Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 31, 2022 | Jan. 18, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-11692 | |
Entity Registrant Name | Ethan Allen Interiors Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 06-1275288 | |
Entity Address, Address Line One | 25 Lake Avenue Ext. | |
Entity Address, City or Town | Danbury | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06811-5286 | |
City Area Code | 203 | |
Local Phone Number | 743-8000 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | ETD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 25,347,753 | |
Entity Central Index Key | 0000896156 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 85,392 | $ 109,919 |
Investments | 55,030 | 11,199 |
Accounts receivable, net | 10,696 | 17,019 |
Inventories, net | 159,874 | 176,504 |
Prepaid expenses and other current assets | 27,414 | 32,108 |
Total current assets | 338,406 | 346,749 |
Property, plant and equipment, net | 223,702 | 223,530 |
Goodwill | 25,388 | 25,388 |
Intangible assets | 19,740 | 19,740 |
Operating lease right-of-use assets | 103,238 | 100,782 |
Deferred income taxes | 1,091 | 820 |
Other assets | 2,416 | 2,886 |
Total ASSETS | 713,981 | 719,895 |
Current liabilities: | ||
Accounts payable and accrued expenses | 30,463 | 37,370 |
Customer deposits | 83,651 | 121,080 |
Accrued compensation and benefits | 21,131 | 22,700 |
Current operating lease liabilities | 24,122 | 25,705 |
Other current liabilities | 16,348 | 8,788 |
Total current liabilities | 175,715 | 215,643 |
Operating lease liabilities, long-term | 93,706 | 89,506 |
Deferred income taxes | 2,801 | 4,418 |
Other long-term liabilities | 4,695 | 3,005 |
Total LIABILITIES | 276,917 | 312,572 |
Commitments and Contingencies | ||
SHAREHOLDERS' EQUITY | ||
Preferred stock, $0.01 par value; 1,055 shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value, 150,000 shares authorized, 49,416 and 49,360 shares issued; 25,348 and 25,323 shares outstanding at December 31, 2022 and June 30, 2022, respectively | 494 | 494 |
Additional paid-in capital | 385,555 | 384,782 |
Treasury stock, at cost: 24,068 and 24,037 shares at December 31, 2022 and June 30, 2022, respectively | (682,599) | (681,834) |
Retained earnings | 739,384 | 710,369 |
Accumulated other comprehensive loss | (5,749) | (6,462) |
Total Ethan Allen Interiors Inc. shareholders' equity | 437,085 | 407,349 |
Noncontrolling interests | (21) | (26) |
Total SHAREHOLDERS' EQUITY | 437,064 | 407,323 |
Total LIABILITIES AND SHAREHOLDERS' EQUITY | $ 713,981 | $ 719,895 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Dec. 31, 2022 | Jun. 30, 2022 |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized (in shares) | 1,055,000 | 1,055,000 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized (in shares) | 150,000,000 | 150,000,000 |
Common Stock, Shares, Issued (in shares) | 49,416,000 | 49,360,000 |
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 25,348,000 | 25,323,000 |
Treasury Stock, Shares, Total (in shares) | 24,068 | 24,037 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net sales | $ 203,161 | $ 208,093 | $ 417,691 | $ 390,420 |
Cost of sales | 79,141 | 85,824 | 164,055 | 158,959 |
Gross profit | 124,020 | 122,269 | 253,636 | 231,461 |
Selling, general and administrative expenses | 87,147 | 89,610 | 179,109 | 171,187 |
Restructuring and other impairment charges, net of gains | (196) | (3,633) | (2,192) | (3,378) |
Operating income | 37,069 | 36,292 | 76,719 | 63,652 |
Interest and other income, net | 901 | (26) | 1,297 | 2 |
Interest expense and other financing costs | 50 | 48 | 105 | 96 |
Income before income taxes | 37,920 | 36,218 | 77,911 | 63,558 |
Income tax expense | 9,754 | 9,324 | 19,865 | 16,511 |
Net income | $ 28,166 | $ 26,894 | $ 58,046 | $ 47,047 |
Basic earnings per common share: | ||||
Net income per basic share (in dollars per share) | $ 1.11 | $ 1.06 | $ 2.28 | $ 1.85 |
Basic weighted average common shares (in shares) | 25,474 | 25,396 | 25,466 | 25,386 |
Diluted earnings per common share: | ||||
Net income per diluted share (in dollars per share) | $ 1.10 | $ 1.05 | $ 2.27 | $ 1.85 |
Diluted weighted average common shares (in shares) | 25,582 | 25,513 | 25,571 | 25,482 |
Comprehensive income | ||||
Net income | $ 28,166 | $ 26,894 | $ 58,046 | $ 47,047 |
Other comprehensive Income (loss), net of tax | ||||
Foreign currency translation adjustments | 574 | 11 | 348 | (642) |
Other income (loss) | 233 | (8) | 370 | (7) |
Other comprehensive income (loss), net of tax | 807 | 3 | 718 | (649) |
Comprehensive income | $ 28,973 | $ 26,897 | $ 58,764 | $ 46,398 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities | ||
Net income | $ 58,046 | $ 47,047 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,695 | 8,187 |
Share-based compensation expense | 763 | 626 |
Non-cash operating lease cost | 14,984 | 14,948 |
Deferred income taxes | (1,888) | 1,460 |
Restructuring and other impairment charges, net of gains | (2,192) | (3,378) |
Restructuring payments | (801) | (615) |
Loss on disposal of property, plant and equipment | 42 | 4 |
Other | 290 | 0 |
Change in operating assets and liabilities | ||
Accounts receivable, net | 6,323 | 1,531 |
Inventories, net | 16,630 | (20,572) |
Prepaid expenses and other current assets | 5,419 | (551) |
Customer deposits | (37,429) | (6,439) |
Accounts payable and accrued expenses | (6,927) | (51) |
Accrued compensation and benefits | (1,455) | (2,538) |
Operating lease liabilities | (15,710) | (16,734) |
Other assets and liabilities | (2,851) | (224) |
Net cash provided by operating activities | 40,939 | 22,701 |
Cash Flows from Investing Activities | ||
Proceeds from sales of property, plant and equipment | 8,105 | 8,206 |
Capital expenditures | (8,473) | (3,730) |
Purchases of investments | (94,953) | 0 |
Proceeds from sales of investments | 51,504 | 0 |
Net cash (used in) provided by investing activities | (43,817) | 4,476 |
Cash Flows from Financing Activities | ||
Payment of cash dividends | (20,879) | (25,372) |
Proceeds from employee stock plans | 9 | 813 |
Taxes paid related to net share settlement of equity awards | (765) | (778) |
Payments on financing leases | (265) | (264) |
Other financing costs | 28 | (28) |
Net cash used in financing activities | (21,872) | (25,629) |
Effect of exchange rate changes on cash and cash equivalents | (128) | (87) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (24,878) | 1,461 |
Cash, cash equivalents and restricted cash at beginning of period | 110,871 | 104,596 |
Cash, cash equivalents and restricted cash at end of period | $ 85,993 | $ 106,057 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ 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 June 30, 2022 (in shares) at Jun. 30, 2021 | 49,240 | 24,003 | |||||
Balance at June 30, 2022 at Jun. 30, 2021 | $ 492 | $ 382,527 | $ (680,991) | $ (5,931) | $ 655,346 | $ (25) | $ 351,418 |
Net income | 0 | 0 | 0 | 0 | 20,153 | 0 | 20,153 |
Share-based compensation expense | $ 0 | 277 | $ 0 | 0 | 0 | 0 | 277 |
Restricted stock vesting (in shares) | (55) | (32) | |||||
Restricted stock vesting | $ 1 | 0 | $ (779) | 0 | 0 | 0 | (778) |
Cash dividends declared | 0 | 0 | 0 | 0 | (25,372) | 0 | (25,372) |
Other comprehensive income (loss) | $ 0 | 0 | $ 0 | (653) | 0 | 1 | (652) |
Restricted stock vesting (in shares) | 55 | 32 | |||||
Share-based compensation expense | $ 0 | 277 | $ 0 | 0 | 0 | 0 | 277 |
Balance at September 30, 2022 (in shares) at Sep. 30, 2021 | 49,295 | 24,035 | |||||
Balance at September 30, 2022 at Sep. 30, 2021 | $ 493 | 382,804 | $ (681,770) | (6,584) | 650,127 | (24) | 345,046 |
Balance at June 30, 2022 (in shares) at Jun. 30, 2021 | 49,240 | 24,003 | |||||
Balance at June 30, 2022 at Jun. 30, 2021 | $ 492 | 382,527 | $ (680,991) | (5,931) | 655,346 | (25) | 351,418 |
Net income | 47,047 | ||||||
Other comprehensive income (loss) | (649) | ||||||
Balance at September 30, 2022 (in shares) at Dec. 31, 2021 | 49,336 | 24,035 | |||||
Balance at September 30, 2022 at Dec. 31, 2021 | $ 493 | 383,966 | $ (681,770) | (6,573) | 669,653 | (32) | 365,737 |
Balance at June 30, 2022 (in shares) at Sep. 30, 2021 | 49,295 | 24,035 | |||||
Balance at June 30, 2022 at Sep. 30, 2021 | $ 493 | 382,804 | $ (681,770) | (6,584) | 650,127 | (24) | 345,046 |
Net income | 0 | 0 | 0 | 0 | 26,894 | 0 | 26,894 |
Share-based compensation expense | 0 | 349 | 0 | 0 | 0 | 0 | 349 |
Cash dividends declared | 0 | 0 | 0 | 0 | (7,368) | 0 | (7,368) |
Other comprehensive income (loss) | $ 0 | 0 | $ 0 | 11 | 0 | (8) | 3 |
Common stock issued on share-based awards (in shares) | 41 | 0 | |||||
Common stock issued on share-based awards | $ 0 | 813 | $ 0 | 0 | 0 | 0 | 813 |
Share-based compensation expense | $ 0 | 349 | $ 0 | 0 | 0 | 0 | 349 |
Balance at September 30, 2022 (in shares) at Dec. 31, 2021 | 49,336 | 24,035 | |||||
Balance at September 30, 2022 at Dec. 31, 2021 | $ 493 | 383,966 | $ (681,770) | (6,573) | 669,653 | (32) | 365,737 |
Balance at June 30, 2022 (in shares) at Jun. 30, 2022 | 49,360 | 24,037 | |||||
Balance at June 30, 2022 at Jun. 30, 2022 | $ 494 | 384,782 | $ (681,834) | (6,462) | 710,369 | (26) | 407,323 |
Net income | 0 | 0 | 0 | 0 | 29,880 | 0 | 29,880 |
Share-based compensation expense | $ 0 | 268 | $ 0 | 0 | 0 | 0 | 268 |
Restricted stock vesting (in shares) | 55 | 31 | |||||
Restricted stock vesting | $ 0 | 1 | $ (765) | 0 | 0 | 0 | (764) |
Cash dividends declared | 0 | 0 | 0 | 0 | (20,879) | 0 | (20,879) |
Other comprehensive income (loss) | $ 0 | 0 | $ 0 | (82) | 0 | (7) | (89) |
Restricted stock vesting (in shares) | (55) | (31) | |||||
