EXHIBIT 99.2
| Ethan Allen Interiors Inc. |
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| GAAP Reconciliation | ||||||||||||||
| Three and Six Months Ended December 31, 2008 and 2007 | ||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| December 31, | December 31, | |||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||
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Net Income / Earnings Per Share |
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| Net income | $ | 5,488 | $ | 20,622 | $ | 12,910 | $ | 38,126 | ||||||
| Add: restructuring and impairment charge (credit), net of | ||||||||||||||
| related tax effect | 17 | - | (1,109 | ) | - | |||||||||
| Net income (excluding restructuring and impairment | ||||||||||||||
| charge (credit)) | $ | 5,505 | $ | 20,622 | $ | 11,801 | $ | 38,126 | ||||||
| Earnings per basic share | $ | 0.19 | $ | 0.70 | $ | 0.45 | $ | 1.28 | ||||||
| Earnings per basic share (excluding restructuring and | ||||||||||||||
| impairment charge (credit)) | $ | 0.19 | $ | 0.70 | $ | 0.41 | $ | 1.28 | ||||||
| Basic weighted average shares outstanding | 28,739 | 29,391 | 28,721 | 29,738 | ||||||||||
| Earnings per diluted share | $ | 0.19 | $ | 0.70 | $ | 0.45 | $ | 1.27 | ||||||
| Earnings per diluted share (excluding restructuring and | ||||||||||||||
| impairment charge (credit)) | $ | 0.19 | $ | 0.70 | $ | 0.41 | $ | 1.27 | ||||||
| Diluted weighted average shares outstanding | 28,739 | 29,542 | 28,793 | 30,003 | ||||||||||
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Consolidated Operating Income / Operating Margin |
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| Operating income | $ | 10,087 | $ | 33,497 | $ | 22,298 | $ | 61,294 | ||||||
| Add: restructuring and impairment charge (credit) | 26 | - | (1,604 | ) | - | |||||||||
| Operating income (excluding restructuring and impairment | ||||||||||||||
| charge (credit)) | $ | 10,113 | $ | 33,497 | $ | 20,694 | $ | 61,294 | ||||||
| Net sales | $ | 189,558 | $ | 259,510 | $ | 395,399 | $ | 508,237 | ||||||
| Operating margin | 5.3 | % | 12.9 | % | 5.6 | % | 12.1 | % | ||||||
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Operating margin (excluding restructuring and impairment |
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| charge (credit)) | 5.3 | % | 12.9 | % | 5.2 | % | 12.1 | % | ||||||
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Wholesale Operating Income / Operating Margin |
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| Wholesale operating income | $ | 8,580 | $ | 26,376 | $ | 20,465 | $ | 53,156 | ||||||
| Add: restructuring and impairment charge | - | - | 408 | - | ||||||||||
| Wholesale operating income (excluding restructuring and | ||||||||||||||
| impairment charge) | $ | 8,580 | $ | 26,376 | $ | 20,873 | $ | 53,156 | ||||||
| Wholesale net sales | $ | 108,848 | $ | 155,930 | $ | 230,143 | $ | 312,253 | ||||||
| Wholesale operating margin | 7.9 | % | 16.9 | % | 8.9 | % | 17.0 | % | ||||||
| Wholesale operating margin (excluding restructuring and | ||||||||||||||
| impairment charge) | 7.9 | % | 16.9 | % | 9.1 | % | 17.0 | % | ||||||
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Retail Operating Income / Operating Margin |
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| Retail operating income (loss) | $ | (3,185 | ) | $ | 6,351 | $ | (6,237 | ) | $ | 7,250 | ||||
| Add: restructuring and impairment charge (credit) | 26 | - | (2,012 | ) | - | |||||||||
| Retail operating income (excluding restructuring and | ||||||||||||||
| impairment charge (credit)) | $ | (3,159 | ) | $ | 6,351 | $ | (8,249 | ) | $ | 7,250 | ||||
| Retail net sales | $ | 147,183 | $ | 192,579 | $ | 303,053 | $ | 375,333 | ||||||
| Retail operating margin | -2.2 | % | 3.3 | % | -2.1 | % | 1.9 | % | ||||||
| Retail operating margin (excluding restructuring and | ||||||||||||||
| impairment charge (credit)) | -2.1 | % | 3.3 | % | -2.7 | % | 1.9 | % | ||||||
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EBITDA |
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| Net income | $ | 5,488 | $ | 20,622 | $ | 12,910 | $ | 38,126 | ||||||
| Add: interest expense (income), net | 2,565 | 1,686 | 5,073 | 3,083 | ||||||||||
| Add: income tax expense | 2,780 | 12,112 | 5,768 | 22,392 | ||||||||||
| Add: depreciation and amortization | 6,490 | 6,149 | 12,808 | 12,086 | ||||||||||
| EBITDA | $ | 17,323 | $ | 40,569 | $ | 36,559 | $ | 75,687 | ||||||
| Net sales | $ | 189,558 | $ | 259,510 | $ | 395,399 | $ | 508,237 | ||||||
| EBITDA as % of net sales | 9.1 | % | 15.6 | % | 9.2 | % | 14.9 | % | ||||||
| EBITDA | $ | 17,323 | $ | 40,569 | $ | 36,559 | $ | 75,687 | ||||||
| Add: restructuring and impairment charge (credit) | 26 | - | (1,604 | ) | - | |||||||||
| EBITDA (excluding restructuring and impairment charge (credit)) | $ | 17,349 | $ | 40,569 | $ | 34,955 | $ | 75,687 | ||||||
| Net sales | $ | 189,558 | $ | 259,510 | $ | 395,399 | $ | 508,237 | ||||||
| EBITDA as % of net sales excluding restructuring and | ||||||||||||||
| impairment charge (credit)) | 9.2 | % | 15.6 | % | 8.8 | % | 14.9 | % | ||||||