Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Mar. 31, 2020 | May 08, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | ETHAN ALLEN INTERIORS INC | |
Entity Central Index Key | 0000896156 | |
Trading Symbol | eth | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 25,053,082 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock $0.01 par value per share |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 116,868 | $ 20,824 |
Accounts receivable, net | 10,482 | 14,247 |
Inventories, net | 138,774 | 162,389 |
Prepaid expenses and other current assets | 21,204 | 18,830 |
Total current assets | 287,328 | 216,290 |
Property, plant and equipment, net | 242,490 | 245,246 |
Goodwill | 25,388 | 25,388 |
Intangible assets | 19,740 | 19,740 |
Operating lease right-of-use assets | 124,636 | |
Deferred income taxes | 2,044 | 2,108 |
Other assets | 1,478 | 1,579 |
Total ASSETS | 703,104 | 510,351 |
Current liabilities: | ||
Accounts payable and accrued expenses | 30,997 | 34,166 |
Customer deposits and deferred revenue | 52,410 | 56,714 |
Accrued compensation and benefits | 20,065 | 22,646 |
Short-term debt | 550 | |
Current operating lease liabilities | 34,005 | |
Other current liabilities | 9,386 | 8,750 |
Total current liabilities | 146,863 | 122,826 |
Long-term debt | 100,000 | 516 |
Operating lease liabilities, long-term | 112,515 | |
Deferred income taxes | 1,534 | 1,069 |
Other long-term liabilities | 2,946 | 22,011 |
Total LIABILITIES | 363,858 | 146,422 |
Commitments and contingencies (see Note 15) | ||
Shareholders' equity: | ||
Preferred stock, $0.01 par value; 1,055 shares authorized; none issued | ||
Common stock, $0.01 par value, 150,000 shares authorized, 49,054 and 49,049 shares issued; 25,053 and 26,587 shares outstanding at March 31, 2020 and June 30, 2019, respectively | 491 | 491 |
Additional paid-in capital | 378,166 | 377,913 |
Treasury stock, at cost: 24,001 and 22,462 shares at March 31, 2020 and June 30, 2019, respectively | (680,916) | (656,597) |
Retained earnings | 650,701 | 647,710 |
Accumulated other comprehensive loss | (9,218) | (5,651) |
Total Ethan Allen Interiors Inc. shareholders' equity | 339,224 | 363,866 |
Noncontrolling interests | 22 | 63 |
Total shareholders' equity | 339,246 | 363,929 |
Total LIABILITIES AND SHAREHOLDERS' EQUITY | $ 703,104 | $ 510,351 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares shares in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,055 | 1,055 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000 | 150,000 |
Common stock, shares issues (in shares) | 49,054 | 49,049 |
Common stock, shares outstanding (in shares) | 25,053 | 26,587 |
Treasury stock, shares (in shares) | 24,001 | 22,462 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Net sales | $ 149,774 | $ 177,829 | $ 498,269 | $ 562,766 |
Cost of sales | 65,825 | 79,435 | 223,005 | 254,062 |
Gross profit | 83,949 | 98,394 | 275,264 | 308,704 |
Selling, general and administrative expenses | 83,841 | 87,504 | 258,346 | 269,824 |
Restructuring and other impairment charges, net of gains (note 10) | 862 | 221 | (10,173) | 284 |
Operating income (loss) | (754) | 10,669 | 27,091 | 38,596 |
Interest income, net of interest (expense) | 213 | (62) | 295 | 63 |
Income (loss) before income taxes | (541) | 10,607 | 27,386 | 38,659 |
Income tax expense (benefit) | (318) | 2,629 | 6,417 | 9,651 |
Net income (loss) | $ (223) | $ 7,978 | $ 20,969 | $ 29,008 |
Basic earnings per common share: | ||||
Net income (loss) per basic share (in dollars per share) | $ (0.01) | $ 0.30 | $ 0.80 | $ 1.09 |
Basic weighted average common shares (in shares) | 25,703 | 26,705 | 26,332 | 26,690 |
Diluted earnings per common share: | ||||
Net income (loss) per diluted share (in dollars per share) | $ (0.01) | $ 0.30 | $ 0.80 | $ 1.08 |
Diluted weighted average common shares (in shares) | 25,703 | 26,751 | 26,362 | 26,749 |
Comprehensive income (loss) | ||||
Net income (loss) | $ (223) | $ 7,978 | $ 20,969 | $ 29,008 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments | (3,841) | 303 | (3,567) | 355 |
Other | (15) | (20) | (41) | (65) |
Other comprehensive income (loss), net of tax | (3,856) | 283 | (3,608) | 290 |
Comprehensive income (loss) | $ (4,079) | $ 8,261 | $ 17,361 | $ 29,298 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net income | $ 20,969 | $ 29,008 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 12,845 | 14,742 |
Share-based compensation expense | 200 | 986 |
Non-cash operating lease cost | 24,369 | |
Deferred income taxes | 1,077 | (390) |
Restructuring and other impairment charges, net of gains | (5,647) | 284 |
Restructuring payments | (5,574) | (177) |
Loss on disposal of property, plant and equipment | 191 | 134 |
Other | (13) | (16) |
Change in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable, net | 3,630 | (3,474) |
Inventories, net | 21,567 | (1,613) |
Prepaid expenses and other current assets | (1,980) | (1,290) |
Customer deposits and deferred revenue | (4,914) | 1,145 |
Accounts payable and accrued expenses | (3,428) | (510) |
Accrued compensation and benefits | 429 | 4,414 |
Operating lease liabilities | (24,411) | |
Other assets and liabilities | (626) | 1,064 |
Net cash provided by operating activities | 38,684 | 44,307 |
Cash Flows from Investing Activities | ||
Proceeds from disposal of property, plant and equipment | 12,423 | 1 |
Capital expenditures | (12,457) | (6,990) |
Acquisitions, net of cash acquired | (1,350) | |
Other investing activities | 20 | 124 |
Net cash used in investing activities | (1,364) | (6,865) |
Cash Flows from Financing Activities | ||
Borrowings on revolving credit facility | 100,000 | 16,000 |
Payments on borrowings | (8,000) | |
Payment of cash dividends | (16,181) | (41,916) |
Repurchases of common stock | (24,319) | |
Other financing activities | (369) | (190) |
Net cash provided by (used in) financing activities | 59,131 | (34,106) |
Effect of exchange rate changes on cash and cash equivalents | (407) | 43 |
Net increase in cash and cash equivalents | 96,044 | 3,379 |
Cash and cash equivalents at beginning of period | 20,824 | 22,363 |
Cash and cash equivalents at end of period | $ 116,868 | $ 25,742 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Jun. 30, 2018 | 48,989 | 22,460 | |||||||
Balance at Jun. 30, 2018 | $ 490 | $ 376,950 | $ (656,551) | $ (6,171) | $ 669,013 | $ 139 | $ 383,870 | ||
Net income (loss) | 8,840 | 8,840 | |||||||
Common stock issued on share-based awards (in shares) | 40 | ||||||||
Common stock issued on share-based awards | 637 | 637 | |||||||
Share-based compensation expense | 491 | 491 | |||||||
Cash dividends declared | (5,072) | (5,072) | |||||||
Balance (in shares) at Sep. 30, 2018 | 49,029 | 22,460 | |||||||
Balance at Sep. 30, 2018 | $ 490 | 378,078 | $ (656,551) | (4,924) | 672,781 | 113 | 389,987 | ||
Balance (in shares) at Jun. 30, 2018 | 48,989 | 22,460 | |||||||
Balance at Jun. 30, 2018 | $ 490 | 376,950 | $ (656,551) | (6,171) | 669,013 | 139 | 383,870 | ||
Net income (loss) | 29,008 | ||||||||
Other comprehensive income (loss) | 290 | ||||||||
Balance (in shares) at Mar. 31, 2019 | 49,039 | 22,460 | |||||||
Balance at Mar. 31, 2019 | $ 490 | 378,756 | $ (656,551) | (5,816) | 656,096 | 74 | 373,049 | ||
Balance (in shares) at Sep. 30, 2018 | 49,029 | 22,460 | |||||||
Balance at Sep. 30, 2018 | $ 490 | 378,078 | $ (656,551) | (4,924) | 672,781 | 113 | 389,987 | ||
Net income (loss) | 12,190 | 12,190 | |||||||
Common stock issued on share-based awards (in shares) | 9 | ||||||||
Common stock issued on share-based awards | 164 | 164 | |||||||
Share-based compensation expense | 316 | 316 | |||||||
Cash dividends declared | (31,778) | (31,778) | |||||||
Balance (in shares) at Dec. 31, 2018 | 49,038 | 22,460 | |||||||
Balance at Dec. 31, 2018 | $ 490 | 378,558 | $ (656,551) | (6,119) | 653,193 | 94 | 369,665 | ||
Net income (loss) | 7,978 | 7,978 | |||||||
Common stock issued on share-based awards (in shares) | 2 | ||||||||
Common stock issued on share-based awards | 19 | 19 | |||||||
Share-based compensation expense | 179 | 179 | |||||||
Cash dividends declared | (5,075) | (5,075) | |||||||
Other comprehensive income (loss) | 303 | (20) | 283 | ||||||
Balance (in shares) at Mar. 31, 2019 | 49,039 | 22,460 | |||||||
Balance at Mar. 31, 2019 | $ 490 | 378,756 | $ (656,551) | (5,816) | 656,096 | 74 | 373,049 | ||
Balance (in shares) at Jun. 30, 2019 | 49,049 | 22,462 | |||||||
Balance at Jun. 30, 2019 | $ (1,585) | $ (1,585) | $ 491 | 377,913 | $ (656,597) | (5,651) | 647,710 | 63 | 363,929 |
Net income (loss) | 14,106 | 14,106 | |||||||
Common stock issued on share-based awards (in shares) | 1 | ||||||||
Common stock issued on share-based awards | 18 | 18 | |||||||
Share-based compensation expense | 151 | 151 | |||||||
Cash dividends declared | (5,610) | (5,610) | |||||||
Balance (in shares) at Sep. 30, 2019 | 49,050 | 22,462 | |||||||
Balance at Sep. 30, 2019 | $ 491 | 378,082 | $ (656,597) | (6,150) | 654,621 | 56 | 370,503 | ||
Balance (in shares) at Jun. 30, 2019 | 49,049 | 22,462 | |||||||
