Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 31, 2016 | Jan. 20, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | ETHAN ALLEN INTERIORS INC | |
Entity Central Index Key | 896,156 | |
Trading Symbol | eth | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | No | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 27,690,177 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 57,149 | $ 52,659 |
Accounts receivable, less allowance for doubtful accounts of $1,557 at December 31, 2016 and $1,639 at June 30, 2016 | 8,773 | 9,467 |
Inventories | 160,384 | 162,323 |
Prepaid expenses and other current assets | 22,110 | 23,755 |
Total current assets | 248,416 | 248,204 |
Property, plant and equipment, net | 271,147 | 273,615 |
Goodwill and other intangible assets | 45,128 | 45,128 |
Restricted cash and investments | 7,308 | 7,820 |
Other assets | 2,506 | 2,642 |
Total assets | 574,505 | 577,409 |
Current liabilities: | ||
Current maturities of long-term debt | 2,810 | 3,001 |
Customer Deposits | 55,297 | 60,958 |
Accounts payable | 12,969 | 15,437 |
Accrued compensation and benefits | 21,184 | 22,067 |
Accrued expenses and other current liabilities | 19,548 | 21,884 |
Total current liabilities | 111,808 | 123,347 |
Long-term debt | 37,533 | 38,837 |
Other long-term liabilities | 23,680 | 23,023 |
Total liabilities | 173,021 | 185,207 |
Shareholders' equity: | ||
Common stock | 490 | 489 |
Additional paid-in-capital | 377,634 | 374,972 |
Less: Treasury stock (at cost) | (628,300) | (624,932) |
Retained earnings | 658,536 | 646,315 |
Accumulated other comprehensive income (loss) | (7,057) | (4,846) |
Total Ethan Allen Interiors Inc. shareholders' equity | 401,303 | 391,998 |
Noncontrolling interests | 181 | 204 |
Total shareholders' equity | 401,484 | 392,202 |
Total liabilities and shareholders' equity | $ 574,505 | $ 577,409 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Accounts receivable, allowance for doubtful accounts | $ 1,557 | $ 1,639 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales | $ 194,672 | $ 207,535 | $ 387,959 | $ 397,926 |
Cost of sales | 86,548 | 91,477 | 171,368 | 177,195 |
Gross profit | 108,124 | 116,058 | 216,591 | 220,731 |
Selling, general and administrative expenses | 91,030 | 89,551 | 181,160 | 173,324 |
Operating income | 17,094 | 26,507 | 35,431 | 47,407 |
Interest and other income (expense) | 182 | 49 | 325 | 175 |
Interest and other related financing costs | 324 | 431 | 647 | 887 |
Income before income taxes | 16,952 | 26,125 | 35,109 | 46,695 |
Income tax expense | 6,252 | 9,591 | 12,880 | 17,014 |
Net income | $ 10,700 | $ 16,534 | $ 22,229 | $ 29,681 |
Basic earnings per common share: | ||||
Net income per basic share (in dollars per share) | $ 0.39 | $ 0.58 | $ 0.80 | $ 1.05 |
Basic weighted average common shares (in shares) | 27,666 | 28,304 | 27,696 | 28,357 |
Diluted earnings per common share: | ||||
Net income per diluted share (in dollars per share) | $ 0.38 | $ 0.58 | $ 0.79 | $ 1.04 |
Diluted weighted average common shares (in shares) | 27,945 | 28,537 | 27,979 | 28,605 |
Comprehensive income: | ||||
Net income | $ 10,700 | $ 16,534 | $ 22,229 | $ 29,681 |
Other comprehensive income | ||||
Currency translation adjustment | (1,281) | (411) | (2,211) | (1,395) |
Other | (11) | 8 | (23) | 14 |
Other comprehensive income (loss) net of tax | (1,292) | (403) | (2,234) | (1,381) |
Comprehensive income | $ 9,408 | $ 16,131 | $ 19,995 | $ 28,300 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities: | ||
Net income | $ 22,229 | $ 29,681 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,999 | 9,589 |
Compensation expense related to share-based payment awards | 1,582 | 914 |
Provision (benefit) for deferred income taxes | 371 | 996 |
(Gain) loss on disposal of property, plant and equipment | 864 | (1,249) |
Other | (319) | (850) |
Change in operating assets and liabilities, net of effects of acquired businesses: | ||
Accounts receivable | 694 | 2,488 |
Inventories | 1,939 | (5,582) |
Prepaid and other current assets | 639 | 3,780 |
Customer Deposits | (5,661) | (8,578) |
Accounts payable | (2,468) | (2,721) |
Accrued expenses and other current liabilities | (3,724) | (8,539) |
Other assets and liabilities | 1,330 | 1,110 |
Net cash provided by operating activities | 27,475 | 21,039 |
Investing activities: | ||
Proceeds from the disposal of property, plant & equipment | 1,258 | 1,872 |
Change in restricted cash and investments | 512 | 204 |
Capital expenditures | (11,254) | (7,374) |
Sales of marketable securities | 2,150 | |
Other investing activities | 97 | 93 |
