STATEMENT OF OPERATIONS DATI 2019 2018 Net sales $746,684 $766,784 Adjusted gross margin (a) 55.1% 54.2% Adjusted operating income (a) $55,051 $50,145 Adjusted net income (a) $41,632 $37,306 Adjusted diluted EPS (a) $1.56 $1.35 2017 $763,385 55.8% $64,960 $40,643 $1.45 BALANCE SHEET DATA Cash and cash equivalents $20,824 Total assets $510,351 Long-term debt $516 Total liabilities $146,422 Shareholders' equity $363,929 Working capital S93,464 $22,363 $530,433 $1,096 $146,563 $383,870 593,165 $65,031 $568,222 $11,608 $167,326 $400,896 $116,653 KEY METRICS Adjusted retum on equity (a) Current ratio Long-term debt to equity ratio Common shares outstanding 9.51% 1.77 TO 1 11.13% 1.76 TO 1 0.1% 26,586,945 10.25% 1.92 TO 1 2.9% 0.3% 26.529.294 27,447 215 CASH RETURNED TO SHAREHOLDERS Dividends paid $46,990 $29,509 Dividend yield 3.61% 3.10% Cost of shares repurchased so $22,019 Number of shares repurchatod 0 950,484 $20.031 2.29% $10.246 357.363 port in thousands, sicer per share data) Furcal Year Graded June 30, 2017 2019 2018 2016 2015 Consolidated Statements of Income Data Net Sales Gross Marpin Operating income (1) Operating margan (1) Provision for income taxes Fiective tax rate Net income) 746 684 S 54896 33.947 5 4545 8.162 $ 24.195 25.678 S 766,7845 54.2% 48.867 5 64% 12.696 2594 36371 $ 763 385 $ 55014 57.950 $ 76% 20,801 36.5 36.1945 794202 $ 55.7% 89.179 $ 112% 31 319 $ 35.6 56,637 S 754.600 51.5% 65934 87% 19541 34.5% 37.142 $ Pet Share Data Net income per basic share Basic weighted average shares Net Income per diluted share Diluted weighted average shates Cash dividends declared per share 0965 26.695 096 $ 26,751 1.76 $ 1335 27,321 132 $ 27.625 1.07 $ 131 $ 27.679 1.29 $ 27958 0.74 $ 202 28.072 200 28.324 0.62 $ 1.29 28.874 1.27 29.182 050 $ Other Information Depreciation and mortization Capital expenditures and actions Cash dividends pad Working capital Current $ 5 19,637 S 9.654 $ 46.990 $ 93,464 $ 176 to 1 19831 $ 18,773 $ 29.509 $ 93.165 $ 1.7761 20.115 18.321 20.031 116653 1.92 o 1 $ $ $ $ 19.353 23.1.32 16,646 124.857 201 to 1 $ $ 5 19.142 21.778 13348 130.012 192 to 1 Cornelidated Balance Sheet Det end of period Cash and cash equivalents Totalaus Lorem del Total Shares Long team debt to quity 5 $ $ 20924 510,351 516 146,422 36919 014. $ $ 5 5 5 22.163 530,433 $ 1096 $ 146563 $ 183570 5 03 57.701 $ 5682225 11.60 $ 1673365 100 895 5 3945 52659 $ 377 409 5 38837 5 185.207 $ 392202 $ 9.99 76182 605977 73.203 235.44 370.535 1984 Operating conflict 2019 chaded pre-tech of S204 con frecurg dit charges (520 is reported in cost of sales and SIS million in an expe) od 50.7 million related to the corporate action which combined to lower petaby294 Nel 2019 de charges of 154 mulated to putches and 506 ha) froches corporate Ded Stat 200 cinded 30 decimetom testung and prime charp and decrease from other corporate to June 30, 2019 2018 $ ASSETS Current assets: Cash and cash equivalents Accounts receivable, net Invertories, net Prepaid expenses and other current Assets Total current assets 20.824 14.247 162,389 18.830 216,290 22.363 12,364 163,012 16,686 214425 Property, plant and equipment, net Goodwill Intangible assets Deferred income taxes Other assets TOTAL ASSETS 245.246 25,388 19,740 2,108 1.579 510.351 267.903 25,388 19,740 1688 1.289 530.433 35,4855 56,714 21,327 SSO 8,750 122.826 516 1069 22.011 146,422 33.288 61,248 18926 584 7.214 121.260 1.096 4160 20.047 146,563 LIABILITIES Current lubilities Accounts payable and accrued expenses Customer deposits Accrued compensation and benefits Short-term debt Other current liabilities Total current liabilities Long-term debe Deferred income taxe Other long-term liabilities TOTAL LIABILITIES Commitments and contingencies (See Note 20) SHAREHOLDERS' EQUITY Preferred stock 50.01 par val: 1.055 dhe uthorized: none ived Como ok. 50.01 par value, 150,000 shares wuthorized: 49,019 and 48.989 shares in 26,587 and 26,529 shares outstanding June 30, 2019 and 2018, respectively Additional paid capital Try sock, tost: 22.463 22.460 heste 302019 and 2015, respectively Retained aming Acounted other comprehensive low Total Ethan Allen Interiors in sharbilder equiry Noncontrolling interest