Balance at Jun. 30, 2019 | $ (1,585) | $ (1,585) | $ 491 | 377,913 | $ (656,597) | (5,651) | 647,710 | 63 | 363,929 |
Net income (loss) | 20,969 | ||||||||
Other comprehensive income (loss) | (3,608) | ||||||||
Balance (in shares) at Mar. 31, 2020 | 49,054 | 24,001 | |||||||
Balance at Mar. 31, 2020 | $ 491 | 378,166 | $ (680,916) | (9,218) | 650,701 | 22 | 339,246 | ||
Balance (in shares) at Sep. 30, 2019 | 49,050 | 22,462 | |||||||
Balance at Sep. 30, 2019 | $ 491 | 378,082 | $ (656,597) | (6,150) | 654,621 | 56 | 370,503 | ||
Net income (loss) | 7,086 | 7,086 | |||||||
Common stock issued on share-based awards (in shares) | 4 | ||||||||
Common stock issued on share-based awards | 35 | 35 | |||||||
Cash dividends declared | (5,496) | (5,496) | |||||||
Share-based compensation expense | 28 | 28 | |||||||
Repurchase of common stock (in shares) | 546 | ||||||||
Repurchase of common stock | $ (10,029) | (10,029) | |||||||
Balance (in shares) at Dec. 31, 2019 | 49,054 | 23,008 | |||||||
Balance at Dec. 31, 2019 | $ 491 | 378,089 | $ (666,626) | (5,377) | 656,211 | 37 | 362,825 | ||
Net income (loss) | (223) | (223) | |||||||
Cash dividends declared | (5,287) | (5,287) | |||||||
Share-based compensation expense | (77) | (77) | |||||||
Repurchase of common stock (in shares) | 993 | ||||||||
Repurchase of common stock | $ (14,290) | (14,290) | |||||||
Other comprehensive income (loss) | (3,841) | (15) | (3,856) | ||||||
Balance (in shares) at Mar. 31, 2020 | 49,054 | 24,001 | |||||||
Balance at Mar. 31, 2020 | $ 491 | $ 378,166 | $ (680,916) | $ (9,218) | $ 650,701 | $ 22 | $ 339,246 |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Business | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | ( 1 Organization and Nature of Business Founded in 1932 1989, 300 nine six two one |
Note 2 - Interim Basis of Prese
Note 2 - Interim Basis of Presentation | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | ( 2 Interim Basis of Presentation Use of Estimates. not Principles of Consolidation. two two three nine March 31, 2020 not may 2019 10 “2019 10 Reclassifications. not |
Note 3 - Recent Accounting Pron
Note 3 - Recent Accounting Pronouncements | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | ( 3 Recent Accounting Pronouncements New Accounting Standards or Updates Recently Adopted Leases February 2016, 2016 02, Leases (Topic 842 2016 02 December 15, 2018, July 2018, We adopted ASU 2016 02 July 1, 2019 not not not not not not July 1, 2019. 12 Upon adoption we recognized operating lease assets of $129.7 $149.7 $20.0 June 30, 2019, July 1, 2019, $1.6 not 7 2016 02. Goodwill Impairment Test January 2017, 2017 04, Intangibles-Goodwill and Other (Topic 350 2 not 2017 04 2020. Recent Accounting Standards or Updates Not Credit Losses of Financial Instruments June 2016, 2016 13, Financial Instruments – Credit Losses (Topic 326 first 2021 not Implementation Costs in a Cloud Computing Arrangement – August 2018, 2018 15, Intangibles-Goodwill and Other – Internal-Use Software (Subtopic 350 40 first 2021. not Simplifying the Accounting for Income Taxes – December 2019, 2019 12, Income Taxes (Topic 740 740 first 2022, not Reference Rate Reform on Financial Reporting – March 2020, 2020 04, Reference Rate Reform (Topic 848 ): Facilitation of the Effects of Reference Rate Reform on Financial Reporting first 2021. not No March 31, 2020 |
Note 4 - Revenue Recognition
Note 4 - Revenue Recognition | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | ( 4 Revenue Recognition Our reported revenue (net sales) consist substantially of product sales. We report product sales net of discounts and recognize them at the point in time when control transfers to the customer. For sales to our customers in our wholesale segment, control typically transfers when the product is shipped. For sales in our retail segment, control generally transfers upon delivery to the customer. We recognize shipping and handling expense as fulfillment activities (rather than as a promised good or service) when the activities are performed even if those activities are performed after the control of the good has been transferred. Accordingly, we record the expenses for shipping and handling activities at the same time we recognize net sales. We exclude from the measurement of the transaction price all taxes imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer, including sales, use, excise, value-added, and franchise taxes (collectively referred to as sales taxes). We do not one Estimated refunds for sales returns and allowances are based on our historical return patterns. We record these estimated refunds on a gross basis rather than on a net basis and have recorded an asset for product we expect to receive back from customers in Prepaid expenses and other current assets Other current liabilitie s March 31, 2020 June 30, 2019, We capitalize commission fees paid to our associates as contract assets within Prepaid expenses and other current assets March 31, 2020, $7.1 six $8.0 June 30, 2019. In many cases we receive deposits from customers before we have transferred control of our product to our customers, resulting in contract liabilities. These customer deposits are reported as a current liability in Customer deposits and d eferred r evenue June 30, 2019 $56.7 $1.1 $54.7 three nine March 31, 2020. $50.2 March 31, 2020. During October 2019 $100 one Customer d eposits and d eferred r evenue Net s ales The following table disaggregates net sales by product category by segment for the three March 31, 2020 ( Wholesale Retail Total Upholstery (1) $ 47,214 $ 54,791 $ 102,005 Case goods (2) 30,096 31,822 61,918 Accents (3) 16,942 25,849 42,791 Other (4) (1,113 ) 3,236 2,123 Total before intercompany eliminations $ 93,139 $ 115,698 208,837 Intercompany eliminations (5) (59,063 ) Consolidated net sales $ 149,774 The following table disaggregates net sales by product category by segment for the nine March 31, 2020 ( Wholesale Retail Total Upholstery (1) $ 141,563 $ 181,723 $ 323,286 Case goods (2) 95,922 110,465 206,387 Accents (3) 51,109 86,078 137,187 Other (4) (2,237 ) 13,799 11,562 Total before intercompany eliminations $ 286,357 $ 392,065 678,422 Intercompany eliminations (5) (180,153 ) Consolidated net sales $ 498,269 ( 1 Upholstery furniture includes fabric-covered items such as sleepers, recliners and other motion furniture, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics and leather. ( 2 Case goods furniture includes items such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture, and wooden accents. ( 3 Accents includes items such as window treatments and drapery hardware, wall décor, florals, lighting, clocks, mattresses, bedspreads, throws, pillows, decorative accents, area rugs, wall coverings and home and garden furnishings. ( 4 Other includes membership revenue, product delivery sales, the Ethan Allen Hotel room rentals and banquets, sales of third ( 5 Represents the elimination of all intercompany wholesale segment sales to the retail segment during the period presented. |
Note 5 - Inventories
Note 5 - Inventories | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | ( 5 Inventories Inventories are stated at the lower of cost (on a first first Inventories at March 31, 2020 June 30, 2019 March 31, June 30, 2020 2019 Finished goods $ 105,678 $ 128,047 Work in process 10,467 9,185 Raw materials 24,237 26,661 Inventory reserves (1,608 ) (1,504 ) Inventories, net $ 138,774 $ 162,389 |
Note 6 - Goodwill and Other Int
Note 6 - Goodwill and Other Intangible Assets | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | ( 6 Goodwill and Other Intangible Assets Our goodwill and intangible assets are comprised of goodwill, which represents the excess of cost over the fair value of net assets acquired, and our Ethan Allen trade name and related trademarks. Both goodwill and indefinite-lived intangible assets are not We are required to test goodwill and indefinite-lived intangibles at the reporting level for potential impairment annually, or more frequently if impairment indicators occur. Goodwill and other indefinite-lived intangible assets are evaluated for impairment on an annual basis during the fourth may In the fiscal third March 31, 2020, 14.1% 46.4% second third $19.06 $10.22 19 March 31, 2020, 25%, no March 31, 2020. The fair value of our trade name, which is the Company’s only indefinite-lived intangible asset other than goodwill, was also reviewed as of March 31, 2020 March 31, 2020, no As of March 31, 2020, $25.4 $19.7 may may |
Note 7 - Leases
