In the current quarter, operating income, which includes the aforementioned restructuring and impairment charge, decreased 8.9 percent to $28.2 million, or 11.2 percent of net sales, from $31.0 million, or 13.4 percent of net sales, in the prior year period. Excluding the restructuring and impairment charge, operating income increased 4.8 percent to $32.4 million, or 12.9 percent of net sales.
During the current quarter, the Company utilized $36.8 million of available cash from operations to repurchase 1,140,000 shares of its common stock in the open market. As of September 30, 2005, the Company had a remaining authorization to repurchase an additional 860,000 shares.
Farooq Kathwari, Chairman and CEO, commented: "They are pleased with their results for the quarter. Despite the challenges facing the economy and their industry, sales increased 9.1 percent and earnings per share, excluding the restructuring and impairment charge, increased 11.8 percent. They generated nearly $46 million of operating cash, returning approximately $42 million to their shareholders through the repurchase of stock and the payment of quarterly dividends.'
Kathwari continued: 'They believe that the structural changes implemented during the past three years have provided us with an opportunity to improve upon all aspects of their operations. In that time, they have undertaken important initiatives to enhance their product offerings, their manufacturing, sourcing and logistics activities, their retail network, including both their stores and their people, and their marketing efforts. These activities will enable us to further differentiate Ethan Allen and better position the Company for future growth.'
Ethan Allen Interiors Inc is a leading manufacturer and retailer of quality home furnishings. The Company sells a full range of furniture products and decorative accessories through an exclusive network of 311 retail stores in the United States and abroad, of which 129 are Company-owned. Ethan Allen has 11 manufacturing facilities, which include 2 sawmills, located throughout the United States.
Ethan Allen Interiors Inc
marketing@alchempro.com