TOTAL SHAROLDERS EQUITY TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 091 377913 (656,597) 617,719 (5.651) 363.366 63 3632920 S1035 190 276.950 (656.531) 609.013 (6171) 3831 119 383070 3300 Semnant nota CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except share data) 5 2019 746,684 337,193 409.491 Years ended June 30, 2018 $ 766,784 350,820 415964 2017 763,385 343,662 419.723 Net sales Cost of unles Grow Profit Selling general aid administrative Restructuring and impairment charges Operating income 367,097 361.773 357.164 18,380 33,947 48.867 57950 Interest expense), et of interest income Income before income taxes (87 33,860 200 49.067 (955 56,995 Provision for income taxes Net Income 8,162 25698 12.696 36.371 20,801 36,194 S 0.965 26.695 133 27.321 1:31 27,679 Pe date Basic eamings per common share: Net income per base share Basic weighted average common shares Diluted enigs per common share Nel income per diluted share Diluted weighted average common shares Comeceive income Nel come Other comprehensive income one of tax Foreign Cecylation and ments $ 096 26.751 1.325 27,695 129 27958 25.698 36 3715 36.194 O 715 Other congeebemene income ou net ofta Come income $20 076) 1 26.142 20303 (51) (2001) 3020 5 201 36.95 Years ended June 30, 2018 2019 2017 25.698 5 36,371 s 36,194 19831 951 (106) 20,115 1.259 3.507 19,637 121 (3.511) 20.374 (2.296) 157 11s 201 (250) 1.013 (6) Cash Flows from Operating Activities Net income Adjustments to reconcile et income to be cash provided by operating activities Depreciation and amortization Share-based compensation expense Deferred income taxes Restaring and impairment charges Payments for resche Los on disposal of property, plant and equipment Othe Choge in operating net med abilities, net of effects of acquisitions Accounts receivable, nel Investories Prepaid expenses and other current assets Customer deposits Accounts payable and meetud expenses And compensation and benefits Other wet od libilities Nets provided by operating activities Cash Flows from Investing Acties Proceeds from the deal of property, plano Capital pendies Actions, ut fennel Othey activities Netched og stivities Caths from Vicing Activities Bowling facility Play on capitale oblasti Rep of montok Pedive (565) 057 C. 153) H4934) w 687 321 55,347 (682) (11,876) 3.274 (2441) 2.38 (1.4) 3.638) 12.497 (2.826) 13.507 1010 1.883 1.257 (1.715) 3,415 78,633 19.120) ) 327 (12-456) 16.287) 2014 (18.242 1273 17615) (676) 175 616873) 29.500 16.000 (16.57 (46) (903 276 (711 144567 03.120 (28.100 (10.216) (2001) Net 1944 691) 574 Efectos chicos Net des is rice Chilica Crew . (1.69 226 2004 13 132668 15 $ 0119 6803 ca C of 13.10 5 10 197 5 5 1504 Sun Neo De 5 1 30 ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAKEHOLDERS' EQUITY (in thousands) Additional Common Stock Paid in Shares Par Value Capital 48.922 $ 99 $ 374972 Accumulated Other Non Treasury Stock Comprehensive Retained Controlling Shares Amount Loss Earnings Interests 21,176 $ (624932) $ (4846) $ 616,315 5 204 36,194 Total Equity $ 392,202 36,194 1,199 1.200 1.250 1.299 120 120 357 (10.247) (20.533) Balance at June 30, 2016 Net income Common stock issued on share based awards Sharehased repetation expense Tax benefits from share based payment arrangements Purchase/retirement of company stock Cash dividends declared Other comprehensive income (loss) Balance at June 30, 2017 Net income Common stock issued on share-based awards Share-based compensation expense Purchase returnat of company stock Cash dividends declared Other comprehensive income (10,247) (20.533) 48.900 $ 490 5377550 21,533 5 (635,179) $ 715 (4,131) $ 661976 $ 36 371 (14) 1905 701 400.896 36,371 9 193 193 944 934 (1.747) 927 021372) (29.334) (23.119) (29.334) Coss) 199 300 5 269 23.00 (2010) (171) (51) 180 Mon $ 5 091) 20 25698 52 842 843 Halance at tune 1018 Netico Common stock issued on share-based awards Share based compensation expense Restricted stock vesting Cash dividends declared Other comprehensive income (los) Halace at June 30, 2019 2 (6) 121 (46) (47.000) (47000) 49019 101 17191 75 (0565915 520 15.651) 5 647,710 $ . 