Net cash provided by (used in) investing activities | (9,387) | (3,055) |
Financing activities: | ||
Payments on long-term debt and capital lease obligations | (1,745) | (18,225) |
Purchases and retirements of company stock | (3,368) | (11,433) |
Payment of cash dividends | (9,460) | (7,984) |
Other financing activities | 1,098 | 825 |
Net cash provided by (used in) financing activities | (13,475) | (36,817) |
Effect of exchange rate changes on cash | (123) | (318) |
Net increase (decrease) in cash & cash equivalents | 4,490 | (19,151) |
Cash & cash equivalents at beginning of period | 52,659 | 76,182 |
Cash & cash equivalents at end of period | $ 57,149 | $ 57,031 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - 6 months ended Dec. 31, 2016 - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Balance at Jun. 30, 2016 | $ 489 | $ 374,972 | $ (624,932) | $ (4,846) | $ 646,315 | $ 204 | $ 392,202 |
Stock issued on share-based awards | 1 | 1,038 | 1,039 | ||||
Compensation expense associated with share-based awards | 1,582 | 1,582 | |||||
Tax benefit associated with exercise of share based awards | 42 | 42 | |||||
Purchase/retirement of company stock | (3,368) | (3,368) | |||||
Dividends declared on common stock | (10,008) | (10,008) | |||||
Comprehensive income | (2,211) | 22,229 | (23) | 19,995 | |||
Balance at Dec. 31, 2016 | $ 490 | $ 377,634 | $ (628,300) | $ (7,057) | $ 658,536 | $ 181 | $ 401,484 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | (1) Basis of Presentation Ethan Allen Interiors Inc. ("Interiors") is a Delaware corporation incorporated on May 25, 1989. We prepare our consolidated financial statements in conformity with accounting principles generally accepted in the United States, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Due to the inherent uncertainty involved in making those estimates, actual results could differ from those estimates. Areas in which significant estimates have been made include, but are not limited to, revenue recognition, the allowance for doubtful accounts receivable, inventory obsolescence, tax valuation allowances, useful lives for property, plant and equipment and definite-lived intangible assets, goodwill and indefinite-lived intangible asset impairment analyses, the evaluation of uncertain tax positions and the fair value of assets acquired and liabilities assumed in business combinations. |
Note 2 - Interim Financial Pres
Note 2 - Interim Financial Presentation | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | (2) Interim Financial Presentation In our opinion, all adjustments, consisting only of normal recurring adjustments necessary for fair presentation, have been included in the consolidated financial statements. The results of operations for the three six December 31, 2016 may 10 June 30, 2016. |
Note 3 - Income Taxes
Note 3 - Income Taxes | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | (3) Income Taxes The Company reviews its expected annual effective income tax rates and makes changes on a quarterly basis as necessary based on certain factors such as changes in forecasted annual operating income; changes to actual or forecasted permanent book to tax differences; impacts from future tax audits with state, federal or foreign tax authorities; impacts from tax law changes; or change in judgment as to the realizability of deferred tax assets. The Company identifies items which are not normal and are non-recurring in nature and treats these as discrete events. The tax effect of discrete items is recorded in the quarter in which the discrete events occur. Due to the volatility of these factors, the Company's consolidated effective income tax rate can change significantly on a quarterly basis. The Company conducts business globally and, as a result, the Company or one December 31, 2016, 2009 2014. may twelve may twelve twelve The Company’s consolidated effective tax rate was 36.9% 36.7% three six December 31, 2016 36.7% 36.4% three six December 31, 2015. |
Note 4 - Restricted Cash and In
Note 4 - Restricted Cash and Investments | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Restricted Assets Disclosure [Text Block] | (4) Restricted Cash and Investments At December 31, 2016 June 30, 2016, $7.3 $7.8 one 11, |
Note 5 - Inventories
Note 5 - Inventories | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | (5) Inventories Inventories at December 31, 2016 June 30, 2016 December 31, June 30, 2016 2016 Finished goods $ 122,693 $ 129,627 Work in process 11,287 9,497 Raw materials 28,744 27,554 Valuation allowance (2,340 ) (4,355 ) Inventories $ 160,384 $ 162,323 |
