Ethan Allen Interiors Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 20 - Financial Information About the Parent, the Issuer and the Guarantors

Note 20 - Financial Information About the Parent, the Issuer and the Guarantors

12 Months Ended

Jun. 30, 2013

Disclosure Text Block Supplement [Abstract]

Condensed Financial Statements [Text Block]

(20) Financial Information About the Parent, the Issuer and the Guarantors

On September 27, 2005, Global (the “Issuer”) issued $200 million aggregate principal amount of Senior Notes which have been guaranteed on a senior basis by Interiors (the “Parent”), and other wholly owned domestic subsidiaries of the Issuer and the Parent, including Ethan Allen Retail, Inc., Ethan Allen Operations, Inc., Ethan Allen Realty, LLC, Lake Avenue Associates, Inc. and Manor House, Inc. The subsidiary guarantors (other than the Parent) are collectively called the “Guarantors”. The guarantees of the Guarantors are unsecured. All of the guarantees are full, unconditional and joint and several and the Issuer and each of the Guarantors are 100% owned by the Parent. Our other subsidiaries which are not guarantors are called the “Non-Guarantors”.

The following tables set forth the condensed consolidating balance sheets as of June 30, 2013 and June 30, 2012, the condensed consolidating statements of operations for the twelve months ended June 30, 2013, 2012 and 2011, and the condensed consolidating statements of cash flows for the twelve months ended June 30, 2013, 2012 and 2011 of the Parent, the Issuer, the Guarantors and the Non-Guarantors.

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

(In thousands)

June 30, 2013

	Parent		Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	57,307		$	12,463		$	2,831		$	-		$	72,601
Marketable securities		-		15,529			-			-			-			15,529
Accounts receivable, net		-		12,061			212			4			-			12,277
Inventories		-		-			161,683			5,463			(29,890	)		137,256
Prepaid expenses and other current assets		-		9,882			11,275			1,750			-			22,907
Intercompany receivables		-		831,238			302,577			(3,726	)		(1,130,089	)		-
Total current assets		-		926,017			488,210			6,322			(1,159,979	)		260,570
Property, plant and equipment, net		-		9,432			265,698			16,542			-			291,672
Goodwill and other intangible assets		-		37,905			7,223			-			-			45,128
Restricted cash and investments		-		15,433			-			-			-			15,433
Other assets		-		2,188			1,488			806			-			4,482
Investment in affiliated companies		686,451		(111,647	)		-			-			(574,804	)		-
Total assets	$	686,451	$	879,328		$	762,619		$	23,670		$	(1,734,783	)	$	617,285
Liabilities and Shareholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	-	$	-		$	480		$	-		$	-		$	480
Customer deposits		-		-			56,030			3,068			-			59,098
Accounts payable		-		7,390			15,097			508			-			22,995
Accrued expenses and other current liabilities		2,720		29,710			16,683			1,253			-			50,366
Intercompany payables		349,374		(7,460	)		766,039			22,136			(1,130,089	)		-
Total current liabilities		352,094		29,640			854,329			26,965			(1,130,089	)		132,939
Long-term debt		-		129,152			1,657			-			-			130,809
Other long-term liabilities		-		4,492			14,355			333			-			19,180
Total liabilities		352,094		163,284			870,341			27,298			(1,130,089	)		282,928
Shareholders’ equity		334,357		716,044			(107,722	)		(3,628	)		(604,694	)		334,357
Total liabilities and shareholders’ equity	$	686,451	$	879,328		$	762,619		$	23,670		$	(1,734,783	)	$	617,285

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

(In thousands)

