DANBURY, Conn.--(BUSINESS WIRE)--Jan. 24, 2012-- Ethan Allen Interiors Inc. (“Ethan Allen”, the “Company”, “We”, or “Our”) (NYSE:ETH) reported that net sales for the second quarter ended December 31, 2011 increased by 5.7% to $183.3 million and excluding special items, diluted earnings per share increased to $0.30 compared to $0.19 in the previous year quarter. The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.07 per share, payable to shareholders of record as of April 10, 2012 to be paid on April 25, 2012.

Farooq Kathwari, Chairman and CEO commented, “We are pleased with the strong 5.7% growth in sales as it builds upon the 21% growth in the previous year quarter. We continue to benefit from major initiatives during the last three years resulting in operating leverage with gross margin increasing to 53.6% from 51.8% and an increase in our adjusted diluted earnings per share for the quarter of 57.9%. Our written orders for the Retail division during the quarter increased 10.3% including comparable written orders which increased 6.7%. Our Retail backlog at December 31, 2011 was 9.4% higher than at this time last year.”

Mr. Kathwari continued, “We are also pleased that strengthening of our liquidity and the balance sheet enables us to provide cash dividends. Our cash and securities at December 31, 2011 amounted to $92.8 million, an increase of $7.2 million from December 31 of last year. During the current quarter, we continued to repurchase our bonds, further reducing our debt by $10 million. Over the last twelve months we have reduced our total debt by $43.6 million.”

Three Months Ended December 31, 2011

Net sales for the quarter ended December 31, 2011 increased 5.7% over the prior year to $183.3 million. The Company’s Retail division net sales increased 9.2% to $143.1 million including comparable design center net sales growth of 6.5%. Net income for the quarter ended December 31, 2011 was $8.1 million or $0.28 per diluted share compared with the prior year of $14.7 million or $0.51 per diluted share. Excluding special items in both periods, net income for the quarter ended December 31, 2011 was $8.6 million or $0.30 per diluted share compared with $5.6 million or $0.19 per diluted share in the prior year period.

Six Months Ended December 31, 2011

Net sales for the six months ended December 31, 2011 increased 8.9% over the prior year to $368.2 million. The Company’s Retail division net sales increased 12.8% to $284.3 million including comparable design center net sales growth of 10.5%. Written orders booked during the six month period by the Retail division were 11.8% greater than the prior year quarter including comparable design center order growth of 9.1%.

Net income for the six months ended December 31, 2011 was $14.8 million or $0.51 per diluted share compared with the prior year of $18.6 million or $0.64 per diluted share. Excluding special items in both periods, net income for the six months ended December 31, 2011 was $15.8 million or $0.54 per diluted share compared with $8.7 million or $0.30 per diluted share in the prior year period.

Mr. Kathwari concluded, “We remain cautiously optimistic due to our many initiatives including major introductions of new products, acquiring qualified and entrepreneurial interior design associates, investing in our manufacturing and logistics, and adding technology in all areas of our enterprise. We also see improving trends in consumer attitudes. We look forward to discussing our initiatives further on the call tomorrow.”

Analyst Conference Call

The Company will conduct a conference call at 11:00 AM (Eastern) on Wednesday January 25^th to discuss the financial results and its business initiatives. The live webcast and replay are accessible via the Company’s website at ethanallen.com/investors .

About Ethan Allen

Ethan Allen Interiors Inc. is a leading interior design company and a manufacturer and retailer of quality home furnishings. Ethan Allen offers free interior design service to its clients and sells a full range of furniture products and decorative accessories through ethanallen.com and through a network of approximately 300 Design Centers in the United States and abroad. Ethan Allen owns and operates seven manufacturing facilities in North America, including five manufacturing plants and one sawmill in the United States and one manufacturing plant in Mexico. Approximately seventy percent of its products are made in its United States plants. For more information on Ethan Allen’s products and services, visit ethanallen.com.

This press release should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2011 (the “2011 Form 10-K”) and other reports filed with the Securities and Exchange Commission. This press release and related discussions contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect management’s current expectations concerning future events and results of the Company, and are subject to various assumptions, risks and uncertainties including specifically, and without limitation, those set forth in Part I, Item 1A “Risk Factors” of the 2011 Form 10-K. Accordingly, actual future events or results could differ materially from those contemplated by the forward-looking statements. The Company assumes no obligation to update or provide revision to any forward-looking statement at any time for any reason.

Source: Ethan Allen Interiors Inc.

Ethan Allen Interiors Inc.
Investor / Media:
David R. Callen, 203-743-8305
Vice President Finance & Treasurer