Ethan Allen Interiors Inc. (ETH) Q4 2021 Earnings Conference Call August 9, 2021 5:00 PM ET Company Participants Matt McNulty - Vice President of Finance Farooq Kathwari - Chairman and CEO Corey Whitely - Chief Financial Officer Conference Call Participants Andrew Efimoff - KeyBanc Capital Markets Cristina Fernández - Telsey Advisory Group Operator Good afternoon. Welcome to the Ethan Allen Fiscal 2021 Fourth Quarter Analyst Conference Call and Webcast. [Operator Instructions] As a reminder, this conference ...

Financial Data and Key Metrics Changes - During Q3 fiscal 2021, consolidated net sales increased to $177 million, representing an 18.2% increase compared to the prior year quarter [6] - GAAP earnings per share for the quarter was $0.61, compared to a loss of $0.01 per share in the prior year quarter [9] - Adjusted diluted EPS increased to $0.58 from $0.02 in the prior year quarter [9] - Adjusted gross margin increased by 130 basis points to 57.3% due to higher productivity and a favorable sales mix [7] - Adjusted operating margin rose to 11.1%, primarily driven by improved gross margin and a reduction in adjusted operating expenses by 2.1% [8] Business Line Data and Key Metrics Changes - Retail segment written orders grew by 58.1% compared to the prior year third quarter, with a sequential growth of 23.9% compared to the second quarter [5] - Wholesale segment written orders increased by 39%, and excluding government orders, the growth was 48.3% [6] - Retail net sales increased by 22.2%, while wholesale net sales rose by 15.8% [6] Market Data and Key Metrics Changes - Retail sales accounted for 79.9% of total consolidated sales, up from 77.2% a year ago, positively impacting gross margin [7] - E-commerce orders reflected 100% growth compared to the prior year quarter [5] Company Strategy and Development Direction - The company is focused on strengthening its manufacturing in North America, producing about 75% of its products, with 70% made to order [13] - The introduction of new custom programs in case goods and upholstery is aimed at enhancing product offerings [15] - Investments in technology have enabled virtual assistance for interior design services, differentiating the company in the market [16] Management's Comments on Operating Environment and Future Outlook - Management noted improvements in raw material availability, particularly foam, which had previously caused production delays [14][29] - The company expects to increase production in the upcoming quarters, contingent on receiving necessary materials [22] - Management expressed confidence in maintaining a strong backlog and anticipated continued growth despite industry challenges [33] Other Important Information - The company ended the quarter with $109 million in cash and no outstanding borrowings, reflecting a strong balance sheet [9] - A special cash dividend of $0.75 per share was declared, alongside a regular cash dividend of $0.25 [10] Q&A Session Summary Question: Financial outlook based on strong order trends and backlog - Management acknowledged the strong backlog and indicated that production increases are expected, contingent on raw material availability [21][22] Question: Future SG&A expenses and advertising investments - Management indicated that SG&A expenses would increase proportionately with business growth, with a shift towards more digital advertising reducing overall costs [24][26] Question: Raw material shortages and delivery delays - Management confirmed that foam shortages have impacted operations but noted improvements in production days and expected to meet requirements by the end of May [29] Question: Business performance in April compared to previous months - Management reported strong performance in April, although it may be slightly weaker than March due to a price increase implemented on April 1 [32]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Mark One) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 1-11692 Ethan Allen Interiors Inc. (Exact name of registrant as specified in its charter) Delaware 06-1275288 ...

Ethan Allen Interiors Inc.(ETH) Q2 2021 Earnings Conference Call January 28, 2021 5:00 PM ET Company Participants Matt McNulty - Vice President, Finance Farooq Kathwari - Chairman & Chief Executive Officer Corey Whitely - Chief Financial Officer Conference Call Participants Brad Thomas - KeyBanc Capital Markets Telsey Advisory - Group Advisory Group Operator Greetings, and welcome to the Ethan Allen Fiscal 2021 Second Quarter Analyst Conference Call. At this time, all participants are in a listen-only mode ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Mark One) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 1-11692 ETHAN AL Ethan Allen Interiors Inc. (Exact name of registrant as specified in its charter) Delawar ...

