DANBURY, CT - Ethan Allen Interiors Inc. ("Ethan Allen", the "Company", "We", or "Our") /quotes/zigman/127730/quotes/nls/eth ETH +1.08% reported operating results for the three and twelve months ended June 30, 2012.

Farooq Kathwari, Chairman and CEO commented, "We are pleased with our results for the fiscal year ended June 30, 2012 and the continued progress to position us for growth. For the fiscal year ended June 30, net sales increased by 7.4% to $729.4 million. Our net income per diluted share excluding special items was $0.94 compared with $0.58 in the previous year; an increase of 62%. In addition, we absorbed costs associated with liquidation of inventory to make room for major new product introductions."

Mr. Kathwari further stated, "For our fourth quarter ended June 30, 2012 net sales increased by 4.1% and our net income per diluted share excluding special items was $0.27 compared to $0.21 in the prior year quarter. As previously discussed, we completed the introduction of the final phase of new products during the quarter. We absorbed $0.03 per diluted share due to incremental impacts from display inventory liquidations to make room for new products. This impact is not adjusted from our non-GAAP numbers. This major initiative positions us well for growth going forward."

Three Months Ended June 30, 2012

Net sales for the quarter ended June 30, 2012 increased 4.1% over the prior year to $185.3 million. The Company's Retail division net sales increased 5.0% to $143.7 million including comparable design center net sales growth of 3.6%. Retail division written orders recorded during the fourth quarter increased 2.3% over 14.6% growth the prior year's fourth quarter. Comparable design center written orders grew 0.6% over 12.9% growth the prior year.

Net income for the quarter ended June 30, 2012 was $7.3 million or $0.25 per diluted share compared with the prior year of $7.2 million or $0.25 per diluted share. Excluding special items in both periods, net income for the quarter ended June 30, 2012 was $7.8 million or $0.27 per diluted share compared with $6.1 million or $0.21 per diluted share in the prior year period.

Twelve Months Ended June 30, 2012

Net sales for the twelve months ended June 30, 2012 increased 7.4% over the prior year to $729.4 million. The Company's Retail division net sales increased 10.6% to $559.4 million including comparable design center net sales growth of 8.4%. Written orders booked during the twelve month period by the Retail division were 8.9% greater than the prior year quarter including comparable design center order growth of 6.4%.

Net income for the twelve months ended June 30, 2012 was $49.7 million or $1.71 per diluted share compared with the prior year of $29.3 million or $1.01 per diluted share. During the third quarter the Company reversed deferred tax asset valuation allowances and certain other tax reserves resulting in $23.9 million in non-cash tax benefits. Excluding these benefits and other special items in both periods, net income for the twelve months ended June 30, 2012 was $27.5 million or $0.94 per diluted share compared with $16.9 million or $0.58 per diluted share in the prior year period.

Mr. Kathwari concluded, "We are well positioned to grow. We have substantially strengthened the main areas of our vertically integrated structure including our product offerings, our advertising and communications, our interior design Retail network, our manufacturing and logistics operations, and in the technology employed throughout our business. We will discuss our many initiatives further on our conference call on Thursday."

Analyst Conference Call

The Company will conduct a conference call at 11:00 AM (Eastern) on Thursday, July 26th 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 .

About Ethan Allen

Ethan 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 eight manufacturing facilities including five manufacturing plants and one sawmill in the United States plus two plants in 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.

