Quarterly report pursuant to Section 13 or 15(d)

Note 15 - Financial Information About the Parent, the Issuer and the Guarantors

v2.4.0.8
Note 15 - Financial Information About the Parent, the Issuer and the Guarantors
 3 Months Ended
Sep. 30, 2014
Disclosure Text Block Supplement [Abstract]  
Condensed Financial Statements [Text Block]

(15)  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 September 30, 2014 and June 30, 2014, the condensed consolidating statements of operations for the three months ended September 30, 2014 and 2013, and the condensed consolidating statements of cash flows for the three months ended September 30, 2014 and 2013 of the Parent, the Issuer, the Guarantors and the Non-Guarantors.


ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES


Notes to Consolidated Financial Statements (Unaudited) 


CONDENSED CONSOLIDATING BALANCE SHEET

(In thousands)

September 30, 2014


   

Parent

   

Issuer

   

Guarantors

   

Non-Guarantors

   

Eliminations

   

Consolidated

 

Assets

                                               

Current assets:

                                               

Cash and cash equivalents

  $ -     $ 102,897     $ 7,517     $ 3,894     $ -     $ 114,308  

Marketable securities

    -       12,878       -       -       -       12,878  

Accounts receivable, net

    -       14,347       304       -       -       14,651  

Inventories

    -       -       183,490       5,632       (31,603 )     157,519  

Prepaid expenses and other current assets

    -       8,407       14,087       1,950       -       24,444  

Intercompany receivables

    -       846,615       325,820       (3,331 )     (1,169,104 )     -  

Total current assets

    -       985,144       531,218       8,145       (1,200,707 )     323,800  

Property, plant and equipment, net

    -       8,670       260,863       16,344       -       285,877  

Goodwill and other intangible assets

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

Restricted cash and investments

    -       8,007       -       -       -       8,007  

Other assets

    -       4,990       1,705       672       -       7,367  

Investment in affiliated companies

    742,283       (105,855 )     -       -       (636,428 )     -  

Total assets

  $ 742,283     $ 938,861     $ 801,009     $ 25,161     $ (1,837,135 )   $ 670,179  

Liabilities and Shareholders’ Equity

                                               

Current liabilities:

                                               

Current maturities of long-term debt

  $ -     $ -     $ 560     $ -     $ -     $ 560  

Customer deposits

    -       -       62,888       3,139       -       66,027  

Accounts payable

    -       3,805       16,006       240       -       20,051  

Accrued expenses and other current liabilities

    3,604       36,962       15,591       1,781       -       57,938  

Intercompany payables

    363,464       (8,804 )     783,438       31,006       (1,169,104 )     -  

Total current liabilities

    367,068       31,963       878,483       36,166       (1,169,104 )     144,576  

Long-term debt

    -       129,281       1,295       -       -       130,576  

Other long-term liabilities

    -       3,152       16,185       475       -       19,812  

Total liabilities

    367,068       164,396       895,963       36,641       (1,169,104 )     294,964  

Shareholders’ equity

    375,215       774,465       (94,954 )     (11,480 )     (668,031 )     375,215  

Total liabilities and shareholders’ equity

  $ 742,283     $ 938,861     $ 801,009     $ 25,161     $ (1,837,135 )   $ 670,179  

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES


Notes to Consolidated Financial Statements (Unaudited)


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 STATEMENT OF OPERATIONS

(In thousands)

Three months ended September 30, 2014


   

Parent

   

Issuer

   

Guarantors

   

Non-Guarantors

   

Eliminations

   

Consolidated

 

Net sales

  $ -     $ 122,465     $ 200,493     $ 12,156     $ (144,408 )   $ 190,706  

Cost of sales

    -       90,984       128,634       7,952       (141,667 )     85,903  

Gross profit

    -       31,481       71,859       4,204       (2,741 )     104,803  
                                                 

Selling, general and administrative expenses

    45       10,741       68,466       5,081       -       84,333  

Operating income (loss)

    (45 )     20,740       3,393       (877 )     (2,741 )     20,470  
                                                 

Interest and other income (expense)

    11,924       1,315       (1 )     24       (13,119 )     143  

Interest and other related financing costs

    -       1,859       30       -       -       1,889  

Income (loss) before income taxes

    11,879       20,196       3,362       (853 )     (15,860 )     18,724  

Income tax expense

    -       5,531       1,232       82       -       6,845  

Net income/(loss)

  $ 11,879     $ 14,665     $ 2,130     $ (935 )   $ (15,860 )   $ 11,879  

Three months ended September 30, 2013


   