Financial Data and Key Metrics Changes - Sales for the quarter ended September 30, 2020, were $151 million, a 65% increase from the fourth quarter ended June 30, 2020, but a 13.1% decrease from September 30, 2019 [7] - Gross margins improved to 56.8%, up from 56.3% in the prior year and 53.3% from the previous quarter [9] - Adjusted operating income margin was 8.1%, compared to 7% in the previous year [14] - Adjusted diluted EPS was $0.36, slightly up from $0.35 in the prior year [15] - GAAP EPS was $0.37, down from $0.53 in the prior year due to a one-time gain in the previous year [16] Business Line Data and Key Metrics Changes - Retail division written business increased by 79% from the fourth quarter ended June 30, 2020, and 10.8% from September 30, 2019 [8] - Retail division backlog increased by 43% from June 30, 2020, and 39% from September 30, 2019 [9] - Ecommerce orders grew by 112% compared to the prior year quarter [12] - Wholesale segment orders increased by 9.2% excluding government orders, which were delayed due to COVID-19 [13] Market Data and Key Metrics Changes - October written orders were up over 50% compared to the prior year, indicating strong demand [22] - Retail traffic was lower than last year but more qualified, leading to higher conversion rates [41] Company Strategy and Development Direction - The company is focusing on strengthening talent and enhancing service, leveraging its vertically integrated manufacturing capabilities [18][19] - Investments in technology, such as augmented reality and 3D floor planners, are aimed at improving customer interaction and service [21] - The company plans to maintain strong marketing initiatives across various channels [20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the future, expecting to catch up on backlogs by the end of the current quarter [20] - There are challenges related to raw material availability, but manufacturing is close to pre-COVID levels [24] - The company anticipates that it can convert 60% to 70% of its backlog into sales in the upcoming quarter [24][37] Other Important Information - The company paid down $50 million of debt and ended the quarter debt-free with cash of $62 million [10][17] - Total headcount is down approximately 23% compared to the previous year, primarily in retail [35] Q&A Session Summary Question: How will the company convert strong backlog into revenues? - Management indicated that manufacturing is nearly back to pre-COVID levels and expects to convert 60% to 70% of the backlog into sales this quarter [24] Question: What is the competitive landscape regarding margins? - Management noted that most of their products are custom-made, which limits excess inventory and allows for better margins when operating at full capacity [26][29] Question: How did October trends compare to September? - October saw a 50% increase in orders compared to the previous year, attributed to both increased demand and the impact of last year's membership model [32] Question: Are there differences in performance by market? - Management observed that suburban markets are performing well, while urban areas like Manhattan are weaker due to various factors including COVID-19 [44][46]

PART I - FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q1 FY2021, detailing financial position, performance, and cash flows [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet as of September 30, 2020, shows total assets of $622.5 million, a decrease in cash due to debt repayment, and increased shareholders' equity Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2020 | June 30, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $61,973 | $72,276 | | Inventories, net | $127,047 | $126,101 | | Total current assets | $232,461 | $234,877 | | Total assets | $622,521 | $622,789 | | **Liabilities & Equity** | | | | Total current liabilities | $187,889 | $186,999 | | Total long-term debt | $0 | $50,000 | | Total liabilities | $289,590 | $294,725 | | Total shareholders' equity | $332,931 | $328,064 | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Net sales decreased 13.1% to $151.1 million for Q1 FY2021, with net income falling to $9.4 million and diluted EPS to $0.37 Q1 FY2021 Income Statement Summary (in thousands, except per share data) | Metric | Three months ended Sep 30, 2020 | Three months ended Sep 30, 2019 | | :--- | :--- | :--- | | Net sales | $151,058 | $173,921 | | Gross profit | $85,770 | $93,794 | | Operating income | $11,681 | $18,641 | | Net income | $9,353 | $14,106 | | Diluted EPS | $0.37 | $0.53 | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly increased to $42.2 million in Q1 FY2021, enabling a $50.0 million debt repayment, resulting in a net cash decrease Cash Flow Summary (in thousands) | Activity | Three months ended Sep 30, 2020 | Three months ended Sep 30, 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $42,190 | $23,396 | | Net cash (used in) provided by investing activities | $(2,439) | $6,940 | | Net cash used in financing activities | $(50,148) | $(5,194) | | Net (decrease) increase in cash | $(10,303) | $25,052 | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail accounting policies, COVID-19 impact, revenue recognition, segment performance, debt repayment, and the company's vertically integrated business model - The company operates as a vertically integrated interior design company, manufacturer, and retailer with approximately **300 design centers** globally, **144** company-operated, and **75%** of products made in North America[22](index=22&type=chunk)[121](index=121&type=chunk) - In response to COVID-19, the company repaid **$50.0 million** in debt, resumed production, and reinstated its quarterly dividend due to improved Q1 FY2021 business trends[24](index=24&type=chunk) Disaggregated Net Sales by Segment (Q1 FY2021, in thousands) | Product Category | Wholesale | Retail | Total (before eliminations) | | :--- | :--- | :--- | :--- | | Upholstery | $52,735 | $57,685 | $110,420 | | Case goods | $28,739 | $32,918 | $61,657 | | Accents | $17,196 | $24,313 | $41,509 | - The company fully repaid its **$50.0 million** in