EXHIBIT 99.2
ETHAN ALLEN INTERIORS INC.
GAAP RECONCILIATION
THREE AND TWELVE MONTHS ENDED JUNE 30, 2003 AND 2002
(in thousands, except per share amounts)
THREE MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, JUNE 30,
2003 2002 2003 2002
---------------------- --------------------
NET INCOME / EARNINGS PER SHARE
- -------------------------------
Net income $ 20,541 $ 21,361 $ 75,381 $ 82,256
Add: restructuring and impairment charge, net of
related tax effect -- 3,187 8,225 3,187
-------- -------- -------- --------
Net income (excluding restructuring and impairment
charge) $ 20,541 $ 24,548 $ 83,606 $ 85,443
======== ======== ======== ========
Earnings per basic share $ 0.55 $ 0.55 $ 2.00 $ 2.12
====== ====== ====== ======
Earnings per basic share (excluding restructuring
and impairment charge) $ 0.55 $ 0.63 $ 2.22 $ 2.20
====== ====== ====== ======
Basic weighted average shares outstanding 37,117 38,674 37,607 38,828
Earnings per diluted share $ 0.54 $ 0.54 $ 1.95 $ 2.06
====== ====== ====== ======
Earnings per diluted share (excluding restructuring
and impairment charge) $ 0.54 $ 0.62 $ 2.17 $ 2.14
====== ====== ====== ======
Diluted weighted average shares outstanding 38,033 39,816 38,569 39,942
CONSOLIDATED OPERATING INCOME / OPERATING MARGIN
- ------------------------------------------------
Operating income $ 32,707 $ 34,157 $120,583 $129,900
Add: restructuring and impairment charge -- 5,123 13,223 5,123
-------- -------- -------- --------
Operating income (excluding restructuring and
impairment charge) $ 32,707 $ 39,280 $133,806 $135,023
======== ======== ======== ========
Net sales $236,448 $234,789 $907,264 $892,288
======== ======== ======== ========
Operating margin 13.8% 14.5% 13.3% 14.6%
===== ===== ===== =====
Operating margin (excluding restructuring and
impairment charge) 13.8% 16.7% 14.7% 15.1%
===== ===== ===== =====
WHOLESALE OPERATING INCOME / OPERATING MARGIN
- ---------------------------------------------
Wholesale operating income $ 31,443 $ 30,046 $109,281 $110,078
Add: restructuring and impairment charge -- 5,123 13,223 5,123
-------- -------- -------- --------
Wholesale operating income (excluding restructuring
and impairment charge) $ 31,443 $ 35,169 $122,504 $115,201
======== ======== ======== ========
Wholesale net sales $170,888 $175,339 $660,986 $660,818
======== ======== ======== ========
Wholesale operating margin 18.4% 17.1% 16.5% 16.7%
===== ===== ===== =====
Wholesale operating margin (excluding restructuring
and impairment charge) 18.4% 20.1% 18.5% 17.4%
===== ===== ===== =====
EBITDA
- ------
Net income $ 20,541 $ 21,361 $ 75,381 $ 82,256
Add: interest expense 102 144 504 500
Add: income tax expense 12,483 12,981 45,811 49,988
Add: depreciation and amortization 5,435 5,043 21,296 19,314
-------- -------- -------- --------
EBITDA $ 38,561 $ 39,529 $142,992 $152,058
======== ======== ======== ========
Net sales $236,448 $234,789 $907,264 $892,288
======== ======== ======== ========
EBITDA as % of net sales 16.3% 16.8% 15.8% 17.0%
===== ===== ===== =====
EBITDA $ 38,561 $ 39,529 $142,992 $152,058
Add: restructuring and impairment charge -- 5,123 13,223 5,123
-------- -------- -------- --------
EBITDA (excluding restructuring and impairment charge) $ 38,561 $ 44,652 $156,215 $157,181
======== ======== ======== ========
Net sales $236,448 $234,789 $907,264 $892,288
======== ======== ======== ========
EBITDA as % of net sales 16.3% 19.0% 17.2% 17.6%
===== ===== ===== =====