EXHIBIT 99.1
FOR IMMEDIATE RELEASE CONTACT: Peg Lupton
Ethan Allen Interiors Inc.
(203)743-8234
ETHAN ALLEN REPORTS THIRD QUARTER SALES AND EARNINGS
DANBURY, CONN., April 22, 2003 -- Ethan Allen Interiors Inc. (NYSE:ETH) today
reported sales and earnings for the three and nine months ended March 31, 2003.
As previously announced in February 2003, the Company recorded a pre-tax
restructuring and impairment charge of $13.2 million (or $0.22 per share) during
its third quarter ended March 31, 2003. The charge relates to the consolidation
of three of the Company's smaller manufacturing facilities.
For the third quarter ended March 31, 2003, earnings per share, including the
restructuring and impairment charge, amounted to $0.30 on net income of $11.7
million, as compared to $0.58 and $23.0 million, respectively, in the prior year
third quarter. Excluding the impact of the restructuring and impairment charge,
earnings per share for the quarter amounted to $0.52 and net income totaled
$19.9 million.
For the nine months ended March 31, 2003, earnings per share, including the
restructuring and impairment charge, amounted to $1.42 on net income of $54.8
million, as compared to $1.52 and $60.9 million, respectively, in the prior year
comparable period. Excluding the impact of the restructuring and impairment
charge, earnings per share for the nine month period increased 7.2% to $1.63 and
net income increased 3.5% to $63.0 million.
-1-
Net delivered sales for the third quarter ended March 31, 2003 decreased 1.5% to
$224.6 million from $227.9 million in the prior year comparable period. Third
quarter delivered sales for the Company's Retail division increased 9.9% to
$127.3 million from $115.8 million in the prior year, and written sales
increased 4.4% over that same period. Comparable Ethan Allen store delivered
sales and written sales for the quarter decreased 4.3% and 9.2%, respectively,
as compared to the prior year.
Net delivered sales for the nine months ended March 31, 2003 increased by 2.0%
to $670.8 million from $657.5 million in the prior year comparable period. Nine
month delivered sales for the Company's Retail division increased 16.7% to
$387.1 million from $331.6 million in the prior year, and written sales
increased 17.2% over that same period. Comparable Ethan Allen store delivered
sales and written sales for the nine month period decreased 3.7% and 3.2%,
respectively, as compared to the prior year.
Farooq Kathwari, Chairman and CEO, commented, "Despite the difficult economic
conditions, we are pleased that we have maintained healthy margins, earnings and
cash flow. Our strong focus on maximizing operating efficiencies while
maintaining high quality standards continues to enable us to increase
shareholder value. During the quarter and fiscal year to date, the Company
repurchased $19.4 million and $41.8 million, respectively, of its stock in the
open market. We also initiated the consolidation of three manufacturing
facilities with the intention of further improving production efficiencies and
related margins. At the same time, our efforts to provide our customers with
excellence in service and value also continue. Last week, we introduced the new
"Tuscany" line to consumers and the Ethan Allen Kids line will be marketed in
July. Both will offer the consumer innovative and stylish alternatives at
excellent values."
-2-
Commenting on expected future business results, Mr. Kathwari stated, "As we had
previously indicated, the geo-political situation has negatively impacted
consumer confidence during the last several months. We are positioned to perform
well as the economy and consumer confidence improves. As in the past, we plan to
periodically update our outlook."
Ethan Allen Interiors Inc. is a leading manufacturer and retailer of quality
home furnishings. The Company sells a full range of furniture products and
decorative accessories through an exclusive network of 312 retail locations in
the United States and abroad, of which 120 are Company-owned. Ethan Allen has 14
manufacturing facilities, which include 3 sawmills, located throughout the
United States.
The Company will conduct a Conference Call at 11:00 AM Eastern time on Tuesday,
April 22nd to be broadcast live over the Internet linked through the Company's
website at www.ethanallen.com.
The information contained in this press release should be read in conjunction
with the Company's Quarterly Report on Form 10-Q for the quarter ended December
31, 2002 and other reports filed with the Securities and Exchange Commission,
including the Company's Report of Form 10-K for the year ended June 30, 2002.
Management's discussion in this release contains forward-looking statements
relating to future results of the Company. These forward-looking statements are
subject to various assumptions, risk and uncertainties, and accordingly, actual
results could differ materially from those contemplated by the forward-looking
statements.
######
-3-