Note 6 - Borrowings
Note 6 - Borrowings | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | (6) Borrowings Total debt obligations at December 31, 2016 June 30, 2016 December 31, June 30, 2016 2016 Revolving Credit Facility due 10/21/2019 $ 25,000 $ 25,000 Term Loan due 10/21/2019 15,000 16,167 Capital leases 1,077 1,560 Total debt obligations 41,077 42,727 Unamortized debt issuance costs (734 ) (889 ) Total debt 40,343 41,838 Less current maturities 2,810 3,001 Total long-term $ 37,533 $ 38,837 The Company entered into a five $150 October 21, 2014, October 21, 2019, $35 $115 $1.5 At the Company’s option, revolving loans under the Facility bear interest, based on the average availability, at an annual rate of either (a) the London Interbank Offered rate (“LIBOR”) plus 1.5% 1.75%, 0.50%, 1.0% 0.5% 0.75%. December 31, 2016 2.3125%. At the Company’s option, term loans under the Facility bear interest, based on the Company’s rent adjusted leverage ratio, at an annual rate of either (a) LIBOR plus 1.75% 2.25%, 0.50%, 1.0% 0.75% 1.25%. December 31, 2016 2.5625%. The Company pays a commitment fee of 0.15% 0.25% 1.5% 1.75% 20% Quarterly installments of principal on the term loan are payable based on a straight line 15 The Facility is secured by all property owned, leased or operated by the Company in the United States and includes certain real property owned by the Company and contains customary covenants which may The Facility includes a covenant that requires the Company to maintain a minimum fixed charge coverage ratio of 1.1 1.0 $17.5 1.25 1.0, 15% The Company intends to use the Facility for working capital and general corporate purposes, including dividend payments and share repurchases. At December 31, 2016 June 30, 2016, $0.1 $0.2 $89.9 December 31, 2016 $89.8 June 30, 2016. At both December 31, 2016 June 30, 2016, The following table summarizes, as of December 31, 2016, six 2017, five June 30, 2017, Periods ending June 30, 2017 $ 1,575 2018 2,838 2019 2,420 2020 34,237 2021 7 2022 and thereafter - Total scheduled debt payments $ 41,077 |
Note 7 - Litigation
Note 7 - Litigation | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | (7) Litigation We are routinely party to various legal proceedings, including investigations or as a defendant in litigation, in the ordinary course of business. We are also subject to various federal, state and local environmental protection laws and regulations and are involved, from time to time, in investigations and proceedings regarding environmental matters. Such investigations and proceedings typically concern air emissions, water discharges, and/or management of solid and hazardous wastes. Under these laws, we and/or our subsidiaries are, or may Regulations issued under the Clean Air Act Amendments of 1990 On a quarterly basis, we review our litigation activities and determine if an unfavorable outcome to us is considered “remote”, “reasonably possible” or “probable” as defined by U.S. GAAP. Where we determine an unfavorable outcome is probable and is reasonably estimable, we accrue for potential litigation losses. The liability we may may Although the outcome of the various claims and proceedings against us cannot be predicted with certainty, management believes that the likelihood is remote that any existing claims or proceedings, individually or in the aggregate, will have a material adverse effect on our financial position, results of operations or cash flows. |
Note 8 - Share-based Compensati
Note 8 - Share-based Compensation | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | (8) Share-Based Compensation All options are issued at the closing stock price on each grant date, and have a contractual term of 10 six December 31, 2016 Shares Outstanding as of June 30, 2016 907,073 Activity during the six months ended December 31, 2016 Granted 20,153 Exercised (51,749 ) Canceled (forfeited/expired) (13,460 ) Outstanding as of December 31, 2016 862,017 Exerciseable as of December 31, 2016 524,948 A summary of stock unit activity occurring during the six December 31, 2016 Weighted Average Grant Date Units Fair Value Non-vested units at June 30, 2016 218,050 $ 24.53 Granted 81,250 29.92 Vested - - Canceled (forfeited/expired) - - Non-vested units at December 31, 2016 299,300 25.99 At December 31, 2016, 1,253,264 |
Note 9 - Earnings Per Share