Share-based compensation expense | $ 0 | 268 | $ 0 | 0 | 0 | 0 | 268 |
Balance at September 30, 2022 (in shares) at Sep. 30, 2022 | 49,415 | 24,068 | |||||
Balance at September 30, 2022 at Sep. 30, 2022 | $ 494 | 385,051 | $ (682,599) | (6,544) | 719,370 | (33) | 415,739 |
Balance at June 30, 2022 (in shares) at Jun. 30, 2022 | 49,360 | 24,037 | |||||
Balance at June 30, 2022 at Jun. 30, 2022 | $ 494 | 384,782 | $ (681,834) | (6,462) | 710,369 | (26) | 407,323 |
Net income | 58,046 | ||||||
Other comprehensive income (loss) | 718 | ||||||
Balance at September 30, 2022 (in shares) at Dec. 31, 2022 | 49,416 | 24,068 | |||||
Balance at September 30, 2022 at Dec. 31, 2022 | $ 494 | 385,555 | $ (682,599) | (5,749) | 739,384 | (21) | 437,064 |
Balance at June 30, 2022 (in shares) at Sep. 30, 2022 | 49,415 | 24,068 | |||||
Balance at June 30, 2022 at Sep. 30, 2022 | $ 494 | 385,051 | $ (682,599) | (6,544) | 719,370 | (33) | 415,739 |
Net income | 0 | 0 | 0 | 0 | 28,166 | 0 | 28,166 |
Share-based compensation expense | 0 | 495 | 0 | 0 | 0 | 0 | 495 |
Cash dividends declared | 0 | 0 | 0 | 0 | (8,152) | 0 | (8,152) |
Other comprehensive income (loss) | $ 0 | 0 | 0 | 795 | 0 | 12 | 807 |
Common stock issued on share-based awards (in shares) | 1 | ||||||
Common stock issued on share-based awards | $ 0 | 9 | 0 | 0 | 0 | 0 | 9 |
Share-based compensation expense | $ 0 | 495 | $ 0 | 0 | 0 | 0 | 495 |
Balance at September 30, 2022 (in shares) at Dec. 31, 2022 | 49,416 | 24,068 | |||||
Balance at September 30, 2022 at Dec. 31, 2022 | $ 494 | $ 385,555 | $ (682,599) | $ (5,749) | $ 739,384 | $ (21) | $ 437,064 |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Business | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | (1) Organization and Nature of Business Organization Founded in 1932, Ethan Allen Interiors Inc., through its wholly-owned subsidiary, Ethan Allen Global, Inc., and Ethan Allen Global, Inc.’s subsidiaries (collectively, “we,” “us,” “our,” “Ethan Allen” or the “Company”), is a Delaware corporation and leading interior design company, manufacturer and retailer in the home furnishings marketplace. Nature of Business We are a global luxury home fashion brand that is vertically integrated from product design through home delivery, which offers our customers stylish product offerings, artisanal quality and personalized service. We are known for the quality and craftsmanship of our products as well as for the exceptional personal service from design to delivery. We provide interior design service to our clients and sell a full range of home furnishings through a retail network of design centers located throughout the United States and abroad as well as online at ethanallen.com. Ethan Allen design centers represent a mix of locations operated by independent licensees and Company-operated locations. As of December 31, 2022, the Company operates 139 retail design centers with 135 located in the United States and four in Canada. Our independently operated design centers are located in the United States, Asia, the Middle East and Europe. We also own and operate ten manufacturing facilities, including four manufacturing plants, one sawmill, one rough mill and one kiln dry lumberyard in the United States, two manufacturing plants in Mexico and one manufacturing plant in Honduras. Approximately 75% of our products are manufactured or assembled in the North American plants. We also contract with various suppliers located in Europe, Asia and other countries that produce products that support our business. |
Note 2 - Interim Basis of Prese
Note 2 - Interim Basis of Presentation | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | (2) Interim Basis of Presentation Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Our consolidated financial statements also include the accounts of an entity in which we are a majority shareholder with the power to direct the activities that most significantly impact the entity’s performance. Noncontrolling interest amounts in the entity are immaterial and included in the consolidated statements of comprehensive income within Interest and other income, net All intercompany activity and balances, including any related profit on intercompany sales, have been eliminated from the consolidated financial statements. 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 and six months ended December 31, 2022 are not necessarily indicative of results that may be expected for the entire fiscal year. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2022 (the “2022 Annual Report on Form 10-K”). Use of Estimates We prepare our consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”), 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 net sales 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, goodwill and indefinite-lived intangible asset impairment analyses, recoverability and useful lives for property, plant and equipment, inventory obsolescence, tax valuation allowances and the evaluation of uncertain tax positions and business insurance reserves. Restricted Cash We present restricted cash as a component of total cash and cash equivalents on our consolidated statement of cash flows and within Other Assets We have evaluated subsequent events through the date of issuance of the financial statements included in this Quarterly Report on Form 10-Q. |
Note 3 - Recent Accounting Pron
Note 3 - Recent Accounting Pronouncements | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | (3) Recent Accounting Pronouncements New Accounting Standards or Updates Adopted in Fiscal 2023 The Company evaluates all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”) for consideration of their applicability to our consolidated financial statements. We did not adopt any new standards or updates during fiscal 2023 that had a material impact on our consolidated financial statements. Recent Accounting Standards or Updates Not Yet Effective Business Combinations. , Business Combinations (Topic Derivatives and Hedging. , Derivatives and Hedging (Topic Portfolio Layer Method Inflation Reduction Act of 2022. No other new accounting pronouncements issued or effective as of December 31, 2022 have had, or are expected to have, a material impact on our consolidated financial statements. |
Note 4 - Revenue Recognition
Note 4 - Revenue Recognition | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | (4) Revenue Recognition Our reported revenue (net sales) consists 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. The majority of our shipping agreements are freight-on-board shipping point and risk of loss transfers to our wholesale customer once the product is out of our control. Accordingly, revenue is recognized for product shipments on third-party carriers at the point in time that our product is loaded onto the third-party container or truck. For sales in our retail segment, control generally transfers upon delivery to the customer. Shipping and Handling. Sales Taxes. Accounts payable and accrued expenses Returns and Allowances. Prepaid expenses and other current assets Other current liabilities Allowance for Doubtful Accounts. Commissions. Prepaid expenses and other current assets Selling, general and administrative expenses Customer Deposits. Customer deposits We recognize the promised amount of consideration without adjusting for the effects of a significant financing component if the contract has a duration of one year or less. As our contracts typically are less than one year in length and do not have significant financing components, we have not adjusted consideration. The following table disaggregates our net sales by product category by segment (in thousands): Three months ended December 31, 2022 Three months ended December 31, 2021 Wholesale Retail Eliminations (1) Total Wholesale Retail Eliminations (1) Total Upholstery (2) $ 53,661 $ 82,893 $ (38,921 ) $ 97,633 $ 62,428 $ 91,195 $ (46,274 ) $ 107,349 Case goods (3) 35,803 45,890 (20,958 ) 60,735 35,082 46,876 (24,475 ) 57,483 Accents (4) 18,215 34,150 (14,970 ) 37,395 20,048 34,017 (16,662 ) 37,403 Other (5) (1,432 ) 8,830 - 7,398 (1,637 ) 7,495 - 5,858 Total $ 106,247 $ 171,763 $ (74,849 ) $ 203,161 $ 115,921 $ 179,583 $ (87,411 ) $ 208,093 Six months ended December 31, 2022 Six months ended December 31, 2021 Wholesale Retail Eliminations (1) Total Wholesale Retail Eliminations (1) Total Upholstery (2) $ 112,283 $ 173,875 $ (82,486 ) $ 203,672 $ 122,431 $ 167,489 $ (88,149 ) $ 201,771 Case goods (3) 73,973 95,144 (44,416 ) 124,701 68,601 88,331 (47,465 ) 109,467 Accents (4) 37,836 68,355 (31,726 ) 74,465 37,493 65,234 (33,904 ) 68,823 Other (5) (3,194 ) 18,047 - 14,853 (3,156 ) 13,515 - 10,359 Total $ 220,898 $ 355,421 $ (158,628 ) $ 417,691 $ 225,369 $ 334,569 $ (169,518 ) $ 390,420 (1) The “Eliminations” column in the tables above represents the elimination of all intercompany wholesale segment sales to the retail segment in each period presented. (2) Upholstery includes fabric-covered items such as sleepers, recliners and other motion furniture, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics and leather. (3) Case goods includes items such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture and wooden accents. (4) Accents includes items such as window treatments and drapery hardware, wall décor, florals, lighting, clocks, mattresses, bedspreads, throws, pillows, decorative accents, area rugs, flooring, wall coverings and home and garden furnishings. (5) Other includes product delivery sales, the Ethan Allen Hotel revenues, sales of third-party