Ethan Allen Reports Fiscal 2024 and Fourth Quarter Results; Declares Special and Regular Dividend
Ethan Allen (NYSE: ETD) reported fiscal 2024 and Q4 results, declaring special and regular dividends. Despite lower demand, consolidated gross margin remained strong at 60.8%. Q4 highlights include:
- Net sales of $168.6 million, down 10.0%
- Operating margin of 13.4%; adjusted 13.1%
- Diluted EPS of $0.72; adjusted $0.70
- Cash and investments of $195.8 million, up from $172.7 million last year
Full year 2024 results:
- Net sales of $646.2 million, down 18.3%
- Diluted EPS of $2.49 vs $4.13 last year
- Generated $80.2 million cash from operations
The company announced a $0.40 per share special dividend and a $0.39 regular quarterly dividend, both payable August 29, 2024.
Ethan Allen (NYSE: ETD) ha riportato i risultati fiscali per il 2024 e il quarto trimestre, dichiarando dividendi speciali e regolari. Nonostante la domanda più bassa, il margine di profitto lordo consolidato è rimasto forte al 60,8%. I punti salienti del quarto trimestre includono:
- Vendite nette di 168,6 milioni di dollari, in calo del 10,0%
- Margine operativo del 13,4%; rettificato 13,1%
- Utile per azione diluito di 0,72 dollari; rettificato 0,70 dollari
- Cassa e investimenti di 195,8 milioni di dollari, in aumento rispetto ai 172,7 milioni di dollari dell'anno scorso
Risultati complessivi per il 2024:
- Vendite nette di 646,2 milioni di dollari, in calo del 18,3%
- Utile per azione diluito di 2,49 dollari rispetto a 4,13 dollari dell'anno scorso
- Generato 80,2 milioni di dollari in cassa dalle operazioni
L'azienda ha annunciato un dividendo speciale di 0,40 dollari per azione e un dividendo regolare trimestrale di 0,39 dollari, entrambi pagabili il 29 agosto 2024.
Ethan Allen (NYSE: ETD) reportó los resultados fiscales para 2024 y el cuarto trimestre, declarando dividendos especiales y regulares. A pesar de la disminución en la demanda, el margen bruto consolidado se mantuvo sólido en 60.8%. Los aspectos destacados del cuarto trimestre incluyen:
- Ventas netas de 168.6 millones de dólares, con una disminución del 10.0%
- Margen operativo del 13.4%; ajustado 13.1%
- EPS diluido de 0.72 dólares; ajustado 0.70 dólares
- Efectivo e inversiones de 195.8 millones de dólares, en aumento respecto a los 172.7 millones de dólares del año pasado
Resultados del año completo 2024:
- Ventas netas de 646.2 millones de dólares, con una disminución del 18.3%
- EPS diluido de 2.49 dólares frente a 4.13 dólares del año pasado
- Generado 80.2 millones de dólares en efectivo de operaciones
La empresa anunció un dividendo especial de 0.40 dólares por acción y un dividendo regular trimestral de 0.39 dólares, ambos pagaderos el 29 de agosto de 2024.
이선 알렌 (NYSE: ETD)는 2024 회계연도 및 4분기 실적을 발표하며 특별 배당금과 정기 배당금을 선언했습니다. 수요가 감소했음에도 불구하고, 통합 총 마진은 60.8%로 강세를 유지했습니다. 4분기의 주요 사항은 다음과 같습니다:
- 순매출 1억 6,860만 달러, 10.0% 감소
- 운영 마진 13.4%; 조정 후 13.1%
- 희석 주당순이익(EPS) 0.72 달러; 조정 후 0.70 달러
- 현금 및 투자 1억 9,580만 달러, 지난해 1억 7,270만 달러에서 증가
2024년 전체 연간 실적:
- 순매출 6억 4,620만 달러, 18.3% 감소
- 희석 EPS 2.49 달러, 지난해 4.13 달러와 비교
- 운영에서 8,020만 달러의 현금 생성
회사는 주당 0.40 달러의 특별 배당금과 0.39 달러의 정기 분기 배당금을 발표했으며, 둘 다 2024년 8월 29일에 지급됩니다.
