| Ethan Allen Interiors Inc. | | | | | | |
| GAAP Reconciliation | | | | | | |
| Three and Six Months Ended December 31, 2008 and 2007 | | | | |
| (in thousands, except per share amounts) | | | | | | |
| | | | | | |
| | Three Months Ended | | Six Months Ended |
| | December 31, | | December 31, |
| | | 2008 | | | 2007 | | | | 2008 | | | 2007 | |
Net Income / Earnings Per Share | | | | | | |
| Net income | | $ | 5,488 | | $ | 20,622 | | | $ | 12,910 | | $ | 38,126 | |
| Add: restructuring and impairment charge (credit), net of | | | | |
| related tax effect | | | 17 | | | - | | | | (1,109 | ) | | - | |
| Net income (excluding restructuring and impairment | | | | | |
| charge (credit)) | | $ | 5,505 | | $ | 20,622 | | | $ | 11,801 | | $ | 38,126 | |
| | | | | | |
| Earnings per basic share | | $ | 0.19 | | $ | 0.70 | | | $ | 0.45 | | $ | 1.28 | |
| Earnings per basic share (excluding restructuring and | | | | |
| impairment charge (credit)) | | $ | 0.19 | | $ | 0.70 | | | $ | 0.41 | | $ | 1.28 | |
| Basic weighted average shares outstanding | | | 28,739 | | | 29,391 | | | | 28,721 | | | 29,738 | |
| | | | | | |
| Earnings per diluted share | | $ | 0.19 | | $ | 0.70 | | | $ | 0.45 | | $ | 1.27 | |
| Earnings per diluted share (excluding restructuring and | | | | |
| impairment charge (credit)) | | $ | 0.19 | | $ | 0.70 | | | $ | 0.41 | | $ | 1.27 | |
| Diluted weighted average shares outstanding | | | 28,739 | | | 29,542 | | | | 28,793 | | | 30,003 | |
| | | | | | |
Consolidated Operating Income / Operating Margin | | | | | |
| Operating income | | $ | 10,087 | | $ | 33,497 | | | $ | 22,298 | | $ | 61,294 | |
| Add: restructuring and impairment charge (credit) | | 26 | | | - | | | | (1,604 | ) | | - | |
| Operating income (excluding restructuring and impairment | | | | |
| charge (credit)) | | $ | 10,113 | | $ | 33,497 | | | $ | 20,694 | | $ | 61,294 | |
| | | | | | |
| Net sales | | $ | 189,558 | | $ | 259,510 | | | $ | 395,399 | | $ | 508,237 | |
| Operating margin | | | 5.3 | % | | 12.9 | % | | | 5.6 | % | | 12.1 | % |
Operating margin (excluding restructuring and impairment | | | | |
| charge (credit)) | | | 5.3 | % | | 12.9 | % | | | 5.2 | % | | 12.1 | % |
| | | | | | |
Wholesale Operating Income / Operating Margin | | | | | |
| Wholesale operating income | | $ | 8,580 | | $ | 26,376 | | | $ | 20,465 | | $ | 53,156 | |
| Add: restructuring and impairment charge | | | - | | | - | | | | 408 | | | - | |
| Wholesale operating income (excluding restructuring and | | | | |
| impairment charge) | | $ | 8,580 | | $ | 26,376 | | | $ | 20,873 | | $ | 53,156 | |
| Wholesale net sales | | $ | 108,848 | | $ | 155,930 | | | $ | 230,143 | | $ | 312,253 | |
| Wholesale operating margin | | | 7.9 | % | | 16.9 | % | | | 8.9 | % | | 17.0 | % |
| Wholesale operating margin (excluding restructuring and | | | | |
| impairment charge) | | | 7.9 | % | | 16.9 | % | | | 9.1 | % | | 17.0 | % |
| | | | | | |
Retail Operating Income / Operating Margin | | | | | | |
| Retail operating income (loss) | | $ | (3,185 | ) | $ | 6,351 | | | $ | (6,237 | ) | $ | 7,250 | |
| Add: restructuring and impairment charge (credit) | | 26 | | | - | | | | (2,012 | ) | | - | |
| Retail operating income (excluding restructuring and | | | | | |
| impairment charge (credit)) | | $ | (3,159 | ) | $ | 6,351 | | | $ | (8,249 | ) | $ | 7,250 | |
| Retail net sales | | $ | 147,183 | | $ | 192,579 | | | $ | 303,053 | | $ | 375,333 | |
| Retail operating margin | | | -2.2 | % | | 3.3 | % | | | -2.1 | % | | 1.9 | % |
| Retail operating margin (excluding restructuring and | | | | | |
| impairment charge (credit)) | | | -2.1 | % | | 3.3 | % | | | -2.7 | % | | 1.9 | % |
| | | | | | |
EBITDA | | | | | | |
| Net income | | $ | 5,488 | | $ | 20,622 | | | $ | 12,910 | | $ | 38,126 | |
| Add: interest expense (income), net | | | 2,565 | | | 1,686 | | | | 5,073 | | | 3,083 | |
| Add: income tax expense | | | 2,780 | | | 12,112 | | | | 5,768 | | | 22,392 | |
| Add: depreciation and amortization | | | 6,490 | | | 6,149 | | | | 12,808 | | | 12,086 | |
| EBITDA | | $ | 17,323 | | $ | 40,569 | | | $ | 36,559 | | $ | 75,687 | |
| Net sales | | $ | 189,558 | | $ | 259,510 | | | $ | 395,399 | | $ | 508,237 | |
| EBITDA as % of net sales | | | 9.1 | % | | 15.6 | % | | | 9.2 | % | | 14.9 | % |
| | | | | | |
| EBITDA | | $ | 17,323 | | $ | 40,569 | | | $ | 36,559 | | $ | 75,687 | |
| Add: restructuring and impairment charge (credit) | | 26 | | | - | | | | (1,604 | ) | | - | |
| EBITDA (excluding restructuring and impairment charge (credit)) | $ | 17,349 | | $ | 40,569 | | | $ | 34,955 | | $ | 75,687 | |
| Net sales | | $ | 189,558 | | $ | 259,510 | | | $ | 395,399 | | $ | 508,237 | |
| EBITDA as % of net sales excluding restructuring and | | | | |
| impairment charge (credit)) | | | 9.2 | % | | 15.6 | % | | | 8.8 | % | | 14.9 | % |