furniture protection plans and other miscellaneous product sales less prompt payment discounts, sales allowances and other incentives. |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurements | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | (5) Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the use of various valuation methodologies, including market, income and cost approaches is permissible. We consider the principal or most advantageous market in which it would transact and assumptions that market participants would use when pricing the asset or liability. Fair Value Hierarchy. We have categorized our cash equivalents and investments within the fair value hierarchy as follows: Level 1 Level 2 Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis. Fair Value Measurements at December 31, 2022 Assets Level 1 Level 2 Level 3 Balance Corporate money market funds (1) $ 8,830 $ - $ - $ 8,830 Investments (2) - 55,030 - 55,030 Total $ 8,830 $ 55,030 $ - $ 63,860 Fair Value Measurements at June 30, 2022 Assets Level 1 Level 2 Level 3 Balance Corporate money market funds (1) $ 51,035 $ - $ - $ 51,035 Investments (2) - 11,199 - 11,199 Total $ 51,035 $ 11,199 $ - $ 62,234 (1) We invest excess cash in money market accounts and short-term investments. Our corporate money market funds are readily convertible into cash and the net asset value of each fund on the last day of the quarter is used to determine its fair value. Our corporate money market funds are classified as Level 1 assets and are included in Cash and cash equivalents within the consolidated balance sheets. (2) Our investments as of December 31, 2022 consist solely of U.S. Treasury Bills with maturities of less than one year. Previously held investments included fixed income securities including municipal bonds, commercial paper and certificates of deposits with maturities of less than one year. We classify our investments as available-for-sale debt investments. The fair value of our underlying investments is based on observable inputs. Our investments are classified as Level 2 and are included in Investments (short-term) within the consolidated balance sheets. All unrealized gains and losses were included in Accumulated Other Comprehensive Loss within the consolidated balance sheets. There were no material gross unrealized gains or losses on the investments at December 31, 2022 or June 30, 2022. As of December 31, 2022 and June 30, 2022, we did not have any outstanding bank borrowings, which we historically have categorized as a Level 2 liability. There were no investments that have been in a continuous loss position for more than one year, and there have been no other-than-temporary impairments recognized. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis. Assets and Liabilities Measured at Fair Value for Disclosure Purposes Only. |
Note 6 - Leases
Note 6 - Leases | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Lessee, Leases [Text Block] | (6) Leases We recognize substantially all leases on our balance sheet as a ROU asset and a lease liability. We have operating leases for many of our design centers that expire at various dates through fiscal 2040. We also lease certain tangible assets, including computer equipment and vehicles, with initial lease terms ranging from three five We determine if a contract contains a lease at inception based on our right to control the use of an identified asset and our right to obtain substantially all of the economic benefits from the use of that identified asset. Certain operating leases have renewal options and rent escalation clauses as well as various purchase options. We assess these options to determine if we are reasonably certain of exercising these options based on all relevant economic and financial factors. Any options that meet these criteria are included in the lease term at lease commencement. Most of our leases do not have an interest rate implicit in the lease. As a result, for purposes of measuring our ROU asset and lease liability, we determine our incremental borrowing rate by computing the rate of interest that we would have to pay to (i) borrow on a collateralized basis (ii) over a similar term (iii) at an amount equal to the total lease payments and (iv) in a similar economic environment. As we do not have any outstanding public debt, we estimated the incremental borrowing rate based on our estimated credit rating and available market information. The incremental borrowing rate is subsequently reassessed upon a modification to the lease agreement. Some of our leases contain variable lease payments based on a consumer price index or percentage of sales, which are excluded from the measurement of the lease liability. The Company's lease terms and discount rates are as follows: December 31, 2022 2021 Weighted average remaining lease term (in years) Operating leases 6.1 6.0 Financing leases 2.3 2.2 Weighted average discount rate Operating leases 5.0% 4.1% Financing leases 3.2% 2.2% The following table discloses the location and amount of our operating and financing lease costs within our consolidated statements of comprehensive income (in thousands): Three months ended December 31, Six months ended December 31, Statements of Comprehensive Income Location 2022 2021 2022 2021 Operating lease cost (1) Selling, general and administrative (“SG&A”) expenses $ 7,182 $ 7,475 $ 14,984 $ 14,948 Financing lease cost Depreciation of property SG&A expenses 127 126 256 252 Interest on lease liabilities Interest and other financing costs 7 6 15 13 Short-term lease cost (2) SG&A expenses 325 309 580 617 Variable lease cost (3) SG&A expenses 2,303 2,371 4,513 4,684 Less: Sublease income SG&A expenses (293 ) (386 ) (587 ) (799 ) Total lease expense $ 9,651 $ 9,901 $ 19,761 $ 19,715 (1) 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. (2) Leases with an initial term of 12 months or less are not recorded on the balance sheet and instead expensed on a straight-line basis over the lease term. (3) 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, real estate taxes, insurance and other services provided by the lessor, and other charges included in the lease. In addition, certain of our equipment lease agreements include variable lease payments, which are based on the usage of the underlying asset. The variable portion of payments are not included in the initial measurement of the asset or lease liability due to uncertainty of the payment amount and are recorded as expense in the period incurred. 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 year to the total lease liabilities recognized on the consolidated balance sheets as of December 31, 2022 (in thousands): Fiscal Year Operating Leases Financing Leases 2023 (remaining six months) $ 14,968 $ 271 2024 27,162 392 2025 23,400 80 2026 19,758 72 2027 14,742 66 Thereafter 38,462 - Total undiscounted future minimum lease payments 138,492 881 Less: imputed interest (20,664 ) (39 ) Total present value of lease obligations (1) $ 117,828 $ 842 (1) Excludes future commitments under short-term operating lease agreements of $0.5 million as of December 31, 2022. As of December 31, 2022, we have one operating lease for a retail design center, which has not yet commenced. This operating lease is not part of the tables above nor in the lease right-of-use assets and liabilities. This lease will commence when we obtain possession of the underlying leased asset, which is expected to occur during the third quarter of fiscal 2023. The operating lease is for a period of five Other supplemental information for our leases is as follows (in thousands): Six months ended 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 15,710 $ 16,734 Operating cash flows from financing leases $ 265 $ 264 Operating lease assets obtained in exchange for operating lease liabilities $ 15,765 $ 7,534 There were no non-cash financing lease obligations obtained in exchange for new financing lease assets during the six months ended December 31, 2022 or 2021. Sale-leaseback transaction. Restructuring and other impairment charges, net of gains Restructuring and other impairment charges, net of gains Restructuring and other impairment charges, net of gains Other current liabilities Other long-term liabilities |
Note 7 - Inventories
Note 7 - Inventories | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | (7) Inventories Inventories are summarized as follows (in thousands): December 31, June 30, 2022 2022 Finished goods $ 115,258 $ 131,021 Work in process 14,337 15,098 Raw materials 32,442 32,490 Inventory reserves (2,163 ) (2,105 ) Inventories, net $ 159,874 $ 176,504 |
Note 8 - Property, Plant and Eq
Note 8 - Property, Plant and Equipment | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | (8) Property, Plant and Equipment Property, plant and equipment are summarized as follows (in thousands): December 31, June 30, 2022 2022 Land and improvements $ 77,783 $ 78,443 Building and improvements 348,501 356,622 Machinery and equipment 123,785 127,062 Property, plant and equipment, gross 550,069 562,127 Less: accumulated depreciation and amortization (326,367 ) (338,597 ) Property, plant and equipment, net $ 223,702 $ 223,530 We recorded depreciation expense of $3.8 million and $3.9 million for the three months ended December 31, 2022 and 2021, respectively. Depreciation expense was $7.7 million and $8.2 million for the six months ended December 31, 2022 and 2021, respectively. |
Note 9 - Goodwill and Intangibl