This press release should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended June 30, 2011 (the "2011 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 2011 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  Twelve Months Ended
                                                                     ----------------    ----------------
                                                                     06/30/12  06/30/11  06/30/12  06/30/11
                                                                     --------  --------  --------  --------
        Net sales                                                      $185.3    $178.0    $729.4    $679.0
        Gross margin                                                    53.9%     52.9%     53.5%     51.5%
        Operating margin                                                 7.7%      6.4%      6.8%      4.7%
        Operating margin (excluding special items*)                      7.7%      6.8%      7.1%      5.0%
        Net income                                                       $7.3      $7.2     $49.7     $29.3
        Net income (excluding special items* and unusual income tax      $7.8      $6.1     $27.5     $16.9
        effects)
        Operating cash flow                                              $9.9     $22.6     $37.7     $63.2
        Capital expenditures                                             $3.0      $3.4     $22.9      $9.1
        Acquisitions                                                     $0.0      $2.3      $0.5      $3.0
        Treasury stock repurchases (settlement date basis)               $0.5      $0.0      $1.4      $5.4
        EBITDA                                                          $18.9     $15.9     $68.3     $57.3
        EBITDA as % of net sales                                        10.2%      8.9%      9.4%      8.4%
        EBITDA (excluding special items*)                               $18.8     $16.6     $70.4     $57.6
        EBITDA as % of net sales (excluding special items*)             10.1%      9.4%      9.6%      8.5%
        Selected Financial Data by Business Segment:
        -----------------------------------------------------------
                                                                     Three Months Ended  Twelve Months Ended
                                                                     ----------------    ----------------
                                                                     06/30/12  06/30/11  06/30/12  06/30/11
                                                                     --------  --------  --------  --------
        Retail
        -----------------------------------------------------------
        Net sales                                                      $143.7    $136.8    $559.4    $505.9
        Operating margin                                                -0.7%     -1.9%     -2.1%     -3.0%
        Operating margin (excluding special items*)                     -0.7%     -1.3%     -1.7%     -2.8%
        Wholesale
        -----------------------------------------------------------
        Net sales                                                      $112.8    $110.5    $456.9    $422.9
        Operating margin                                                13.2%     13.4%     14.1%     11.8%
        Operating margin (excluding special items*)                     13.2%     13.4%     14.1%     12.0%
        * 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 Income Statements
                                                         Unaudited
                                                      (in thousands)
                                                             Three Months Ended            Twelve Months Ended
                                                       ------------------------       ----------------------
                                                           06/30/12       06/30/11       06/30/12       06/30/11
                                                       -------------    -----------   -----------    -----------
        Net sales                                        $ 185,316         $ 177,952   $ 729,373      $ 678,960
        Cost of sales                                       85,407            83,803     339,085        329,500
                                                           -------           -------     -------        -------
        Gross profit                                        99,909            94,149     390,288        349,460
        Operating expenses:
          Selling                                           43,716            43,067     173,863        161,609
          General and administrative                        41,949            39,034     166,813        154,792
          Restructuring and impairment charge                  (90)             733         (85)        1,126
                                                           ------- ---       -------     ------- --     -------
        Total operating expenses                            85,575            82,834     340,591        317,527
                                                           -------           -------     -------        -------
        Operating income                                    14,334            11,315      49,697         31,933
        Interest and other income                              200               111         562          5,564
        Interest expense                                     2,206             2,477       9,020         11,126
                                                           -------           -------     -------        -------
        Income before income taxes                          12,328             8,949      41,239         26,371
        Income tax expense (benefit)                         5,029             1,774      (8,455)       (2,879)
                                                           -------           -------     ------- --     ------- --
        Net income                                       $   7,299         $   7,175   $  49,694      $  29,250
                                                       === =======      ==== =======  == =======     == =======
        Basic earnings per common share:
          Net income per basic share                     $    0.25         $    0.25   $    1.72      $    1.02
          Basic weighted average shares outstanding         28,856            28,772      28,824         28,758
        Diluted earnings per common share:
          Net income per diluted share                   $    0.25         $    0.25   $    1.71      $    1.01
          Diluted weighted average shares outstanding       29,179            29,007      29,109         28,966
        


