EXHIBIT 99.2
Ethan Allen Interiors Inc.
GAAP Reconciliation
Three Months Ended September 30, 2007 and 2006
(in thousands, except per share amounts)
| Three Months Ended September | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2007 |
2006 | |||||||
| Net Income / Earnings Per Share | ||||||||
| Net income | $ | 17,504 | $ | 8,452 | ||||
| Add: restructuring and impairment charge, net of | ||||||||
| related tax effect | -- | 8,709 | ||||||
| Net income (excluding restructuring and impairment charge) | $ | 17,504 | $ | 17,161 | ||||
| Earnings per basic share | $ | 0.58 | $ | 0.27 | ||||
| Earnings per basic share (excluding restructuring and impairment charge) | $ | 0.58 | $ | 0.54 | ||||
| Basic weighted average shares outstanding | 30,084 | 31,815 | ||||||
| Earnings per diluted share | $ | 0.57 | $ | 0.26 | ||||
| Earnings per diluted share (excluding restructuring and impairment charge) | $ | 0.57 | $ | 0.53 | ||||
| Diluted weighted average shares outstanding | 30,464 | 32,631 | ||||||
| Consolidated Operating Income / Operating Margin | ||||||||
| Operating income | $ | 27,797 | $ | 14,230 | ||||
| Add: restructuring and impairment charge | -- | 13,936 | ||||||
| Operating income (excluding restructuring and impairment charge) | $ | 27,797 | $ | 28,166 | ||||
| Net sales | $ | 248,727 | $ | 242,823 | ||||
| Operating margin | 11.2% | 5.9% | ||||||
| Operating margin (excluding restructuring and impairment charge) | 11.2% | 11.6% | ||||||
| Wholesale Operating Income / Operating Margin | ||||||||
| Wholesale operating income | $ | 26,780 | $ | 11,424 | ||||
| Add: restructuring and impairment charge | -- | 13,936 | ||||||
| Wholesale operating income (excluding restructuring and impairment charge) | $ | 26,780 | $ | 25,360 | ||||
| Wholesale net sales | $ | 156,323 | $ | 155,641 | ||||
| Wholesale operating margin | 17.1% | 7.3% | ||||||
| Wholesale operating margin (excluding restructuring and impairment charge) | 17.1% | 16.3% | ||||||
| EBITDA | ||||||||
| Net income | $ | 17,504 | $ | 8,452 | ||||
| Add: interest expense (income), net | 1,397 | 849 | ||||||
| Add: income tax expense | 10,280 | 5,072 | ||||||
| Add: depreciation and amortization | 5,937 | 5,604 | ||||||
| EBITDA | $ | 35,118 | $ | 19,977 | ||||
| Net sales | $ | 248,727 | $ | 242,823 | ||||
| EBITDA as % of net sales | 14.1% | 8.2% | ||||||
| EBITDA | $ | 35,118 | $ | 19,977 | ||||
| Add: restructuring and impairment charge | -- | 13,936 | ||||||
| EBITDA (excluding restructuring and impairment charge) | $ | 35,118 | $ | 33,913 | ||||
| Net sales | $ | 248,727 | $ | 242,823 | ||||
| EBITDA as % of net sales (excluding restructuring and impairment charge) | 14.1% | 14.0% | ||||||