Note 9 - Goodwill and Intangible Assets | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | (9) Goodwill and 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. At December 31, 2022 and June 30, 2022, we had $25.4 million of goodwill and $19.7 million of indefinite-lived intangible assets, all of which are recorded in our wholesale segment. Both goodwill and indefinite-lived intangible assets are not amortized as they are estimated to have an indefinite life. We test our wholesale goodwill and indefinite-lived intangibles for impairment on an annual basis in the fourth quarter of each fiscal year, and more frequently if events or changes in circumstances indicate that it might be impaired. We performed our annual goodwill impairment test during the fourth quarter of fiscal 2022, consistent with the timing of prior years. We concluded it was more likely than not that the fair value was greater than the respective carrying value and no impairment charge was required. |
Note 10 - Other Current Liabili
Note 10 - Other Current Liabilities | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Other Liabilities Disclosure [Text Block] | (10) Other Current Liabilities The following table summarizes the nature of the amounts within Other current liabilities December 31, June 30, 2022 2022 Income taxes payable $ 1,378 $ 4,558 Deferred liability, short-term (1) 2,620 - Dividends payable (2) 8,152 - Financing lease liabilities, short-term 523 535 Other current liabilities 3,675 3,695 Other current liabilities $ 16,348 $ 8,788 (1) As of December 31, 2022, the deferred liability balance associated with the sale-leaseback transaction completed on August 1, 2022 was $4.1 million, with $2.6 million in Other current liabilities Other long-term liabilities Leases (2) On November 9, 2022, the Board of Directors declared a regular quarterly cash dividend of $0.32 per share, payable on January 4, 2023, to shareholders of record at the close of business on December 7, 2022. |
Note 11 - Income Taxes
Note 11 - Income Taxes | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | (11) Income Taxes We recorded income tax expense of $9.8 million and $19.9 million, respectively, for the three and six months ended December 31, 2022 compared with $9.3 million and $16.5 million in the prior year comparable periods. Our consolidated effective tax rate was 25.7% and 25.5% for the three and six months ended December 31, 2022 compared with 25.7% and 26.0% in the prior year periods. Our effective tax rate varies from the 21% federal statutory rate primarily due to state taxes. We recognize interest and penalties related to income tax matters as a component of income tax expense. As of December 31, 2022, we had $3.0 million of unrecognized tax benefits compared with $2.5 million as of June 30, 2022. It is reasonably possible that various issues relating to approximately $0.5 million of the total gross unrecognized tax benefits as of December 31, 2022 will be resolved within the next 12 months as exams are completed or statutes expire. If recognized, approximately $0.4 million of unrecognized tax benefits would reduce our income tax expense in the period realized. |
Note 12 - Credit Agreement
Note 12 - Credit Agreement | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | (12) Credit Agreement On January 26, 2022, the Company and most of its domestic subsidiaries (the “Loan Parties”) entered into a Third Amended and Restated Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. as administrative agent and syndication agent and Capital One, National Association, as documentation agent. The Credit Agreement amends and restates the Second Amended and Restated Credit Agreement, dated as of December 21, 2018, as amended. The Credit Agreement provides for a $125 million revolving credit facility (the “Facility”), subject to borrowing base availability, with a maturity date of January 26, 2027. The Credit Agreement also provides the Company with an option to increase the size of the facility up to an additional amount of $60 million. We incurred financing costs of $0.5 million during fiscal 2022, which are being amortized as interest expense within in the consolidated statements of comprehensive income over the remaining life of the Credit Agreement using the effective interest method. Availability. Borrowings. Covenants and Other Ratios. The Facility does not contain any significant financial ratio covenants or coverage ratio covenants other than a fixed charge coverage ratio covenant based on the ratio of (a) EBITDA, plus cash Rentals, minus Unfinanced Capital Expenditures to (b) Fixed Charges, as such terms are defined in the Facility. The fixed charge coverage ratio covenant, set at 1.0 to 1.0 and measured on a trailing period of four consecutive fiscal quarters, only applies in certain limited circumstances, including when the unused availability under the Facility drops below $14.0 million. At no point during fiscal years 2023 or 2022, did the unused availability under the Facility fall below $14.0 million, thus the Fixed-Charge Coverage Ratio (FCCR) Covenant did not apply. At both December 31, 2022 and June 30, 2022, we were in compliance with all the covenants under the Facility. Letters of Credit. |
Note 13 - Restructuring and Oth
Note 13 - Restructuring and Other Impairment Activities | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | (13) Restructuring and Other Impairment Activities Restructuring and other impairment charges, net of gains, were as follows (in thousands): Three months ended Six months ended 2022 2021 2022 2021 Gain on sale-leaseback transaction (1) $ (654 ) $ - $ (2,911 ) $ - Gain on sale of property, plant and equipment (2) - (3,913 ) - (3,913 ) Severance and other charges 458 280 719 535 Total Restructuring and other impairment charges, net of gains $ (196 ) $ (3,633 ) $ (2,192 ) $ (3,378 ) (1) In August 2022, we sold and subsequently leased back a retail design center and recognized a net gain of $0.7 million and $2.9 million for the three and six months ended December 31, 2022, respectively. The remaining deferred liability was $4.1 million as of December 31, 2022 and will be recognized over the remaining life of the lease. Refer to Note 6, Leases (2) In October 2021, we sold our Atoka, Oklahoma distribution center to an independent third party and received $2.8 million in cash less $0.2 million in closing costs. As a result of the sale, the Company recognized a pre-tax gain of $2.0 million in the second quarter of fiscal 2022. In addition, in December 2021, we sold a property for $5.6 million in cash, which resulted in a pre-tax gain of $1.9 million. Restructuring payments made by the Company during the first six months of fiscal 2023 were $0.8 million, which were primarily for severance and lease payments due under a retail design center that was previously exited. Excluding the deferred liability of $4.1 million related to the sale-leaseback transaction, the remaining restructuring balance as of December 31, 2022 was less than $0.4 million, which is anticipated to be paid during the remainder of fiscal 2023. |
Note 14 - Earnings Per Share
Note 14 - Earnings Per Share | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | (14) Earnings Per Share Basic and diluted earnings per share (“EPS”) are calculated using the following weighted average share data (in thousands): Three months ended Six months ended December 31, December 31, 2022 2021 2022 2021 Weighted average shares outstanding for basic calculation 25,473 25,396 25,466 25,386 Dilutive effect of stock options and other share-based awards 109 117 105 96 Weighted average shares outstanding adjusted for dilution calculation 25,582 25,513 25,571 25,482 Dilutive potential common shares consist of stock options, restricted stock units and performance units. As of December 31, 2022 and 2021, total share-based awards of 68,517 and 115,710, respectively, were excluded from the diluted EPS calculations because their inclusion would have been anti-dilutive. As of December 31, 2022 and 2021, the number of performance units excluded from the calculation of diluted EPS were 181,096 and 220,082, respectively . |
Note 15 - Accumulated Other Com
Note 15 - Accumulated Other Comprehensive Loss | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | (15) Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of foreign currency translation adjustments and unrealized gains or losses on investments. Foreign currency translation adjustments are the result of changes in foreign currency exchange rates related to our operations in Canada, Honduras and Mexico. 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. Our investments consist of U.S. Treasury Bills, municipal bonds, commercial paper and certificates of deposit with maturities of one year or less. All unrealized gains and losses are included in Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows (in thousands): December 31, June 30, Accumulated foreign currency translation adjustments $ (6,049 ) $ (6,397 ) Accumulated unrealized gains (losses) on investments 300 (65 ) $ (5,749 ) $ (6,462 ) The following table sets forth the activity in accumulated other comprehensive loss (in thousands). 2022 2021 Beginning balance at July 1 $ (6,462 ) $ (5,931 ) Other comprehensive income (loss), net of tax 718 (649 ) Less AOCI attributable to noncontrolling interests (5 ) 7 Ending balance at December 31 $ (5,749 ) $ (6,573 ) |
Note 16 - Share-based Compensat
