47,504 $ 44,374
Add: special items* 1,072 770 2,485 1,610
------------------------ ------------------------
EBITDA (excluding special
items) $ 23,375 $ 24,952 $ 49,989 $ 45,984
------------------------ ------------------------
Net sales $ 197,067 $ 193,104 $ 387,773 $ 374,763
------------------------ ------------------------
EBITDA as % of net sales
(excluding special items) 11.9% 12.9% 12.9% 12.3%
------------------------ ------------------------
* Special items consist of restructuring, transition charges and certain
other items.
Related tax effects are calculated using a normalized income tax rate.
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Ethan Allen Interiors Inc. via GlobeNewswire
[HUG#1889654]
Unternehmensinformation / Kurzprofil:
Datum: 27.01.2015 - 22:35 Uhr
Sprache: Deutsch
News-ID 367326
Anzahl Zeichen: 30049
contact information:
Town:
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Kategorie:
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