144 365929 01 See accompanying notes to the consolidatert 12 Quartery marciar Wala TUNUTTUJ The following table presents selected unaudited financial information for each of the quarterly periods in the years ended June 30, 2019 and 2018. The results for any quarter are not necessarily indicative of future quarterly results and, accordingly, period-to-period comparisons should not be relied upon as an indication of future performance (in thousands, except per share data) Eiscal 2019 Net sales Gross profit Operating income (los) Net Income (loss) Earnings (los) per basic share Earnings (loss) per diluted share Diluted weighted average common shares Dividends declared per common share Quarter Ended September 30 (01) December 31 (02) March 31 (03) 187,785 $ 197,152 5 177,829 $ $ 101,450 $ 108.860 $ 98.391 $ 11,799 $ 16,128 $ 10,669 $ 8,840 $ 12.190 $ 7978$ 0.33 $ 0.46 5 030 5 0.33 5 045 $ 0.30 $ 26.940 26.923 26,751 0.19 $ 1.195 0.19 $ June 30 () 183918 100,787 (4.649) (3.310) (0.12) (0.12) 26.758 0.19 Eiscal 2015 Net sales Grow profit Operating income Net Income Esmings per baie share Earings per diluted here Diluted weighted average common shares Dividenc declared per common share September 30 (21) 181.300 $ 100323 $ 11.549 $ 7415 $ 0.275 0.27 $ 27,756 0.19 $ Quarter Ended December 31 (02) March 31 (03) 198,481 5 181419 107,791 $ 96.708 17.338 $ 3.873 14.802 5 2,616 054 5 0.10 03 $ 0.00 27.728 27,692 $ $ 5 $ 5 5 5 June 30 (04) 205.582 111.142 15.907 11.078 043 0.0 27323 050 0.19 $ 019 Part 2: Complete Horizontal Analysis (Trend Analysis) on the Balance Sheet and Income Statement. HORIZONTAL ANALYSIS BALANCE SHEET 2019 2018 DOLLAR PERCENTAGE CHANGE CHANGE CASH & CASH EQUIVALENTS ACCOUNTS RECEIVABLE INVENTORIES PREPAID EXPENSES PROPERTY-PLANT-EQUIPMENT GOODWILL TOTAL ASSETS TOTAL CURRENT LIABILITIES LONG TERM DEBT TOTAL LIABILITIES TOTAL SHAREHOLDER'S EQUITY TOTAL LIABILITLIES & EQUITY HORIZONTAL ANALYSIS INCOME STATEMENT 2019 2018 DOLLAR PERCENTAGE CHANGE CHANGE NET SALES COST OF SALES GROSS PROFIT SELLING. GEN & ADMIN EXPENSES INCOME TAX EXPENSE NET INCOME Based on your Horizontal analysis, answer these questions: Which accounts on the Balance Sheet had the most significant increases/decreases? Why did the amounts change so much? Which accounts on the Income Statement had the most significant increases/decreases? Why did the amounts change so much? How do you know if the company is doing well? Use the footnotes in the annual report and press releases to validate your conclusions. Part 3: Complete Vertical Analysis (common size) on the Balance Sheet and Income Statement. 2019 PERCENTAGE 2018 PERCENTAGE BALANCE SHEET CASH & CASH EQUIVALENTS ACCOUNTS RECEIVABLE INVENTORIES PREPAID EXPENSES PROPERTY PLANT EQUIPMENT GOODWILL TOTAL ASSETS TOTAL CURRENT LIABILITIES LONG TERM DEBT TOTAL LIABILITIES INCOME TAX EXPENSE NET INCOME Based on your Horizontal analysis, answer these questions: Which accounts on the Balance Sheet had the most significant increases/decreases? Why did the amounts change so much? Which accounts on the Income Statement had the most significant increases/decreases? Why did the amounts change so much? How do you know if the company is doing well? Use the footnotes in the annual report and press releases to validate your conclusions. Part 3: Complete Vertical Analysis (common size) on the Balance Sheet and Income Statement. BALANCE SHEET 2019 PERCENTAGE 2018 PERCENTAGE CASH & CASH EQUIVALENTS ACCOUNTS RECEIVABLE INVENTORIES PREPAID EXPENSES PROPERTY-PLANT-EQUIPMENT GOODWILL TOTAL ASSETS TOTAL CURRENT LIABILITIES LONG TERM DEBT TOTAL LIABILITIES TOTAL SHAREHOLDER'S EQUITY TOTAL LIABILITLIES & EQUITY VERTICAL ANALYSIS INCOME STATEMENT 2019 PERCENTAGE 2018 PERCENTAGE NET SALES COST OF SALES GROSS PROFIT SELLING GEN & ADMIN EXPENSES INCOME TAX EXPENSE NET INCOME Based on your Vertical analysis, answer these questions: Were there any significant changes from 2018 to 2019? Are any line items significantly larger/smaller than others? If so, why? What does it tell you about the company? Part 4: Enter the data into Blackboard to confirm you have the correct number for DIALANCE SHEET CURRENT ASSETS QUICK ASSETS TOTAL ASSETS AVERAGE TOTAL ASSETS AVERAGE ACCOUNTS RECENABLE AVERAGE