Note 16 - Share-based Compensation | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | (16) Share-Based Compensation We recognized total share-based compensation expense of $0.8 million and $0.6 million during the six months ended December 31, 2022 and 2021, respectively. These amounts have been included in the consolidated statements of comprehensive income within SG&A expenses , At December 31, 2022, there were 1,327,482 shares of common stock available for future issuance pursuant to the Ethan Allen Interiors Inc. Stock Incentive Plan (the “Plan”), which provides for the grant of stock options, restricted stock, and stock units. Stock Option Activity Employee Stock Option Grants. no Non-Employee Stock Option Grants. three ten As of December 31, 2022, $0.2 million of total unrecognized compensation expense related to non-vested stock options is expected to be recognized over a weighted average remaining period of 2.4 years. A total of 121,165 stock options were outstanding as of December 31, 2022, at a weighted average exercise price of $24.05 and a weighted average grant date fair value of $7.55. Restricted Stock Unit Activity During the first six months of fiscal 2023, we granted 21,257 non-performance based restricted stock units (“RSUs”), with a weighted average grant date fair value of $19.48. The RSUs granted to employees entitle the holder to receive the underlying shares of common stock as the unit vests over the relevant vesting period. The RSUs do not entitle the holder to receive dividends declared on the underlying shares while the RSUs remain unvested and vest in four four During the first six months of fiscal 2023, 24,025 RSUs vested and 750 RSUs were forfeited leaving 72,582 RSUs outstanding as of December 31, 2022, with a weighted average grant date fair value of $17.69. As of December 31, 2022, $1.1 million of total unrecognized compensation expense related to non-vested restricted stock units is expected to be recognized over a weighted average remaining period of 2.5 years. Performance Stock Unit Activity Payout of performance stock unit (“PSU”) grants depend on the attainment of certain financial and shareholder-return goals over a specific performance period, which is generally three During the first six months of fiscal 2023 we granted 103,096 PSUs with a weighted average grant date fair value of $18.75 compared with 90,367 RSUs at a weighted average grant date fair value of $17.15 in the prior year first quarter. We estimate, as of the date of grant, the fair value of PSUs with a discounted cash flow model, using as model inputs the risk-free rate of return as the discount rate, dividend yield for dividends not paid during the restriction period, and a discount for lack of marketability for a one-year post-vest holding period. The lack of marketability discount used is the present value of a future put option using the Chaffe model. During the first six months of fiscal 2023, 31,635 PSUs, that were previously granted in August 2019, vested. As of December 31, 2022, a total of 391,596 PSUs were outstanding at a weighted average grant date fair value of $18.25. Unrecognized compensation expense as of December 31, 2022, related to PSUs, was $2.0 million based on the current estimates of the number of awards that will vest, and is expected to be recognized over a weighted average remaining period of 2.1 years. |
Note 17 - Segment Information
Note 17 - Segment Information | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | (17) Segment Information Ethan Allen conducts business globally and has strategically aligned its business into two reportable segments: Wholesale and Retail. These two segments represent strategic business areas of our vertically integrated enterprise that operate separately and provide their own distinctive services. Our operating segments are aligned with how the Company, including our chief operating decision maker, manages the business. 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 sales and operating income. Wholesale Segment. Retail Segment. Intersegment. Segment information is provided below (in thousands): Three months ended Six months ended December 31, December 31, 2022 2021 2022 2021 Net sales Wholesale segment $ 106,247 $ 115,921 $ 220,898 $ 225,369 Less: intersegment sales (74,849 ) (87,411 ) (158,628 ) (169,518 ) Wholesale sales to external customers 31,398 28,510 62,270 55,851 Retail segment 171,763 179,583 355,421 334,569 Consolidated total $ 203,161 $ 208,093 $ 417,691 $ 390,420 Income before income taxes Wholesale segment $ 14,569 $ 9,744 $ 29,982 $ 22,563 Retail segment 18,080 22,635 40,069 36,980 Elimination of intercompany profit (a) 4,420 3,913 6,668 4,109 Operating income 37,069 36,292 76,719 63,652 Interest and other income, net 901 (26 ) 1,297 2 Interest expense and other financing costs 50 48 105 96 Consolidated total $ 37,920 $ 36,218 $ 77,911 $ 63,558 Depreciation and amortization Wholesale segment $ 1,575 $ 1,588 $ 3,166 $ 3,228 Retail segment 2,263 2,274 4,529 4,959 Consolidated total $ 3,838 $ 3,862 $ 7,695 $ 8,187 Capital expenditures Wholesale segment $ 2,701 $ 1,324 $ 4,762 $ 2,412 Retail segment 2,593 877 3,711 1,318 Consolidated total $ 5,294 $ 2,201 $ 8,473 $ 3,730 (a) Represents the change in wholesale profit contained in the retail segment inventory at the end of the period. (in thousands) December 31, June 30, Total Assets 2022 2022 Wholesale segment $ 351,282 $ 341,466 Retail segment 389,087 412,176 Inventory profit elimination (a) (26,388 ) (33,747 ) Consolidated total $ 713,981 $ 719,895 (a) 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 18 - Commitments and Conti
Note 18 - Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | (18) Commitments and Contingencies Commitments represent obligations, such as those for future purchases of goods or services that are not yet recorded on the balance sheet as liabilities. We record liabilities for commitments when incurred (specifically when the goods or services are received). Material Cash Requirements from Contractual Obligations. Legal Matters. , Contingencies. , |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Standards or Updates Adopted in Fiscal 2023 Recent Accounting Standards or Updates Not Yet Effective Business Combinations. , Business Combinations (Topic Derivatives and Hedging. , Derivatives and Hedging (Topic Portfolio Layer Method Inflation Reduction Act of 2022. |
Note 4 - Revenue Recognition (T
Note 4 - Revenue Recognition (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three months ended December 31, 2022 Three months ended December 31, 2021 Wholesale Retail Eliminations (1) Total Wholesale Retail Eliminations (1) Total Upholstery (2) $ 53,661 $ 82,893 $ (38,921 ) $ 97,633 $ 62,428 $ 91,195 $ (46,274 ) $ 107,349 Case goods (3) 35,803 45,890 (20,958 ) 60,735 35,082 46,876 (24,475 ) 57,483 Accents (4) 18,215 34,150 (14,970 ) 37,395 20,048 34,017 (16,662 ) 37,403 Other (5) (1,432 ) 8,830 - 7,398 (1,637 ) 7,495 - 5,858 Total $ 106,247 $ 171,763 $ (74,849 ) $ 203,161 $ 115,921 $ 179,583 $ (87,411 ) $ 208,093 |
Note 5 - Fair Value Measureme_2
Note 5 - Fair Value Measurements (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Fair Value Measurements at December 31, 2022 Assets Level 1 Level 2 Level 3 Balance Corporate money market funds (1) $ 8,830 $ - $ - $ 8,830 Investments (2) - 55,030 - 55,030 Total $ 8,830 $ 55,030 $ - $ 63,860 |
Note 6 - Leases (Tables)
Note 6 - Leases (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Lease, Cost [Table Text Block] | December 31, 2022 2021 Weighted average remaining lease term (in years) Operating leases 6.1 6.0 Financing leases 2.3 2.2 Weighted average discount rate Operating leases 5.0% 4.1% Financing leases 3.2% 2.2% |
Lessee, Leases, Liability, Maturity [Table Text Block] | Fiscal Year Operating Leases Financing Leases 2023 (remaining six months) $ 14,968 $ 271 2024 27,162 392 2025 23,400 80 2026 19,758 72 2027 14,742 66 Thereafter 38,462 - Total undiscounted future minimum lease payments 138,492 881 Less: imputed interest (20,664 ) (39 ) Total present value of lease obligations (1) $ 117,828 $ 842 |
Lease, Supplemental Lease Information [Table Text Block] | Six months ended 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 15,710 $ 16,734 Operating cash flows from financing leases $ 265 $ 264 Operating lease assets obtained in exchange for operating lease liabilities $ 15,765 $ 7,534 |
Note 7 - Inventories (Tables)
Note 7 - Inventories (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, June 30, 2022 2022 Finished goods $ 115,258 $ 131,021 Work in process 14,337 15,098 Raw materials 32,442 32,490 Inventory reserves (2,163 ) (2,105 ) Inventories, net $ 159,874 $ 176,504 |
Note 8 - Property, Plant and _2
Note 8 - Property, Plant and Equipment (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, June 30, 2022 2022 Land and improvements $ 77,783 $ 78,443 Building and improvements 348,501 356,622 Machinery and equipment 123,785 127,062 Property, plant and equipment, gross 550,069 562,127 Less: accumulated depreciation and amortization (326,367 ) (338,597 ) Property, plant and equipment, net $ 223,702 $ 223,530 |
Note 10 - Other Current Liabi_2
Note 10 - Other Current Liabilities (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Other Current Liabilities [Table Text Block] | December 31, June 30, 2022 2022 Income taxes payable $ 1,378 $ 4,558 Deferred liability, short-term (1) 2,620 - Dividends payable (2) 8,152 - Financing lease liabilities, short-term 523 535 Other current liabilities 3,675 3,695 Other current liabilities $ 16,348 $ 8,788 |
Note 13 - Restructuring and O_2