Note 9 - Earnings Per Share | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | (9) Earnings Per Share Basic and diluted earnings per share are calculated using the following weighted average share data (in thousands): Three months ended Six months ended December 31, December 31, 2016 2015 2016 2015 Weighted average shares of common stock outstanding for basic calculation 27,666 28,304 27,696 28,357 Effect of dilutive stock options and other share-based awards 279 233 283 248 Weighted average shares of common stock outstanding adjusted for dilution calculation 27,945 28,537 27,979 28,605 As of December 31, 2016 2015, 464,495 667,656 |
Note 10 - Accumulated Other Com
Note 10 - Accumulated Other Comprehensive Income | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | (10) Accumulated Other Comprehensive Income Accumulated other comprehensive income consists of foreign currency translation adjustments which are the result of changes in foreign currency exchange rates related to our operations in Canada, Belgium, Honduras, and Mexico, and exclude income taxes given that the earnings of non-U.S. subsidiaries are deemed to be reinvested for an indefinite time. The table following sets forth the activity in accumulated other comprehensive income (loss) for the period ended December 31, 2016 Balance June 30, 2016 $ (4,846 ) Changes before reclassifications $ (2,211 ) Amounts reclassified from accumulated other comprehensive income $ - Current period other comprehensive income (loss) $ (2,211 ) Balance December 31, 2016 $ (7,057 ) |
Note 11 - Fair Value Measuremen
Note 11 - Fair Value Measurements | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | (11) Fair Value Measurements We determine fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value is calculated based on assumptions that market participants use in pricing the asset or liability, and not on assumptions specific to the Company. In addition, the fair value of liabilities includes consideration of non-performance risk including our own credit risk. Each fair value measurement is reported in one three Level 1 Level 2 Level 3 The following section describes the valuation methodologies we use to measure different financial assets and liabilities at fair value. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents our assets and liabilities measured at fair value on a recurring basis at December 31, 2016 June 30, 2016 December 31, 2016 Level 1 Level 2 Level 3 Balance Cash equivalents $ 64,457 $ - $ - $ 64,457 Total $ 64,457 $ - $ - $ 64,457 June 30, 2016 Level 1 Level 2 Level 3 Balance Cash equivalents $ 60,479 $ - $ - $ 60,479 Total $ 60,479 $ - $ - $ 60,479 Cash equivalents consist of money market accounts and mutual funds in U.S. government and agency fixed income securities. We use quoted prices in active markets for identical assets or liabilities to determine fair value. There were no transfers between level 1 2 first six 2017 2016. December 31, 2016 June 30, 2016, $7.3 $7.8 No investments have been in a continuous loss position for more than one no 4, Assets and Liabilities Measured at Fair Value on a Non-recurring Basis We measure certain assets at fair value on a non-recurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. During the six December 31, 2016, |
Note 12 - Segment Information
Note 12 - Segment Information | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | (12) Segment Information Our operations are classified into two The wholesale segment is principally involved in the development of the Ethan Allen brand, which encompasses the design, manufacture, domestic and offshore sourcing, sale and distribution of a full range of home furnishings and accents to a network of independently operated and Ethan Allen operated design centers as well as related marketing and brand awareness efforts. Wholesale revenue is generated upon the wholesale sale and shipment of our product to all retail design centers, including those operated by Ethan Allen. The retail segment sells home furnishings and accents to consumers through a network of Company operated design centers and online through ethanallen.com. Retail revenue is generated upon the retail sale and delivery of our product to our customers. Inter-segment eliminations result, primarily, from the wholesale sale of inventory to the retail segment, including the related profit margin. We evaluate performance of the respective segments based upon revenues and operating income. While the manner in which our home furnishings and accessories are marketed and sold is consistent, the nature of the underlying recorded sales (i.e. wholesale versus retail) and the specific services that each operating segment provides (i.e. wholesale manufacturing, sourcing, and distribution versus retail selling) are different. Within each segment, we maintain revenue