Danbury, CT, Jan. 13, 2021 (GLOBE NEWSWIRE) – Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE: ETH) today released several updates to its business.
Farooq Kathwari, Chairman, President and CEO of Ethan Allen commented, “We are very pleased that we have shown a strong performance despite many challenges due to the ongoing COVID-19 pandemic. The increased consumer focus on home ownership has continued to drive demand for our product offerings and design services. With orders on hand in the retail segment, including our e-commerce business, up 44.9%, this resulted in a record order backlog at the end of the quarter. “
Preliminary financial results
The company expects the following financial results for the second quarter ending December 31, 2020:
- Incoming orders in the retail segment increased by 44.9% compared to the previous year
- Orders in the wholesale segment rose by 28.1%. Excluding GSA and other government contracts, wholesale orders increased 39.7%.
- Consolidated net sales of $ 178.8 million
- Adjusted diluted earnings per share in the range of $ 0.67 to $ 0.69
- Strong cash flow generation with cash flow from operating activities of $ 23.7 million
- Cash on hand of $ 80.0 million and no debt as of December 31, 2020
- Quarterly dividends of $ 5.3 million were paid regularly during the quarter
- On November 12, 2020, the company’s board of directors increased the regular quarterly cash dividend by 19.0% and declared a regular quarterly cash dividend of $ 0.25 per share payable on January 21, 2021
Mr. Kathwari continued, “We ended the quarter with a strong balance sheet, including $ 80.0 million in cash on hand, while increasing our consolidated gross and operating margins through disciplined cost and cost controls. Due to our strong retail network, personal service from our interior designers, our unique vertical integration with 75% of products being manufactured in our North American manufacturing workshops and national distribution centers, we have the opportunity to continue our growth in sales and profitability by delivering a product with white glove service to our customers’ homes. “
“As the 2021 calendar year begins, we will continue to focus on employee safety, continue to invest in digital design and interactive communication technologies, grow our business and generate strong cash flow, and refine and reposition our product offering to reach a larger customer base using our vertical integration, ”concluded Kathwari.
Conference call for analysts for the second quarter
The company also announced today that it will publish its financial and operating results for the second quarter of fiscal year 2021 ending December 31, 2020, after the market closed on Thursday, January 28, 2021.
Upon release, the company will host an analyst conference call at 5:00 p.m. Eastern Time to discuss the results. The analyst conference call will be broadcast live from the company’s Investor Relations website at https://ir.ethanallen.com.
To access the conference call, dial 877-705-2976 (or 201-689-8798 for international participants) and enter the meeting number 13714570. 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 ETHANE ALL
Ethan Allen Interiors Inc. (NYSE: ETH) is a leading interior design company, manufacturer and retailer in the home furnishings market. Today, the company is a global international luxury home fashion brand, vertically integrated from design to delivery, offering its customers a value proposition in terms of style, quality and price. The company offers a free interior design service to its customers and sells a full range of furniture products and decorative accents through a distribution network of approximately 300 design centers in the US and abroad and online at ethanallen.com. The Design Centers represent a mixture of independent licensees and company-owned and operated locations. The company operates retail design centers in the United States and Canada. The independently operated design centers are located in the US, Asia, the Middle East and Europe. Ethan Allen owns and operates nine manufacturing facilities, including six manufacturing facilities in the United States, two manufacturing facilities in Mexico, and one manufacturing facility in Honduras. Approximately 75% of the products are manufactured or assembled in these North American plants.
For more information on Ethan Allen products and services, please visit www.ethanallen.com.
Investor / media contact:
Vice President Finance
ABOUT NON-GAAP FINANCIAL MEASURES
In this press release, the company has included a financial measure that has not been prepared in accordance with generally accepted United States accounting standards (“GAAP”). The company calculates the non-GAAP financial measure of Adjusted Diluted EPS by adjusting GAAP Diluted GAAP to remove the impact of certain charges and the associated tax effect of those adjustments. The presentation of this non-GAAP financial measure is not intended to be viewed in isolation or as a substitute for or superiority to the GAAP financial measure. The company uses this non-GAAP financial metric for financial and operational decision-making and to evaluate period comparisons. The company believes it will provide useful information about operating results, improve overall understanding of financial performance and past prospects, and provide greater transparency about key metrics that management uses in its financial and operational decisions.
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”), that represent management’s beliefs and assumptions about future events based on information currently available to the company regarding its future results. Such forward-looking statements are identified in this press release by reference by forward-looking words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “continue”, “may”, “Will”, “short-term”, “goal”, “outlook”, “forecast”, “future”, “strategy”, “opportunity”, “dignity”, “guidance”, “one-time”, “one-time”, “unusual.” “,” should “,” likely “,” COVID-19 impact “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, the following: The ongoing global COVID-19 pandemic may continue to materially affect the Company’s business and results Business activity and overall financial performance; Additional funding from external sources may not be available in the required amounts or may cost more than expected. Declines under certain economic conditions that affect consumer confidence and spending; A general decline in the health of the economy and consumer spending can affect consumer purchasing discretion. a significant shift in consumer preference towards buying products online; Ability to maintain and improve the Ethan Allen brand; Inability to successfully anticipate or respond to changes in consumer tastes and trends; Global and local economic uncertainty can have a significant impact on manufacturing processes or sources of goods as well as international operations. Competition from foreign manufacturers and domestic retailers; Disruptions in the supply chain; The number of production and logistics locations can increase the risk of operational disruptions and lead to higher transport costs. Fluctuations in the price, availability and quality of the raw materials can lead to increased costs or to production delays. Current and past manufacturing and retailing operations and products are subject to increasingly stringent environmental, health and safety requirements. Product recalls or concerns about product safety; Reliance on information technology systems to process transactions, summarize results, and manage the business and that of certain independent retailers; Malfunctions in both the primary and backup systems; successful cyber attacks and the ability to maintain adequate cyber security systems and procedures; Loss, corruption and misappropriation of data and information relating to customers; Changes in United States trade and tax policies; Trust in certain key persons; Loss of key personnel or inability to hire additional qualified personnel; additional asset impairment charges that could reduce profitability; access to consumer credit could be disrupted; Inability to maintain current Design Center locations at current cost; Failure to successfully select and secure Design Center locations; Changes in tax policy; Hazards and risks that may not be fully covered by insurance; possible failure to protect the company’s intellectual property; and other factors disclosed in Part I, Item 1A. Risk factors in the company’s 2020 annual report on Form 10-K.
Given the risks and uncertainties associated with forward-looking statements, you should not place undue reliance on such statements. Many of these factors cannot be controlled or predicted by the company. These forward-looking statements speak only as of the date of this press release. Contrary to what is required by law, the company assumes no obligation to update or revise its forward-looking statements as a result of new information, future events or for any other reason. Accordingly, the actual circumstances and results could differ materially from the forward-looking statements.