Ethan Allen (NYSE: ETD) a publié les résultats financiers pour l'exercice 2024 et le quatrième trimestre, en annonçant des dividendes spéciaux et réguliers. Malgré une baisse de la demande, la marge brute consolidée est restée forte à 60,8%. Les faits marquants du quatrième trimestre comprennent :
- Ventes nettes de 168,6 millions de dollars, en baisse de 10,0%
- Marge opérationnelle de 13,4%; ajustée à 13,1%
- BPA dilué de 0,72 dollars; ajusté à 0,70 dollars
- Trésorerie et investissements de 195,8 millions de dollars, en hausse par rapport à 172,7 millions de dollars l'année dernière
Résultats complets de l'année 2024:
- Ventes nettes de 646,2 millions de dollars, en baisse de 18,3%
- BPA dilué de 2,49 dollars contre 4,13 dollars l'année dernière
- Généré 80,2 millions de dollars de trésorerie provenant des opérations
L'entreprise a annoncé un dividende spécial de 0,40 dollars par action et un dividende trimestriel régulier de 0,39 dollars, tous deux payables le 29 août 2024.
Ethan Allen (NYSE: ETD) hat die Ergebnisse für das Geschäftsjahr 2024 und das vierte Quartal veröffentlicht und dabei Sonder- und regelmäßige Dividenden erklärt. Trotz eines Rückgangs der Nachfrage blieb die konsolidierte Bruttomarge stark bei 60,8%. Die Höhepunkte des vierten Quartals umfassen:
- Nettoumsatz von 168,6 Millionen Dollar, ein Rückgang von 10,0%
- Operative Marge von 13,4%; bereinigt 13,1%
- Verwässerter EPS von 0,72 Dollar; bereinigt 0,70 Dollar
- Bargeld und Investitionen von 195,8 Millionen Dollar, ein Anstieg von 172,7 Millionen Dollar im Vorjahr
Jahresergebnisse 2024:
- Nettoumsatz von 646,2 Millionen Dollar, ein Rückgang von 18,3%
- Verwässerter EPS von 2,49 Dollar gegenüber 4,13 Dollar im Vorjahr
- Erzeugte 80,2 Millionen Dollar Cashflow aus dem operativen Geschäft
Das Unternehmen kündigte eine sonstige Dividende von 0,40 Dollar pro Aktie und eine reguläre Quartalsdividende von 0,39 Dollar an, die beide am 29. August 2024 zahlbar sind.
- Strong gross margin of 60.8% maintained despite lower sales
- Cash and investments increased to $195.8 million from $172.7 million last year
- Generated $80.2 million cash from operations in fiscal 2024
- Declared special dividend of $0.40 per share and increased regular quarterly dividend to $0.39 per share
- Reduced inventory levels by 4.8% to $142.0 million
- Named America's #1 premium furniture retailer by Newsweek for second consecutive year
- Q4 net sales decreased 10.0% to $168.6 million
- Full year net sales declined 18.3% to $646.2 million
- Q4 diluted EPS decreased to $0.72 from $0.99 last year
- Full year diluted EPS fell to $2.49 from $4.13 last year
- Retail segment written orders decreased 8.4% for the full year
- Wholesale segment written orders declined 10.9% for the full year
Ethan Allen's fiscal 2024 results reflect a company navigating a challenging post-pandemic environment with resilience. Despite a 10.0% decrease in Q4 net sales to
The company's financial health remains strong, with cash and investments increasing to
However, the adjusted operating margin declined to
Looking ahead, Ethan Allen's focus on becoming an "Interior Design Destination" and its recognition as America's #1 premium furniture retailer by Newsweek could potentially drive future growth. However, the cautious optimism expressed by management suggests that challenges in the retail environment may persist in the near term.
Ethan Allen's performance in fiscal 2024 offers insights into broader market trends in the premium furniture sector. The decrease in retail written orders by
However, the company's ability to maintain a high gross margin of
The company's strategic initiatives, including the opening of new design centers and the emphasis on combining complimentary interior design services with technology, align with evolving consumer preferences for personalized, omnichannel shopping experiences. This approach could help Ethan Allen differentiate itself in the market and potentially capture market share as the industry recovers.