Note 13 - Restructuring and Other Impairment Activities (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | Three months ended Six months ended 2022 2021 2022 2021 Gain on sale-leaseback transaction (1) $ (654 ) $ - $ (2,911 ) $ - Gain on sale of property, plant and equipment (2) - (3,913 ) - (3,913 ) Severance and other charges 458 280 719 535 Total Restructuring and other impairment charges, net of gains $ (196 ) $ (3,633 ) $ (2,192 ) $ (3,378 ) |
Note 14 - Earnings Per Share (T
Note 14 - Earnings Per Share (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Six months ended December 31, December 31, 2022 2021 2022 2021 Weighted average shares outstanding for basic calculation 25,473 25,396 25,466 25,386 Dilutive effect of stock options and other share-based awards 109 117 105 96 Weighted average shares outstanding adjusted for dilution calculation 25,582 25,513 25,571 25,482 |
Note 15 - Accumulated Other C_2
Note 15 - Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | December 31, June 30, Accumulated foreign currency translation adjustments $ (6,049 ) $ (6,397 ) Accumulated unrealized gains (losses) on investments 300 (65 ) $ (5,749 ) $ (6,462 ) |
Note 17 - Segment Information (
Note 17 - Segment Information (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three months ended Six months ended December 31, December 31, 2022 2021 2022 2021 Net sales Wholesale segment $ 106,247 $ 115,921 $ 220,898 $ 225,369 Less: intersegment sales (74,849 ) (87,411 ) (158,628 ) (169,518 ) Wholesale sales to external customers 31,398 28,510 62,270 55,851 Retail segment 171,763 179,583 355,421 334,569 Consolidated total $ 203,161 $ 208,093 $ 417,691 $ 390,420 Income before income taxes Wholesale segment $ 14,569 $ 9,744 $ 29,982 $ 22,563 Retail segment 18,080 22,635 40,069 36,980 Elimination of intercompany profit (a) 4,420 3,913 6,668 4,109 Operating income 37,069 36,292 76,719 63,652 Interest and other income, net 901 (26 ) 1,297 2 Interest expense and other financing costs 50 48 105 96 Consolidated total $ 37,920 $ 36,218 $ 77,911 $ 63,558 Depreciation and amortization Wholesale segment $ 1,575 $ 1,588 $ 3,166 $ 3,228 Retail segment 2,263 2,274 4,529 4,959 Consolidated total $ 3,838 $ 3,862 $ 7,695 $ 8,187 Capital expenditures Wholesale segment $ 2,701 $ 1,324 $ 4,762 $ 2,412 Retail segment 2,593 877 3,711 1,318 Consolidated total $ 5,294 $ 2,201 $ 8,473 $ 3,730 |
Note 1 - Organization and Nat_2
Note 1 - Organization and Nature of Business (Details Textual) | 12 Months Ended |
Dec. 31, 2022 | |
Geographic Concentration Risk [Member] | Product Production [Member] | North America [Member] | |
Concentration Risk, Percentage | 75% |
Note 2 - Interim Basis of Pre_2
Note 2 - Interim Basis of Presentation (Details Textual) - USD ($) $ in Millions | Dec. 31, 2022 | Jun. 30, 2022 |
Restricted Cash, Total | $ 0.6 | $ 1 |
Note 4 - Revenue Recognition (D
Note 4 - Revenue Recognition (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2022 | Jun. 30, 2022 | |
Contract with Customer, Asset, after Allowance for Credit Loss, Current, Total | $ 13.4 | $ 13.4 | |
Contract with Customer, Liability, Total | 83.7 | 83.7 | $ 121.1 |
Contract with Customer, Liability, Revenue Recognized | $ 30.9 | $ 109.1 |
Note 4 - Revenue Recognition -
Note 4 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenues | $ 203,161 | $ 208,093 | $ 417,691 | $ 390,420 | |
Consolidation, Eliminations [Member] | |||||
Revenues | [1] | (74,849) | (87,411) | (158,628) | (169,518) |
Wholesale Segment [Member] | Operating Segments [Member] | |||||
Revenues | 106,247 | 115,921 | 220,898 | 225,369 | |
Retail Segment [Member] | Operating Segments [Member] | |||||
Revenues | 171,763 | 179,583 | 355,421 | 334,569 | |
Upholstery Furniture [Member] | |||||
Revenues | [2] | 97,633 | 107,349 | 203,672 | 201,771 |
Upholstery Furniture [Member] | Consolidation, Eliminations [Member] | |||||
Revenues | (38,921) | (46,274) | (82,486) | (88,149) | |
Upholstery Furniture [Member] | Wholesale Segment [Member] | Operating Segments [Member] | |||||
Revenues | [2] | 53,661 | 62,428 | 112,283 | 122,431 |
Upholstery Furniture [Member] | Retail Segment [Member] | Operating Segments [Member] | |||||
Revenues | [2] | 82,893 | 91,195 | 173,875 | 167,489 |
Case Goods Furniture [Member] | |||||
Revenues | [3] | 60,735 | 57,483 | 124,701 | 109,467 |
Case Goods Furniture [Member] | Consolidation, Eliminations [Member] | |||||
Revenues | (20,958) | (24,475) | (44,416) | (47,465) | |
Case Goods Furniture [Member] | Wholesale Segment [Member] | Operating Segments [Member] | |||||
Revenues | [3] | 35,803 | 35,082 | 73,973 | 68,601 |
Case Goods Furniture [Member] | Retail Segment [Member] | Operating Segments [Member] | |||||
Revenues | [3] | 45,890 | 46,876 | 95,144 | 88,331 |
Accent [Member] | |||||
Revenues | [4] | 37,395 | 37,403 | 74,465 | 68,823 |
Accent [Member] | Consolidation, Eliminations [Member] | |||||
Revenues | (14,970) | (16,662) | (31,726) | (33,904) | |
Accent [Member] | Wholesale Segment [Member] | Operating Segments [Member] | |||||
Revenues | [4] | 18,215 | 20,048 | 37,836 | 37,493 |
Accent [Member] | Retail Segment [Member] | Operating Segments [Member] | |||||
Revenues | [4] | 34,150 | 34,017 | 68,355 | 65,234 |
Manufactured Product, Other [Member] | |||||
Revenues | [5] | 7,398 | 5,858 | 14,853 | 10,359 |
Manufactured Product, Other [Member] | Consolidation, Eliminations [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Manufactured Product, Other [Member] | Wholesale Segment [Member] | Operating Segments [Member] | |||||
Revenues | [5] | (1,432) | (1,637) | (3,194) | (3,156) |
Manufactured Product, Other [Member] | Retail Segment [Member] | Operating Segments [Member] | |||||
Revenues | [5] | $ 8,830 | $ 7,495 | $ 18,047 | $ 13,515 |
[1]The “Eliminations” column in the tables above represents the elimination of all intercompany wholesale segment sales to the retail segment in each period presented.[2]Upholstery includes fabric-covered items such as sleepers, recliners and other motion furniture, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics and leather.[3]Case goods includes items such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture and wooden accents.[4]Accents includes items such as window treatments and drapery hardware, wall décor, florals, lighting, clocks, mattresses, bedspreads, throws, pillows, decorative accents, area rugs, flooring, wall coverings and home and garden furnishings.[5]Other includes product delivery sales, the Ethan Allen Hotel revenues, sales of third-party furniture protection plans and other miscellaneous product sales less prompt payment discounts, sales allowances and other incentives. |
Note 5 - Fair Value Measureme_3
Note 5 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Jun. 30, 2022 | |
Unrealized Gain (Loss) on Investments | $ 0 | $ 0 |
Long-Term Debt, Fair Value | $ 0 | $ 0 |
Note 5 - Fair Value Measureme_4
Note 5 - Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 | |
Investments (2) | [1] | $ 55,030 | $ 11,199 |
Total | 63,860 | 62,234 | |
Money Market Funds [Member] | |||
Corporate money market funds (1) | [2] | 8,830 | 51,035 |
Fair Value, Inputs, Level 1 [Member] | |||
Investments (2) | [1] | 0 | 0 |
Total | 8,830 | 51,035 | |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | |||
Corporate money market funds (1) | [2] | 8,830 | 51,035 |
Fair Value, Inputs, Level 2 [Member] | |||
Investments (2) | [1] | 55,030 | 11,199 |
Total | 55,030 | 11,199 | |
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | |||
Corporate money market funds (1) | [2] | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | |||
Investments (2) | [1] | 0 | 0 |
Total | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member] | |||
Corporate money market funds (1) | [2] | $ 0 | $ 0 |
[1]Our investments as of December 31, 2022 consist solely of U.S. Treasury Bills with maturities of less than one year. Previously held investments included fixed income securities including municipal bonds, commercial paper and certificates of deposits with maturities of less than one year. We classify our investments as available-for-sale debt investments. The fair value of our underlying investments is based on observable inputs. Our investments are classified as Level 2 and are included in Investments (short-term) within the consolidated balance sheets. All unrealized gains and losses were included in Accumulated Other Comprehensive Loss within the consolidated balance sheets. There were no material gross unrealized gains or losses on the investments at December 31, 2022 or June 30, 2022.[2]We invest excess cash in money market accounts and short-term investments. Our corporate money market funds are readily convertible into cash and the net asset value of each fund on the last day of the quarter is used to determine its fair value. Our corporate money market funds are classified as Level 1 assets and are included in Cash and cash equivalents within the consolidated balance sheets. |
Note 6 - Leases (Details Textua
Note 6 - Leases (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 5 Months Ended | 6 Months Ended | |||||||||
Aug. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | [1] | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | [1] | Jun. 30, 2022 | ||||
Short-Term Lease Commitment, Amount | $ 500 | $ 500 | $ 500 | |||||||||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract (Year) | 5 years | 5 years | 5 years | |||||||||
Lessee, Operating Lease, Lease Not yet Commenced, Payments, Due | $ 500 | $ 500 | $ 500 | |||||||||
Sale Leaseback Transaction, Gross Proceeds, Investing Activities | $ 8,100 | |||||||||||
Sale and Leaseback Transaction, Gain (Loss), Net | 1,800 | 654 | [1] | $ 0 | 1,100 | 2,911 | [1] | $ 0 | ||||