outstanding borrowings under its revolving credit facility in September 2020[73](index=73&type=chunk)[77](index=77&type=chunk) - In Q1 FY2021, the company recorded a non-cash impairment charge of **$0.6 million** related to long-lived assets at a retail design center location[83](index=83&type=chunk)[84](index=84&type=chunk) [Management's Discussion and Analysis (MD&A)](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY2021 financial results, highlighting COVID-19 impact, strong e-commerce growth, improved margins, and robust liquidity with debt repayment [Executive Overview](index=22&type=section&id=Executive%20Overview) Q1 FY2021 saw strong demand recovery, with retail written orders up 10.8% and e-commerce up 112%, alongside debt repayment and dividend reinstatement - Retail segment written orders increased by **10.8%** over the prior year, driven by **112%** growth in e-commerce business orders[127](index=127&type=chunk) - Adjusted operating income increased **0.7%** despite lower sales, attributed to strong gross margins and a **14.3%** reduction in operating expenses[128](index=128&type=chunk) - The company generated **$42.2 million** in cash from operations and repaid the remaining **$50.0 million** of debt, ending the quarter with a strong balance sheet[128](index=128&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Consolidated net sales for Q1 FY2021 decreased 13.1% to $151.1 million, but adjusted gross margin improved to 56.8% and adjusted operating income slightly increased Segment Net Sales (in millions) | Segment | Q1 FY2021 | Q1 FY2020 | % Change | | :--- | :--- | :--- | :--- | | Wholesale | $97.3 | $101.3 | (3.9%) | | Retail | $118.1 | $137.3 | (14.0%) | | **Consolidated** | **$151.1** | **$173.9** | **(13.1%)** | - Adjusted gross margin increased by **50 basis points** year-over-year, primarily due to higher wholesale and retail gross margins[149](index=149&type=chunk)[153](index=153&type=chunk) - Operating expenses decreased due to lower selling costs, reduced advertising spend, and lower general and administrative expenses, reflecting strong cost containment measures[152](index=152&type=chunk) - Adjusted diluted EPS increased **2.9%** to **$0.36** from **$0.35** a year ago, driven by improved gross margin and cost containment[159](index=159&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=26&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP adjusted financial measures, detailing adjustments for operating income and diluted EPS for Q1 FY2021 and prior year Reconciliation of GAAP to Adjusted Operating Income (in thousands) | Description | Q1 FY2021 | Q1 FY2020 | | :--- | :--- | :--- | | **GAAP Operating income** | **$11,681** | **$18,641** | | Adjustments (pre-tax) | $623 | $(6,428) | | **Adjusted operating income** | **$12,304** | **$12,213** | Reconciliation of GAAP to Adjusted Diluted EPS | Description | Q1 FY2021 | Q1 FY2020 | | :--- | :--- | :--- | | **GAAP Diluted EPS** | **$0.37** | **$0.53** | | **Adjusted diluted EPS** | **$0.36** | **$0.35** | [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is robust with **$62.0 million** cash, **$42.2 million** operating cash flow, full debt repayment, and reinstated quarterly dividend - Cash from operating activities increased **80.3%** to **$42.2 million** in Q1 FY2021, up from **$23.4 million** in the prior year, driven by improved working capital[171](index=171&type=chunk)[173](index=173&type=chunk) - The company used **$50.1 million** in financing activities, almost entirely for the **$50.0 million** repayment of borrowings under its revolving credit facility[171](index=171&type=chunk)[175](index=175&type=chunk) - On August 4, 2020, the Board of Directors reinstated the regular quarterly cash dividend of **$0.21 per share**[185](index=185&type=chunk) - Total availability under the credit facility was **$104.5 million** at September 30, 2020[181](index=181&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risks are minimal, with no outstanding debt reducing interest rate risk and limited, non-material foreign currency exposure - As of September 30, 2020, the company had no outstanding debt obligations, minimizing interest rate risk[197](index=197&type=chunk) - The company is aware of the upcoming LIBOR transition, with its Credit Agreement including provisions for alternative interest rate calculations like SOFR[199](index=199&type=chunk) - Foreign currency exchange risk is primarily limited to operations in Canada, Mexico, and Honduras, and is not expected to have a material effect on consolidated results[200](index=200&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2020, with no material changes in internal control over financial reporting - The principal executive and financial officers concluded that as of September 30, 2020, the company's disclosure controls and procedures were effective[202](index=202&type=chunk) - No material changes in internal control over financial reporting occurred during the first fiscal quarter[203](index=203&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) No material changes to legal proceedings were reported during the first three months of fiscal 2021 - No material changes to legal proceedings occurred during the first three months of fiscal 2021[205](index=205&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's previously identified risk factors were reported for the quarter - No material changes to the company's risk factors were reported for the quarter[208](index=208&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common stock during the quarter, with approximately **2.0 million** shares remaining authorized under the repurchase program - There were no share repurchases during the quarter ended September 30, 2020[210](index=210&type=chunk) - As of September 30, 2020, the company had a remaining Board authorization to repurchase **2,007,364 shares** of its common stock[210](index=210&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________ _________________________________________________ FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-11692 ETHAN ALLEN® Ethan Allen Interior ...