The reduction in inventory levels by
While the overall sales decline is concerning, the slight improvement in wholesale written orders in Q4 (up
DANBURY, CT, July 31, 2024 (GLOBE NEWSWIRE) -- Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE: ETD), a leading interior design destination, today reported its results for the fiscal 2024 full year and fourth quarter ended June 30, 2024 and announced a special cash dividend.
Farooq Kathwari, Ethan Allen’s Chairman, President and CEO commented, “We are pleased to report our strong performance in this post-pandemic period. Despite lower demand and reductions in high backlog, we did well. While sales were lower, our consolidated gross margin remained strong at
“We continued strong cash generation and ended the quarter with total cash and investments of
Mr. Kathwari continued, “During our fiscal year ended June 30, 2024, we distributed
“During the just completed fiscal 2024 year we launched the very important initiative of projecting the Interior Design Destination, which involved major enhancements to our design center projections throughout North America and internationally. We were also recently named as America’s #1 premium furniture retailer by Newsweek for the second year in a row. We look forward to continuing our progress and remain cautiously optimistic,” concluded Mr. Kathwari.
FISCAL 2024 FOURTH QUARTER HIGHLIGHTS*
- Consolidated net sales of
$168.6 million decreased10.0% - Retail net sales of
$145.1 million were lower by7.1% - Wholesale net sales of
$91.2 million were lower by20.3%
- Retail net sales of
- Written order trends
- Retail segment written orders were lower by
1.3% - Wholesale segment written orders rose
0.4%
- Retail segment written orders were lower by
- Consolidated gross margin of
60.8% was 70 basis points lower than last year due to deleveraging from lower delivered sales, higher inbound freight and a change in product mix partially offset by lower manufacturing raw material input costs, reduced headcount, disciplined promotional activity, a change in sales mix and fewer designer floor sample sales - Operating margin of
13.4% ; adjusted operating margin of13.1% compared with16.3% last year due to fixed cost deleveraging from lower delivered sales, gross margin erosion and incremental advertising partially offset by lower headcount, less variable expenses including lower delivery and commissions, and the ability to maintain a disciplined approach to cost savings and operating expense control; the Company’s selling, general and administrative expenses were down4.9% and equaled47.7% of net sales, an increase from45.1% last year due to lower sales volume relative to fixed costs - Advertising expenses were equal to
2.8% of consolidated net sales in the current fourth quarter, up from1.9% in the prior year period due to additional direct mail campaigns, including the mailing of the Company’s 2024 style book; promotional pricing levels remained disciplined and consistent with a year ago - Diluted EPS of
$0.72 compared with$0.99 ; adjusted diluted EPS of$0.70 - Ended the quarter with
$195.8 million in total cash and investments with no debt outstanding - Generated
$26.2 million of cash from operating activities compared with$26.3 million a year ago - Paid regular quarterly cash dividends of
$0.39 per share, up8.3% from last year, totaling$10.0 million
FISCAL 2024 FULL YEAR HIGHLIGHTS*
- Consolidated net sales of
$646.2 million decreased18.3% - Retail net sales of
$540.6 million were lower by18.4% - Wholesale net sales of
$371.1 million were lower by17.5%
- Retail net sales of
- Written order trends
- Retail segment written orders decreased
8.4% - Wholesale segment written orders declined
10.9%
- Retail segment written orders decreased
- Consolidated gross margin rose to
60.8% ; adjusted operating margin of12.1% - Diluted EPS of
$2.49 compared with$4.13 last year - Generated
$80.2 million of cash from operating activities compared with$100.7 million a year ago - Increased the Company’s regular quarterly cash dividend by