Sale Lease Back Transaction Deferred Liabilities | $ 5,200 | 4,100 | 4,100 | 4,100 | ||||||||
Sale Leaseback Transaction, Deferred Liabilities, Current | [2] | 2,620 | 2,620 | 2,620 | $ 0 | |||||||
Other Current Liabilities [Member] | ||||||||||||
Sale Leaseback Transaction, Deferred Liabilities, Current | 2,600 | 2,600 | 2,600 | |||||||||
Other Long-term Liabilities [Member] | ||||||||||||
Sale Leaseback Transaction, Deferred Liabilities, Noncurrent | $ 1,500 | $ 1,500 | $ 1,500 | |||||||||
Minimum [Member] | ||||||||||||
Lessee, Finance Lease, Term of Contract (Year) | 3 years | 3 years | 3 years | |||||||||
Maximum [Member] | ||||||||||||
Lessee, Finance Lease, Term of Contract (Year) | 5 years | 5 years | 5 years | |||||||||
[1]In August 2022, we sold and subsequently leased back a retail design center and recognized a net gain of $0.7 million and $2.9 million for the three and six months ended December 31, 2022, respectively. The remaining deferred liability was $4.1 million as of December 31, 2022 and will be recognized over the remaining life of the lease. Refer to Note 6, Leases Other current liabilities Other long-term liabilities Leases |
Note 6 - Leases - Lease Costs (
Note 6 - Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Operating leases (Year) | 6 years 1 month 6 days | 6 years | 6 years 1 month 6 days | 6 years | |
Financing leases (Year) | 2 years 3 months 18 days | 2 years 2 months 12 days | 2 years 3 months 18 days | 2 years 2 months 12 days | |
Operating leases | 5% | 4.10% | 5% | 4.10% | |
Financing leases | 3.20% | 2.20% | 3.20% | 2.20% | |
Total lease expense | $ 9,651 | $ 9,901 | $ 19,761 | $ 19,715 | |
Selling, General and Administrative Expenses [Member] | |||||
Operating lease cost(1) | [1] | 7,182 | 7,475 | 14,984 | 14,948 |
Depreciation of property | 127 | 126 | 256 | 252 | |
Short-term lease cost(2) | [2] | 325 | 309 | 580 | 617 |
Variable lease cost(3) | [3] | 2,303 | 2,371 | 4,513 | 4,684 |
Less: Sublease income | (293) | (386) | (587) | (799) | |
Interest Income [Member] | |||||
Interest on lease liabilities | $ 7 | $ 6 | $ 15 | $ 13 | |
[1]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.[2]Leases with an initial term of 12 months or less are not recorded on the balance sheet and instead expensed on a straight-line basis over the lease term.[3]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, real estate taxes, insurance and other services provided by the lessor, and other charges included in the lease. In addition, certain of our equipment lease agreements include variable lease payments, which are based on the usage of the underlying asset. The variable portion of payments are not included in the initial measurement of the asset or lease liability due to uncertainty of the payment amount and are recorded as expense in the period incurred. |
Note 6 - Leases - Future Minimu
Note 6 - Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 | ||
2023, operating leases | $ 14,968 | |||
2023, financing leases | 271 | |||
2024, operatng leases | 27,162 | |||
2024, financing leases | 392 | |||
2025, operating leases | 23,400 | |||
2025, financing leases | 80 | |||
2026, operating leases | 19,758 | |||
2026, financing leases | 72 | |||
2027, operating leases | 14,742 | |||
2027, financing leases | 66 | |||
Thereafter, operating leases | 38,462 | |||
Thereafter, financing leases | 0 | |||
Total undiscounted future minimum operating lease payments | 138,492 | |||
Total undiscounted future minimum finance lease payments | 881 | |||
Less: imputed operating lease interest | (20,664) | |||
Less: imputed finance lease interest | (39) | |||
Total present value of operating lease obligations(1) | 117,828 | [1] | $ 131,600 | |
Total present value of finance lease obligations(1) | [1] | $ 842 | ||
[1]Excludes future commitments under short-term operating lease agreements of $0.5 million as of December 31, 2022. |
Note 6 - Leases - Supplemental
Note 6 - Leases - Supplemental Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating cash flows from operating leases | $ 15,710 | $ 16,734 |
Operating cash flows from financing leases | 265 | 264 |
Operating lease assets obtained in exchange for operating lease liabilities | $ 15,765 | $ 7,534 |
Note 7 - Inventories - Schedule
Note 7 - Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Finished goods | $ 115,258 | $ 131,021 |
Work in process | 14,337 | 15,098 |
Raw materials | 32,442 | 32,490 |
Inventory reserves | (2,163) | (2,105) |
Inventories, net | $ 159,874 | $ 176,504 |
Note 8 - Property, Plant and _3
Note 8 - Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Depreciation, Total | $ 3.8 | $ 3.9 | $ 7.7 | $ 8.2 |
Note 8 - Property, Plant and _4
Note 8 - Property, Plant and Equipment - Property, Plant and Equipment Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Land and improvements | $ 77,783 | $ 78,443 |
Building and improvements | 348,501 | 356,622 |
Machinery and equipment | 123,785 | 127,062 |
Property, plant and equipment, gross | 550,069 | 562,127 |
Less: accumulated depreciation and amortization | (326,367) | (338,597) |
Property, plant and equipment, net | $ 223,702 | $ 223,530 |
Note 9 - Goodwill and Intangi_2
Note 9 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Goodwill, Ending Balance | $ 25,388 | $ 25,388 |
Other Indefinite-Lived Intangible Assets | $ 19,700 |
Note 10 - Other Current Liabi_3
Note 10 - Other Current Liabilities (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2022 | Nov. 09, 2022 | Aug. 01, 2022 | Jun. 30, 2022 | |
Sale Lease Back Transaction Deferred Liabilities | $ 4,100 | $ 5,200 | |||
Sale Leaseback Transaction, Deferred Liabilities, Current | [1] | 2,620 | $ 0 | ||
Dividends Payable, Amount Per Share (in dollars per share) | $ 0.32 | ||||
Other Current Liabilities [Member] | |||||
Sale Leaseback Transaction, Deferred Liabilities, Current | 2,600 | ||||
Other Long-term Liabilities [Member] | |||||
Sale Leaseback Transaction, Deferred Liabilities, Noncurrent | $ 1,500 | ||||
[1]As of December 31, 2022, the deferred liability balance associated with the sale-leaseback transaction completed on August 1, 2022 was $4.1 million, with $2.6 million in Other current liabilities Other long-term liabilities Leases |
Note 10 - Other Current Liabi_4
Note 10 - Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 | |
Income taxes payable | $ 1,378 | $ 4,558 | |
Deferred liability, short-term (1) | [1] | 2,620 | 0 |
Dividends payable(2) | [2] | 8,152 | 0 |
Financing lease liabilities, short-term | 523 | 535 | |
Other current liabilities | 3,675 | 3,695 | |
Other current liabilities | $ 16,348 | $ 8,788 | |
[1]As of December 31, 2022, the deferred liability balance associated with the sale-leaseback transaction completed on August 1, 2022 was $4.1 million, with $2.6 million in Other current liabilities Other long-term liabilities Leases |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Income Tax Expense (Benefit), Total | $ 9,754 | $ 9,324 | $ 19,865 | $ 16,511 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 25.70% | 25.70% | 25.50% | 26% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | ||||
Unrecognized Tax Benefits, Ending Balance | $ 3,000 | $ 3,000 | $ 2,500 | ||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 500 | 500 | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 400 | $ 400 |
Note 12 - Credit Agreement (Det
Note 12 - Credit Agreement (Details Textual) - The Facility [Member] $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jan. 26, 2022 USD ($) | Dec. 21, 2018 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | |
Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 125,000 | ||||
Line of Credit Facility, Additional Maximum Borrowing Capacity | $ 60,000 | ||||
Debt Issuance Costs, Net, Total | $ 500 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 121,000 | 121,000 | |||
Long-Term Line of Credit, Total | 0 | 0 | |||
Interest Expense, Debt, Total | 0 | 0 | |||
Debt Instrument, Covenant, Fixed Charge Coverage Ratio | 1 | ||||
Debt Covenant, Fixed Charge Coverage Ratio, Maximum Unused Availability | $ 14,000 | ||||
Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.10% | ||||
Revolving Credit Facility [Member] | Additional Margin on Variable Rate Option(the Adjusted Term Sofr Rate) [Member] | Minimum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||
Revolving Credit Facility [Member] | Additional Margin on Variable Rate Option (Adjusted Term Sofr Rate) [Member] | Maximum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2% | ||||
Revolving Credit Facility [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||
Revolving Credit Facility [Member] | OneMonthAdditionalMarginOnVariableRateOptionMember | Minimum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||
Revolving Credit Facility [Member] | OneMonthAdditionalMarginOnVariableRateOptionMember | Maximum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1% | ||||
Standby Letters of Credit [Member] | |||||
Letters of Credit Outstanding, Amount | $ 4,000 | $ 4,000 |
Note 13 - Restructuring and O_3
Note 13 - Restructuring and Other Impairment Activities (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | ||||||||
Aug. 01, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | ||||||
Sale and Leaseback Transaction, Gain (Loss), Net | $ 1,800 | $ 654 | [1] | $ 0 | [1] | $ 1,100 | $ 2,911 | [1] | $ 0 | [1] | ||
Sale Lease Back Transaction Deferred Liabilities | $ 5,200 | 4,100 | 4,100 | 4,100 | ||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | [2] | 0 | (3,913) | 0 | (3,913) | |||||||
Restructuring Charges, Total | (196) | (3,633) | (2,192) | $ (3,378) | ||||||||