Parent

   

Issuer

   

Guarantors

   

Non-Guarantors

   

Eliminations

   

Consolidated

 

Net sales

  $ -     $ 111,523     $ 194,828     $ 10,439     $ (135,131 )   $ 181,659  

Cost of sales

    -       83,933       127,155       6,857       (135,029 )     82,916  

Gross profit

    -       27,590       67,673       3,582       (102 )     98,743  
                                                 

Selling, general and administrative expenses

    45       9,632       68,165       4,957       -       82,799  

Operating income (loss)

    (45 )     17,958       (492 )     (1,375 )     (102 )     15,944  
                                                 

Interest and other income (expense)

    9,079       (1,868 )     -       (16 )     (7,113 )     82  

Interest and other related financing costs

    -       1,851       22       -       -       1,873  

Income (loss) before income taxes

    9,034       14,239       (514 )     (1,391 )     (7,215 )     14,153  

Income tax expense

    -       5,058       38       23       -       5,119  

Net income/(loss)

  $ 9,034     $ 9,181     $ (552 )   $ (1,414 )   $ (7,215 )   $ 9,034  

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In thousands)

Three months ended September 30, 2014


   

Parent

   

Issuer

   

Guarantors

   

Non-Guarantors

   

Eliminations

   

Consolidated

 

Net cash provided by (used in) operating activities

  $ 2,900     $ 1,030     $ 1,892     $ 986     $ -     $ 6,808  
                                                 

Cash flows from investing activities:

                                               

Capital expenditures

    -       (276 )     (4,933 )     (201 )     -       (5,410 )

Acquisitions

    -       -       (1,991 )     -       -       (1,991 )

Proceeds from the disposal of property, plant and equipment

    -       953       2,352       -       -       3,305  

Change in restricted cash and investments

    -       500       -       -       -       500  

Sales of marketable securities

    -       5,075               -       -       5,075  

Other

    -       44       -       -       -       44  

Net cash provided by (used in) investing activities

    -       6,296       (4,572 )     (201 )     -       1,523  
                                                 

Cash flows from financing activities:

                                               

Payments on long-term debt

    -       -       (150 )     -       -       (150 )

Dividends paid

    (2,900 )     -       -       -       -       (2,900 )

Other

    -       4       -       -       -       4  

Net cash provided by (used in) financing activities

    (2,900 )     4       (150 )     -       -       (3,046 )
                                                 

Effect of exchange rate changes on cash

    -       -       -       (153 )     -       (153 )

Net increase (decrease) in cash and cash equivalents

    -       7,330       (2,830 )     632       -       5,132  
                                                 

Cash and cash equivalents – beginning of period

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

Cash and cash equivalents – end of period

  $ -     $ 102,897     $ 7,517     $ 3,894     $ -     $ 114,308  

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In thousands)

Three months ended September 30, 2013


   

Parent

   

Issuer

   

Guarantors

   

Non-Guarantors

   

Eliminations

   

Consolidated

 

Net cash provided by (used in) operating activities

  $ 2,477     $ 15,198     $ 2,707     $ 763     $ -     $ 21,145  
                                                 

Cash flows from investing activities:

                                               

Capital expenditures

    -       (159 )     (2,994 )     (152 )     -       (3,305 )

Acquisitions

    -       -       -       -       -       -  

Proceeds from the disposal of property, plant and equipment

    -       18       752       -       -       770  

Change in restricted cash and investments

    -       499       -       -       -       499  

Purchases of marketable securities

    -       (3,990 )     -       -       -       (3,990 )

Sales of marketable securities

    -       5,920       -       -       -       5,920  

Other

    -       83       -       -       -       83  

Net cash provided by (used in) investing activities

    -       2,371       (2,242 )     (152 )     -       (23 )
                                                 

Cash flows from financing activities:

                                               

Payments on long-term debt

    -       -       (118 )     -       -       (118 )

Dividends paid

    (2,605 )     -       -       -       -       (2,605 )

Other

    128       12       -       -       -       140  

Net cash provided by (used in) financing activities

    (2,477 )     12       (118 )     -       -       (2,583 )
                                                 

Effect of exchange rate changes on cash

    -       -       -       84       -       84  

Net increase (decrease) in cash and cash equivalents

    -       17,581       347       695       -       18,623  
                                                 

Cash and cash equivalents – beginning of period

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

Cash and cash equivalents – end of period

  $ -     $ 74,888     $ 12,810     $ 3,526     $ -     $ 91,224