NVENTORY CURRENT LIABLES TOTAL LABUTES TOTAL EQUITY AVERAGE SE INCOME STATEMENT NET SALES/TOTAL REVENUE COGS GROSS PROFIT EDIT INTEREST EXPENSE NET NCOME Calculate Ratios: Enter answer in Part 5: Blackboard for: 2019 LIQUIDITY WORKING CAPITAL CURRENT RATIO QUICK RATIO 2019 PROFITABILITY GROSS PROFIT MARGN NET PROFIT MARGN RETURN ON EQUITY RETURN ON ASSETS ASSET TURNOVER 2019 ASSET MANAGEMENT ACCOUNTS RECENABLE TURNOVER AVERAGE COLLECTION PERIOD INVENTORY TURNOVER DAYS SALES INVENTORY 2019 SOLVENCY ANALYSIS DEBT TO EQUITY TIMES INTEREST EARNED DEBT TO TOTAL ASSETS Part 6: Based on the ratios you calculated, answer these questions: Assess the Liquidity of the Company. Based on the working capital computation does the company have enough working capital to meet the needs of the business? How does the company compare to the benchmark for the current and quick ratios? How does the comnany's current and uick ratins comnare to the Part 6: Based on the ratios you calculated, answer these questions: Assess the Liquidity of the Company. Based on the working capital computation, does the company have enough working capital to meet the needs of the business? How does the company compare to the benchmark for the current and quick ratios? How does the company's current and quick ratios compare to the competitors? Assess the Profitability of the Company. How does the gross profit margin compare to last year? Why did it increase/decrease? How does the net profit margin compare to last year? Why did it increase/decrease? Based on your calculation of return on equity, is management efficiently using investment funds to generate grow in earnings for the company? Why/Why not? Based on your calculation of return on assets, is management efficiently using it assets to generate earnings? Why/Why not? Based on your calculation of asset turnover, is management efficiently using it assets to generate sales? Why/Why not? Assess the Asset Management of the Company. Based on your calculation of accounts receivable turnover, how does the company compare to the prior year calculation? Based on your calculation of accounts receivable turnover, how does the company compare to the industry? Why did the accounts receivable turnover ratio increase/decrease? Based on your calculation of inventory turnover, how does the company compare to the prior year calculation? Based on your calculation of inventory turnover, how does the company compare to the industry? Why did the inventory turnover ratio increase/decrease? competitors? Assess the Profitability of the Company. How does the gross profit margin compare to last year? Why did it increase/decrease? How does the net profit margin compare to last year? Why did it increase/decrease? Based on your calculation of return on equity, is management efficiently using investment funds to generate grow in earnings for the company? Why/Why not? Based on your calculation of return on assets, is management efficiently using it assets to generate earnings? Why/Why not? Based on your calculation of asset turnover, is management efficiently using it assets to generate sales? Why/Why not? Assess the Asset Management of the Company. Based on your calculation of accounts receivable turnover, how does the company compare to the prior year calculation? Based on your calculation of accounts receivable tumover, how does the company compare to the industry? Why did the accounts receivable turnover ratio increase/decrease? Based on your calculation of inventory turnover, how does the company compare to the prior year calculation? Based on your calculation of inventory turnover, how does the company compare to the industry? Why did the inventory turnover ratio increase/decrease? Assess the Solvency of the Company. Based on your calculation of the debt to equity ratio, is the company solvent? Explain whylwhy not. Based on your calculation of the times interest earned ratio, does the company have enough income to meet the interest payments as they come due? Explain whylwhy not. Based on your calculation of the debt to total assets ratio, how much of the company's assets are financed by debt? Is the amount too high? Explain why why