        
                                   Ethan Allen Interiors Inc.
                              Condensed Consolidated Balance Sheets
                                            Unaudited
                                         (in thousands)
                                                              June 30,       June 30,
                                                                2012           2011
                                                           ------------   ------------
        Assets
        Current assets:
          Cash and cash equivalents                            $  79,721      $  78,519
          Marketable securities                                    9,005         12,909
          Accounts receivable, net                                14,919         15,036
          Inventories                                            155,739        141,692
          Prepaid expenses & other current assets                 21,261         20,372
          Deferred income taxes                                    2,147              -
                                                                 -------        -------
             Total current assets                                282,792        268,528
        Property, plant and equipment, net                       295,695        294,853
        Intangible assets, net                                    45,128         45,128
        Restricted cash and investments                           15,416         16,391
        Other assets                                               5,757          3,425
                                                                 -------        -------
               Total Assets                                    $ 644,788      $ 628,325
                                                           ===== =======  ===== =======
        Liabilities and Shareholders' Equity
        Current liabilities:
          Current maturities of long-term debt                       250             19
          Customer deposits                                       65,465         62,649
          Accounts payable                                        27,315         26,958
          Accrued expenses & other current liabilities            58,047         64,990
                                                                 -------        -------
             Total current liabilities                           151,077        154,616
        Long-term debt                                           154,250        165,013
        Other long-term liabilities                               17,593         18,975
        Deferred income taxes                                          -          8,034
                                                                 -------        -------
             Total liabilities                                   322,920        346,638
        Shareholders' equity                                     321,868        281,687
                                                                 -------        -------
               Total Liabilities and Shareholders' Equity      $ 644,788      $ 628,325
                                                           ===== =======  ===== =======
        


        
                                                            Ethan Allen Interiors Inc.
                                                                GAAP Reconciliation
                                               Three and Twelve Months Ended June 30, 2012 and 2011
                                                                     Unaudited
                                                     (in thousands, except per share amounts)
                                                                               Three Months Ended                Twelve Months Ended
                                                                                    June 30,                          June 30,
                                                                              2012             2011             2012             2011
                                                                        ---------------- ---------------- ---------------- ----------------
        Net Income / Earnings Per Share
        --------------------------------------------------------------
        Net income                                                        $   7,299        $   7,175        $  49,694        $  29,250
             Special items net of related tax effects *                         (57)            465            1,318              194
             Unusual income tax effects                                         529           (1,492)        (23,508)        (12,505)
                                                                            -------          ------- ---      ------- ---      ------- ---
        Net income (excluding special items* and unusual income tax       $   7,771        $   6,148        $  27,504        $  16,939
        effects)
                                                                        === ======= ===  === ======= ===  === ======= ===  === ======= ===
        Basic weighted average shares outstanding                            28,856           28,772           28,824           28,758
        Earnings per basic share                                          $    0.25        $    0.25        $    1.72        $    1.02
                                                                        === =======      === =======      === =======      === =======
        Earnings per basic share (excluding special items* and unusual    $    0.27        $    0.21        $    0.95        $    0.59
        income tax effects)
                                                                        === ======= ===  === ======= ===  === ======= ===  === ======= ===
        Diluted weighted average shares outstanding                          29,179           29,007           29,109           28,966
        Earnings per diluted share                                        $    0.25        $    0.25        $    1.71        $    1.01
                                                                        === =======      === =======      === =======      === =======
        Earnings per diluted share (excluding special
        items* and unusual income tax effects)                            $    0.27        $    0.21        $    0.94        $    0.58
                                                                        === =======      === =======      === =======      === =======
        Consolidated Operating Income / Operating
        Margin
        --------------------------------------------------------------
        Operating income                                                  $  14,334        $  11,315        $  49,697        $  31,933
        Add: special items *                                                    (90)            733            2,075            1,805
                                                                            ------- ---      -------          -------          -------
        Operating income (excluding special items*)                       $  14,244        $  12,048        $  51,772        $  33,738
                                                                        === =======      === =======      === =======      === =======
        Net sales                                                         $ 185,316        $ 177,952        $ 729,373        $ 678,960
                                                                        === =======      === =======      === =======      === =======
        Operating margin                                                        7.7 %            6.4 %            6.8 %            4.7 %
                                                                            ======= ===      ======= ===      ======= ===      ======= ===
        Operating margin (excluding special items*)                             7.7 %            6.8 %            7.1 %            5.0 %
                                                                            ======= ===      ======= ===      ======= ===      ======= ===
        Wholesale Operating Income / Operating
        Margin
        --------------------------------------------------------------
        Wholesale operating income                                        $  14,852        $  14,822        $  64,436        $  49,898
        Add: special items                                                        -                -              131              679
                                                                            -------          -------          -------          -------
        Wholesale operating income (excluding special items*)             $  14,852        $  14,822        $  64,567        $  50,577
                                                                        === =======      === =======      === =======      === =======
        Wholesale net sales                                               $ 112,846        $ 110,479        $ 456,915        $ 422,946
                                                                        === =======      === =======      === =======      === =======
        Wholesale operating margin                                             13.2 %           13.4 %           14.1 %           11.8 %
                                                                            ======= ===      ======= ===      ======= ===      ======= ===
        Wholesale operating margin (excluding special items*)                  13.2 %           13.4 %           14.1 %           12.0 %
                                                                            ======= ===      ======= ===      ======= ===      ======= ===
        Retail Operating Income / Operating Margin
        --------------------------------------------------------------
        Retail operating income (loss)                                    $    (944)      $  (2,577)      $ (11,522)      $ (15,344)
        Add: special items                                                      (90)            733            1,944            1,126
                                                                            ------- ---      -------          -------          -------
        Retail operating income (loss) (excluding special items*)         $  (1,034)      $  (1,844)      $  (9,578)      $ (14,218)
                                                                        === ======= ===  === ======= ===  === ======= ===  === ======= ===
        Retail net sales                                                  $ 143,730        $ 136,844        $ 559,417        $ 505,910
                                                                        === =======      === =======      === =======      === =======
        Retail operating margin                                                -0.7 %           -1.9 %           -2.1 %           -3.0 %
                                                                            ======= ===      ======= ===      ======= ===      ======= ===
        Retail operating margin (excluding special items*)                     -0.7 %           -1.3 %           -1.7 %           -2.8 %
                                                                            ======= ===      ======= ===      ======= ===      ======= ===
        