information according to each respective product line (i.e. case goods, upholstery, or home accents and other). The proportion of wholesale segment sales by these product lines for the three six December 31, 2016 2015 Three months ended Six months ended December 31, December 31, 2016 2015 2016 2015 Case Goods 32 % 33 % 32 % 33 % Upholstered Products 50 % 50 % 51 % 50 % Home Accents and Other 18 % 17 % 17 % 17 % 100 % 100 % 100 % 100 % The proportion of retail segment sales by these product lines for the three six December 31, 2016 2015 Three months ended Six months ended December 31, December 31, 2016 2015 2016 2015 Case Goods 31 % 30 % 30 % 30 % Upholstered Products 48 % 48 % 49 % 47 % Home Accents and Other 21 % 22 % 21 % 23 % 100 % 100 % 100 % 100 % Segment information for the three six December 31, 2016 2015 Three months ended Six months ended December 31, December 31, 2016 2015 2016 2015 Net sales: Wholesale segment $ 113,693 $ 126,413 $ 228,257 $ 246,868 Retail segment 156,292 164,703 308,547 $ 310,743 Elimination of inter-company sales (75,313 ) (83,581 ) (148,845 ) (159,685 ) Consolidated Total $ 194,672 $ 207,535 $ 387,959 $ 397,926 Operating income: Wholesale segment $ 14,179 $ 19,690 $ 30,670 $ 40,277 Retail segment 2,147 6,689 3,170 8,329 Adjustment of inter-company profit (1) 768 128 1,591 (1,199 ) Consolidated Total $ 17,094 $ 26,507 $ 35,431 $ 47,407 Depreciation & Amortization: Wholesale segment $ 1,869 $ 1,909 $ 3,779 $ 3,820 Retail segment 3,131 2,897 6,220 5,769 Consolidated Total $ 5,000 $ 4,806 $ 9,999 $ 9,589 Capital expenditures: Wholesale segment $ 1,944 $ 2,340 $ 5,583 $ 3,856 Retail segment 1,870 1,896 5,671 3,518 Acquisitions - - - - Consolidated Total $ 3,814 $ 4,236 $ 11,254 $ 7,374 December 31, June 30, 2016 2016 Total Assets: Wholesale segment $ 277,139 $ 271,116 Retail segment 328,905 339,942 Inventory profit elimination (2) (31,539 ) (33,649 ) Consolidated Total $ 574,505 $ 577,409 (1) Represents the change in wholesale profit contained in the retail segment inventory at the end of the period. (2) Represents the wholesale profit contained in the retail segment inventory that has not yet been realized. These profits are realized when the related inventory is sold. |
Note 13 - Recently Issued Accou
Note 13 - Recently Issued Accounting Pronouncements | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | (13) Recently Issued Accounting Pronouncements In May 2014, 2014 09, Revenue from Contracts with Customers July 1, 2018, July 1, 2018. In July 2015, 2015 11 , Inventory (Topic 330): July 1, 2017. July 1, 2017. In November 2015, 2015 17, Balance Sheet Classification of Deferred Taxes July 1, 2017, July 1, 2017. In February 2016, 2016 02, Leases twelve July 1, 2019, July 1, 2019. In March 2016, 2016 09, Improvements to Employee Share-Based Payment Accounting 718, July 1, 2017, July 1, 2017. In November 2016, 2016 18, Statement of Cash Flows (Topic 230): July 1, 2018, July 1, 2018. |
Note 14 - Subsequent Events
Note 14 - Subsequent Events | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | (14) Subsequent Events None |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, June 30, 2016 2016 Finished goods $ 122,693 $ 129,627 Work in process 11,287 9,497 Raw materials 28,744 27,554 Valuation allowance (2,340 ) (4,355 ) Inventories $ 160,384 $ 162,323 |
Note 6 - Borrowings (Tables)
Note 6 - Borrowings (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | December 31, June 30, 2016 2016 Revolving Credit Facility due 10/21/2019 $ 25,000 $ 25,000 Term Loan due 10/21/2019 15,000 16,167 Capital leases 1,077 1,560 Total debt obligations 41,077 42,727 Unamortized debt issuance costs (734 ) (889 ) Total debt 40,343 41,838 Less current maturities 2,810 3,001 Total long-term $ 37,533 $ 38,837 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Periods ending June 30, 2017 $ 1,575 2018 2,838 2019 2,420 2020 34,237 2021 7 2022 and thereafter - Total scheduled debt payments $ 41,077 |
Note 8 - Share-based Compensa23
Note 8 - Share-based Compensation (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Shares Outstanding as of June 30, 2016 907,073 Activity during the six months ended December 31, 2016 Granted 20,153 Exercised (51,749 ) Canceled (forfeited/expired) (13,460 ) Outstanding as of December 31, 2016 862,017 Exerciseable as of December 31, 2016 524,948 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Weighted Average Grant Date Units Fair Value Non-vested units at June 30, 2016 218,050 $ 24.53 Granted 81,250 29.92 Vested - - Canceled (forfeited/expired) - - Non-vested units at December 31, 2016 299,300 25.99 |
