Ethan Allen Interiors Inc. EXHIBIT 99.2
GAAP Reconciliation
Three Months Ended September 30, 2008 and 2007
(in thousands, except per share amounts)
 
Three Months Ended
September 30,
2008 2007

Net Income / Earnings Per Share

Net income $ 7,422 $ 17,504
Add: restructuring and impairment charge (credit), net of
related tax effect (1,037) -
Net income (excluding restructuring and impairment
charge (credit)) $ 6,385 $ 17,504
 
Earnings per basic share $ 0.26 $ 0.58
Earnings per basic share (excluding restructuring and
impairment charge (credit)) $ 0.22 $ 0.58
Basic weighted average shares outstanding 28,703 30,084
 
Earnings per diluted share $ 0.26 $ 0.57
Earnings per diluted share (excluding restructuring and
impairment charge (credit)) $ 0.22 $ 0.57
Diluted weighted average shares outstanding 28,847 30,464
 

Consolidated Operating Income / Operating Margin

Operating income $ 12,211 $ 27,797
Add: restructuring and impairment charge (credit) (1,630) -
Operating income (excluding restructuring and impairment
charge (credit)) $ 10,581 $ 27,797
 
Net sales $ 205,841 $ 248,727
Operating margin 5.9% 11.2%
Operating margin (excluding restructuring and impairment
charge (credit)) 5.1% 11.2%
 

Wholesale Operating Income / Operating Margin

Wholesale operating income $ 11,885 $ 26,780
Add: restructuring and impairment charge 408 -
Wholesale operating income (excluding restructuring and
impairment charge) $ 12,293 $ 26,780
Wholesale net sales $ 121,295 $ 156,323
Wholesale operating margin 9.8% 17.1%
Wholesale operating margin (excluding restructuring and
impairment charge) 10.1% 17.1%
 

Retail Operating Income / Operating Margin

Retail operating income (loss) $ (3,052) $ 899
Add: restructuring and impairment charge (credit) (2,038) -
Retail operating income (excluding restructuring and
impairment charge (credit)) $ (5,090) $ 899
Retail net sales $ 155,870 $ 182,754
Retail operating margin -2.0% 0.5%
Retail operating margin (excluding restructuring and
impairment charge (credit)) -3.3% 0.5%
 

EBITDA

Net income $ 7,422 $ 17,504
Add: interest expense (income), net 2,508 1,397
Add: income tax expense 2,988 10,280
Add: depreciation and amortization 6,318 5,937
EBITDA $ 19,236 $ 35,118
Net sales $ 205,841 $ 248,727
EBITDA as % of net sales 9.3% 14.1%
 
EBITDA $ 19,236 $ 35,118
Add: restructuring and impairment charge (credit) (1,630) -
EBITDA (excluding restructuring and impairment charge (credit)) $ 17,606 $ 35,118
Net sales $ 205,841 $ 248,727
EBITDA as % of net sales excluding restructuring and
impairment charge (credit)) 8.6% 14.1%