not. STATEMENT OF OPERATIONS DATI 2019 2018 Net sales $746,684 $766,784 Adjusted gross margin (a) 55.1% 54.2% Adjusted operating income (a) $55,051 $50,145 Adjusted net income (a) $41,632 $37,306 Adjusted diluted EPS (a) $1.56 $1.35 2017 $763,385 55.8% $64,960 $40,643 $1.45 BALANCE SHEET DATA Cash and cash equivalents $20,824 Total assets $510,351 Long-term debt $516 Total liabilities $146,422 Shareholders' equity $363,929 Working capital S93,464 $22,363 $530,433 $1,096 $146,563 $383,870 593,165 $65,031 $568,222 $11,608 $167,326 $400,896 $116,653 KEY METRICS Adjusted retum on equity (a) Current ratio Long-term debt to equity ratio Common shares outstanding 9.51% 1.77 TO 1 11.13% 1.76 TO 1 0.1% 26,586,945 10.25% 1.92 TO 1 2.9% 0.3% 26.529.294 27,447 215 CASH RETURNED TO SHAREHOLDERS Dividends paid $46,990 $29,509 Dividend yield 3.61% 3.10% Cost of shares repurchased so $22,019 Number of shares repurchatod 0 950,484 $20.031 2.29% $10.246 357.363 port in thousands, sicer per share data) Furcal Year Graded June 30, 2017 2019 2018 2016 2015 Consolidated Statements of Income Data Net Sales Gross Marpin Operating income (1) Operating margan (1) Provision for income taxes Fiective tax rate Net income) 746 684 S 54896 33.947 5 4545 8.162 $ 24.195 25.678 S 766,7845 54.2% 48.867 5 64% 12.696 2594 36371 $ 763 385 $ 55014 57.950 $ 76% 20,801 36.5 36.1945 794202 $ 55.7% 89.179 $ 112% 31 319 $ 35.6 56,637 S 754.600 51.5% 65934 87% 19541 34.5% 37.142 $ Pet Share Data Net income per basic share Basic weighted average shares Net Income per diluted share Diluted weighted average shates Cash dividends declared per share 0965 26.695 096 $ 26,751 1.76 $ 1335 27,321 132 $ 27.625 1.07 $ 131 $ 27.679 1.29 $ 27958 0.74 $ 202 28.072 200 28.324 0.62 $ 1.29 28.874 1.27 29.182 050 $ Other Information Depreciation and mortization Capital expenditures and actions Cash dividends pad Working capital Current $ 5 19,637 S 9.654 $ 46.990 $ 93,464 $ 176 to 1 19831 $ 18,773 $ 29.509 $ 93.165 $ 1.7761 20.115 18.321 20.031 116653 1.92 o 1 $ $ $ $ 19.353 23.1.32 16,646 124.857 201 to 1 $ $ 5 19.142 21.778 13348 130.012 192 to 1 Cornelidated Balance Sheet Det end of period Cash and cash equivalents Totalaus Lorem del Total Shares Long team debt to quity 5 $ $ 20924 510,351 516 146,422 36919 014. $ $ 5 5 5 22.163 530,433 $ 1096 $ 146563 $ 183570 5 03 57.701 $ 5682225 11.60 $ 1673365 100 895 5 3945 52659 $ 377 409 5 38837 5 185.207 $ 392202 $ 9.99 76182 605977 73.203 235.44 370.535 1984 Operating conflict 2019 chaded pre-tech of S204 con frecurg dit charges (520 is reported in cost of sales and SIS million in an expe) od 50.7 million related to the corporate action which combined to lower petaby294 Nel 2019 de charges of 154 mulated to putches and 506 ha) froches corporate Ded Stat 200 cinded 30 decimetom testung and prime charp and decrease from other corporate to June 30, 2019 2018 $ ASSETS Current assets: Cash and cash equivalents Accounts receivable, net Invertories, net Prepaid expenses and other current Assets Total current assets 20.824 14.247 162,389 18.830 216,290 22.363 12,364 163,012 16,686 214425 Property, plant and equipment, net Goodwill Intangible assets Deferred income taxes Other assets TOTAL ASSETS 245.246 25,388 19,740 2,108 1.579 510.351 267.903 25,388 19,740 1688 1.289 530.433 35,4855 56,714 21,327 SSO 8,750 122.826 516 1069 22.011 146,422 33.288 61,248 18926 584 7.214 121.260 1.096 4160 20.047 146,563 LIABILITIES Current lubilities Accounts payable and accrued expenses Customer deposits Accrued compensation and benefits Short-term debt Other current liabilities Total current liabilities Long-term debe Deferred income taxe Other long-term liabilities TOTAL LIABILITIES Commitments and contingencies (See Note 20) SHAREHOLDERS' EQUITY Preferred stock 50.01 par val: 1.055 dhe uthorized: none ived Como ok. 50.01 par value, 150,000 shares wuthorized: 49,019 and 48.989 shares in 26,587 and 26,529 shares outstanding June 30, 2019 and 2018, respectively Additional paid capital Try sock, tost: 22.463 22.460 heste 302019 and 2015, respectively Retained aming Acounted other comprehensive low Total Ethan Allen Interiors in sharbilder equiry Noncontrolling interest