Note 9 - Earnings Per Share (Ta
Note 9 - Earnings Per Share (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Six months ended December 31, December 31, 2016 2015 2016 2015 Weighted average shares of common stock outstanding for basic calculation 27,666 28,304 27,696 28,357 Effect of dilutive stock options and other share-based awards 279 233 283 248 Weighted average shares of common stock outstanding adjusted for dilution calculation 27,945 28,537 27,979 28,605 |
Note 10 - Accumulated Other C25
Note 10 - Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Balance June 30, 2016 $ (4,846 ) Changes before reclassifications $ (2,211 ) Amounts reclassified from accumulated other comprehensive income $ - Current period other comprehensive income (loss) $ (2,211 ) Balance December 31, 2016 $ (7,057 ) |
Note 11 - Fair Value Measurem26
Note 11 - Fair Value Measurements (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | December 31, 2016 Level 1 Level 2 Level 3 Balance Cash equivalents $ 64,457 $ - $ - $ 64,457 Total $ 64,457 $ - $ - $ 64,457 June 30, 2016 Level 1 Level 2 Level 3 Balance Cash equivalents $ 60,479 $ - $ - $ 60,479 Total $ 60,479 $ - $ - $ 60,479 |
Note 12 - Segment Information (
Note 12 - Segment Information (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Retail Segment [Member] | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three months ended Six months ended December 31, December 31, 2016 2015 2016 2015 Case Goods 31 % 30 % 30 % 30 % Upholstered Products 48 % 48 % 49 % 47 % Home Accents and Other 21 % 22 % 21 % 23 % 100 % 100 % 100 % 100 % |
Wholesale Segment [Member] | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three months ended Six months ended December 31, December 31, 2016 2015 2016 2015 Case Goods 32 % 33 % 32 % 33 % Upholstered Products 50 % 50 % 51 % 50 % Home Accents and Other 18 % 17 % 17 % 17 % 100 % 100 % 100 % 100 % |
Income Statement Section One [Member] | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three months ended Six months ended December 31, December 31, 2016 2015 2016 2015 Net sales: Wholesale segment $ 113,693 $ 126,413 $ 228,257 $ 246,868 Retail segment 156,292 164,703 308,547 $ 310,743 Elimination of inter-company sales (75,313 ) (83,581 ) (148,845 ) (159,685 ) Consolidated Total $ 194,672 $ 207,535 $ 387,959 $ 397,926 Operating income: Wholesale segment $ 14,179 $ 19,690 $ 30,670 $ 40,277 Retail segment 2,147 6,689 3,170 8,329 Adjustment of inter-company profit (1) 768 128 1,591 (1,199 ) Consolidated Total $ 17,094 $ 26,507 $ 35,431 $ 47,407 Depreciation & Amortization: Wholesale segment $ 1,869 $ 1,909 $ 3,779 $ 3,820 Retail segment 3,131 2,897 6,220 5,769 Consolidated Total $ 5,000 $ 4,806 $ 9,999 $ 9,589 Capital expenditures: Wholesale segment $ 1,944 $ 2,340 $ 5,583 $ 3,856 Retail segment 1,870 1,896 5,671 3,518 Acquisitions - - - - Consolidated Total $ 3,814 $ 4,236 $ 11,254 $ 7,374 |
Total Assets [Member] | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | December 31, June 30, 2016 2016 Total Assets: Wholesale segment $ 277,139 $ 271,116 Retail segment 328,905 339,942 Inventory profit elimination (2) (31,539 ) (33,649 ) Consolidated Total $ 574,505 $ 577,409 |
Note 3 - Income Taxes (Details
Note 3 - Income Taxes (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Percent | 36.90% | 36.70% | 36.70% | 36.40% |
Note 4 - Restricted Cash and 29
Note 4 - Restricted Cash and Investments (Details Textual) - USD ($) $ in Millions | Dec. 31, 2016 | Jun. 30, 2016 |
Restricted Cash and Investments, Noncurrent | $ 7.3 | $ 7.8 |
Note 5 - Inventories - Schedule
Note 5 - Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Finished goods | $ 122,693 | $ 129,627 |
Work in process | 11,287 | 9,497 |
Raw materials | 28,744 | 27,554 |
Valuation allowance | (2,340) | (4,355) |
Inventories | $ 160,384 | $ 162,323 |
Note 6 - Borrowings (Details Te
Note 6 - Borrowings (Details Textual) $ in Thousands | Oct. 21, 2014USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) |
Debt Instrument, Term | 5 years | ||
Debt Agreement, Maximum Borrowing Capacity | $ 150,000 | ||
Debt Issuance Costs, Net | 1,500 | $ 734 | $ 889 |
Letters of Credit Outstanding, Amount | 100 | 200 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 89,900 | $ 89,800 | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 115,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 2.3125% | ||
Debt Instrument, Covenant, Percentage of Total Revolving Credit | 20.00% | ||
Revolving Credit Facility [Member] | Minimum [Member] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | ||