Note 7 - Leases | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Lessee, Leases [Text Block] | ( 7 Leases During the first 2020, 2016 02 Lease Accounting Policy We have operating leases for many of our design centers that expire at various dates through fiscal 2040. three five Lease right-of-use assets represent the right to use an underlying asset pursuant to the lease for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Lease right-of-use assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate generally applicable to the location of the lease right-of-use asset, unless an implicit rate is readily determinable. We combine lease and certain non-lease components for our design center real estate leases in determining the lease payments subject to the initial present value calculation. Lease right-of-use assets include upfront lease payments and exclude lease incentives, where applicable. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. Lease expense for operating leases consists of both fixed and variable components. Expense related to fixed lease payments are recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred, where applicable, and include certain index-based changes in rent, certain non-lease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. Leases with an initial term of twelve not not We have elected the short-term lease exemption, whereby leases with initial terms of one not Key Estimates and Judgments Key estimates and judgments in applying ASU 2016 02 ASC 842 not may not not July 1, 2019 not The Company's lease terms and discount rates are as follows: March 31, 2020 Weighted-average remaining lease term (in years) Operating leases 6.7 Financing leases 1.7 Weighted-average discount rate Operating leases 3.8 % Financing leases 4.4 % The following table discloses the location and amount of our operating and financing lease costs within our consolidated statements of comprehensive income (in thousands): Statement of Comprehensive Income Location Three months ended March 31, 2020 Nine months ended March 31, 2020 Operating lease cost Selling, general and administrative (“SG&A”) $ 8,178 $ 24,369 Financing lease cost: Depreciation of property SG&A 152 445 Interest on lease liabilities Interest income, net of interest (expense) 8 25 Short-term lease cost SG&A 280 1,022 Variable lease cost (1) SG&A 2,333 7,169 Less: Sublease income SG&A (486 ) (1,588 ) Total lease expense $ 10,465 $ 31,442 ( 1 Variable lease payments include index-based changes in rent, maintenance, real estate taxes, insurance and other charges included in the lease. Operating lease rent expense during the three March 31, 2019, $8.2 $0.5 nine March 31, 2019, $24.2 $1.5 The following table discloses the operating and financing lease assets and liabilities recognized within our consolidated balance sheet as of March 31, 2020 ( Consolidated Balance Sheet Location March 31, 2020 Assets Operating leases Operating lease right-of-use assets (non-current) $ 124,636 Financing leases Property, plant and equipment, net 741 Total lease assets $ 125,377 Liabilities Current: Operating leases Current operating lease liabilities $ 34,005 Financing leases Other current liabilities 604 Noncurrent: Operating leases Operating lease liabilities, long-term 112,515 Financing leases Other long-term liabilities 127 Total lease liabilities $ 147,251 The ROU assets by segment are as follows as of March 31, 2020 ( Retail $ 124,694 Wholesale 683 Total ROU assets $ 125,377 The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable leases with terms of more than one March 31, 2020 ( Fiscal Year Operating Leases Financing Leases 2020 (remaining three months) $ 8,910 $ 151 2021 33,424 459 2022 29,082 78 2023 22,936 39 2024 17,875 19 Thereafter 55,783 8 Total undiscounted future minimum lease payments 168,010 754 Less: imputed interest (21,490 ) (23 ) Total present value of lease obligations $ 146,520 $ 731 As of March 31, 2020, one not not first 2021. ten $3.2 At March 31, 2020, not not Other information for our leases is as follows (in thousands): Nine months ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 24,411 Operating cash flows from financing leases $ 422 Operating lease assets obtained in exchange for new operating lease liabilities $ 16,333 At the beginning of fiscal 2020, 2016 02, June 30, 2019, Fiscal Year Operating Leases Financing Leases (1) 2020 $ 33,761 $ 550 2021 30,534 437 2022 26,443 60 2023 20,276 19 2024 15,345 - Thereafter 43,500 - Total $ 169,859 $ 1,066 ( 1 As of June 30, 2019, $1.1 |
Note 8 - Income Taxes
Note 8 - Income Taxes | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | ( 8 Income Taxes We review our 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. We identify items which are non-recurring in nature and treats these as discrete events. The tax effect of such items is recorded in the quarter in which the related events occur. Due to the volatility of these factors, our consolidated effective income tax rate can change significantly quarter over quarter. We conduct business globally and, as a result, we file income tax returns in the United States and in various state and foreign jurisdictions. In the normal course of business, we are subject to periodic examination in such domestic and foreign jurisdictions by tax authorities. We are currently under audit in the United States for fiscal 2016 2018. may twelve not may twelve twelve Our consolidated effective tax rate was 58.8% 23.4% three nine March 31, 2020 24.8% 25.0% 21% may not |
Note 9 - Debt
Note 9 - Debt | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | ( 9 Debt Total debt obligations at March 31, 2020 June 30, 2019 March 31, June 30, 2020 2019 Borrowings under revolving credit facility $ 100,000 $ - Capital leases (1) - 1,066 Total debt 100,000 1,066 Less current maturities - 550 Total long-term debt $ 100,000 $ 516 ( 1 Capital leases were previously reported as debt as of June 30, 2019. 7 Credit Agreement On December 21, 2018, $165 December 21, 2023. $0.6 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% 2.0%, 0.5%, 1.0% 0.5% 1.0%. The availability of credit at any given time under the Facility will be constrained by the terms and conditions of the Facility, including the amount of collateral available, a borrowing base formula based upon numerous factors, including the value of eligible inventory and eligible accounts receivable, and other restrictions contained in the Facility. All obligations under the Facility are secured by assets of the Loan Parties, including inventory, receivables and certain types of intellectual property. Borrowings under the Facility On March 23, 2020, $80 March 30, 2020, $20 $100 March 31, 2020. no one 0.95% 1.50%. December 21, 2023. 19 The outstanding borrowings of $100 Long-term debt March 31, 2020. nine March 31, 2020 2019, $0.2 $0.3 The fair value of our long-term debt was $100 March 31, 2020, Covenants and Other Ratios The Facility contains various restrictive and affirmative covenants, including required financial reporting, limitations on the ability to grant liens, make loans or other investments, incur additional debt, issue additional equity, merge or consolidate with or into another person, sell assets, pay dividends or make other distributions or enter into transactions with affiliates, along with other restrictions and limitations similar to those frequently found in credit agreements of this type and size. Loans under the Facility may The Facility does not $18.5 1.0 twelve At March 31, 2020 June 30, 2019, $5.8 $6.1 $23.9 March 31, 2020 $158.9 June 30, 2019. March 31, 2020 June 30, 2019, |
Note 10 - Restructuring and Oth
Note 10 - Restructuring and Other Impairment Activities | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | ( 10 Restructuring and Other Impairment Activities Summary of Restructuring, Impairments and Other related charges (gains) Restructuring, impairment and other related costs incurred during the three nine March 31, 2020 Three months ended Nine months ended March 31, 2020 March 31, 2020 Optimization of manufacturing and logistics $ 368 $ 829 Gain on sale of Passaic property - (11,497 ) Impairment of long-lived assets (retail) 389 389 Other charges 105 106 Total Restructuring and other impairment charges, net of gains $ 862 $ (10,173 ) Manufacturing overhead costs (5 ) 1,318 (1) Inventory write-downs - 3,208 (1) Total $ 857 $ (5,647 ) ( 1 Manufacturing overhead costs and inventory write-downs are reported within Cost of Sales Restructuring and Other Related Charges Rollforward The Company’s restructuring activity is summarized in the table below (in thousands): Balance Fiscal 2020 Activity Balance Optimization of Manufacturing and Logistics June 30, 2019 New Charges (Income) Non-Cash (Payments) Receipts March 31, 2020 Employee severance, other payroll and benefit costs $ 1,714 $ 777 $ 23 $ (2,468 ) $ - Manufacturing overhead costs - 1,318 - (1,318 ) - Sale of Passaic property - (11,497 ) 245 11,742 - Sale of other property, plant and equipment - (675 ) - 675 - Other exit costs - 727 (523 ) (1,250 ) - Sub-total $ 1,714 $ (9,350 ) $ (255 ) $ 7,381 $ - Other Restructuring and Impairment Charges Inventory write-downs $ - $ 3,208 $ 3,208 $ - $ - Impairment of long-lived assets (retail) - 389 389 - - Lease exit costs (remaining lease rentals) 3,145 - 2,878 (267 ) - (1) Other charges (income) 224 106 - (271 ) 59 (2) Sub-total $ 3,369 $ 3,703 $ 6,475 $ (538 ) $ 59 Total Restructuring, Impairments and other exit costs $ 5,083 $ (5,647 ) $ 6,220 $ 6,843 $ 59 ( 1 The previously recorded vacant space liability was reclassified from Accounts payable and accrued expenses Other long-term liabilities Operating lease right-of-use assets 2016 02, 420 ( 2 The remaining balance from the other charges (income) as of March 31, 2020 Accounts payable and accrued expenses Optimization of Manufacturing and Logistics During the fourth 2019, June 30, 2019, We completed this optimization project in fiscal 2020 $2.1 $1.3 $0.8 $0.7 $0.7 $1.3 Cost of Sales Restructuring and other i mpairment c harges , net of g ain s As part of our optimization plans, we also completed the sale of our Passaic property in September 2019 third $12.4 $0.9 $11.5 first 2020, Restructuring and other i mpairment c harges , net of g ains Inventory Write-downs During the first 2020 $3.2 $2.6 $0.6 Cost of Sale s. |