8.3% in April 2024 and paid a$0.50 per share special cash dividend in August 2023; paid total cash dividends of$50.3 million during fiscal 2024 - Reduced inventory carrying levels by
4.8% ; totaled$142.0 million at June 30, 2024 - Ended the year with 3,404 total associates, down
9.2% from a year ago and28.1% less than June 2019 - For the second year in a row Ethan Allen was named one of America’s Top 10 Retailers by Newsweek, including recognition as the #1 retailer of Premium Furniture
- Hosted grand reopening events in many of its design centers as part of a series of events unveiling the Company’s next reinvention as the Interior Design Destination; images from each celebration are featured at www.ethanallen.com/grandreopenings
- New state-of-the-art design centers in The Villages, FL, Avon, OH, New York, NY and Louisville, KY were opened during fiscal 2024 that showcase the Company’s unique vision of American style while combining complimentary interior design services with technology
- Ended the fiscal year with 172 retail design centers in North America, including 142 Company-operated and 30 independently owned and operated locations; the Company also has design centers outside North America
- Announced plans to open additional design centers during fiscal 2025, including in Albuquerque, New Mexico and Watchung, New Jersey
- Held the Company’s annual Ethan Allen Day celebration in June to honor the pioneering spirit of its namesake and celebrate the 92-year heritage of Ethan Allen as a proud American brand
- For the fifth year in a row, the Mexican Center for Corporate Philanthropy and the Alliance for Corporate Social Responsibility recognized Ethan Allen’s upholstery manufacturing operations in Silao, Mexico as environmentally and socially responsible
* See reconciliation of GAAP to adjusted key financial measures in the back of this release. Comparisons are to the fourth quarter and full fiscal 2023 year.
For comparison purposes, the Company reported the following financial measures during the pre-pandemic fourth quarter of fiscal 2019:
- Consolidated net sales of
$183.9 million - Consolidated gross margin of
54.8% ; adjusted gross margin of55.9% - Operating margin of -
2.5% ; adjusted operating margin of8.6% - Diluted loss per share of
$0.12 ; adjusted diluted EPS of$0.46 - Cash and investments of
$20.8 million - Generated
$10.9 million of cash from operating activities - Inventories, net totaled
$162.4 million
KEY FINANCIAL MEASURES*
| (Unaudited) | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Three months ended | Twelve months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||
| Net sales | $ | 168,632 | $ | 187,375 | (10.0 | %) | $ | 646,221 | $ | 791,382 | (18.3 | %) | ||||
| Gross profit | $ | 102,461 | $ | 115,183 | (11.0 | %) | $ | 393,062 | $ | 480,370 | (18.2 | %) | ||||
| Gross margin | 60.8 | % | 61.5 | % | 60.8 | % | 60.7 | % | ||||||||
| GAAP operating income | $ | 22,627 | $ | 31,689 | (28.6 | %) | $ | 77,991 | $ | 137,196 | (43.2 | %) | ||||
| Adjusted operating income* | $ | 22,047 | $ | 30,631 | (28.0 | %) | $ | 77,914 | $ | 133,514 | (41.6 | %) | ||||
| GAAP operating margin | 13.4 | % | 16.9 | % | 12.1 | % | 17.3 | % | ||||||||
| Adjusted operating margin* | 13.1 | % | 16.3 | % | 12.1 | % | 16.9 | % | ||||||||
| GAAP net income | $ | 18,513 | $ | 25,405 | (27.1 | %) | $ | 63,816 | $ | 105,807 | (39.7 | %) | ||||
| Adjusted net income* | $ | 18,080 | $ | 24,615 | (26.5 | %) | $ | 63,758 | $ | 103,057 | (38.1 | %) | ||||
| Effective tax rate | 25.1 | % | 23.6 | % | 25.3 | % | 25.0 | % | ||||||||
| GAAP diluted EPS | $ | 0.72 | $ | 0.99 | (27.3 | %) | $ | 2.49 | $ | 4.13 | (39.7 | %) | ||||
| Adjusted diluted EPS* | $ | 0.70 | $ | 0.96 | (27.1 | %) | $ | 2.49 | $ | 4.03 | (38.2 | %) | ||||
| Cash flows from operating activities | $ | 26,241 | $ | 26,306 | (0.2 | %) | $ | 80,195 | $ | 100,664 | (20.3 | %) | ||||
* See reconciliation of GAAP to adjusted key financial measures in the back of this release.
