EXHIBIT 99.2
Ethan Allen Interiors Inc.
GAAP Reconciliation
Three and Twelve Months Ended June 30, 2005 and 2004 (as restated)
(in thousands, except per share amounts)
| Three Months Ended | Twelve Months Ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | June 30 | |||||||||||||
| 2005 |
2004 |
2005 |
2004 | |||||||||||
| (as restated) | (as restated) | |||||||||||||
| Net Income / Earnings Per Share |
||||||||||||||
| Net income | $ | 19,511 | $ | 13,460 | $ | 79,338 | $ | 79,478 | ||||||
| Add: restructuring and impairment charge, net of | ||||||||||||||
| related tax effect | -- | 7,863 | -- | 7,708 | ||||||||||
| Net income (excluding restructuring and impairment charge) | $ | 19,511 | $ | 21,323 | $ | 79,338 | $ | 87,186 | ||||||
| Earnings per basic share | $ | 0.57 | $ | 0.36 | $ | 2.24 | $ | 2.14 | ||||||
| Earnings per basic share (excluding restructuring and impairment charge) | $ | 0.57 | $ | 0.58 | $ | 2.24 | $ | 2.35 | ||||||
| Basic weighted average shares outstanding | 34,531 | 36,919 | 35,400 | 37,179 | ||||||||||
| Earnings per diluted share | $ | 0.56 | $ | 0.35 | $ | 2.19 | $ | 2.08 | ||||||
| Earnings per diluted share (excluding restructuring | ||||||||||||||
| and impairment charge) | $ | 0.56 | $ | 0.56 | $ | 2.19 | $ | 2.28 | ||||||
| Diluted weighted average shares outstanding | 34,960 | 37,963 | 36,193 | 38,295 | ||||||||||
| Consolidated Operating Income / Operating Margin | ||||||||||||||
| Operating income | $ | 32,149 | $ | 21,876 | $ | 128,978 | $ | 126,404 | ||||||
| Add: restructuring and impairment charge | -- | 12,784 | -- | 12,520 | ||||||||||
| Operating income (excluding restructuring and | ||||||||||||||
| impairment charge) | $ | 32,149 | $ | 34,660 | $ | 128,978 | $ | 138,924 | ||||||
| Net sales | $ | 242,260 | $ | 246,600 | $ | 949,012 | $ | 955,107 | ||||||
| Operating margin | 13.3 | % | 8.9 | % | 13.6 | % | 13.2 | % | ||||||
| Operating margin (excluding restructuring and impairment charge) |
13.3 | % | 14.1 | % | 13.6 | % | 14.5 | % | ||||||
| Wholesale Operating Income / Operating Margin | ||||||||||||||
| Wholesale operating income | $ | 29,291 | $ | 16,697 | $ | 115,863 | $ | 108,033 | ||||||
| Add: restructuring and impairment charge | -- | 12,784 | -- | 12,520 | ||||||||||
| Wholesale operating income (excluding restructuring | ||||||||||||||
| and impairment charge) | $ | 29,291 | $ | 29,481 | $ | 115,863 | $ | 120,553 | ||||||
| Wholesale net sales | $ | 171,772 | $ | 172,254 | $ | 663,218 | $ | 673,771 | ||||||
| Wholesale operating margin | 17.1 | % | 9.7 | % | 17.5 | % | 16.0 | % | ||||||
| Wholesale operating margin (excluding restructuring | ||||||||||||||
| and impairment charge) | 17.1 | % | 17.1 | % | 17.5 | % | 17.9 | % | ||||||
| EBITDA | ||||||||||||||
| Net income | $ | 19,511 | $ | 13,460 | $ | 79,338 | $ | 79,478 | ||||||
| Add: interest expense | 251 | 119 | 656 | 500 | ||||||||||
| Add: income tax expense | 12,162 | 8,423 | 50,082 | 49,617 | ||||||||||
| Add: depreciation and amortization | 5,363 | 5,680 | 21,338 | 21,854 | ||||||||||
| EBITDA | $ | 37,287 | $ | 27,682 | $ | 151,414 | $ | 151,449 | ||||||
| Net sales | $ | 242,260 | $ | 246,600 | $ | 949,012 | $ | 955,107 | ||||||
| EBITDA as % of net sales | 15.4 | % | 11.2 | % | 16.0 | % | 15.9 | % | ||||||
| EBITDA | $ | 37,287 | $ | 27,682 | $ | 151,414 | $ | 151,449 | ||||||
| Add: restructuring and impairment charge | -- | 12,784 | -- | 12,520 | ||||||||||
| EBITDA (excluding restructuring and impairment charge) | $ | 37,287 | $ | 40,466 | $ | 151,414 | $ | 163,969 | ||||||
| Net sales | $ | 242,260 | $ | 246,600 | $ | 949,012 | $ | 955,107 | ||||||
| EBITDA as % of net sales | 15.4 | % | 16.4 | % | 16.0 | % | 17.2 | % | ||||||