EXHIBIT 99.2
Ethan Allen Interiors Inc.
GAAP Reconciliation
Three and Nine Months Ended March 31, 2006 and 2005
(in thousands, except per share amounts)
| Three Months Ended | Nine Months Ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March | March | |||||||||||||
| 2006 |
2005 |
2006 |
2005 | |||||||||||
| Net Income / Earnings Per Share |
||||||||||||||
| Net income | $ | 19,994 | $ | 17,935 | $ | 63,288 | $ | 59,827 | ||||||
| Add: restructuring and impairment charge, net of | ||||||||||||||
| related tax effect | -- | -- | 2,624 | -- | ||||||||||
| Net income (excluding restructuring and impairment charge) | $ | 19,994 | $ | 17,935 | $ | 65,912 | $ | 59,827 | ||||||
| Earnings per basic share | $ | 0.61 | $ | 0.51 | $ | 1.90 | $ | 1.68 | ||||||
| Earnings per basic share (excluding restructuring and impairment charge) | $ | 0.61 | $ | 0.51 | $ | 1.98 | $ | 1.68 | ||||||
| Basic weighted average shares outstanding | 33,021 | 35,257 | 33,340 | 35,690 | ||||||||||
| Earnings per diluted share | $ | 0.59 | $ | 0.50 | $ | 1.85 | $ | 1.63 | ||||||
| Earnings per diluted share (excluding restructuring | ||||||||||||||
| and impairment charge) | $ | 0.59 | $ | 0.50 | $ | 1.93 | $ | 1.63 | ||||||
| Diluted weighted average shares outstanding | 34,046 | 36,148 | 34,173 | 36,603 | ||||||||||
| Consolidated Operating Income / Operating Margin | ||||||||||||||
| Operating income | $ | 33,339 | $ | 29,298 | $ | 105,821 | $ | 96,829 | ||||||
| Add: restructuring and impairment charge | -- | -- | 4,241 | -- | ||||||||||
| Operating income (excluding restructuring and | ||||||||||||||
| impairment charge) | $ | 33,339 | $ | 29,298 | $ | 110,062 | $ | 96,829 | ||||||
| Net sales | $ | 267,071 | $ | 231,154 | $ | 794,388 | $ | 706,752 | ||||||
| Operating margin | 12.5 | % | 12.7 | % | 13.3 | % | 13.7 | % | ||||||
| Operating margin (excluding restructuring and impairment charge) |
12.5 | % | 12.7 | % | 13.9 | % | 13.7 | % | ||||||
| Wholesale Operating Income / Operating Margin | ||||||||||||||
| Wholesale operating income | $ | 33,974 | $ | 31,553 | $ | 97,283 | $ | 86,572 | ||||||
| Add: restructuring and impairment charge | -- | -- | 4,241 | -- | ||||||||||
| Wholesale operating income (excluding restructuring | ||||||||||||||
| and impairment charge) | $ | 33,974 | $ | 31,553 | $ | 101,524 | $ | 86,572 | ||||||
| Wholesale net sales | $ | 192,192 | $ | 168,796 | $ | 558,153 | $ | 491,446 | ||||||
| Wholesale operating margin | 17.7 | % | 18.7 | % | 17.4 | % | 17.6 | % | ||||||
| Wholesale operating margin (excluding restructuring | ||||||||||||||
| and impairment charge) | 17.7 | % | 18.7 | % | 18.2 | % | 17.6 | % | ||||||
| EBITDA | ||||||||||||||
| Net income | $ | 19,994 | $ | 17,935 | $ | 63,288 | $ | 59,827 | ||||||
| Add: interest expense | 3,012 | 168 | 6,153 | 405 | ||||||||||
| Add: income tax expense | 11,997 | 11,322 | 38,986 | 37,920 | ||||||||||
| Add: depreciation and amortization | 5,285 | 5,329 | 16,141 | 15,975 | ||||||||||
| EBITDA | $ | 40,288 | $ | 34,754 | $ | 124,568 | $ | 114,127 | ||||||
| Net sales | $ | 267,071 | $ | 231,154 | $ | 794,388 | $ | 706,752 | ||||||
| EBITDA as % of net sales | 15.1 | % | 15.0 | % | 15.7 | % | 16.1 | % | ||||||
| EBITDA | $ | 40,288 | $ | 34,754 | $ | 124,568 | $ | 114,127 | ||||||
| Add: restructuring and impairment charge | -- | -- | 4,241 | -- | ||||||||||
| EBITDA (excluding restructuring and impairment charge) | $ | 40,288 | $ | 34,754 | $ | 128,809 | $ | 114,127 | ||||||
| Net sales | $ | 267,071 | $ | 231,154 | $ | 794,388 | $ | 706,752 | ||||||
| EBITDA as % of net sales (excluding restructuring and impairment charge) | 15.1 | % | 15.0 | % | 16.2 | % | 16.1 | % | ||||||