BALANCE SHEET and CASH FLOW
Cash and investments totaled
Cash from operating activities totaled
Cash dividends paid were
Inventories, net totaled
Customer deposits from undelivered written orders totaled
No debt outstanding at June 30, 2024.
DIVIDENDS
During the fourth quarter of fiscal 2024, the Company’s Board of Directors declared and increased the regular quarterly cash dividend by
More recently, on July 30, 2024, the Board of Directors declared a
CONFERENCE CALL
Ethan Allen will host a conference call with investors and analysts today, July 31, 2024, at 5:00 PM (Eastern Time) to discuss these results. The conference call will be webcast live from the Company’s Investor Relations website at https://ir.ethanallen.com.
The following information is provided for those who would like to participate in the conference call:
- U.S. Participants: 877-705-2976
- International Participants: 201-689-8798
- Meeting Number: 13746761
For those unable to listen live, an archived recording of the call will be made available on the Company’s website referenced above for up to six months.
ABOUT ETHAN ALLEN
Ethan Allen (NYSE:ETD), recently named America’s #1 Premium Furniture Retailer by Newsweek, is a leading interior design destination combining state-of-the-art technology with personal service. Our design centers, which represent a mix of Company-operated and independent licensee locations, offer complimentary interior design service and sell a full range of home furnishings, including custom furniture and artisan-crafted accents for every room in the home. Vertically integrated from product design through logistics, we manufacture about
Investor Relations Contact:
Matt McNulty
Senior Vice President, Chief Financial Officer and Treasurer
IR@ethanallen.com
ABOUT NON-GAAP FINANCIAL MEASURES
This release is intended to supplement, rather than to supersede, the Company's consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). In this release the Company has included financial measures that are derived from the consolidated financial statements but are not presented in accordance with GAAP. The Company uses non-GAAP financial measures, including adjusted operating income and margin, adjusted net income and adjusted diluted EPS (collectively “non-GAAP financial measures”). The Company computes these non-GAAP financial measures by adjusting the comparable GAAP measure to remove the impact of certain charges and gains and the related tax effect of these adjustments. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, or superior to, the financial performance measures prepared in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measure reported in accordance with GAAP is provided at the end of this release.
FORWARD-LOOKING STATEMENTS
This 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 and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Generally, forward-looking statements represent management’s beliefs and assumptions concerning current expectations, projections or trends relating to results of operations, financial results, financial condition, strategic initiatives, expenses, dividends, share repurchases, liquidity, use of cash and cash requirements, investments, future economic indicators, business conditions and industry performance. Such forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These forward-looking statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “continue,” “may,” “will,” “short-term,” “target,” “outlook,” “forecast,” “future,” “strategy,” “opportunity,” “would,” “guidance,” “non-recurring,” “one-time,” “unusual,” “should,” “likely,” “pandemic,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. The Company derives many of its forward-looking statements from operating budgets and forecasts, which are based upon detailed assumptions. While the Company believes that its assumptions are reasonable, it cautions that it is difficult to predict the impact of known factors and it is impossible for the Company to anticipate all factors that could affect actual results and matters that are identified as “short-term,” “non-recurring,” “unusual,” “one-time,” or other words and terms of similar meaning may in fact recur in one or more future financial reporting periods.
Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that are expected. 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, the risks and uncertainties disclosed in Part I, Item 1A. Risk Factors, in the Company’s 2023 Annual Report on Form 10-K and other factors identified in its reports filed with the Securities and Exchange Commission (the “SEC”), available on the SEC's website at www.sec.gov.
All forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by these cautionary statements, as well as other cautionary statements. A reader should evaluate all forward-looking statements made in this release in the context of these risks and uncertainties. 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. The Company is including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. The forward-looking statements included in this release are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise required by law.
