Ethan Allen Interiors (ETD) 8-K Ethan Allen Reports Results for Quarter

EXHIBIT 99.2

Ethan Allen Interiors Inc.

GAAP Reconciliation

Three and Twelve Months Ended June 30, 2008 and 2007

(in thousands, except per share amounts)

	Three Months Ended						Twelve Months Ended
	June						June
	2008			2007			2008			2007
Net Income / Earnings Per Share
Net income	$	11,100		$	20,484		$	58,072		$	69,227
Add: restructuring and impairment charge, net of related tax effect	1,791			—			4,307			8,481
Net income (excluding restructuring and impairment charge)	$	12,891		$	20,484		$	62,379		$	77,708
Earnings per basic share	$	0.39		$	0.66		$	1.98		$	2.19
Earnings per basic share (excluding restructuring and impairment charge)	$	0.45		$	0.66		$	2.13		$	2.46
Basic weighted average shares outstanding	28,686			31,056			29,267			31,566
Earnings per diluted share	$	0.39		$	0.65		$	1.97		$	2.15
Earnings per diluted share (excluding restructuring and impairment charge)	$	0.45		$	0.65		$	2.12		$	2.41
Diluted weighted average shares outstanding	28,826			31,556			29,470			32,261
Consolidated Operating Income / Operating Margin
Operating income	$	19,126		$	32,273		$	96,000		$	111,119
Add: restructuring and impairment charge	2,843			—			6,836			13,442
Operating income (excluding restructuring and impairment charge)	$	21,969		$	32,273		$	102,836		$	124,561
Net sales	$	235,907		$	258,531		$	980,045		$	1,005,312
Operating margin	8.1		%	12.5		%	9.8		%	11.1		%
Operating margin (excluding restructuring and impairment charge)	9.3		%	12.5		%	10.5		%	12.4		%
Wholesale Operating Income / Operating Margin
Wholesale operating income	$	20,492		$	25,792		$	100,324		$	99,215
Add: restructuring and impairment charge	—			—			—			13,442
Wholesale operating income (excluding restructuring and impairment charge)	$	20,492		$	25,792		$	100,324		$	112,657
Wholesale net sales	$	147,708		$	162,827		$	616,230		$	656,035
Wholesale operating margin	13.9		%	15.8		%	16.3		%	15.1		%
Wholesale operating margin (excluding restructuring and impairment charge)	13.9		%	15.8		%	16.3		%	17.2		%
Retail Operating Income / Operating Margin
Retail operating income (loss)	$	(1,506	)	$	6,622		$	(2,800	)	$	15,162
Add: restructuring and impairment charge	2,843			—			6,836			—
Retail operating income (excluding restructuring and impairment charge)	$	1,337		$	6,622		$	4,036		$	15,162
Retail net sales	$	176,474		$	187,507		$	724,586		$	698,611
Retail operating margin	-0.9		%	3.5		%	-0.4		%	2.2		%
Retail operating margin (excluding restructuring and impairment charge)	0.8		%	3.5		%	0.6		%	2.2		%
EBITDA
Net income	$	11,100		$	20,484		$	58,072		$	69,227
Add: interest expense (income), net	2,357			1,251			7,613			4,127
Add: income tax expense	6,519			12,030			34,106			40,499
Add: depreciation and amortization	6,593			5,772			24,670			23,013
EBITDA	$	26,569		$	39,537		$	124,461		$	136,866
Net sales	$	235,907		$	258,531		$	980,045		$	1,005,312
EBITDA as % of net sales	11.3		%	15.3		%	12.7		%	13.6		%
EBITDA	$	26,569		$	39,537		$	124,461		$	136,866
Add: restructuring and impairment charge	2,843			—			6,836			13,442
EBITDA (excluding restructuring and impairment charge)	$	29,412		$	39,537		$	131,297		$	150,308
Net sales	$	235,907		$	258,531		$	980,045		$	1,005,312
EBITDA as % of net sales excluding restructuring and impairment charge)	12.5		%	15.3		%	13.4		%	15.0		%