June 30, 2012

	Parent		Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	64,946		$	12,276		$	2,499		$	-		$	79,721
Marketable securities		-		9,005			-			-			-			9,005
Accounts receivable, net		-		14,648			263			8			-			14,919
Inventories		-		-			182,382			4,736			(31,379	)		155,739
Prepaid expenses and other current assets		-		6,191			14,689			2,528			-			23,408
Intercompany receivables		-		829,913			273,536			(8,515	)		(1,094,934	)		-
Total current assets		-		924,703			483,146			1,256			(1,126,313	)		282,792
Property, plant and equipment, net		-		9,078			272,228			14,389			-			295,695
Goodwill and other intangible assets		-		37,905			7,223			-			-			45,128
Restricted cash and investments		-		15,416			-			-			-			15,416
Other assets		-		4,948			809			-			-			5,757
Investment in affiliated companies		652,868		(108,864	)		-			-			(544,004	)		-
Total assets	$	652,868	$	883,186		$	763,406		$	15,645		$	(1,670,317	)	$	644,788
Liabilities and Shareholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	-	$	-		$	250		$	-		$	-		$	250
Customer deposits		-		-			62,479			2,986			-			65,465
Accounts payable		-		7,126			19,695			494			-			27,315
Accrued expenses and other current liabilities		2,713		35,752			18,537			1,045			-			58,047
Intercompany payables		328,287		327			756,513			9,807			(1,094,934	)		-
Total current liabilities		331,000		43,205			857,474			14,332			(1,094,934	)		151,077
Long-term debt		-		152,986			1,264			-			-			154,250
Other long-term liabilities		-		3,641			13,874			78			-			17,593
Total liabilities		331,000		199,832			872,612			14,410			(1,094,934	)		322,920
Shareholders’ equity		321,868		683,354			(109,206	)		1,235			(575,383	)		321,868
Total liabilities and shareholders’ equity	$	652,868	$	883,186		$	763,406		$	15,645		$	(1,670,317	)	$	644,788

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(In thousands)

Year Ended June 30, 2013

	Parent			Issuer			Guarantors		Non-Guarantors			Eliminations			Consolidated
Net sales	$	-		$	434,741		$	796,194	$	38,181		$	(540,033	)	$	729,083
Cost of sales		-			327,723			520,570		23,963			(541,522	)		330,734
Gross profit		-			107,018			275,624		14,218			1,489			398,349

Selling, general and administrative expenses		180			46,620			272,794		18,318			-			337,912
Operating income (loss)		(180	)		60,398			2,830		(4,100	)		1,489			60,437

Interest and other miscellaneous income, net		32,658			(4,229	)		38		(75	)		(29,877	)		(1,485	)
Interest and other related financing costs		-			8,709			69		-			-			8,778
Income before income tax expense		32,478			47,460			2,799		(4,175	)		(28,388	)		50,174
Income tax expense (benefit)		-			16,291			1,320		85			-			17,696

Net income/(loss)	$	32,478		$	31,169		$	1,479	$	(4,260	)	$	(28,388	)	$	32,478

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(In thousands)

Year Ended June 30, 2012

	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	-		$	456,895		$	787,295		$	33,417		$	(548,234	)	$	729,373
Cost of sales		-			341,365			523,064			19,311			(544,655	)		339,085
Gross profit		-			115,530			264,231			14,106			(3,579	)		390,288

Selling, general and administrative expenses		180			45,690			280,480			14,241			-			340,591
Operating income (loss)		(180	)		69,840			(16,249	)		(135	)		(3,579	)		49,697

Interest and other miscellaneous income, net		49,874			(15,403	)		216			17			(34,142	)		562
Interest and other related financing costs		-			8,997			23			-			-			9,020
Income before income tax expense		49,694			45,440			(16,056	)		(118	)		(37,721	)		41,239
Income tax expense (benefit)		-			(8,013	)		(523	)		81			-			(8,455	)

Net income/(loss)	$	49,694		$	53,453		$	(15,533	)	$	(199	)	$	(37,721	)	$	49,694

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(In thousands)

Year Ended June 30, 2011

	Parent			Issuer			Guarantors			Non-Guarantors		Eliminations			Consolidated
Net sales	$	-		$	423,458		$	718,660		$	29,861	$	(493,019	)	$	678,960
Cost of sales		-			321,706			481,814			16,198		(490,218	)		329,500
Gross profit		-			101,752			236,846			13,663		(2,801	)		349,460

Selling, general and administrative expenses		180			43,791			260,665			12,891		-			317,527
Operating income (loss)		(180	)		57,961			(23,819	)		772		(2,801	)		31,933

Interest and other miscellaneous income, net		29,430			(17,842	)		232			5		(6,261	)		5,564
Interest and other related financing costs		-			10,847			279			-		-			11,126
Income before income tax expense		29,250			29,272			(23,866	)		777		(9,062	)		26,371
Income tax expense (benefit)		-			(2,959	)		-			80		-			(2,879	)

Net income/(loss)	$	29,250		$	32,231		$	(23,866	)	$	697	$	(9,062	)	$	29,250

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In thousands)

Year Ended June 30, 2013

	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations		Consolidated
Net cash provided by operating activities	$	20,821		$	24,720		$	12,336		$	3,424		$	-	$	61,301
Cash flows from investing activities:
Capital expenditures		-			(1,320	)		(14,847	)		(2,838	)		-		(19,005	)
Acquisitions		-			-			(770	)		-			-		(770	)
Proceeds from the disposal of property, plant and equipment		-			61			3,222			-			-		3,283
Change in restricted cash and investments		-			(17	)		-			-			-		(17	)
Purchase of marketable securities		-			(18,247	)		-			-			-		(18,247	)
Proceeds from the sale of marketable securities		-			11,165			-			-			-		11,165
Other		-			1,440			550			-			-		1,990
Net cash used in investing activities		-			(6,918	)		(11,845	)		(2,838	)		-		(21,601	)