| Ethan Allen Interiors Inc. | ||||||||||||
| Condensed Consolidated Statements of Comprehensive Income | ||||||||||||
| (Unaudited) | ||||||||||||
| (In thousands, except per share data) | ||||||||||||
| Three months ended June 30, | Twelve months ended June 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Net sales | $ | 168,632 | $ | 187,375 | $ | 646,221 | $ | 791,382 | ||||
| Cost of sales | 66,171 | 72,192 | 253,159 | 311,012 | ||||||||
| Gross profit | 102,461 | 115,183 | 393,062 | 480,370 | ||||||||
| Selling, general and administrative expenses | 80,414 | 84,552 | 315,148 | 346,894 | ||||||||
| Restructuring and other charges, net of gains | (580 | ) | (1,058 | ) | (77 | ) | (3,720 | ) | ||||
| Operating income | 22,627 | 31,689 | 77,991 | 137,196 | ||||||||
| Interest and other income, net | 2,159 | 1,622 | 7,700 | 4,042 | ||||||||
| Interest and other financing costs | 68 | 56 | 245 | 213 | ||||||||
| Income before income taxes | 24,718 | 33,255 | 85,446 | 141,025 | ||||||||
| Income tax expense | 6,205 | 7,850 | 21,630 | 35,218 | ||||||||
| Net income | $ | 18,513 | $ | 25,405 | $ | 63,816 | $ | 105,807 | ||||
| Net income per diluted share | $ | 0.72 | $ | 0.99 | $ | 2.49 | $ | 4.13 | ||||
| Diluted weighted average common shares | 25,679 | 25,674 | 25,644 | 25,604 | ||||||||
| Ethan Allen Interiors Inc. | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| (Unaudited) | ||||||
| (In thousands) | ||||||
| June 30, | June 30, | |||||
| ASSETS | 2024 | 2023 | ||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 69,710 | $ | 62,130 | ||
| Investments, short-term | 91,319 | 110,577 | ||||
| Accounts receivable, net | 6,766 | 11,577 | ||||
| Inventories, net | 142,040 | 149,195 | ||||
| Prepaid expenses and other current assets | 22,848 | 25,974 | ||||
| Total current assets | 332,683 | 359,453 | ||||
| Property, plant and equipment, net | 215,258 | 222,167 | ||||
| Goodwill | 25,388 | 25,388 | ||||
| Intangible assets | 19,740 | 19,740 | ||||
| Operating lease right-of-use assets | 114,242 | 115,861 | ||||
| Deferred income taxes | 824 | 640 | ||||
| Investments, long-term | 34,772 | - | ||||
| Other assets | 2,010 | 2,204 | ||||
| Total ASSETS | $ | 744,917 | $ | 745,453 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued expenses | $ | 27,400 | $ | 28,565 | ||
| Customer deposits | 73,471 | 77,765 | ||||
| Accrued compensation and benefits | 20,702 | 23,534 | ||||
| Current operating lease liabilities | 27,387 | 26,045 | ||||
| Other current liabilities | 4,736 | 7,188 | ||||
| Total current liabilities | 153,696 | 163,097 | ||||
| Operating lease liabilities, long-term | 100,897 | 104,301 | ||||
| Deferred income taxes | 3,035 | 3,056 | ||||
| Other long-term liabilities | 4,373 | 3,993 | ||||
| Total LIABILITIES | $ | 262,001 | $ | 274,447 | ||
| Shareholders’ equity | ||||||
| Ethan Allen Interiors Inc. shareholders’ equity | $ | 482,980 | $ | 471,028 | ||
| Noncontrolling interests | (64 | ) | (22 | ) | ||
| Total shareholders’ equity | $ | 482,916 | $ | 471,006 | ||
| Total LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 744,917 | $ | 745,453 | ||
Investments at June 30, 2024 are in U.S. Treasury bills and notes with maturities ranging from less than one year (short-term) to under two years (long-term), and to which the Company expects will further enhance its returns on excess cash.
Reconciliation of Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with GAAP, the Company uses non-GAAP financial measures, including adjusted operating income and margin, adjusted net income and adjusted diluted EPS. The reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in tables below.