Note 11 - Share-based Compensat
Note 11 - Share-based Compensation | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | ( 11 Share-Based Compensation During the nine March 31, 2020 2019, $0.2 $1.0 March 31, 2020, $1.2 2.8 no nine March 31, 2020 2019, At March 31, 2020, 1,394,808 10 one three Stock Option Activity A summary of stock option activity during the nine March 31, 2020 Weighted Average Options Exercise Price Outstanding at June 30, 2019 378,911 $ 21.95 Granted 59,188 $ 17.27 Exercised (4,500 ) $ 11.74 Canceled (forfeited/expired) (23,495 ) $ 23.30 Outstanding at March 31, 2020 410,104 $ 21.31 Exercisable at March 31, 2020 314,151 $ 21.56 Stock options granted to employees during fiscal 2020 no 2019. FY 2020 Volatility 30.8 % Risk-free rate of return 1.62 % Dividend yield 4.42 % Expected average life (years) 5.9 Non-employee (independent) directors were granted stock options during the first FY 2020 FY 2019 Volatility 30.8 % 31.3 % Risk-free rate of return 1.55 % 2.80 % Dividend yield 3.97 % 3.24 % Expected average life (years) 5.3 5.0 Restricted Stock Unit Activity A summary of restricted stock unit activity during the nine March 31, 2020 Weighted Restricted Average Fair Value Outstanding at June 30, 2019 - $ - Granted 57,000 $ 9.15 Vested - $ - Canceled (forfeited/expired) - $ - Outstanding at March 31, 2020 57,000 $ 9.15 During the third 2020, 57,000 $9.15. not 25% four no 2019. Performance Stock Units A summary of performance units activity during the nine March 31, 2020 Weighted Average Units Grant Date Fair Value Outstanding at June 30, 2019 313,882 $ 22.80 Granted 99,405 $ 12.72 Vested - $ - Canceled (forfeited/expired) - $ - Outstanding at March 31, 2020 413,287 $ 20.37 During the first 2020, 99,405 80% 20% three not one 2020 2019, FY 2020 FY 2019 Volatility 30.5 % 32.1 % Risk-free rate of return 1.72 % 2.72 % Dividend yield 3.97 % 3.24 % Expected average life (years) 3.0 3.0 |
Note 12 - Earnings Per Share
Note 12 - Earnings Per Share | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | ( 12 Earnings Per Share Basic and diluted earnings per share (“EPS”) are calculated using the following weighted average share data (in thousands): Three months ended Nine months ended March 31, March 31, 2020 2019 2020 2019 Weighted average shares outstanding for basic calculation 25,703 26,705 26,332 26,690 Dilutive effect of stock options and other share-based awards - 46 30 59 Weighted average shares outstanding adjusted for dilution calculation 25,703 26,751 26,362 26,749 Dilutive potential common shares consist of stock options, restricted stock units and performance units. As of March 31, 2020 2019, 467,104 260,571, As of March 31, 2020 2019, 287,287 269,138, . Share Repurchase Program On January 13, 2020, 3,000,000 992,636 $14.3 third 2020. no third March 31, 2020, 2,007,364 April 1, 2020 19. |
Note 13 - Accumulated Other Com
Note 13 - Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | ( 13 Accumulated Other Comprehensive Income ( Loss ) Accumulated other comprehensive income (loss) consists of foreign currency translation adjustments which are the result of changes in foreign currency exchange rates related to our operations outside the United States. Assets and liabilities are translated into U.S. dollars using the current period-end exchange rate and income and expense amounts are translated using the average exchange rate for the period in which the transaction occurred. The following table sets forth the activity in accumulated other comprehensive loss for the fiscal year-to-date period ended March 31, 2020 2019 2020 2019 Beginning balance at July 1 $ (5,651 ) $ (6,171 ) Other comprehensive income (loss), net of tax (3,608 ) 290 Less AOCI attributable to noncontrolling interests 41 65 Ending balance at March 31 $ (9,218 ) $ (5,816 ) |
Note 14 - Segment Information
Note 14 - Segment Information | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | ( 14 Segment Information Our operating segments are aligned with how the Company, including its chief operating decision maker, manages the business. As such, our reportable operating segments are the Wholesale segment and the Retail segment. Our wholesale and retail operating segments represent strategic business areas of our vertically integrated enterprise that operate separately and provide their own distinctive services. This vertical structure enables us to offer our complete line of home furnishings and accents more effectively while controlling quality and cost. We evaluate performance of the respective segments based upon revenues and operating income. Inter-segment transactions result, primarily, from the wholesale sale of inventory to the retail segment, including the related profit margin. As of March 31, 2020, 144 159 third 79% nine March 31, 2020. 21%. Segment information for the three nine March 31, 2020 2019 Three months ended Nine months ended March 31, March 31, 2020 2019 2020 2019 Net sales Wholesale segment $ 93,139 $ 108,367 $ 286,357 $ 334,097 Retail segment 115,698 138,947 392,065 442,669 Elimination of intercompany sales (59,063 ) (69,485 ) (180,153 ) (214,000 ) Consolidated Total $ 149,774 $ 177,829 $ 498,269 $ 562,766 Income (loss) before income taxes Wholesale segment $ 8,936 $ 13,045 $ 31,594 $ 36,181 Retail segment (8,772 ) (1,669 ) (7,343 ) 83 Elimination of intercompany profit (a) (918 ) (707 ) 2,840 2,332 Operating income (loss) (754 ) 10,669 27,091 38,596 Interest income, net of interest (expense) 213 (62 ) 295 63 Consolidated Total $ (541 ) $ 10,607 $ 27,386 $ 38,659 Depreciation and amortization Wholesale segment $ 1,748 $ 1,914 $ 5,388 $ 5,771 Retail segment 2,667 2,903 7,457 8,971 Consolidated Total $ 4,415 $ 4,817 $ 12,845 $ 14,742 Capital expenditures Wholesale segment $ 3,027 $ 726 $ 5,338 $ 2,407 Retail segment 1,512 1,310 7,119 4,583 Consolidated Total $ 4,539 $ 2,036 $ 12,457 $ 6,990 (a) Represents the change in wholesale profit contained in the retail segment inventory at the end of the period. March 31, June 30, 2020 2019 Total Assets Wholesale segment $ 316,974 $ 237,354 Retail segment 409,231 299,125 Inventory profit elimination (a) (23,101 ) (26,128 ) Consolidated Total $ 703,104 $ 510,351 (a) Represents the wholesale profit contained in the retail segment inventory that has not |
Note 15 - Commitments and Conti
Note 15 - Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | ( 15 We accrue non-income tax liabilities for contingencies when management believes that a loss is probable, and the amounts can be reasonably estimated, while contingent gains are recognized only when realized. We are routinely party to various legal proceedings, claims and litigation that have arisen in the ordinary course of business, including employment matters, commercial and intellectual property disputes and environmental items. For more information on how we determine whether to accrue for potential losses resulting from litigation, see Note 20 2019 10 may The outcome of any matters pending against us is subject to future resolution, including the uncertainties of litigation. Based on information available at March 31, 2020, not |
Note 16 - Subsequent Event
Note 16 - Subsequent Event | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | ( 16 Subsequent Event COVID- 19 On March 11, 2020, 19 19 On April 1, 2020 19 70% June 30, 2020, 40% 20% June 30, 2020, 50% April 2, 2020 two April 28, 2020, Customers can schedule appointments with our design consultants and interact with them through Live Chat online at www.ethanallen.com 3D www.ethanallen.com We continue to assess the situation on a daily basis; however, as of the date of this filing, we are unable to predict when and how quickly we will be able to resume full retail and manufacturing operations. We began reopening design centers in a number of U.S. states since May 1, 2020 2020, fourth While we expect the effects of COVID- 19 19 March 31, 2020, 19, |
Note 4 - Revenue Recognition (T
Note 4 - Revenue Recognition (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Wholesale Retail Total Upholstery (1) $ 47,214 $ 54,791 $ 102,005 Case goods (2) 30,096 31,822 61,918 Accents (3) 16,942 25,849 42,791 Other (4) (1,113 ) 3,236 2,123 Total before intercompany eliminations $ 93,139 $ 115,698 208,837 Intercompany eliminations (5) (59,063 ) Consolidated net sales $ 149,774 Wholesale Retail Total Upholstery (1) $ 141,563 $ 181,723 $ 323,286 Case goods (2) 95,922 110,465 206,387 Accents (3) 51,109 86,078 137,187 Other (4) (2,237 ) 13,799 11,562 Total before intercompany eliminations $ 286,357 $ 392,065 678,422 Intercompany eliminations (5) (180,153 ) Consolidated net sales $ 498,269 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 31, June 30, 2020 2019 Finished goods $ 105,678 $ 128,047 Work in process 10,467 9,185 Raw materials 24,237 26,661 Inventory reserves (1,608 ) (1,504 ) Inventories, net $ 138,774 $ 162,389 |