Ethan Allen Interiors, Inc. (ETH) Q4 2020 Earnings Conference Call August 4, 2020 5:00 PM ET Company Participants Matthew McNulty - VP, Corporate Controller & Principal Accounting Officer Farooq Kathwari - Chairman, President & CEO Corey Whitely - EVP, Administration, CFO & Treasurer Conference Call Participants Robert Griffin - Raymond James & Associates Brad Thomas - KeyBanc Capital Markets Cristina Fernández - Telsey Advisory Group Operator Hello, and welcome to the Ethan Allen Fiscal 2020 Fourth Quarter ...

Financial Data and Key Metrics Changes - Consolidated net sales for Q3 2020 were $149.8 million, down from $177.8 million in the prior year quarter, reflecting a significant impact from lower order backlogs and COVID-19 [9][10] - Adjusted EPS decreased to $0.02 compared to $0.31 in the prior year [13] - Adjusted gross margin remained strong at 56%, despite lower net sales [13] Business Line Data and Key Metrics Changes - Wholesale segment net sales were $93.1 million, down from $108.4 million in the prior year quarter, with total wholesale orders decreasing by 21.9% [10][11] - Retail segment net sales were $115.7 million, down from $138.9 million in the prior year quarter, with retail orders initially growing by 13.6% in February before declining due to COVID-19 [12][13] Market Data and Key Metrics Changes - Orders from the North American retail network declined by 32%, while wholesale orders from China decreased by 25.7% due to local quarantines [11] - In April 2020, the company generated 35% of written orders compared to April 2019, despite almost all design centers being closed [7][19] Company Strategy and Development Direction - The company has temporarily suspended the regular quarterly cash dividend and share repurchase program as part of its COVID-19 action plan [16] - The membership model was paused to allow all customers to purchase products without membership fees during the crisis [38][51] - The company aims to leverage a combination of personal service and technology to enhance customer engagement and sales [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining liquidity, stating that cash on hand was $117 million with no debt maturities until December 2023 [17] - The company believes that the fundamentals remain strong and is positioned well to grow despite the challenges posed by the pandemic [22][45] Other Important Information - The company has maintained strong liquidity while repurchasing 3.8% of its outstanding shares for $14 million and paying $5.5 million in dividends prior to the suspension [8][15] - The company has implemented cost-saving measures, including furloughing approximately 70% of its global workforce and reducing salaries for senior management [16] Q&A Session Summary Question: Update on lease negotiations and store openings - Management reported good progress in lease negotiations with landlords, including some abatements and reductions [27] - Most design centers were closed by late March, with a gradual reopening starting in early May [30][31] Question: Scenarios for cash liquidity - Management ran conservative scenarios and is confident in liquidity to sustain operations for at least 12 months, even under worst-case conditions [33] Question: Changes in membership model strategy - The membership program was temporarily paused to allow all customers to benefit from premium services without membership fees [38][51] Question: Impact of the pandemic on contract business - Government contract business remains stable, with expectations of continued orders despite a slowdown [39] Question: Trends in average selling price and margins - Gross margins improved despite low volumes, with expectations for further operational efficiency and margin improvement [40][41] Question: Expense reductions and future outlook - Management indicated that expenses would be lower due to operational efficiencies and reduced travel, with a more accurate assessment expected at the end of the quarter [43] Question: Regional trends and consumer behavior - Urban areas are experiencing more significant challenges compared to suburban areas, with increased focus on home office needs [46][47]