Annual report pursuant to Section 13 and 15(d)

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

v2.4.0.8
Note 20 - Financial Information About the Parent, the Issuer and the Guarantors
12 Months Ended
Jun. 30, 2014
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, 2014 and June 30, 2013, the condensed consolidating statements of operations for the twelve months ended June 30, 2014, 2013 and 2012, and the condensed consolidating statements of cash flows for the twelve months ended June 30, 2014, 2013 and 2012 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, 2014


   

Parent

   

Issuer

   

Guarantors

   

Non-Guarantors

   

Eliminations

   

Consolidated

 

Assets

                                               

Current assets:

                                               

Cash and cash equivalents

  $ -     $ 95,567     $ 10,347     $ 3,262     $ -     $ 109,176  

Marketable securities

    -       18,153       -       -       -       18,153  

Accounts receivable, net

    -       12,118       308       -       -       12,426  

Inventories

    -       -       168,996       6,141       (28,862 )     146,275  

Prepaid expenses and other current assets

    -       6,954       10,800       1,845       -       19,599  

Intercompany receivables

    -       836,086       322,382       (3,478 )     (1,154,990 )     -  

Total current assets

    -       968,878       512,833       7,770       (1,183,852 )     305,629  

Property, plant and equipment, net

    -       8,848       262,272       17,036       -       288,156  

Goodwill and other intangible assets

    -       37,905       7,223       -       -       45,128  

Restricted cash and investments

    -       8,507       -       -       -       8,507  

Other assets

    -       4,620       1,647       747       -       7,014  

Investment in affiliated companies

    731,003       (107,050 )     -       -       (623,953 )     -  

Total assets

  $ 731,003     $ 921,708     $ 783,975     $ 25,553     $ (1,807,805 )   $ 654,434  

Liabilities and Shareholders’ Equity

                                               

Current liabilities:

                                               

Current maturities of long-term debt

  $ -     $ -     $ 501     $ -     $ -     $ 501  

Customer deposits

    -       -       55,810       3,874       -       59,684  

Accounts payable

    -       6,423       17,699       198       -       24,320  

Accrued expenses and other current liabilities

    3,013       30,656       16,292       1,581       -       51,542  

Intercompany payables

    360,523       (8,468 )     773,850       29,085       (1,154,990 )     -  

Total current liabilities

    363,536       28,611       864,152       34,738       (1,154,990 )     136,047  

Long-term debt

    -       129,255       1,156       -       -       130,411  

Other long-term liabilities

    -       4,241       15,763       505       -       20,509  

Total liabilities

    363,536       162,107       881,071       35,243       (1,154,990 )     286,967  

Shareholders’ equity

    367,467       759,601       (97,096 )     (9,690 )     (652,815 )     367,467  

Total liabilities and shareholders’ equity

  $ 731,003     $ 921,708     $ 783,975     $ 25,553     $ (1,807,805 )   $ 654,434  

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 STATEMENT OF OPERATIONS


(In thousands)


Year Ended June 30, 2014


   

Parent

   

Issuer

   

Guarantors

   

Non-Guarantors

   

Eliminations

   

Consolidated

 

Net sales

  $ -     $ 446,666     $ 798,442     $ 42,250     $ (540,699 )   $ 746,659  

Cost of sales

    -       340,572       513,106       28,212       (541,727 )     340,163  

Gross profit

    -       106,094       285,336       14,038       1,028       406,496  
                                                 

Selling, general and administrative expenses

    180       47,367       269,519       19,794       -       336,860  

Operating income (loss)

    (180 )     58,727       15,817       (5,756 )     1,028       69,636  
                                                 

Interest and other miscellaneous income, net

    43,111       4,990       (95 )     (22 )     (47,708 )     276  

Interest and other related financing costs

    -       7,429       81       -       -       7,510  

Income before income tax expense

    42,931       56,288       15,641       (5,778 )     (46,680 )     62,402  

Income tax expense (benefit)

    -       14,205       5,080       186       -       19,471  
                                                 

Net income/(loss)

  $ 42,931     $ 42,083     $ 10,561     $ (5,964 )   $ (46,680 )   $ 42,931  

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  

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS


(In thousands)


Year Ended June 30, 2014


   

Parent

   

Issuer

   

Guarantors

   

Non-Guarantors

   

Eliminations

   

Consolidated

 

Net cash provided by operating activities

  $ 10,940     $ 34,812     $ 12,025     $ 2,112     $ -     $ 59,889  

Cash flows from investing activities:

                                               

Capital expenditures

    -       (610 )     (17,018 )     (1,677 )     -       (19,305 )

Acquisitions

    -       -       -       -       -       -  

Proceeds from the disposal of property, plant and equipment

    -       24       3,357       -       -       3,381  

Change in restricted cash and investments

    -       6,926       -       -       -       6,926  

Purchase of marketable securities

    -       (18,268 )     -       -       -       (18,268 )

Proceeds from the sale of marketable securities

    -       14,883       -       -       -       14,883  

Other

    -       325       -       -       -       325  

Net cash used in investing activities

    -       3,280       (13,661 )     (1,677 )     -       (12,058 )
                                                 

Cash flows from financing activities:

                                               

Payments on long-term debt

    -       -       (480 )     -       -       (480 )

Purchases and other retirements of company stock

    -       -       -       -       -       -  

Dividends paid

    (11,297 )     -       -       -       -       (11,297 )

Other

    357       168       -       -       -       525  

Net cash used in financing activities

    (10,940 )     168       (480 )     -       -       (11,252 )

Effect of exchange rate changes on cash

    -       -       -       (4 )     -       (4 )

Net increase (decrease) in cash and cash equivalents

    -       38,260       (2,116 )     431       -       36,575  

Cash and cash equivalents – beginning of period

    -       57,307       12,463       2,831       -       72,601  

Cash and cash equivalents – end of period

  $ -     $ 95,567     $ 10,347     $ 3,262     $ -     $ 109,176  

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  

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES


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