Note 7 - Leases (Tables)
Note 7 - Leases (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Lease, Cost [Table Text Block] | March 31, 2020 Weighted-average remaining lease term (in years) Operating leases 6.7 Financing leases 1.7 Weighted-average discount rate Operating leases 3.8 % Financing leases 4.4 % Statement of Comprehensive Income Location Three months ended March 31, 2020 Nine months ended March 31, 2020 Operating lease cost Selling, general and administrative (“SG&A”) $ 8,178 $ 24,369 Financing lease cost: Depreciation of property SG&A 152 445 Interest on lease liabilities Interest income, net of interest (expense) 8 25 Short-term lease cost SG&A 280 1,022 Variable lease cost (1) SG&A 2,333 7,169 Less: Sublease income SG&A (486 ) (1,588 ) Total lease expense $ 10,465 $ 31,442 |
Lease, Balance Sheet Disclosure [Table Text Block] | Consolidated Balance Sheet Location March 31, 2020 Assets Operating leases Operating lease right-of-use assets (non-current) $ 124,636 Financing leases Property, plant and equipment, net 741 Total lease assets $ 125,377 Liabilities Current: Operating leases Current operating lease liabilities $ 34,005 Financing leases Other current liabilities 604 Noncurrent: Operating leases Operating lease liabilities, long-term 112,515 Financing leases Other long-term liabilities 127 Total lease liabilities $ 147,251 Retail $ 124,694 Wholesale 683 Total ROU assets $ 125,377 |
Lessee, Leases, Liability, Maturity [Table Text Block] | Fiscal Year Operating Leases Financing Leases 2020 (remaining three months) $ 8,910 $ 151 2021 33,424 459 2022 29,082 78 2023 22,936 39 2024 17,875 19 Thereafter 55,783 8 Total undiscounted future minimum lease payments 168,010 754 Less: imputed interest (21,490 ) (23 ) Total present value of lease obligations $ 146,520 $ 731 |
Lease, Supplemental Lease Information [Table Text Block] | Nine months ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 24,411 Operating cash flows from financing leases $ 422 Operating lease assets obtained in exchange for new operating lease liabilities $ 16,333 |
Schedule of Future Minimum Rental Payments for Leases [Table Text Block] | Fiscal Year Operating Leases Financing Leases (1) 2020 $ 33,761 $ 550 2021 30,534 437 2022 26,443 60 2023 20,276 19 2024 15,345 - Thereafter 43,500 - Total $ 169,859 $ 1,066 |
Note 9 - Debt (Tables)
Note 9 - Debt (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | March 31, June 30, 2020 2019 Borrowings under revolving credit facility $ 100,000 $ - Capital leases (1) - 1,066 Total debt 100,000 1,066 Less current maturities - 550 Total long-term debt $ 100,000 $ 516 |
Note 10 - Restructuring and O_2
Note 10 - Restructuring and Other Impairment Activities (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Three months ended Nine months ended March 31, 2020 March 31, 2020 Optimization of manufacturing and logistics $ 368 $ 829 Gain on sale of Passaic property - (11,497 ) Impairment of long-lived assets (retail) 389 389 Other charges 105 106 Total Restructuring and other impairment charges, net of gains $ 862 $ (10,173 ) Manufacturing overhead costs (5 ) 1,318 (1) Inventory write-downs - 3,208 (1) Total $ 857 $ (5,647 ) |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | Balance Fiscal 2020 Activity Balance Optimization of Manufacturing and Logistics June 30, 2019 New Charges (Income) Non-Cash (Payments) Receipts March 31, 2020 Employee severance, other payroll and benefit costs $ 1,714 $ 777 $ 23 $ (2,468 ) $ - Manufacturing overhead costs - 1,318 - (1,318 ) - Sale of Passaic property - (11,497 ) 245 11,742 - Sale of other property, plant and equipment - (675 ) - 675 - Other exit costs - 727 (523 ) (1,250 ) - Sub-total $ 1,714 $ (9,350 ) $ (255 ) $ 7,381 $ - Other Restructuring and Impairment Charges Inventory write-downs $ - $ 3,208 $ 3,208 $ - $ - Impairment of long-lived assets (retail) - 389 389 - - Lease exit costs (remaining lease rentals) 3,145 - 2,878 (267 ) - (1) Other charges (income) 224 106 - (271 ) 59 (2) Sub-total $ 3,369 $ 3,703 $ 6,475 $ (538 ) $ 59 Total Restructuring, Impairments and other exit costs $ 5,083 $ (5,647 ) $ 6,220 $ 6,843 $ 59 |
Note 11 - Share-based Compens_2
Note 11 - Share-based Compensation (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Weighted Average Options Exercise Price Outstanding at June 30, 2019 378,911 $ 21.95 Granted 59,188 $ 17.27 Exercised (4,500 ) $ 11.74 Canceled (forfeited/expired) (23,495 ) $ 23.30 Outstanding at March 31, 2020 410,104 $ 21.31 Exercisable at March 31, 2020 314,151 $ 21.56 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | FY 2020 Volatility 30.8 % Risk-free rate of return 1.62 % Dividend yield 4.42 % Expected average life (years) 5.9 FY 2020 FY 2019 Volatility 30.8 % 31.3 % Risk-free rate of return 1.55 % 2.80 % Dividend yield 3.97 % 3.24 % Expected average life (years) 5.3 5.0 |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | Weighted Restricted Average Fair Value Outstanding at June 30, 2019 - $ - Granted 57,000 $ 9.15 Vested - $ - Canceled (forfeited/expired) - $ - Outstanding at March 31, 2020 57,000 $ 9.15 |
Share-based Payment Arrangement, Performance Shares, Activity [Table Text Block] | Weighted Average Units Grant Date Fair Value Outstanding at June 30, 2019 313,882 $ 22.80 Granted 99,405 $ 12.72 Vested - $ - Canceled (forfeited/expired) - $ - Outstanding at March 31, 2020 413,287 $ 20.37 |
Schedule of Share-based Payment Award, Performance Stock Units, Valuation Assumptions [Table Text Block] | FY 2020 FY 2019 Volatility 30.5 % 32.1 % Risk-free rate of return 1.72 % 2.72 % Dividend yield 3.97 % 3.24 % Expected average life (years) 3.0 3.0 |
Note 12 - Earnings Per Share (T
Note 12 - Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Nine months ended March 31, March 31, 2020 2019 2020 2019 Weighted average shares outstanding for basic calculation 25,703 26,705 26,332 26,690 Dilutive effect of stock options and other share-based awards - 46 30 59 Weighted average shares outstanding adjusted for dilution calculation 25,703 26,751 26,362 26,749 |
Note 13 - Accumulated Other C_2
Note 13 - Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | 2020 2019 Beginning balance at July 1 $ (5,651 ) $ (6,171 ) Other comprehensive income (loss), net of tax (3,608 ) 290 Less AOCI attributable to noncontrolling interests 41 65 Ending balance at March 31 $ (9,218 ) $ (5,816 ) |
Note 14 - Segment Information (
Note 14 - Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three months ended Nine months ended March 31, March 31, 2020 2019 2020 2019 Net sales Wholesale segment $ 93,139 $ 108,367 $ 286,357 $ 334,097 Retail segment 115,698 138,947 392,065 442,669 Elimination of intercompany sales (59,063 ) (69,485 ) (180,153 ) (214,000 ) Consolidated Total $ 149,774 $ 177,829 $ 498,269 $ 562,766 Income (loss) before income taxes Wholesale segment $ 8,936 $ 13,045 $ 31,594 $ 36,181 Retail segment (8,772 ) (1,669 ) (7,343 ) 83 Elimination of intercompany profit (a) (918 ) (707 ) 2,840 2,332 Operating income (loss) (754 ) 10,669 27,091 38,596 Interest income, net of interest (expense) 213 (62 ) 295 63 Consolidated Total $ (541 ) $ 10,607 $ 27,386 $ 38,659 Depreciation and amortization Wholesale segment $ 1,748 $ 1,914 $ 5,388 $ 5,771 Retail segment 2,667 2,903 7,457 8,971 Consolidated Total $ 4,415 $ 4,817 $ 12,845 $ 14,742 Capital expenditures Wholesale segment $ 3,027 $ 726 $ 5,338 $ 2,407 Retail segment 1,512 1,310 7,119 4,583 Consolidated Total $ 4,539 $ 2,036 $ 12,457 $ 6,990 March 31, June 30, 2020 2019 Total Assets Wholesale segment $ 316,974 $ 237,354 Retail segment 409,231 299,125 Inventory profit elimination (a) (23,101 ) (26,128 ) Consolidated Total $ 703,104 $ 510,351 |
Note 3 - Recent Accounting Pr_2
Note 3 - Recent Accounting Pronouncements (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2020 | Jul. 01, 2019 | Jun. 30, 2019 |
Operating Lease, Right-of-Use Asset | $ 124,636 | ||
Operating Lease, Liability, Total | 146,520 | ||
Retained Earnings (Accumulated Deficit), Ending Balance | $ 650,701 | $ 647,710 | |
Other Noncurrent Liabilities [Member] | |||
Deferred Rent and Lease Incentives | $ (20,000) | ||
Accounting Standards Update 2016-02 [Member] | |||
Operating Lease, Right-of-Use Asset | $ 129,700 | ||
Operating Lease, Liability, Total | 149,700 | ||
Accounting Standards Update 2016-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Retained Earnings (Accumulated Deficit), Ending Balance | $ (1,600) |
Note 4 - Revenue Recognition (D
Note 4 - Revenue Recognition (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | |
Contract with Customer, Asset, after Allowance for Credit Loss, Current, Total | $ 7,100,000 | $ 7,100,000 | $ 8,000,000 | |