These non-GAAP measures are derived from the consolidated financial statements but are not presented in accordance with GAAP. The Company believes these non-GAAP measures provide a meaningful comparison of its results to others in its industry and prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, its financial performance measures prepared in accordance with GAAP. Moreover, these non-GAAP financial measures have limitations in that they do not reflect all the items associated with the operations of the business as determined in accordance with GAAP. Other companies may calculate similarly titled non-GAAP financial measures differently than the Company does, limiting the usefulness of those measures for comparative purposes. Despite the limitations of these non-GAAP financial measures, the Company believes these adjusted financial measures and the information they provide are useful in viewing its performance using the same tools that management uses to assess progress in achieving its goals. Adjusted measures may also facilitate comparisons to historical performance.
The following tables provide a reconciliation of non-GAAP financial measures used in this release to the most directly comparable GAAP financial measures.
| (Unaudited) | ||||||||||||||||||
| (In thousands, except per share data) | Three months ended | Twelve months ended | ||||||||||||||||
| June 30, | June 30, | |||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||
| Consolidated Adjusted Operating Income / Operating Margin | ||||||||||||||||||
| GAAP Operating income | $ | 22,627 | $ | 31,689 | (28.6 | %) | $ | 77,991 | $ | 137,196 | (43.2 | %) | ||||||
| Adjustments (pre-tax)* | (580 | ) | (1,058 | ) | (77 | ) | (3,682 | ) | ||||||||||
| Adjusted operating income* | $ | 22,047 | $ | 30,631 | (28.0 | %) | $ | 77,914 | $ | 133,514 | (41.6 | %) | ||||||
| Consolidated Net sales | $ | 168,632 | $ | 187,375 | (10.0 | %) | $ | 646,221 | $ | 791,382 | (18.3 | %) | ||||||
| GAAP Operating margin | 13.4 | % | 16.9 | % | 12.1 | % | 17.3 | % | ||||||||||
| Adjusted operating margin* | 13.1 | % | 16.3 | % | 12.1 | % | 16.9 | % | ||||||||||
| Consolidated Adjusted Net Income / Adjusted Diluted EPS | ||||||||||||||||||
| GAAP Net income | $ | 18,513 | $ | 25,405 | (27.1 | %) | $ | 63,816 | $ | 105,807 | (39.7 | %) | ||||||
| Adjustments, net of tax* | (433 | ) | (790 | ) | (58 | ) | (2,750 | ) | ||||||||||
| Adjusted net income | $ | 18,080 | $ | 24,615 | (26.5 | %) | $ | 63,758 | $ | 103,057 | (38.1 | %) | ||||||
| Diluted weighted average common shares | 25,679 | 25,674 | 25,644 | 25,604 | ||||||||||||||
| GAAP Diluted EPS | $ | 0.72 | $ | 0.99 | (27.3 | %) | $ | 2.49 | $ | 4.13 | (39.7 | %) | ||||||
| Adjusted diluted EPS* | $ | 0.70 | $ | 0.96 | (27.1 | %) | $ | 2.49 | $ | 4.03 | (38.2 | %) | ||||||
* Adjustments to reported GAAP financial measures including operating income and margin, net income and diluted EPS have been adjusted by the following: | ||||||||||||
| (Unaudited) | Three months ended | Twelve months ended | ||||||||||
| (In thousands) | June 30, | June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Gain on sale-leaseback transaction | $ | (656 | ) | $ | (656 | ) | $ | (2,620 | ) | $ | (4,222 | ) |
| Orleans, Vermont flood | - | - | 2,243 | - | ||||||||
| Severance and other charges | 76 | (402 | ) | 300 | 540 | |||||||
| Adjustments to operating income | $ | (580 | ) | $ | (1,058 | ) | $ | (77 | ) | $ | (3,682 | ) |
| Related income tax effects on non-recurring items(1) | 147 | 268 | 19 | 932 | ||||||||
| Adjustments to net income | $ | (433 | ) | $ | (790 | ) | $ | (58 | ) | $ | (2,750 | ) |
(1) Calculated using the marginal tax rate for each period presented
FAQ
What were Ethan Allen's (ETD) Q4 2024 financial results?
Did Ethan Allen (ETD) declare any dividends for fiscal 2024?
How much cash did Ethan Allen (ETD) generate from operations in fiscal 2024?
What was Ethan Allen's (ETD) gross margin for fiscal 2024?
How did Ethan Allen's (ETD) written orders perform in fiscal 2024?