TOTAL SHAROLDERS EQUITY TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 091 377913 (656,597) 617,719 (5.651) 363.366 63 3632920 S1035 190 276.950 (656.531) 609.013 (6171) 3831 119 383070 3300 Semnant nota CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except share data) 5 2019 746,684 337,193 409.491 Years ended June 30, 2018 $ 766,784 350,820 415964 2017 763,385 343,662 419.723 Net sales Cost of unles Grow Profit Selling general aid administrative Restructuring and impairment charges Operating income 367,097 361.773 357.164 18,380 33,947 48.867 57950 Interest expense), et of interest income Income before income taxes (87 33,860 200 49.067 (955 56,995 Provision for income taxes Net Income 8,162 25698 12.696 36.371 20,801 36,194 S 0.965 26.695 133 27.321 1:31 27,679 Pe date Basic eamings per common share: Net income per base share Basic weighted average common shares Diluted enigs per common share Nel income per diluted share Diluted weighted average common shares Comeceive income Nel come Other comprehensive income one of tax Foreign Cecylation and ments $ 096 26.751 1.325 27,695 129 27958 25.698 36 3715 36.194 O 715 Other congeebemene income ou net ofta Come income $20 076) 1 26.142 20303 (51) (2001) 3020 5 201 36.95 Years ended June 30, 2018 2019 2017 25.698 5 36,371 s 36,194 19831 951 (106) 20,115 1.259 3.507 19,637 121 (3.511) 20.374 (2.296) 157 11s 201 (250) 1.013 (6) Cash Flows from Operating Activities Net income Adjustments to reconcile et income to be cash provided by operating activities Depreciation and amortization Share-based compensation expense Deferred income taxes Restaring and impairment charges Payments for resche Los on disposal of property, plant and equipment Othe Choge in operating net med abilities, net of effects of acquisitions Accounts receivable, nel Investories Prepaid expenses and other current assets Customer deposits Accounts payable and meetud expenses And compensation and benefits Other wet od libilities Nets provided by operating activities Cash Flows from Investing Acties Proceeds from the deal of property, plano Capital pendies Actions, ut fennel Othey activities Netched og stivities Caths from Vicing Activities Bowling facility Play on capitale oblasti Rep of montok Pedive (565) 057 C. 153) H4934) w 687 321 55,347 (682) (11,876) 3.274 (2441) 2.38 (1.4) 3.638) 12.497 (2.826) 13.507 1010 1.883 1.257 (1.715) 3,415 78,633 19.120) ) 327 (12-456) 16.287) 2014 (18.242 1273 17615) (676) 175 616873) 29.500 16.000 (16.57 (46) (903 276 (711 144567 03.120 (28.100 (10.216) (2001) Net 1944 691) 574 Efectos chicos Net des is rice Chilica Crew . (1.69 226 2004 13 132668 15 $ 0119 6803 ca C of 13.10 5 10 197 5 5 1504 Sun Neo De 5 1 30 ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAKEHOLDERS' EQUITY (in thousands) Additional Common Stock Paid in Shares Par Value Capital 48.922 $ 99 $ 374972 Accumulated Other Non Treasury Stock Comprehensive Retained Controlling Shares Amount Loss Earnings Interests 21,176 $ (624932) $ (4846) $ 616,315 5 204 36,194 Total Equity $ 392,202 36,194 1,199 1.200 1.250 1.299 120 120 357 (10.247) (20.533) Balance at June 30, 2016 Net income Common stock issued on share based awards Sharehased repetation expense Tax benefits from share based payment arrangements Purchase/retirement of company stock Cash dividends declared Other comprehensive income (loss) Balance at June 30, 2017 Net income Common stock issued on share-based awards Share-based compensation expense Purchase returnat of company stock Cash dividends declared Other comprehensive income (10,247) (20.533) 48.900 $ 490 5377550 21,533 5 (635,179) $ 715 (4,131) $ 661976 $ 36 371 (14) 1905 701 400.896 36,371 9 193 193 944 934 (1.747) 927 021372) (29.334) (23.119) (29.334) Coss) 199 300 5 269 23.00 (2010) (171) (51) 180 Mon $ 5 091) 20 25698 52 842 843 Halance at tune 1018 Netico Common stock issued on share-based awards Share based compensation expense Restricted stock vesting Cash dividends declared Other comprehensive income (los) Halace at June 30, 2019 2 (6) 121 (46) (47.000) (47000) 49019 101 17191 75 (0565915 520 15.651) 5 647,710 $ . 