        
                                              Ethan Allen Interiors Inc.
                                                  GAAP Reconciliation
                                 Three and Twelve Months Ended June 30, 2012 and 2011
                                                       Unaudited
                                       (in thousands, except per share amounts)
                                                   Three Months Ended                Twelve Months Ended
                                                        June 30,                          June 30,
                                                  2012             2011             2012             2011
                                            ---------------- ---------------- ---------------- ----------------
        EBITDA
        ----------------------------------
        Net income                            $   7,299        $   7,175        $  49,694        $  29,250
        Add: interest expense, net                2,059            2,269            8,478           10,076
        Add: income tax expense (benefit)         5,029            1,774           (8,455)         (2,879)
        Add: depreciation and amortization        4,489            4,696           18,581           20,816
                                                -------          -------          -------          -------
        EBITDA                                $  18,876        $  15,914        $  68,298        $  57,263
                                            === =======      === =======      === =======      === =======
        Net sales                             $ 185,316        $ 177,952        $ 729,373        $ 678,960
                                            === =======      === =======      === =======      === =======
        EBITDA as % of net sales                   10.2 %            8.9 %            9.4 %            8.4 %
                                                ======= ===      ======= ===      ======= ===      ======= ===
        EBITDA                                $  18,876        $  15,914        $  68,298        $  57,263
        Add: special items*                         (90)            733            2,075              305
                                                ------- ---      -------          -------          -------
        Adjusted EBITDA                       $  18,786        $  16,647        $  70,373        $  57,568
                                            === =======      === =======      === =======      === =======
        Net sales                             $ 185,316        $ 177,952        $ 729,373        $ 678,960
                                            === =======      === =======      === =======      === =======
        Adjusted EBITDA as % of net sales          10.1 %            9.4 %            9.6 %            8.5 %
                                                ======= ===      ======= ===      ======= ===      ======= ===
        * Special items consist of restructuring, impairment, transition
        charges and certain other items.
        Related tax effects are calculated using a normalized income tax
        rate.
        


SOURCE: Ethan Allen Interiors Inc.

        
             


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