Ethan Allen Provides Business Updates and Announces Earnings Release Date for Fiscal 2020 Third Quarter Results

DANBURY, CT, April 22, 2020 (GLOBE NEWSWIRE) -- Ethan Allen Interiors Inc. (“Ethan Allen” or “the Company”) (NYSE:ETH) today provided updates on its business.

Update on Current Business Conditions

It has been over five weeks since Ethan Allen temporarily closed its Company-owned retail design centers and some of its manufacturing operations.

Farooq Kathwari, Ethan Allen’s Chairman, President and CEO commented, “The impact of the COVID-19 crisis and the closing of our North American design centers and manufacturing has had a major impact on the results of the March quarter. We had to take unprecedented steps including the furloughing of over 3,000 associates.”

“I am grateful and proud of the attitude and the efforts of our associates throughout our vertical enterprise. Our interior design associates we retained continue to create design solutions that satisfy customer needs while sheltering in their homes. The interior design associates working remotely have been utilizing technology we deployed over the past few years, including the Ethan Allen inHome augmented reality app, 3-D room planning tool, and communication tools including Skype and FaceTime. We are looking forward to the planned reopening of our design centers in a number of states starting from May 1st and have begun to increase production in some of our North American manufacturing plants. We are making good progress with our new products including Lucy, a mid-century modern inspired upholstery collection that has just launched very successfully online, and Farmhouse, a country cottage inspired furniture collection that is launching in two phases over the next few months.  We are also pleased our independent retailer in China has opened most of their 105 retail locations and our U.S. government contract business remains strong,” Mr. Kathwari continued.

Mr. Kathwari concluded, “Finally, we are pleased to maintain a strong balance sheet including cash of $117 million, which includes $100 million drawn from our revolving line of credit. We believe we are well positioned for when the economy reopens and improves.”

Preliminary Financial Results

The Company expects to report the following financial results for its third quarter ended March 31, 2020:

• Consolidated net sales of $150 million
• GAAP consolidated gross margin of 56.1%; Adjusted gross margin of 56.0%
• GAAP diluted EPS in the range of ($0.80) to ($0.82) including a $25 million non-cash goodwill impairment charge
• Adjusted diluted EPS in the range of $0.01 to $0.02
• Cash on hand of $117 million as of March 31, 2020 and long-term debt of $100 million
• Generated $15 million of cash from operating activities
• Paid regular quarterly cash dividend of $5.5 million
• Share repurchases of $14.3 million, representing 992,636 shares or 3.8% of outstanding shares

The Company expects to report the following fiscal 2020 year-to-date financial results: