Exhibit 99.1
Ethan Allen Interiors Inc.
Investor / Media Contact:
David R. Callen
Vice President Finance & Treasurer
203-743-8305


ETHAN ALLEN REPORTS RESULTS FOR QUARTER
ENDED MARCH 31, 2012

DANBURY, CT., April 23, 2012 – Ethan Allen Interiors Inc. (“Ethan Allen”, the “Company”, “We”, or “Our”) (NYSE:ETH) reported that net sales for the third quarter ended March 31, 2012 increased by 8.0% to 175.9 million and excluding special items, diluted earnings per share increased to $0.14 compared to $0.07 in the previous year quarter.

Farooq Kathwari, Chairman and CEO commented, “During our third quarter ended March 31st with an 8% increase in sales, our adjusted net income per share doubled reflecting continued operating leverage from our vertically integrated structure. Our dividend was increased to $0.09, an increase of 29%. Our Retail division’s written (booked) orders during the quarter increased 11% including comparable design center growth of 8%. Our written (booked) orders for our Retail Division were $30 million greater than our shipments during the quarter.”

Mr. Kathwari further stated, “The recession has further accelerated our focus on major initiatives in all areas of our enterprise including a 60% change in our product offerings in less than one year. In addition, we continue to invest in acquiring talented interior design associates and management in our Retail division. While increasing our expenses, this investment provides an opportunity to grow our sales by enhancing our competitive advantage of providing complimentary interior design services.”

Three Months Ended March 31, 2012
Net sales for the quarter ended March 31, 2012 increased 8.0% over the prior year to $175.9 million. The Company’s Retail division net sales increased 12.3% to $131.4 million including comparable design center net sales growth of 9.4%. Net income for the quarter ended March 31, 2012 was $27.5 million or $0.94 per diluted share compared with the prior year of $3.5 million or $0.12 per diluted share. During the quarter the Company reversed deferred tax asset valuation allowances and certain other tax reserves resulting in $23.9 million in non-cash tax benefits in the quarter. Excluding these benefits and other special items in both periods, net income for the quarter ended March 31, 2012 was $4.0 million or $0.14 per diluted share compared with $2.0 million or $0.07 per diluted share in the prior year period.

Nine Months Ended March 31, 2012
Net sales for the nine months ended March 31, 2012 increased 8.6% over the prior year to $544.1 million. The Company’s Retail division net sales increased 12.6% to $415.7 million including comparable design center net sales growth of 10.2%. Written orders booked during the nine month period by the Retail division were 11.5% greater than the prior year quarter including comparable design center order growth of 8.7%.

Net income for the nine months ended March 31, 2012 was $42.4 million or $1.46 per diluted share compared with the prior year of $22.1 million or $0.76 per diluted share. Excluding the non-cash tax benefits and other special items in both periods, net income for the nine months ended March 31, 2012 was $19.7 million or $0.68 per diluted share compared with $10.8 million or $0.37 per diluted share in the prior year period.

 
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Mr. Kathwari concluded, “During the fourth quarter we will complete the launch of new products. In addition, we will launch in June “Ethan Allen Express”, a new major initiative. The objective of this initiative is to expand our reach to more consumers.  The program will consist of selected products with good price points and fast deliveries from our five lifestyles. Our plan is to strongly market this program during the next six months. As we stated in our previous press release, while recognizing the uncertain macro-economic conditions, we remain cautiously optimistic due to our many initiatives.”

Analyst Conference Call
The Company will conduct a conference call at 11:00 AM (Eastern) on Tuesday, April 24th to discuss the financial results and its business initiatives. The live webcast and replay are accessible via the Company’s website at http://ethanallen.com/investors.

About Ethan Allen
Ethan Allen Interiors Inc. is a leading interior design company and manufacturer and retailer of quality home furnishings. The company offers free interior design service to its clients and sells a full range of furniture products and decorative accessories through ethanallen.com and a network of approximately 300 Design Centers in the United States and abroad. Ethan Allen owns and operates eight manufacturing facilities including five manufacturing plants and one sawmill in the United States plus two plants in Mexico and Honduras. Approximately seventy percent of its products are made in its United States plants. For more information on Ethan Allen's products and services, visit ethanallen.com. 

This press release should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2011 (the “2011 Form 10-K”) and other reports filed with the Securities and Exchange Commission. This press release and related discussions contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect management’s current expectations concerning future events and results of the Company, and are subject to various assumptions, risks and uncertainties including specifically, and without limitation, those set forth in Part I, Item 1A “Risk Factors” of the 2011 Form 10-K. Accordingly, actual future events or results could differ materially from those contemplated by the forward-looking statements. The Company assumes no obligation to update or provide revision to any forward-looking statement at any time for any reason.
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Ethan Allen Interiors Inc.
Selected Financial Information
Unaudited
(in thousands)
 
Selected Consolidated Financial Data:
                        
                         
   
Three Months Ended
    
Nine Months Ended
  
   
03/31/12
    
03/31/11
    
03/31/12
    
03/31/11
  
                         
Net sales
     $175.9       $162.8       $544.1       $501.0  
Gross margin
     53.6 %     51.0 %     53.4 %     51.0 %
Operating margin
     4.4 %     2.9 %     6.5 %     4.1 %
Operating margin (excluding special items*)
     4.7 %     3.0 %     6.9 %     4.3 %
Net income
     $27.5       $3.5       $42.4       $22.1  
Net income (excluding special items* and
                                
unusual income tax effects)
     $4.0       $2.0       $19.7       $10.8  
Operating cash flow
     $16.9       $37.8       $27.8       $40.6  
Capital expenditures
     $8.4       $1.8       $19.8       $5.7  
Acquisitions
     $0.5       $0.4       $0.5       $0.6  
Treasury stock repurchases (settlement
                                
date basis)
     $0.0       $0.0       $0.8       $5.4  
                                 
EBITDA
     $12.3       $10.8       $49.4       $41.3  
EBITDA as % of net sales
     7.0 %     6.7 %     9.1 %     8.3 %
                                 
EBITDA (excluding special items*)
     $12.8       $10.9       $51.6       $40.9  
EBITDA as % of net sales (excluding special items*)
     7.3 %     6.7 %     9.5 %     8.2 %
 
Selected Financial Data by Business Segment:
                    
   
Three Months Ended
    
Nine Months Ended
  
   
03/31/12
    
03/31/11
    
03/31/12
    
03/31/11
  
Retail
                        
Net sales
     $131.4       $117.0       $415.7       $369.1  
Operating margin
     -5.0 %     -6.2 %     -2.5 %     -3.5 %
Operating margin (excluding special items*)
     -5.0 %     -6.1 %     -2.1 %     -3.4 %
                                 
                                 
Wholesale
                                
Net sales
     $121.0       $104.1       $344.1       $312.5  
Operating margin
     15.0 %     12.7 %     14.4 %     11.2 %
Operating margin (excluding special items*)
     15.4 %     12.7 %     14.4 %     11.4 %
                                 
* Special items consist of restructuring, impairment, transition charges and other certain items.
  
Related tax effects are calculated using a normalized income tax rate.
                  
 
 
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Ethan Allen Interiors Inc.
Condensed Consolidated Income Statements
Unaudited
(in thousands)
 
   
Three Months Ended
    
Nine Months Ended
  
   
03/31/12
    
03/31/11
    
03/31/12
    
03/31/11
  
                         
Net sales
     $175,861       $162,822       $544,057       $501,008  
Cost of sales
     81,586       79,753       253,678       245,697  
Gross profit
     94,275       83,069       290,379       255,311  
Operating expenses:
                                
Selling
     44,281       39,147       130,147       118,542  
General and administrative
     42,191       39,056       124,864       115,758  
Restructuring and impairment charge
     16       109       5       393  
Total operating expenses
     86,488       78,312       255,016       234,693  
Operating income
     7,787       4,757       35,363       20,618  
Interest and other income
     157       1,128       362       5,453  
Interest expense
     2,189       2,773       6,814       8,649  
Income before income taxes
     5,755       3,112       28,911       17,422  
Income tax expense (benefit)
     (21,793 )     (406 )     (13,484 )     (4,653 )
Net income
     $27,548       $3,518       $42,395       $22,075  
                                 
Basic earnings per common share:
                                
Net income per basic share
     $0.95       $0.12       $1.47       $0.77  
Basic weighted average shares outstanding
     28,857       28,751       28,813       28,753  
                                 
Diluted earnings per common share:
                                
Net income per diluted share
     $0.94       $0.12       $1.46       $0.76  
Diluted weighted average shares outstanding
     29,236       28,987       29,085       28,953  
 
 
 
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Ethan Allen Interiors Inc.
Condensed Consolidated Balance Sheets
Unaudited
(in thousands)
 
 
   
March 31,
    
June 30,
  
   
2012
    
2011
  
             
Assets
            
Current assets:
            
  Cash and cash equivalents
   $ 73,130     $ 78,519  
  Marketable securities
     11,259       12,909  
  Accounts receivable, net
     17,571       15,036  
  Inventories
     142,262       141,692  
  Prepaid expenses & other current assets
     23,046       20,372  
  Deferred income taxes
     1,163       -  
     Total current assets
     268,431       268,528  
                 
Property, plant and equipment, net
     297,211       294,853  
Intangible assets, net
     45,128       45,128  
Restricted cash and investments
     15,410       16,391  
Other assets
     7,251       3,425  
                 
       Total Assets
   $ 633,431     $ 628,325  
                 
                 
                 
Liabilities and Shareholders' Equity
                
Current liabilities:
                
  Current maturities of long-term debt
     192       19  
  Customer deposits
     61,512       62,649  
  Accounts payable
     26,655       26,958  
  Accrued expenses & other current liabilities
     55,575       64,990  
     Total current liabilities
     143,934       154,616  
                 
Long-term debt
     154,058       165,013  
Other long-term liabilities
     17,719       18,975  
Deferred income taxes
     -       8,034  
     Total liabilities
     315,711       346,638  
                 
Shareholders' equity
     317,720       281,687  
                 
       Total Liabilities and Shareholders' Equity
   $ 633,431     $ 628,325  
 
 
 
 
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Ethan Allen Interiors Inc.
GAAP Reconciliation
Three and Nine Months Ended March 31, 2012 and 2011
Unaudited
(in thousands, except per share amounts)
 
   
Three Months Ended
    
Nine Months Ended
  
   
March 31,
    
March 31,
  
   
2012
    
2011
    
2012
    
2011
  
Net Income / Earnings Per Share
                        
Net income
   $ 27,548     $ 3,518     $ 42,395     $ 22,075  
       Special items net of related tax effects *
     327       69       1,375       (272 )
       Unusual income tax effects
     (23,894 )     (1,542 )     (24,037 )     (11,012 )
Net income (excluding special items* and
                                
 unusual income tax effects)
   $ 3,981     $ 2,045     $ 19,733     $ 10,791  
Basic weighted average shares outstanding
     28,857       28,751       28,813       28,753  
Earnings per basic share
   $ 0.95     $ 0.12     $ 1.47     $ 0.77  
Earnings per basic share (excluding special items*
                                
 and unusual income tax effects)
   $ 0.14     $ 0.07     $ 0.68     $ 0.38  
                                 
Diluted weighted average shares outstanding
     29,236       28,987       29,085       28,953  
Earnings per diluted share
   $ 0.94     $ 0.12     $ 1.46     $ 0.76  
Earnings per diluted share (excluding special
                                
items* and unusual income tax effects)
   $ 0.14     $ 0.07     $ 0.68     $ 0.37  
                                 
                                 
Consolidated Operating Income / Operating Margin
                                
Operating income
   $ 7,787     $ 4,757     $ 35,363     $ 20,618  
Add: special items *
     515       109       2,165       1,072  
Operating income (excluding special items*)
   $ 8,302     $ 4,866     $ 37,528     $ 21,690  
                                 
Net sales
   $ 175,861     $ 162,822     $ 544,057     $ 501,008  
Operating margin
     4.4 %     2.9 %     6.5 %     4.1 %
Operating margin (excluding special items*)
     4.7 %     3.0 %     6.9 %     4.3 %
                                 
Wholesale Operating Income / Operating Margin
                                
Wholesale operating income
   $ 18,191     $ 13,253     $ 49,584     $ 35,076  
Add: special items
     499       -       131       679  
Wholesale operating income (excluding special items*)
   $ 18,690     $ 13,253     $ 49,715     $ 35,755  
Wholesale net sales
   $ 121,044     $ 104,119     $ 344,069     $ 312,467  
Wholesale operating margin
     15.0 %     12.7 %     14.4 %     11.2 %
Wholesale operating margin (excluding special items*)
     15.4 %     12.7 %     14.4 %     11.4 %
                                 
Retail Operating Income / Operating Margin
                                
Retail operating income (loss)
   $ (6,549 )   $ (7,271 )   $ (10,578 )   $ (12,767 )
Add: special items
     16       109       2,034       393  
Retail operating income (loss) (excluding special items*)
   $ (6,533 )   $ (7,162 )   $ (8,544 )   $ (12,374 )
Retail net sales
   $ 131,402     $ 117,029     $ 415,687     $ 369,066  
Retail operating margin
     -5.0 %     -6.2 %     -2.5 %     -3.5 %
Retail operating margin (excluding special items*)
     -5.0 %     -6.1 %     -2.1 %     -3.4 %
                                 
* Special items consist of restructuring, impairment, transition charges and certain other items.
          
Related tax effects are calculated using a normalized income tax rate.
                  
 
 
 
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Unaudited
(in thousands, except per share amounts)
 
   
Three Months Ended
    
Nine Months Ended
  
   
March 31,
    
March 31,
  
   
2012
    
2011
    
2012
    
2011
  
                         
EBITDA
                        
Net income
   $ 27,548     $ 3,518     $ 42,395     $ 22,075  
Add:  interest expense, net
     2,037       2,527       6,419       7,807  
Add: income tax expense (benefit)
     (21,793 )     (406 )     (13,484 )     (4,653 )
Add:  depreciation and amortization
     4,510       5,191       14,092       16,120  
EBITDA
   $ 12,302     $ 10,830     $ 49,422     $ 41,349  
Net sales
   $ 175,861     $ 162,822     $ 544,057     $ 501,008  
EBITDA as % of net sales
     7.0 %     6.7 %     9.1 %     8.3 %
                                 
EBITDA
   $ 12,302     $ 10,830     $ 49,422     $ 41,349  
Add: special items*
     515       109       2,165       (428 )
Adjusted EBITDA
   $ 12,817     $ 10,939     $ 51,587     $ 40,921  
Net sales
   $ 175,861     $ 162,822     $ 544,057     $ 501,008  
Adjusted EBITDA as % of net sales
     7.3 %     6.7 %     9.5 %     8.2 %
                                 
* Special items consist of restructuring, impairment, transition charges and certain other items.
          
Related tax effects are calculated using a normalized income tax rate.
                  
 
 
 
 
 
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