Ethan Allen Provides Business Updates, Increases Share Repurchase Authorization and Announces Earnings Release Date for Fisca...
January 13 2020 - 3:30PM
Ethan Allen Interiors Inc. (“Ethan Allen” or “the Company”)
(NYSE:ETH) provided several updates on its business today.
Preliminary Results for the Fiscal 2020
Second Quarter - the Company expects to report the
following:
- Consolidated net sales of $175 million
- GAAP diluted EPS in the range of $0.24 to $0.26
- Adjusted diluted EPS in the range of $0.25 to $0.27
- Regular quarterly dividends paid of $5.6 million
- Cash on hand of $28.3 million as of December 31, 2019 and no
debt
- Repurchased 2.1% of the Company’s outstanding shares during the
second quarter, representing a total of 545,727 shares
- The Company’s Board of Directors increased the share repurchase
authorization to three million shares
Farooq Kathwari, Ethan Allen’s Chairman,
President and CEO commented, “We are pleased with the favorable
customer response to the Ethan Allen Member Program, which we
launched in October 2019. As we mentioned when we launched the
program, we expected sales and operating income to be negatively
impacted during the transition period as we move from a promotional
to membership model, providing our clients an improved customer
experience through everyday savings.”
“While our wholesale orders, which reflects
sales through all our channels, decreased 22% from a year ago, we
realized sequential improvement in orders each month during the
second quarter, with October reflecting a decrease to the prior
year, November reflecting a lesser decrease and December orders
increasing year over year,” Mr. Kathwari continued.
“We are pleased that our unique vertical
structure continues to provide strong operating leverage to allow
us to consistently return value to our shareholders through our
regular quarterly dividend, periodic special cash dividends and
share repurchases. During our second quarter we paid $5.6 million
in cash dividends and repurchased 545,727 shares, representing 2.1%
of our outstanding shares.”
Mr. Kathwari concluded, “For our third quarter,
as the Member Program continues to gain momentum, we have a strong
marketing program planned, starting with a direct mail magazine
being distributed this month to 2.5 million households. This will
be supported by various other marketing channels including local
television in select markets and digital and social marketing. I am
also pleased to announce that Rodney Hutton has recently joined
Ethan Allen as our Chief Marketing Officer. Rodney brings a strong
marketing and brand building background having previously held
senior marketing leadership roles in a number of leading
enterprises including Karl Lagerfeld, Ann Klein, Ralph Lauren and
Giorgio Armani.”
Fiscal Second Quarter Analyst Conference
Call
The Company also announced it will release its
financial results for the fiscal 2020 second quarter ended December
31, 2019, after the market closes on Tuesday, February 4, 2020.
Following the release, the Company will host an analyst conference
call at 5 PM (Eastern Time) to discuss its financial results. The
analyst conference call will be webcast from the "Events and
Presentations" page at http://www.ethanallen.com/investors. To
access the conference call, dial 844-822-0103 (or 614-999-9166 for
international participants), and enter conference ID 3862646. 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 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 nine manufacturing
facilities including six manufacturing plants in the United States
plus two plants in Mexico and one in Honduras. Approximately 75% of
its products are made in its North American plants. For more
information on Ethan Allen's products and services, visit
www.ethanallen.com.
Investor/Media Contact:
Corey WhitelyExecutive Vice President,
AdministrationChief Financial Officer and
TreasurerIR@ethanallen.com
ABOUT NON-GAAP FINANCIAL
MEASURES
In this press release the Company has included
financial measures that are 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 the GAAP diluted EPS to remove the impact of certain
charges and gains 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 press 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 press
release by use of forward-looking words such as “anticipate,”
“believe,” “plan,” “estimate,” “expect,” “intend,” “will,” “may,”
“continue,” “project,” “target,” “outlook," "forecast," “guidance,"
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: a volatile retail environment and changing economic
conditions may further adversely affect consumer demand and
spending; global and local economic uncertainty may materially
adversely affect manufacturing operations or sources of merchandise
and international operations; disruptions of supply chain; changes
in United States trade and tax policy; competition from overseas
manufacturers and domestic retailers; failure to successfully
anticipate or respond to changes in consumer tastes and trends in a
timely manner; ability to maintain and enhance the Ethan Allen
brand, marketing and advertising efforts and pricing strategies;
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
environment, health and safety requirements; the use of emerging
technologies as well as unanticipated changes in the pricing and
other practices of competitors; 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; product recalls or product safety
concerns; cyber-attacks and the ability to maintain adequate
cyber-security systems and procedures; loss, corruption and
misappropriation of data and information relating to customers;
loss of key personnel; additional asset impairment charges that
could reduce profitability; access to consumer credit could be
interrupted as a result of conditions outside of the Company’s
control; its ability to locate new design center sites and/or
negotiate favorable lease terms for additional design centers or
for the expansion of existing design centers; materially adverse
changes to fiscal and tax policies; its operations present hazards
and risks which may not be fully covered by insurance; and possible
failure to protect its intellectual property.
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 press 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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