Maximum [Member] | ||||||||||||
Restructuring Reserve, Current | $ 400 | $ 400 | 400 | |||||||||
Facility Closing, Atoka Distribution Center [Member] | ||||||||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested, Total | 2,800 | |||||||||||
Payments for Divestiture Selling and Closing Costs | 200 | |||||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 2,000 | |||||||||||
Facility Closing [Member] | ||||||||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested, Total | $ 5,600 | |||||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 1,900 | |||||||||||
Lease Exit Costs [Member] | Retail Segment [Member] | ||||||||||||
Restructuring Charges, Total | $ 800 | |||||||||||
[1]In August 2022, we sold and subsequently leased back a retail design center and recognized a net gain of $0.7 million and $2.9 million for the three and six months ended December 31, 2022, respectively. The remaining deferred liability was $4.1 million as of December 31, 2022 and will be recognized over the remaining life of the lease. Refer to Note 6, Leases |
Note 13 - Restructuring and O_4
Note 13 - Restructuring and Other Impairment Activities - Schedule of Restructuring Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 5 Months Ended | 6 Months Ended | ||||||||
Aug. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | ||||||
Gain on sale-leaseback transaction(1) | $ (1,800) | $ (654) | [1] | $ 0 | [1] | $ (1,100) | $ (2,911) | [1] | $ 0 | [1] | |
Gain on sale of property, plant and equipment(2) | [2] | 0 | (3,913) | 0 | (3,913) | ||||||
Restructuring Charge | (196) | (3,633) | (2,192) | (3,378) | |||||||
Employee Severance and Other Charges (Income) [Member] | |||||||||||
Restructuring Charge | $ 458 | $ 280 | $ 719 | $ 535 | |||||||
[1]In August 2022, we sold and subsequently leased back a retail design center and recognized a net gain of $0.7 million and $2.9 million for the three and six months ended December 31, 2022, respectively. The remaining deferred liability was $4.1 million as of December 31, 2022 and will be recognized over the remaining life of the lease. Refer to Note 6, Leases |
Note 14 - Earnings Per Share (D
Note 14 - Earnings Per Share (Details Textual) - shares | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 68,517 | 115,710 |
Performance Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 181,096 | 220,082 |
Note 14 - Earnings Per Share -
Note 14 - Earnings Per Share - Calculation of Weighted Average Shares (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted average shares outstanding for basic calculation (in shares) | 25,473 | 25,396 | 25,466 | 25,386 |
Dilutive effect of stock options and other share-based awards (in shares) | 109 | 117 | 105 | 96 |
Weighted average shares outstanding adjusted for dilution calculation (in shares) | 25,582 | 25,513 | 25,571 | 25,482 |
Note 16 - Accumulated Other Com
Note 16 - Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Accumulated other comprehensive loss | $ (5,749) | $ (5,749) | $ (6,462) | ||||
Balance at June 30, 2022 | 415,739 | $ 407,323 | $ 345,046 | $ 351,418 | 407,323 | $ 351,418 | |
Other comprehensive income (loss), net of tax | 807 | (89) | 3 | (652) | 718 | (649) | |
Balance at September 30, 2022 | 437,064 | 415,739 | 365,737 | 345,046 | 437,064 | 365,737 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||||
Accumulated other comprehensive loss | (6,049) | (6,049) | (6,397) | ||||
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member] | |||||||
Accumulated other comprehensive loss | 300 | 300 | $ (65) | ||||
AOCI Attributable to Parent [Member] | |||||||
Balance at June 30, 2022 | (6,544) | (6,462) | (6,584) | (5,931) | (6,462) | (5,931) | |
Other comprehensive income (loss), net of tax | 795 | (82) | 11 | (653) | |||
Balance at September 30, 2022 | $ (5,749) | $ (6,544) | $ (6,573) | $ (6,584) | (5,749) | (6,573) | |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | |||||||
Other comprehensive income (loss), net of tax | 718 | (649) | |||||
Less AOCI attributable to noncontrolling interests | $ (5) | $ 7 |
Note 16 - Share-based Compens_2
Note 16 - Share-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 18 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | |
Share-Based Payment Arrangement, Expense | $ 800 | $ 600 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 3,300 | $ 3,300 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 2 months 12 days | ||||
Share-Based Payment Arrangement, Amount Capitalized | $ 0 | $ 0 | |||
Share-Based Payment Arrangement, Option [Member] | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 200 | $ 200 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 4 months 24 days | ||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 24.05 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 121,165 | 121,165 | |||
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) | $ 7.55 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,100 | $ 1,100 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 6 months | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 4 years | 2 years | |||
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) | $ 19.48 | $ 20.71 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 21,257 | 51,100 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period | 24,025 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 750 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 72,582 | 72,582 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ 17.69 | $ 17.69 | |||
Performance Shares [Member] | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 2,000 | $ 2,000 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 1 month 6 days | ||||
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) | $ 18.75 | $ 17.15 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 103,096 | 90,367 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period | 31,635 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 391,596 | 391,596 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ 18.25 | $ 18.25 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Target Performance Period (Year) | 3 years | ||||
Share-Based Payment Arrangement, Employee [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 0 | 0 | |||
Share-Based Payment Arrangement, Nonemployee [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 23,970 | 25,410 | |||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 25.03 | $ 23.61 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year) | 10 years | ||||
Stock Option Plan 1992 [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 1,327,482 | 1,327,482 |
Note 17 - Segment Information_2
Note 17 - Segment Information (Details Textual) | Dec. 31, 2022 |
Number of Company Operated Design Centers | 139 |
Note 17 - Segment Information -
Note 17 - Segment Information - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | ||
Net sales | $ 203,161 | $ 208,093 | $ 417,691 | $ 390,420 | ||
Operating Income | 37,069 | 36,292 | 76,719 | 63,652 | ||
Interest and other income, net | 901 | (26) | 1,297 | 2 | ||
Interest expense and other financing costs | 50 | 48 | 105 | 96 | ||
Consolidated total | 37,920 | 36,218 | 77,911 | 63,558 | ||
Depreciation and amortization | 3,838 | 3,862 | 7,695 | 8,187 | ||
Capital Expenditures | 5,294 | 2,201 | 8,473 | 3,730 | ||
Wholesale segment | 713,981 | 713,981 | $ 719,895 | |||
Inventory profit elimination (a) | (713,981) | (713,981) | (719,895) | |||
Intersegment Eliminations [Member] | ||||||
Operating Income | [1] | 4,420 | 3,913 | 6,668 | 4,109 | |
Wholesale Segment [Member] | ||||||
Depreciation and amortization | 1,575 | 1,588 | 3,166 | 3,228 | ||
Capital Expenditures | 2,701 | 1,324 | 4,762 | 2,412 | ||
Wholesale segment | 351,282 | 351,282 | 341,466 | |||
Inventory profit elimination (a) | (351,282) | (351,282) | (341,466) | |||
Wholesale Segment [Member] | Operating Segments [Member] | ||||||
Net sales | 106,247 | 115,921 | 220,898 | 225,369 | ||
Operating Income | 14,569 | 9,744 | 29,982 | 22,563 | ||
Wholesale Segment [Member] | Operating Segments [Member] | External Customers [Member] | ||||||
Net sales | 31,398 | 28,510 | 62,270 | 55,851 | ||
Wholesale Segment [Member] | Intersegment Eliminations [Member] | ||||||
Net sales | (74,849) | (87,411) | (158,628) | (169,518) | ||
Retail Segment [Member] | ||||||
Depreciation and amortization | 2,263 | 2,274 | 4,529 | 4,959 | ||
Capital Expenditures | 2,593 | 877 | 3,711 | 1,318 | ||
Wholesale segment | 389,087 | 389,087 | 412,176 | |||
Inventory profit elimination (a) | (389,087) | (389,087) | (412,176) | |||
Retail Segment [Member] | Operating Segments [Member] | ||||||
Net sales | 171,763 | 179,583 | 355,421 | 334,569 | ||
Operating Income | 18,080 | $ 22,635 | 40,069 | $ 36,980 | ||
Inventory Profit Elimination [Member] | ||||||
Wholesale segment | [2] | 26,388 | 26,388 | 33,747 | ||
Inventory profit elimination (a) | [2] | $ (26,388) | $ (26,388) | $ (33,747) | ||
[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 18 - Commitments and Con_2
Note 18 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | ||
Contractual Obligation, Total | $ 193,200 | |||
Operating Lease, Liability, Total | $ 117,828 | [1] | 131,600 | |
Purchase Obligation, Total | $ 40,800 | |||
Operating Lease, Payments | 15,710 | $ 16,734 | ||
Increase (Decrease) in Operating Lease Right-of-Use Asset | 15,800 | |||
Increase (Decrease) in Operating Lease Liabilities | $ (15,800) | |||
[1]Excludes future commitments under short-term operating lease agreements of $0.5 million as of December 31, 2022. |