144 365929 01 See accompanying notes to the consolidatert 12 Quartery marciar Wala TUNUTTUJ The following table presents selected unaudited financial information for each of the quarterly periods in the years ended June 30, 2019 and 2018. The results for any quarter are not necessarily indicative of future quarterly results and, accordingly, period-to-period comparisons should not be relied upon as an indication of future performance (in thousands, except per share data) Eiscal 2019 Net sales Gross profit Operating income (los) Net Income (loss) Earnings (los) per basic share Earnings (loss) per diluted share Diluted weighted average common shares Dividends declared per common share Quarter Ended September 30 (01) December 31 (02) March 31 (03) 187,785 $ 197,152 5 177,829 $ $ 101,450 $ 108.860 $ 98.391 $ 11,799 $ 16,128 $ 10,669 $ 8,840 $ 12.190 $ 7978$ 0.33 $ 0.46 5 030 5 0.33 5 045 $ 0.30 $ 26.940 26.923 26,751 0.19 $ 1.195 0.19 $ June 30 () 183918 100,787 (4.649) (3.310) (0.12) (0.12) 26.758 0.19 Eiscal 2015 Net sales Grow profit Operating income Net Income Esmings per baie share Earings per diluted here Diluted weighted average common shares Dividenc declared per common share September 30 (21) 181.300 $ 100323 $ 11.549 $ 7415 $ 0.275 0.27 $ 27,756 0.19 $ Quarter Ended December 31 (02) March 31 (03) 198,481 5 181419 107,791 $ 96.708 17.338 $ 3.873 14.802 5 2,616 054 5 0.10 03 $ 0.00 27.728 27,692 $ $ 5 $ 5 5 5 June 30 (04) 205.582 111.142 15.907 11.078 043 0.0 27323 050 0.19 $ 019 Part 2: Complete Horizontal Analysis (Trend Analysis) on the Balance Sheet and Income Statement. HORIZONTAL ANALYSIS BALANCE SHEET 2019 2018 DOLLAR PERCENTAGE CHANGE CHANGE CASH & CASH EQUIVALENTS ACCOUNTS RECEIVABLE INVENTORIES PREPAID EXPENSES PROPERTY-PLANT-EQUIPMENT GOODWILL TOTAL ASSETS TOTAL CURRENT LIABILITIES LONG TERM DEBT TOTAL LIABILITIES TOTAL SHAREHOLDER'S EQUITY TOTAL LIABILITLIES & EQUITY HORIZONTAL ANALYSIS INCOME STATEMENT 2019 2018 DOLLAR PERCENTAGE CHANGE CHANGE NET SALES COST OF SALES GROSS PROFIT SELLING. GEN & ADMIN EXPENSES INCOME TAX EXPENSE NET INCOME Based on your Horizontal analysis, answer these questions: Which accounts on the Balance Sheet had the most significant increases/decreases? Why did the amounts change so much? Which accounts on the Income Statement had the most significant increases/decreases? Why did the amounts change so much? How do you know if the company is doing well? Use the footnotes in the annual report and press releases to validate your conclusions. Part 3: Complete Vertical Analysis (common size) on the Balance Sheet and Income Statement. 2019 PERCENTAGE 2018 PERCENTAGE BALANCE SHEET CASH & CASH EQUIVALENTS ACCOUNTS RECEIVABLE INVENTORIES PREPAID EXPENSES PROPERTY PLANT EQUIPMENT GOODWILL TOTAL ASSETS TOTAL CURRENT LIABILITIES LONG TERM DEBT TOTAL LIABILITIES INCOME TAX EXPENSE NET INCOME Based on your Horizontal analysis, answer these questions: Which accounts on the Balance Sheet had the most significant increases/decreases? Why did the amounts change so much? Which accounts on the Income Statement had the most significant increases/decreases? Why did the amounts change so much? How do you know if the company is doing well? Use the footnotes in the annual report and press releases to validate your conclusions. Part 3: Complete Vertical Analysis (common size) on the Balance Sheet and Income Statement. BALANCE SHEET 2019 PERCENTAGE 2018 PERCENTAGE CASH & CASH EQUIVALENTS ACCOUNTS RECEIVABLE INVENTORIES PREPAID EXPENSES PROPERTY-PLANT-EQUIPMENT GOODWILL TOTAL ASSETS TOTAL CURRENT LIABILITIES LONG TERM DEBT TOTAL LIABILITIES TOTAL SHAREHOLDER'S EQUITY TOTAL LIABILITLIES & EQUITY VERTICAL ANALYSIS INCOME STATEMENT 2019 PERCENTAGE 2018 PERCENTAGE NET SALES COST OF SALES GROSS PROFIT SELLING GEN & ADMIN EXPENSES INCOME TAX EXPENSE NET INCOME Based on your Vertical analysis, answer these questions: Were there any significant changes from 2018 to 2019? Are any line items significantly larger/smaller than others? If so, why? What does it tell you about the company? Part 4: Enter the data into Blackboard to confirm you have the correct number for DIALANCE SHEET CURRENT ASSETS QUICK ASSETS TOTAL ASSETS AVERAGE TOTAL ASSETS AVERAGE ACCOUNTS RECENABLE AVERAGE