Farooq Kathwari, Chairman and CEO, commented: "We are pleased with our results for the fourth quarter and fiscal year ended June 30, 2007. Despite a challenging economic environment and tough period-over-period comparisons as a result of a 12% increase in sales in both the prior year quarter and year, our sales held up and gross margins improved."
"Our quarterly earnings per share of $0.65 compares to $0.66 a year ago and reflects our continued cost control efforts, an increased gross margin, and the benefit of share repurchases. For the year ended June 30, 2007, capital expenditures and acquisitions totaled $59.1 million and $15.3 million, respectively, with the majority of our capital expenditures relating to the opening of new design centers."
"In addition, we utilized $51.6 million of available cash to repurchase 1.5 million shares of our common stock in the open market. As of June 30, 2007, the Company had remaining authorization available to repurchase an additional 1.4 million shares."
Mr. Kathwari continued: "We believe the sustained operating performance of the Company during this difficult time in our industry is a direct result of several initiatives undertaken in recent years, including: the continued repositioning of our retail network; investments in recruiting and training efforts to increase the professionalism of our retail management team; the development of stylish, high-quality products at good value; improved advertising and marketing programs; and faster delivery of our products to our customers."
"All of these initiatives have a common objective - a renewed focus on providing solutions and service. As a result, we believe that such efforts provide us a distinct competitive advantage and an opportunity to grow our business."
Commenting on the Company's outlook for the fiscal year ended June 30, 2008, Mr. Kathwari stated: "While we have seen some positive trends in recent weeks, we remain cautiously aware of the fact that consumer confidence is impacted by several factors that are beyond our control. At the present time, we believe that we have the opportunity to realize earnings per share within the current range of analyst estimates for the fiscal year ended June 30, 2008.
Ethan Allen Interiors Inc
marketing@alchempro.com