Contract with Customer, Liability, Total | 50,200,000 | 50,200,000 | $ 56,700,000 | |
Contract with Customer, Liability, Revenue Recognized | $ 1,100,000 | $ 54,700,000 | ||
Annual Fee Per Member [Member] | ||||
Membership, Annual Fee Amount Per Member | $ 100 | |||
Contract with Customer, Satisfaction of Performance Obligation Period (Year) | 1 year |
Note 4 - Revenue Recognition -
Note 4 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | ||||
Revenues | $ 149,774 | $ 177,829 | $ 498,269 | $ 562,766 | |||
Operating Segments [Member] | |||||||
Revenues | 208,837 | 678,422 | |||||
Operating Segments [Member] | Upholstery Furniture [Member] | |||||||
Revenues | [1] | 102,005 | 323,286 | ||||
Operating Segments [Member] | Case Goods Furniture [Member] | |||||||
Revenues | [2] | 61,918 | 206,387 | ||||
Operating Segments [Member] | Accent [Member] | |||||||
Revenues | [3] | 42,791 | 137,187 | ||||
Operating Segments [Member] | Manufactured Product, Other [Member] | |||||||
Revenues | [4] | 2,123 | 11,562 | ||||
Intersegment Eliminations [Member] | |||||||
Revenues | (59,063) | [5] | (69,485) | (180,153) | [5] | (214,000) | |
Wholesale Segment [Member] | Operating Segments [Member] | |||||||
Revenues | 93,139 | 108,367 | 286,357 | 334,097 | |||
Wholesale Segment [Member] | Operating Segments [Member] | Upholstery Furniture [Member] | |||||||
Revenues | [1] | 47,214 | 141,563 | ||||
Wholesale Segment [Member] | Operating Segments [Member] | Case Goods Furniture [Member] | |||||||
Revenues | [2] | 30,096 | 95,922 | ||||
Wholesale Segment [Member] | Operating Segments [Member] | Accent [Member] | |||||||
Revenues | [3] | 16,942 | 51,109 | ||||
Wholesale Segment [Member] | Operating Segments [Member] | Manufactured Product, Other [Member] | |||||||
Revenues | [4] | (1,113) | (2,237) | ||||
Retail Segment [Member] | Operating Segments [Member] | |||||||
Revenues | 115,698 | $ 138,947 | 392,065 | $ 442,669 | |||
Retail Segment [Member] | Operating Segments [Member] | Upholstery Furniture [Member] | |||||||
Revenues | [1] | 54,791 | 181,723 | ||||
Retail Segment [Member] | Operating Segments [Member] | Case Goods Furniture [Member] | |||||||
Revenues | [2] | 31,822 | 110,465 | ||||
Retail Segment [Member] | Operating Segments [Member] | Accent [Member] | |||||||
Revenues | [3] | 25,849 | 86,078 | ||||
Retail Segment [Member] | Operating Segments [Member] | Manufactured Product, Other [Member] | |||||||
Revenues | [4] | $ 3,236 | $ 13,799 | ||||
[1] | Upholstery furniture includes fabric-covered items such as sleepers, recliners and other motion furniture, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics and leather. | ||||||
[2] | Case goods furniture includes items such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture, and wooden accents. | ||||||
[3] | Accents includes items such as window treatments and drapery hardware, wall decor, florals, lighting, clocks, mattresses, bedspreads, throws, pillows, decorative accents, area rugs, wall coverings and home and garden furnishings. | ||||||
[4] | Other includes membership revenue, product delivery sales, the Ethan Allen Hotel room rentals and banquets, sales of third-party furniture protection plans and other miscellaneous product sales less prompt payment discounts, sales allowances and other incentives. | ||||||
[5] | Represents the elimination of all intercompany wholesale segment sales to the retail segment during the period presented. |
Note 5 - Inventories - Schedule
Note 5 - Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Finished goods | $ 105,678 | $ 128,047 |
Work in process | 10,467 | 9,185 |
Raw materials | 24,237 | 26,661 |
Inventory reserves | (1,608) | (1,504) |
Inventories, net | $ 138,774 | $ 162,389 |
Note 6 - Goodwill and Other I_2
Note 6 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Share Price (in dollars per share) | $ 10.22 | $ 19.06 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | ||
Goodwill, Ending Balance | 25,388 | $ 25,388 | |
Other Indefinite-lived Intangible Assets | $ 19,700 | ||
COVID-19 Pandemic [Member] | |||
Increase (Decrease) in Stock Price, Percentage | (46.40%) | ||
Wholesale Segment [Member] | |||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 25.00% | ||
Goodwill, Impairment Loss | $ 0 | ||
Wholesale Segment [Member] | COVID-19 Pandemic [Member] | |||
Increase (Decrease) in Net Sales, Percentage | (14.10%) |
Note 7 - Leases (Details Textua
Note 7 - Leases (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2020 | Jun. 30, 2019 | ||
Operating Lease, Cost | $ 8,200 | $ 24,200 | |||
Sublease Income | $ 500 | $ 1,500 | |||
Lessee, Operating Lease, Lease Not yet Commenced, Payments, Due | $ 3,200 | ||||
Capital Lease Obligations, Total | [1] | $ 1,066 | |||
Minimum [Member] | |||||
Lessee, Finance Lease, Term of Contract (Year) | 3 years | ||||
Maximum [Member] | |||||
Lessee, Finance Lease, Term of Contract (Year) | 5 years | ||||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract (Year) | 10 years | ||||
[1] | Capital leases were previously reported as debt as of June 30, 2019. Upon the adoption of the new leasing standard, the Company reclassified its capital lease obligations from short and long-term debt to other current liabilities and other long-current liabilities, respectively. Refer to Note 7 for further details regarding capital lease obligations. |
Note 7 - Leases - Lease Costs (
Note 7 - Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | ||
Operating leases (Year) | 6 years 255 days | 6 years 255 days | |||
Financing leases (Year) | 1 year 255 days | 1 year 255 days | |||
Operating leases | 3.80% | 3.80% | |||
Financing leases | 4.40% | 4.40% | |||
Operating lease cost | $ 8,200 | $ 24,200 | |||
Less: Sublease income | $ (500) | $ (1,500) | |||
Total lease expense | $ 10,465 | $ 31,442 | |||
Selling, General and Administrative Expenses [Member] | |||||
Operating lease cost | 8,178 | 24,369 | |||
Depreciation of property | 152 | 445 | |||
Short-term lease cost | 280 | 1,022 | |||
Variable lease cost(1) | [1] | 2,333 | 7,169 | ||
Less: Sublease income | (486) | (1,588) | |||
Interest Income [Member] | |||||
Interest on lease liabilities | $ 8 | $ 25 | |||
[1] | Variable lease payments include index-based changes in rent, maintenance, real estate taxes, insurance and other charges included in the lease. |
Note 7 - Leases - Lease Assets
Note 7 - Leases - Lease Assets and Liabilities (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Operating leases, assets | $ 124,636 |
Total lease assets | 125,377 |
Operating leases, current liabilities | 34,005 |
Operating leases, noncurrent liabilities | 112,515 |
Total lease liabilities | 147,251 |
Property, Plant and Equipment [Member] | |
Financing leases, assets | 741 |
Other Current Liabilities [Member] | |
Financing leases, current liabilities | 604 |
Other Noncurrent Liabilities [Member] | |
Financing leases, noncurrent liabilities | 127 |
Retail Segment [Member] | |
Total lease assets | 124,694 |
Wholesale Segment [Member] | |
Total lease assets | $ 683 |
Note 7 - Leases - Future Minimu
Note 7 - Leases - Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2020USD ($) |
2020 (remaining six months), operating leases | $ 8,910 |
2020 (remaining six months), finance leases | 151 |
2021, operating leases | 33,424 |
2021, finance leases | 459 |
2022, operating leases | 29,082 |
2022, finance leases | 78 |
2023, operating leases | 22,936 |
2023, finance leases | 39 |
2024, operating leases | 17,875 |
2024, finance leases | 19 |
Thereafter, operating leases | 55,783 |
Thereafter, finance leases | 8 |
Total undiscounted future minimum lease payments, operating leases | 168,010 |
Total undiscounted future minimum lease payments, finance leases | 754 |
Less: imputed interest, operating leases | (21,490) |
Less: imputed interest, finance leases | (23) |
Total present value of lease obligations, operating leases | 146,520 |
Total present value of lease obligations, finance leases | $ 731 |
Note 7 - Leases - Supplemental
Note 7 - Leases - Supplemental Information (Details) $ in Thousands | 9 Months Ended |
Mar. 31, 2020USD ($) | |
Operating cash flows from operating leases | $ 24,411 |
Operating cash flows from financing leases | 422 |
Operating lease assets obtained in exchange for new operating lease liabilities | $ 16,333 |
Note 7 - Leases - Future Mini_2
Note 7 - Leases - Future Minimum Non-cancelable Lease Payments (Details) $ in Thousands | Jun. 30, 2019USD ($) | |
2020, operating leases | $ 33,761 | |
2020, finance leases | 550 | [1] |
2021, operating leases | 30,534 | |
2021, finance leases | 437 | [1] |
2022, operating leases | 26,443 | |
2022, finance leases | 60 | [1] |
2023, operating leases | 20,276 | |
2023, finance leases | 19 | [1] |
2024, operating leases | 15,345 | |
2024, finance leases | [1] | |
Thereafter, operating leases | 43,500 | |
Thereafter, finance leases | [1] | |
Total, operating leases | 169,859 | |
Total, finance leases | $ 1,066 | [1] |
