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Home furnisher Ethan Allen releases Q3 sales & earnings results
24 Apr '07
4 min read
Excluding the impact of these charges in both periods, earnings per share amounted to $1.76 on net income of $57.2 million in the current year period as compared to earnings per share and net income of $1.93 and $65.9 million, respectively, in the prior year comparable period.
Farooq Kathwari, Chairman and CEO, commented: "We are pleased to report quarterly operating earnings of 11.4% of sales despite continued softness within the home furnishings retail environment and a 7.7% decline in sales."
As we have stated previously, results for the March 2006 quarter were favorably impacted by stronger economic conditions and our initiative to reduce lead times associated with the delivery of our products to the consumer, thereby substantially reducing our backlog during that period.
As a result, we experienced a 15.5% increase in sales during the prior year period, making for very challenging year-over-year comparisons. For the nine months ended March 2007, we generated nearly $70 million in operating cash, utilizing approximately $59 million for capital expenditures and acquisitions.
"In addition, we've repurchased $40 million of our common stock, including 581,200 shares during the recent quarter at a cost of approximately $20 million, or $35.00 per share."
Mr. Kathwari further stated: "Our goal remains the positioning of Ethan Allen as a leading provider of interior design solutions."
"In order to achieve this objective, we continue to focus on service within all facets of our business, including improving the caliber of our associates at retail; developing stylish, high-quality products that reflect good value; and opening and/or relocating new design centers in key markets. We believe that these efforts, along with our comprehensive and coordinated marketing programs, provide us a distinct competitive advantage and an opportunity to grow our business."
Commenting on business trends, Mr. Kathwari continued: "While we recognize that the home furnishings retail environment remains uncertain, some positive trends have emerged in recent weeks. In addition, we continue to believe that our strategic initiatives provide us stronger positioning as conditions improve. As a result, we believe that we have the opportunity to generate earnings per share for the quarter ended June 30, 2007 in line with the current range of analyst estimates."
Farooq Kathwari, Chairman and CEO, commented: "We are pleased to report quarterly operating earnings of 11.4% of sales despite continued softness within the home furnishings retail environment and a 7.7% decline in sales."
As we have stated previously, results for the March 2006 quarter were favorably impacted by stronger economic conditions and our initiative to reduce lead times associated with the delivery of our products to the consumer, thereby substantially reducing our backlog during that period.
As a result, we experienced a 15.5% increase in sales during the prior year period, making for very challenging year-over-year comparisons. For the nine months ended March 2007, we generated nearly $70 million in operating cash, utilizing approximately $59 million for capital expenditures and acquisitions.
"In addition, we've repurchased $40 million of our common stock, including 581,200 shares during the recent quarter at a cost of approximately $20 million, or $35.00 per share."
Mr. Kathwari further stated: "Our goal remains the positioning of Ethan Allen as a leading provider of interior design solutions."
"In order to achieve this objective, we continue to focus on service within all facets of our business, including improving the caliber of our associates at retail; developing stylish, high-quality products that reflect good value; and opening and/or relocating new design centers in key markets. We believe that these efforts, along with our comprehensive and coordinated marketing programs, provide us a distinct competitive advantage and an opportunity to grow our business."
Commenting on business trends, Mr. Kathwari continued: "While we recognize that the home furnishings retail environment remains uncertain, some positive trends have emerged in recent weeks. In addition, we continue to believe that our strategic initiatives provide us stronger positioning as conditions improve. As a result, we believe that we have the opportunity to generate earnings per share for the quarter ended June 30, 2007 in line with the current range of analyst estimates."
Ethan Allen Interiors Inc
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