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, 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