[1] | As of June 30, 2019, our capital lease obligations were $1.1 million of which the current and long-term portions were included within short-term debt and long-term debt, respectively, in the consolidated balance sheet. Monthly minimum lease payments were accounted for as principal and interest payments. |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 58.80% | 24.80% | 23.40% | 25.00% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||||
Income Tax Examination, Year under Examination | 2016 2017 2018 |
Note 9 - Debt (Details Textual)
Note 9 - Debt (Details Textual) $ in Thousands | Mar. 30, 2020USD ($) | Mar. 23, 2020USD ($) | Dec. 21, 2018USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2019USD ($) |
Proceeds from Long-term Lines of Credit | $ 100,000 | $ 16,000 | ||||
Long-term Line of Credit, Total | 100,000 | |||||
Revolving Credit Facility [Member] | The Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 165,000 | |||||
Debt Issuance Costs, Net, Total | 600 | |||||
Proceeds from Long-term Lines of Credit | $ 20,000 | $ 80,000 | ||||
Long-term Line of Credit, Total | 100,000 | 0 | ||||
Line of Credit Facility, Interest Rate at Period End | 1.50% | |||||
Interest Expense, Debt, Total | 200 | $ 300 | ||||
Long-term Debt, Fair Value | 100,000 | |||||
Debt Covenant, Fixed Charge Coverage Ratio, Maximum Unused Availability | $ 18,500 | |||||
Debt Instrument, Covenant, Minimum Fixed Charge Coverage Ratio | 1 | |||||
Line of Credit Facility, Remaining Borrowing Capacity | 23,900 | 158,900 | ||||
Revolving Credit Facility [Member] | The Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.95% | 1.00% | ||||
Revolving Credit Facility [Member] | The Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||
Revolving Credit Facility [Member] | The Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||
Revolving Credit Facility [Member] | The Facility [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||
Revolving Credit Facility [Member] | The Facility [Member] | Additional Margin on Variable Rate Option [Member] | Minimum [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||
Revolving Credit Facility [Member] | The Facility [Member] | Additional Margin on Variable Rate Option [Member] | Maximum [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||
Standby Letters of Credit [Member] | The Facility [Member] | ||||||
Letters of Credit Outstanding, Amount | $ 5,800 | $ 6,100 |
Note 9 - Debt - Total Debt Obli
Note 9 - Debt - Total Debt Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 | |
Long-term Line of Credit, Total | $ 100,000 | ||
Capital leases (1) | [1] | 1,066 | |
Total debt | 100,000 | 1,066 | |
Less current maturities | 550 | ||
Total long-term debt | $ 100,000 | $ 516 | |
[1] | Capital leases were previously reported as debt as of June 30, 2019. Upon the adoption of the new leasing standard, the Company reclassified its capital lease obligations from short and long-term debt to other current liabilities and other long-current liabilities, respectively. Refer to Note 7 for further details regarding capital lease obligations. |
Note 10 - Restructuring and O_3
Note 10 - Restructuring and Other Impairment Activities (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Mar. 31, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Charges, Total | $ 2,100 | |||||
Gain (Loss) on Disposition of Property Plant Equipment, Total | (191) | $ (134) | ||||
Inventory Write-down | $ 3,200 | |||||
Inventory Write-down, Slow Moving Finished Goods [Member] | ||||||
Inventory Write-down | 2,600 | |||||
Inventory Write-down, Raw Materials Disposed of [Member] | ||||||
Inventory Write-down | $ 600 | |||||
Inventory Write-downs and Manufacturing Overhead Costs [Member] | ||||||
Restructuring Charges, Total | 1,300 | |||||
Inventory Write-downs and Manufacturing Overhead Costs [Member] | Cost of Sales [Member] | ||||||
Restructuring Charges, Total | 1,300 | |||||
Employee Severance and Other Payroll and Benefit Costs [Member] | ||||||
Restructuring Charges, Total | 800 | |||||
Other Exit and Relocation Costs [Member] | ||||||
Restructuring Charges, Total | 700 | |||||
Facility Closing, Old Fort [Member] | ||||||
Gain (Loss) on Disposition of Property Plant Equipment, Total | 700 | |||||
Facility Closing, Passaic [Member] | ||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested, Total | $ 12,400 | |||||
Payments for Divestiture Selling and Closing Costs | $ 900 | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 11,500 | $ 11,497 |
Note 10 - Restructuring and O_4
Note 10 - Restructuring and Other Impairment Activities - Schedule of Restructuring, Impairments and Other Related Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | ||
Restructuring Charge | $ 2,100 | ||||||
Total Restructuring and other impairment charges, net of gains | $ 862 | $ 221 | (10,173) | $ 284 | |||
Inventory write-downs | $ 3,200 | ||||||
Total | 857 | (5,647) | |||||
Optimization of Manufacturing and Logistics [Member] | |||||||
Restructuring Charge | 368 | 829 | |||||
Facility Closing, Passaic [Member] | |||||||
Gain on sale of Passaic property | $ (11,500) | (11,497) | |||||
Impairments of Long-lived Assets [Member] | |||||||
Restructuring Charge | 389 | 389 | |||||
Other Charges (Income) [Member] | |||||||
Restructuring Charge | 105 | 106 | |||||
Manufacturing Overhead Costs [Member] | |||||||
Manufacturing overhead costs | [1] | (5) | 1,318 | ||||
Inventory Write-downs [Member] | |||||||
Inventory write-downs | [1] | $ 3,208 | |||||
[1] | Manufacturing overhead costs and inventory write-downs are reported within Cost of Sales in the consolidated statements of comprehensive income. |
Note 10 - Restructuring and O_5
Note 10 - Restructuring and Other Impairment Activities - Schedule of Restructuring Reserve (Details) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020USD ($) | ||
Restructuring Reserve | $ 5,083 | |
New Charges (Income) | (5,647) | |
Non-Cash | 6,220 | |
(Payments) Receipts | 6,843 | |
Restructuring Reserve | 59 | |
Employee Severance, Other Payroll and Benefit Costs [Member] | ||
Restructuring Reserve | 1,714 | |
New Charges (Income) | 777 | |
Non-Cash | 23 | |
(Payments) Receipts | (2,468) | |
Restructuring Reserve | ||
Manufacturing Overhead Costs [Member] | ||
Restructuring Reserve | ||
New Charges (Income) | 1,318 | |
Non-Cash | ||
(Payments) Receipts | (1,318) | |
Restructuring Reserve | ||
Facility Closing, Passaic [Member] | ||
Restructuring Reserve | ||
New Charges (Income) | (11,497) | |
Non-Cash | 245 | |
(Payments) Receipts | 11,742 | |
Restructuring Reserve | ||
Facility Closing, Old Fort [Member] | ||
Restructuring Reserve | ||
New Charges (Income) | (675) | |
Non-Cash | ||
(Payments) Receipts | 675 | |
Restructuring Reserve | ||
Other Exit and Relocation Costs [Member] | ||
Restructuring Reserve | ||
New Charges (Income) | 727 | |
(Payments) Receipts | (1,250) | |
Restructuring Reserve | ||
Non-Cash | (523) | |
Optimization of Manufacturing and Logistics [Member] | ||
Restructuring Reserve | 1,714 | |
New Charges (Income) | (9,350) | |
(Payments) Receipts | 7,381 | |
Restructuring Reserve | ||
Non-Cash | (255) | |
Inventory Write-downs [Member] | ||
Restructuring Reserve | ||
New Charges (Income) | 3,208 | |
Non-Cash | 3,208 | |
(Payments) Receipts | ||
Restructuring Reserve | ||
Restructuring, Impairment, and Other Related Charges [Member] | ||
Restructuring Reserve | ||
Impairments of Long-lived Assets [Member] | ||
New Charges (Income) | 389 | |
Non-Cash | 389 | |
(Payments) Receipts | ||
Restructuring Reserve | ||
Lease Exit Costs [Member] | ||
Restructuring Reserve | 3,145 | |
New Charges (Income) | ||
Non-Cash | 2,878 | |
(Payments) Receipts | (267) | |
Restructuring Reserve | [1] | |
Other Charges (Income) [Member] | ||
Restructuring Reserve | 224 | |
New Charges (Income) | 106 | |
Non-Cash | ||
(Payments) Receipts | (271) | |
Restructuring Reserve | 59 | [2] |
Other Restructuring and Impairment Charges [Member] | ||
Restructuring Reserve | 3,369 | |
New Charges (Income) | 3,703 | |
Non-Cash | 6,475 | |
(Payments) Receipts | (538) | |
Restructuring Reserve | $ 59 | |
[1] | The previously recorded vacant space liability was reclassified from Accounts payable and accrued expenses and Other long-term liabilities to Operating lease right-of-use assets upon the adoption of ASU 2016-02, which requires all right-of-use assets to be measured net of any Topic 420 lease liabilities. | |
[2] | The remaining balance from the other charges (income) as of March 31, 2020 is recorded within Accounts payable and accrued expenses. |
Note 11 - Share-based Compens_3
Note 11 - Share-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | |
Share-based Payment Arrangement, Expense | $ 200 | $ 1,000 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,200 | $ 1,200 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 292 days | ||||
Share-based Payment Arrangement, Amount Capitalized | $ 0 | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Contractual Term (Year) | 10 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 59,188 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 57,000 | 57,000 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 9.15 | $ 9.15 | |||