Revolving Credit Facility [Member] | Maximum [Member] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | ||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||
Revolving Credit Facility [Member] | Federal Funds Effective Swap Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
Revolving Credit Facility [Member] | Additional Margin on Variable Rate Option [Member] | Minimum [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
Revolving Credit Facility [Member] | Additional Margin on Variable Rate Option [Member] | Maximum [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
Letter of Credit [Member] | Minimum [Member] | |||
Line of Credit Facility, Interest Rate During Period | 1.50% | ||
Letter of Credit [Member] | Maximum [Member] | |||
Line of Credit Facility, Interest Rate During Period | 1.75% | ||
Term Loan [Member] | |||
Long-term Debt | $ 35,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 2.5625% | ||
Debt Instrument, Amortization Period | 15 years | ||
Debt Instrument, Covenant, Minimum Fixed Charge Coverage Ratio | 1.1 | ||
Debt Covenant, Fixed Charge Coverage Ratio, Maximum Outstanding Term Loans | $ 17,500 | ||
Debt Instrument, Covenant, Minimum Fixed Charge Coverage Ratio for Covenant to Cease to Apply | 1.25 | ||
Debt Instrument, Covenant, Minimum Percentage of Total Revolving Credit to Avoid Triggering Fixed Charge Coverage Ratio Covenant | 15.00% | ||
Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||
Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||
Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||
Term Loan [Member] | Federal Funds Effective Swap Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
Term Loan [Member] | Additional Margin on Variable Rate Option [Member] | Minimum [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
Term Loan [Member] | Additional Margin on Variable Rate Option [Member] | Maximum [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.25% |
Note 6 - Borrowings - Total Deb
Note 6 - Borrowings - Total Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 | Oct. 21, 2014 |
Long-term debt | $ 41,077 | ||
Capital leases | 1,077 | $ 1,560 | |
Total debt obligations | 41,077 | 42,727 | |
Unamortized debt issuance costs | (734) | (889) | $ (1,500) |
Total debt | 40,343 | 41,838 | |
Less current maturities | 2,810 | 3,001 | |
Total long-term | 37,533 | 38,837 | |
Term Loan [Member] | |||
Long-term debt | 15,000 | 16,167 | |
Revolving Credit Facility [Member] | |||
Long-term debt | $ 25,000 | $ 25,000 |
Note 6 - Borrowings - Aggregate
Note 6 - Borrowings - Aggregate Scheduled Maturities of Debt (Details) $ in Thousands | Dec. 31, 2016USD ($) |
2,017 | $ 1,575 |
2,018 | 2,838 |
2,019 | 2,420 |
2,020 | 34,237 |
2,021 | 7 |
2022 and thereafter | |
Total scheduled debt payments | $ 41,077 |
Note 8 - Share-based Compensa34
Note 8 - Share-based Compensation (Details Textual) | 6 Months Ended |
Dec. 31, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Contractual Term | 10 years |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,253,264 |
Note 8 - Share-based Compensa35
Note 8 - Share-based Compensation - Stock Options Activity (Details) | 6 Months Ended |
Dec. 31, 2016shares | |
Outstanding (in shares) | 907,073 |
Granted (in shares) | 20,153 |
Exercised (in shares) | (51,749) |
Canceled (forfeited/expired) (in shares) | (13,460) |
Outstanding (in shares) | 862,017 |
Exerciseable (in shares) | 524,948 |
Note 8 - Share-based Compensa36
Note 8 - Share-based Compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member] | 6 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Non-vested units (in shares) | shares | 218,050 |
Non-vested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 24.53 |
Granted (in shares) | shares | 81,250 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 29.92 |
Vested (in shares) | shares | |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | |
Canceled (forfeited/expired) (in shares) | shares | |
Canceled (forfeited/expired), weighted average grant date fair value (in dollars per share) | $ / shares | |
Non-vested units (in shares) | shares | 299,300 |
Non-vested units, weighted average grant date fair value (in dollars per share) | $ / shares | $ 25.99 |
Note 9 - Earnings Per Share (De
Note 9 - Earnings Per Share (Details Textual) - shares | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 464,495 | 667,656 |
Note 9 - Earnings Per Share - C
Note 9 - Earnings Per Share - Calculation of Weighted Average Shares (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted average shares of common stock outstanding for basic calculation (in shares) | 27,666 | 28,304 | 27,696 | 28,357 |
