Ethan Allen Increases Cash Dividend and Reports Results for Quarter Ended March 31, 2011
DANBURY, Conn. -- Ethan Allen Interiors Inc. ("Ethan Allen" or the "Company") (NYSE:ETH) announced today that its Board of Directors has declared a regular quarterly cash dividend of $0.07 per share, a 40% increase, which will be payable to shareholders of record as of July 11, 2011 and will be paid on July 25, 2011.
The Company also reported operating results for the three and nine months ended March 31, 2011.
Mr. Farooq Kathwari, Chairman, President and CEO commenting on the results stated, "We are pleased with our progress which has given us the opportunity to increase the dividend to our shareholders. Our delivered sales increased in the quarter 10.6%, and excluding special items, we had net income per share of $0.07 compared to a loss of $0.05 in the previous year quarter. We have continued to invest in marketing and in adding qualified associates, particularly in our Retail operations. During the quarter, we increased our advertising by 31% and for nine months by 26% compared to the previous year periods. During the quarter, written business in the Company's Retail Division increased 11.4% and comparable written increased 13.4%. The Retail Division wrote $148 million and delivered $117 million, resulting in written orders exceeding deliveries by more than $30 million during the quarter. Our liquidity continues to improve. As of March 31st, we had cash and securities of $100.2 million. We have also continued to repurchase our 5.375% bonds. During the quarter we purchased $19.8 million and for nine months $26.6 million."
Three Months Ended March 31, 2011
Net sales for the quarter ended March 31, 2011 were $162.8 million, an increase of 10.6% compared with the prior year quarter. The Company's Retail division net sales were $117.0 million, an increase of 9.3% from the prior year quarter. Written orders booked during the quarter by the Retail division were 11.4% greater than the prior year quarter including comparable design center orders which grew 13.4%. As a result of the growth of our independent retailer in China, and at their request, a separate section of an existing Ethan Allen warehouse was established by us to hold sold product on their behalf. At the end of the quarter ending March 31, $5.2 million of sold product was held in the warehouse and is part of our net sales. Net income for the quarter ended March 31, 2011 was $3.5 million or $0.12 earnings per diluted share compared with a net loss the prior year of $0.9 million or a $0.03 loss per diluted share. Excluding special items in both periods, net income for the quarter ended March 31, 2011 was $2.0 million or $0.07 per diluted share compared with a net loss the prior year quarter of $1.5 million or $0.05 loss per diluted share.
Nine Months Ended March 31, 2011
For the nine months ended March 31, 2011, net sales were $501.0 million, up 17.4% from the prior year comparable period. Net income year to date was $22.1 million or $0.76 per diluted share compared with a year to date net loss of $17.8 million or $0.61 loss per diluted share the prior year. Excluding special items in both periods for the nine months, current year earnings were $0.37 per diluted share compared with a net loss per diluted share of $0.31 the prior year. Commenting on business outlook, Mr. Kathwari stated: "The economy is healing, and due to the many initiatives we have undertaken in the last three years, we remain cautiously optimistic. Our plans are for continued investments in advertising and also adding qualified professionals in the Retail division."
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 280 Design Centers in the United States and abroad. Ethan Allen owns and operates seven manufacturing facilities in North America, including five manufacturing plants and one sawmill in the United States and one manufacturing plant in Mexico. Over seventy percent of its products are made in its United States plants. For more information on Ethan Allen's products and services, visit ethanallen.com.
SOURCE: Ethan Allen Interiors, Inc.
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