Cash flows from financing activities:
Payments on long-term debt		-			(25,800	)		(304	)		-			-		(26,104	)
Purchases and other retirements of company stock		-			-			-			-			-		-
Dividends paid		(22,220	)		-			-			-			-		(22,220	)
Other		1,399			359			-			-			-		1,758
Net cash used in financing activities		(20,821	)		(25,441	)		(304	)		-			-		(46,566	)

Effect of exchange rate changes on cash		-			-			-			(254	)		-		(254	)

Net increase (decrease) in cash and cash equivalents		-			(7,639	)		187			332			-		(7,120	)

Cash and cash equivalents – beginning of period		-			64,946			12,276			2,499			-		79,721

Cash and cash equivalents – end of period	$	-		$	57,307		$	12,463		$	2,831		$	-	$	72,601

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In thousands)

Year Ended June 30, 2012

	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations		Consolidated
Net cash provided by operating activities	$	9,187		$	3,939		$	18,441		$	6,134		$	-	$	37,701
Cash flows from investing activities:
Capital expenditures		-			(1,952	)		(15,721	)		(5,211	)		-		(22,884	)
Acquisitions		-			-			(520	)		-			-		(520	)
Proceeds from the disposal of property, plant and equipment		-			12			1,861			-			-		1,873
Change in restricted cash and investments		-			975			-			-			-		975
Purchase of marketable securities		-			(3,647	)		-			-			-		(3,647	)
Proceeds from the sale of marketable securities		-			7,230			-			-			-		7,230
Other		-			305			511			-			-		816
Net cash provided by (used in) investing activities		-			2,923			(13,869	)		(5,211	)		-		(16,157	)

Cash flows from financing activities:
Payments on long-term debt		-			(11,917	)		(287	)		-			-		(12,204	)
Purchases and other retirements of company stock		(1,350	)		-			-			-			-		(1,350	)
Dividends paid		(8,062	)		-			-			-			-		(8,062	)
Other		225			238			275			-			-		738
Net cash used in financing activities		(9,187	)		(11,679	)		(12	)		-			-		(20,878	)

Effect of exchange rate changes on cash		-			-			-			536			-		536

Net increase (decrease) in cash and cash equivalents		-			(4,817	)		4,560			1,459			-		1,202

Cash and cash equivalents – beginning of period		-			69,763			7,716			1,040			-		78,519

Cash and cash equivalents – end of period	$	-		$	64,946		$	12,276		$	2,499		$	-	$	79,721

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In thousands)

Year Ended June 30, 2011

	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations		Consolidated
Net cash provided by operating activities	$	11,055		$	38,590		$	10,672		$	2,845		$	-	$	63,162
Cash flows from investing activities:
Capital expenditures		-			(1,182	)		(5,017	)		(2,895	)		-		(9,094	)
Acquisitions		-			-			(2,957	)		-			-		(2,957	)
Proceeds from the disposal of property, plant and equipment		-			-			3,196			-			-		3,196
Change in restricted cash and investments		-			927			-			-			-		927
Purchase of marketable securities		-			(9,466	)		-			-			-		(9,466	)
Proceeds from the sale of marketable securities		-			7,319			-			-			-		7,319
Other		-			432			-			-			-		432
Net cash used in investing activities		-			(1,970	)		(4,778	)		(2,895	)		-		(9,643	)

Cash flows from financing activities:
Payments on long-term debt		-			(33,989	)		(3,898	)		-			-		(37,887	)
Purchases and other retirements of company stock		(5,377	)		-			-			-			-		(5,377	)
Dividends paid		(5,754	)		-			-			-			-		(5,754	)
Other		76			(137	)		-			-			-		(61	)
Net cash used in financing actvities		(11,055	)		(34,126	)		(3,898	)		-			-		(49,079	)

Effect of exchange rate changes on cash		-			-			-			227			-		227

Net increase in cash and cash equivalents		-			2,494			1,996			177			-		4,667

Cash and cash equivalents – beginning of period		-			67,269			5,720			863			-		73,852

Cash and cash equivalents – end of period	$	-		$	69,763		$	7,716		$	1,040		$	-	$	78,519