Effect of dilutive stock options and other share-based awards (in shares) | 279 | 233 | 283 | 248 |
Weighted average shares of common stock outstanding adjusted for dilution calculation (in shares) | 27,945 | 28,537 | 27,979 | 28,605 |
Note 10 - Accumulated Other C39
Note 10 - Accumulated Other Comprehensive Income - Activity in Accumulated Other Comprehensive Income (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2016USD ($) | |
Balance | $ (4,846) |
Balance | (7,057) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |
Balance | (4,846) |
Changes before reclassifications | (2,211) |
Amounts reclassified from accumulated other comprehensive income | 0 |
Current period other comprehensive income (loss) | (2,211) |
Balance | $ (7,057) |
Note 11 - Fair Value Measurem40
Note 11 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2016 | |
Restricted Cash and Investments, Noncurrent | $ 7,300 | $ 7,800 |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $ 0 |
Note 11 - Fair Value Measurem41
Note 11 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Cash equivalents | $ 64,457 | $ 60,479 |
Total | 64,457 | 60,479 |
Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents | 64,457 | 60,479 |
Total | 64,457 | 60,479 |
Fair Value, Inputs, Level 2 [Member] | ||
Cash equivalents | ||
Total | ||
Fair Value, Inputs, Level 3 [Member] | ||
Cash equivalents | ||
Total |
Note 12 - Segment Information42
Note 12 - Segment Information (Details Textual) | 6 Months Ended |
Dec. 31, 2016 | |
Number of Operating Segments | 2 |
Note 12 - Segment Information -
Note 12 - Segment Information - Wholesale Sales by Product Line (Details) - Wholesale Segment [Member] | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Wholesale sales, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Case Goods [Member] | ||||
Wholesale sales, percentage | 32.00% | 33.00% | 32.00% | 33.00% |
Upholstered Products [Member] | ||||
Wholesale sales, percentage | 50.00% | 50.00% | 51.00% | 50.00% |
Home Accents and Other [Member] | ||||
Wholesale sales, percentage | 18.00% | 17.00% | 17.00% | 17.00% |
Note 12 - Segment Information44
Note 12 - Segment Information - Retail Sales by Product Line (Details) - Retail Segment [Member] | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retail Sales, Percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Case Goods [Member] | ||||
Retail Sales, Percentage | 31.00% | 30.00% | 30.00% | 30.00% |
Upholstered Products [Member] | ||||
Retail Sales, Percentage | 48.00% | 48.00% | 49.00% | 47.00% |
Home Accents and Other [Member] | ||||
Retail Sales, Percentage | 21.00% | 22.00% | 21.00% | 23.00% |
Note 12 - Segment Information45
Note 12 - Segment Information - Income by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Net sales | $ 194,672 | $ 207,535 | $ 387,959 | $ 397,926 | |
Operating Income | 17,094 | 26,507 | 35,431 | 47,407 | |
Depreciation and amortization | 5,000 | 4,806 | 9,999 | 9,589 | |
Capital Expenditures | 3,814 | 4,236 | 11,254 | 7,374 | |
Intersegment Eliminations [Member] | |||||
Net sales | (75,313) | (83,581) | (148,845) | (159,685) | |
Operating Income | [1] | 768 | 128 | 1,591 | (1,199) |
Wholesale Segment [Member] | |||||
Depreciation and amortization | 1,869 | 1,909 | 3,779 | 3,820 | |
Capital Expenditures | 1,944 | 2,340 | 5,583 | 3,856 | |
Wholesale Segment [Member] | Operating Segments [Member] | |||||
Net sales | 113,693 | 126,413 | 228,257 | 246,868 | |
Operating Income | 14,179 | 19,690 | 30,670 | 40,277 | |
Retail Segment [Member] | |||||
Depreciation and amortization | 3,131 | 2,897 | 6,220 | 5,769 | |
Capital Expenditures | 1,870 | 1,896 | 5,671 | 3,518 | |
Retail Segment [Member] | Operating Segments [Member] | |||||
Net sales | 156,292 | 164,703 | 308,547 | 310,743 | |
Operating Income | 2,147 | 6,689 | 3,170 | 8,329 | |
Acquisitions [Member] | |||||
Capital Expenditures | |||||
[1] | Represents the change in wholesale profit contained in the retail segment inventory at the end of the period. |
Note 12 - Segment Information46
Note 12 - Segment Information - Assets by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 | |
Assets | $ 574,505 | $ 577,409 | |
Wholesale Segment [Member] | |||
Assets | 277,139 | 271,116 | |
Retail Segment [Member] | |||
Assets | 328,905 | 339,942 | |
Inventory Profit Elimination [Member] | |||
Assets | [1] | $ (31,539) | $ (33,649) |
[1] | Represents the wholesale profit contained in the retail segment inventory that has not yet been realized. These profits are realized when the related inventory is sold. |