Ethan Allen Interiors Inc.
GAAP Reconciliation
Three and Twelve Months Ended June 30, 2006 and 2005
(in thousands, except per share amounts)
EXHIBIT 99.2

Three Months Ended Twelve Months Ended
June 30, June 30,
2006
2005
2006
2005
Net Income / Earnings Per Share                        
Net income   $ 22,394   $ 19,511         $ 85,682   $ 79,338  


Add: restructuring and impairment charge, net of
  related tax effect
    --    --          2,631    --  
Net income (excluding restructuring and impairment
  charge)
   $ 22,394   $ 19,511         $ 88,313   $ 79,338  


Earnings per basic share   $ 0.68   $ 0.57         $ 2.58   $ 2.24  


Earnings per basic share (excluding restructuring
  and impairment charge)
   $ 0.68   $ 0.57         $ 2.66   $ 2.24  


Basic weighted average shares outstanding    32,819    34,531          33,210    35,400  
 
 
Earnings per diluted share   $ 0.66   $ 0.56         $ 2.51   $ 2.19  


Earnings per diluted share (excluding restructuring
  and impairment charge)
   $ 0.66   $ 0.56         $ 2.59   $ 2.19  


Diluted weighted average shares outstanding    33,824    34,960          34,086    36,193  
 
Consolidated Operating Income / Operating Margin   
Operating income   $ 36,851   $ 32,149         $ 142,672   $ 128,978  
Add: restructuring and impairment charge    --    --          4,241    --  


Operating income (excluding restructuring
  and impairment charge)
   $ 36,851   $ 32,149         $ 146,913   $ 128,978  


Net sales   $ 272,002   $ 242,260         $ 1,066,390   $ 949,012  


Operating margin    13.5%    13.3%          13.4%    13.6%  


Operating margin (excluding restructuring and
  impairment charge)
    13.5%    13.3%          13.8%    13.6%  


 
Wholesale Operating Income / Operating Margin   
Wholesale operating income   $ 27,906   $ 29,291         $ 125,189   $ 115,863  
Add: restructuring and impairment charge    --    --          4,241    --  


Wholesale operating income (excluding restructuring
  and impairment charge)
   $ 27,906   $ 29,291         $ 129,430   $ 115,863  


Wholesale net sales   $ 177,981   $ 171,772         $ 736,134   $ 663,218  


Wholesale operating margin    15.7%    17.1%          17.0%    17.5%  


Wholesale operating margin (excluding restructuring
  and impairment charge)
    15.7%    17.1%          17.6%    17.5%  


 
EBITDA   
Net income   $ 22,394   $ 19,511         $ 85,682   $ 79,338  
Add: interest expense    2,911    251          9,064    656  
Add: income tax expense    13,437    12,162          52,423    50,082  
Add: depreciation and amortization    5,458    5,363          21,599    21,338  


EBITDA   $ 44,200   $ 37,287         $ 168,768   $ 151,414  


Net sales   $ 272,002   $ 242,260         $ 1,066,390   $ 949,012  


EBITDA as % of net sales    16.2%    15.4%          15.8%    16.0%  


EBITDA   $ 44,200   $ 37,287         $ 168,768   $ 151,414  
Add: restructuring and impairment charge    --    --          4,241    --  


EBITDA (excluding restructuring and impairment charge)   $ 44,200   $ 37,287         $ 173,009   $ 151,414  


Net sales   $ 272,002   $ 242,260         $ 1,066,390   $ 949,012  


EBITDA as % of net sales    16.2%    15.4%          16.2%    16.0%