Restricted Stock Units (RSUs) [Member] | Vesting Annually [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 99,405 | 99,405 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 12.72 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Target Financial Performance | 80.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Target Market-based Condition | 20.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Target Performance Period (Year) | 3 years | ||||
Independent Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | ||||
Employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 0 | ||||
Stock Option Plan 1992 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 1,394,808 | 1,394,808 |
Note 11 - Share-based Compens_4
Note 11 - Share-based Compensation - Stock Options, Activity (Details) | 9 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Outstanding, options (in shares) | shares | 378,911 |
Outstanding, Weighted average exercise price (in dollars per share) | $ / shares | $ 21.95 |
Granted, options (in shares) | shares | 59,188 |
Granted, Weighted average exercise price (in dollars per share) | $ / shares | $ 17.27 |
Exercised, options (in shares) | shares | (4,500) |
Exercised, Weighted average exercise price (in dollars per share) | $ / shares | $ 11.74 |
Canceled (forfeited/expired), options (in shares) | shares | (23,495) |
Canceled (forfeited/expired), Weighted average exercise price (in dollars per share) | $ / shares | $ 23.30 |
Outstanding, options (in shares) | shares | 410,104 |
Outstanding, Weighted average exercise price (in dollars per share) | $ / shares | $ 21.31 |
Exercisable, options (in shares) | shares | 314,151 |
Exercisable, Weighted average exercise price (in dollars per share) | $ / shares | $ 21.56 |
Note 11 - Share-based Compens_5
Note 11 - Share-based Compensation - Stock Options, Valuation Assumptions (Details) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Jun. 30, 2019 | |
Employees [Member] | ||
Volatility | 30.80% | |
Risk-free rate of return | 1.62% | |
Dividend yield | 4.42% | |
Expected average life (years) (Year) | 5 years 328 days | |
Independent Directors [Member] | ||
Volatility | 30.80% | 31.30% |
Risk-free rate of return | 1.55% | 2.80% |
Dividend yield | 3.97% | 3.24% |
Expected average life (years) (Year) | 5 years 109 days | 5 years |
Note 11 - Share-based Compens_6
Note 11 - Share-based Compensation - Restricted Stock and Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | |
Nonvested units (in shares) | |||
Nonvested, weighted average grant date fair value (in dollars per share) | |||
Granted (in shares) | 57,000 | 57,000 | 0 |
Granted, weighted average grant date fair value (in dollars per share) | $ 9.15 | $ 9.15 | |
Vested (in shares) | |||
Vested, weighted average grant date fair value (in dollars per share) | |||
Canceled (forfeited/expired) (in shares) | |||
Canceled (forfeited/expired) (in dollars per share) | |||
Nonvested units (in shares) | 57,000 | 57,000 | |
Nonvested, weighted average grant date fair value (in dollars per share) | $ 9.15 | $ 9.15 |
Note 11 - Share-based Compens_7
Note 11 - Share-based Compensation - Performance Unit Activity (Details) - Performance Shares [Member] - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Mar. 31, 2020 | |
Nonvested units (in shares) | 313,882 | 313,882 |
Nonvested, weighted average grant date fair value (in dollars per share) | $ 22.80 | $ 22.80 |
Granted (in shares) | 99,405 | 99,405 |
Granted, weighted average grant date fair value (in dollars per share) | $ 12.72 | |
Vested (in shares) | ||
Vested, weighted average grant date fair value (in dollars per share) | ||
Canceled (forfeited/expired) (in shares) | ||
Canceled (forfeited/expired) (in dollars per share) | ||
Nonvested units (in shares) | 413,287 | |
Nonvested, weighted average grant date fair value (in dollars per share) | $ 20.37 |
Note 11 - Share-based Compens_8
Note 11 - Share-based Compensation - Performance Unit Awards, Valuation Assumptions (Details) - Performance Shares [Member] | 9 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Jun. 30, 2019 | |
Volatility | 30.50% | 32.10% |
Risk-free rate of return | 1.72% | 2.72% |
Dividend yield | 3.97% | 3.24% |
Expected average life (years) (Year) | 3 years | 3 years |
Note 12 - Earnings Per Share (D
Note 12 - Earnings Per Share (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jan. 13, 2020 | |
Treasury Stock, Value, Acquired, Cost Method | $ 14,290 | $ 10,029 | ||||
Share Repurchase Program [Member] | ||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in shares) | 3,000,000 | |||||
Treasury Stock, Shares, Acquired (in shares) | 992,636 | 0 | ||||
Treasury Stock, Value, Acquired, Cost Method | $ 14,300 | |||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased (in shares) | 2,007,364 | 2,007,364 | ||||
Share-based Payment Arrangement, Option [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 467,104 | 260,571 | ||||
Performance Shares [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 287,287 | 269,138 |
Note 12 - Earnings Per Share -
Note 12 - Earnings Per Share - Calculation of Weighted Average Shares (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Weighted average shares outstanding for basic calculation (in shares) | 25,703 | 26,705 | 26,332 | 26,690 |
Dilutive effect of stock options and other share-based awards (in shares) | 46 | 30 | 59 | |
Weighted average shares outstanding adjusted for dilution calculation (in shares) | 25,703 | 26,751 | 26,362 | 26,749 |
Note 13 - Accumulated Other C_3
Note 13 - Accumulated Other Comprehensive Income (Loss) - Activity in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Balance | $ 362,825 | $ 369,665 | $ 363,929 | $ 383,870 |
Other comprehensive income (loss), net of tax | (3,856) | 283 | (3,608) | 290 |
Balance | 339,246 | 373,049 | 339,246 | 373,049 |
AOCI Attributable to Parent [Member] | ||||
Balance | (5,377) | (6,119) | (5,651) | (6,171) |
Other comprehensive income (loss), net of tax | (3,841) | 303 | ||
Balance | $ (9,218) | $ (5,816) | (9,218) | (5,816) |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||||
Other comprehensive income (loss), net of tax | (3,608) | 290 | ||
Less AOCI attributable to noncontrolling interests | $ 41 | $ 65 |
Note 14 - Segment Information_2
Note 14 - Segment Information (Details Textual) - Customer Concentration Risk [Member] - Revenue Benchmark [Member] | 9 Months Ended |
Mar. 31, 2020 | |
Retail Segment [Member] | |
Concentration Risk, Percentage | 79.00% |
Wholesale Segment [Member] | |
Concentration Risk, Percentage | 21.00% |
Note 14 - Segment Information -
Note 14 - Segment Information - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | ||||
Net sales | $ 149,774 | $ 177,829 | $ 498,269 | $ 562,766 | ||||
Operating Income | (754) | 10,669 | 27,091 | 38,596 | ||||
Interest income, net of interest (expense) | 213 | (62) | 295 | 63 | ||||
Consolidated Total | (541) | 10,607 | 27,386 | 38,659 | ||||
Depreciation and amortization | 4,415 | 4,817 | 12,845 | 14,742 | ||||
Capital Expenditures | 4,539 | 2,036 | 12,457 | 6,990 | ||||
Assets | 703,104 | 703,104 | $ 510,351 | |||||
Operating Segments [Member] | ||||||||
Net sales | 208,837 | 678,422 | ||||||
Intersegment Eliminations [Member] | ||||||||
Net sales | (59,063) | [1] | (69,485) | (180,153) | [1] | (214,000) | ||
Operating Income | [2] | (918) | (707) | 2,840 | 2,332 | |||
Wholesale Segment [Member] | ||||||||
Depreciation and amortization | 1,748 | 1,914 | 5,388 | 5,771 | ||||
Capital Expenditures | 3,027 | 726 | 5,338 | 2,407 | ||||
Assets | 316,974 | 316,974 | 237,354 | |||||
Wholesale Segment [Member] | Operating Segments [Member] | ||||||||
Net sales | 93,139 | 108,367 | 286,357 | 334,097 | ||||
Operating Income | 8,936 | 13,045 | 31,594 | 36,181 | ||||
Retail Segment [Member] | ||||||||
Depreciation and amortization | 2,667 | 2,903 | 7,457 | 8,971 | ||||
Capital Expenditures | 1,512 | 1,310 | 7,119 | 4,583 | ||||
Assets | 409,231 | 409,231 | 299,125 | |||||
Retail Segment [Member] | Operating Segments [Member] | ||||||||
Net sales | 115,698 | 138,947 | 392,065 | 442,669 | ||||
Operating Income | (8,772) | $ (1,669) | (7,343) | $ 83 | ||||
Inventory Profit Elimination [Member] | ||||||||
Assets | [3] | $ (23,101) | $ (23,101) | $ (26,128) | ||||
[1] | Represents the elimination of all intercompany wholesale segment sales to the retail segment during the period presented. | |||||||
[2] | Represents the change in wholesale profit contained in the retail segment inventory at the end of the period. | |||||||
[3] | 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 16 - Subsequent Event (Det
Note 16 - Subsequent Event (Details Textual) - Subsequent Event [Member] - COVID-19 Pandemic [Member] | Apr. 01, 2020 |
Furlough of Workforce Due to Temporary Closure of Facilities, Percentage | 70.00% |
Temporary Reduction in Cash Compensation, Board of Directors, Percentage | 50.00% |
Senior Management [Member] | |
Temporary Reduction in Salary, Percentage | 40.00% |
Employees [Member] | |
Temporary Reduction in Salary, Percentage | 20.00% |