NVENTORY CURRENT LIABLES TOTAL LABUTES TOTAL EQUITY AVERAGE SE INCOME STATEMENT NET SALES/TOTAL REVENUE COGS GROSS PROFIT EDIT INTEREST EXPENSE NET NCOME Calculate Ratios: Enter answer in Part 5: Blackboard for: 2019 LIQUIDITY WORKING CAPITAL CURRENT RATIO QUICK RATIO 2019 PROFITABILITY GROSS PROFIT MARGN NET PROFIT MARGN RETURN ON EQUITY RETURN ON ASSETS ASSET TURNOVER 2019 ASSET MANAGEMENT ACCOUNTS RECENABLE TURNOVER AVERAGE COLLECTION PERIOD INVENTORY TURNOVER DAYS SALES INVENTORY 2019 SOLVENCY ANALYSIS DEBT TO EQUITY TIMES INTEREST EARNED DEBT TO TOTAL ASSETS Part 6: Based on the ratios you calculated, answer these questions: Assess the Liquidity of the Company. Based on the working capital computation does the company have enough working capital to meet the needs of the business? How does the company compare to the benchmark for the current and quick ratios? How does the comnany's current and uick ratins comnare to the Part 6: Based on the ratios you calculated, answer these questions: Assess the Liquidity of the Company. Based on the working capital computation, does the company have enough working capital to meet the needs of the business? How does the company compare to the benchmark for the current and quick ratios? How does the company's current and quick ratios compare to the competitors? Assess the Profitability of the Company. How does the gross profit margin compare to last year? Why did it increase/decrease? How does the net profit margin compare to last year? Why did it increase/decrease? Based on your calculation of return on equity, is management efficiently using investment funds to generate grow in earnings for the company? Why/Why not? Based on your calculation of return on assets, is management efficiently using it assets to generate earnings? Why/Why not? Based on your calculation of asset turnover, is management efficiently using it assets to generate sales? Why/Why not? Assess the Asset Management of the Company. Based on your calculation of accounts receivable turnover, how does the company compare to the prior year calculation? Based on your calculation of accounts receivable turnover, how does the company compare to the industry? Why did the accounts receivable turnover ratio increase/decrease? Based on your calculation of inventory turnover, how does the company compare to the prior year calculation? Based on your calculation of inventory turnover, how does the company compare to the industry? Why did the inventory turnover ratio increase/decrease? competitors? Assess the Profitability of the Company. How does the gross profit margin compare to last year? Why did it increase/decrease? How does the net profit margin compare to last year? Why did it increase/decrease? Based on your calculation of return on equity, is management efficiently using investment funds to generate grow in earnings for the company? Why/Why not? Based on your calculation of return on assets, is management efficiently using it assets to generate earnings? Why/Why not? Based on your calculation of asset turnover, is management efficiently using it assets to generate sales? Why/Why not? Assess the Asset Management of the Company. Based on your calculation of accounts receivable turnover, how does the company compare to the prior year calculation? Based on your calculation of accounts receivable tumover, how does the company compare to the industry? Why did the accounts receivable turnover ratio increase/decrease? Based on your calculation of inventory turnover, how does the company compare to the prior year calculation? Based on your calculation of inventory turnover, how does the company compare to the industry? Why did the inventory turnover ratio increase/decrease? Assess the Solvency of the Company. Based on your calculation of the debt to equity ratio, is the company solvent? Explain whylwhy not. Based on your calculation of the times interest earned ratio, does the company have enough income to meet the interest payments as they come due? Explain whylwhy not. Based on your calculation of the debt to total assets ratio, how much of the company's assets are financed by debt? Is the amount too high? Explain why why not
