Ethan Allen Interiors (ETD) 8-K Ethan Allen Announces Third Quarter Sales and Earnings

Ethan Allen Interiors Inc.										EXHIBIT 99.2
GAAP Reconciliation
Three and Nine Months Ended March 31, 2008 and 2007
(in thousands, except per share amounts)
	Three Months Ended						Nine Months Ended
	March						March
	2008			2007			2008			2007
Net Income / Earnings Per Share
Net income	$	8,846		$	17,499		$	46,972		$	48,743
Add: restructuring and impairment charge (credit), net of
related tax effect		2,516			(115	)		2,516			8,486
Net income (excluding restructuring and impairment
charge (credit))	$	11,362		$	17,384		$	49,488		$	57,229
Earnings per basic share	$	0.31		$	0.55		$	1.59		$	1.54
Earnings per basic share (excluding restructuring and
impairment charge (credit))	$	0.39		$	0.55		$	1.68		$	1.80
Basic weighted average shares outstanding		28,909			31,656			29,461			31,736
Earnings per diluted share	$	0.30		$	0.54		$	1.58		$	1.50
Earnings per diluted share (excluding restructuring and
impairment charge (credit))	$	0.39		$	0.54		$	1.67		$	1.76
Diluted weighted average shares outstanding		29,049			32,352			29,685			32,495
Consolidated Operating Income / Operating Margin
Operating income	$	15,580		$	28,087		$	76,874		$	78,846
Add: restructuring and impairment charge (credit)		3,993			(180	)		3,993			13,442
Operating income (excluding restructuring and impairment
charge (credit))	$	19,573		$	27,907		$	80,867		$	92,288
Net sales	$	235,901		$	246,539		$	744,138		$	746,781
Operating margin		6.6	%		11.4	%		10.3	%		10.6	%
Operating margin (excluding restructuring and impairment
charge (credit))		8.3	%		11.3	%		10.9	%		12.4	%
Wholesale Operating Income / Operating Margin
Wholesale operating income	$	26,676		$	31,862		$	79,832		$	73,423
Add: restructuring and impairment charge (credit)		-			(180	)		-			13,442
Wholesale operating income (excluding restructuring and
impairment charge (credit))	$	26,676		$	31,682		$	79,832		$	86,865
Wholesale net sales	$	156,269		$	171,906		$	468,522		$	493,208
Wholesale operating margin		17.1	%		18.5	%		17.0	%		14.9	%
Wholesale operating margin (excluding restructuring and
impairment charge (credit))		17.1	%		18.4	%		17.0	%		17.6	%
Retail Operating Income / Operating Margin
Retail operating income (loss)	$	(8,544	)	$	(94	)	$	(1,294	)	$	8,540
Add: restructuring and impairment charge (credit)		3,993			-			3,993			-
Retail operating income (excluding restructuring and
impairment charge (credit))	$	(4,551	)	$	(94	)	$	2,699		$	8,540
Retail net sales	$	172,779		$	167,724		$	548,112		$	511,104
Retail operating margin		-4.9	%		-0.1	%		-0.2	%		1.7	%
Retail operating margin (excluding restructuring and
impairment charge (credit))		-2.6	%		-0.1	%		0.5	%		1.7	%
EBITDA
Net income	$	8,846		$	17,499		$	46,972		$	48,743
Add: interest expense (income), net		2,173			1,158			5,256			2,876
Add: income tax expense		5,195			10,000			27,587			28,469
Add: depreciation and amortization		5,991			5,818			18,077			17,241
EBITDA	$	22,205		$	34,475		$	97,892		$	97,329
Net sales	$	235,901		$	246,539		$	744,138		$	746,781
EBITDA as % of net sales		9.4	%		14.0	%		13.2	%		13.0	%
EBITDA	$	22,205		$	34,475		$	97,892		$	97,329
Add: restructuring and impairment charge (credit)		3,993			(180	)		3,993			13,442
EBITDA (excluding restructuring and impairment charge (credit))	$	26,198		$	34,295		$	101,885		$	110,771
Net sales	$	235,901		$	246,539		$	744,138		$	746,781
EBITDA as % of net sales (excluding restructuring and impairment charge (credit))		11.1	%		13.9	%		13.7	%		14.8	%