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News Breaks
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October 25, 2009
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| 12:58 EDT |  | ETH |
| theflyonthewall.com: | Ethan Allen increases credit facility, gives business update | | Ethan Allen Interiors announced it has amended its existing three year senior secured revolving credit facility, increasing the line to $60M by adding a $20M commitment from Wells Fargo Retail Finance, who is now part of the company’s bank group. The company currently has no plans to use the facility other than for its outstanding letters of credit , currently $12.5 million, primarily for workers compensation insurance purposes. Farooq Kathwari, Chairman and CEO commented, "While we continue to improve our cash position which increased $19.5 million to $72.5 million during our first fiscal quarter ended September 30...Mr. Kathwari continued,“Our delivered net sales for the first fiscal quarter ended September 30, 2009 were $136.2M compared to $205.8M for the same quarter last fiscal year. Our first quarter is historically lower than the fourth quarter of the preceding fiscal year and this year was no exception. In addition, we started the quarter with very low backlogs. Our aggressive marketing programs resulted in relatively strong orders at the end of the quarter resulting in a 19% increase in our retail backlog compared to June 30, 2009. Our written sales showed an increase of 12% from the preceding fiscal quarter retail written sales and we reduced the decline from the previous year to 19.5% compared to the decline of 38.5% in January through June of 2009. While we see positive trends, business conditions remain challenging.” Mr. Kathwari further stated, “During the quarter, we continued our previously discussed consolidation of one of our upholstery plants, realignment of our case goods manufacturing in the Northeast and optimizing our retail logistics operations. We also have made progress in the conversion of our case goods plants to custom. All of these actions impacted financial results in the quarter. Excluding restructuring, accelerated depreciation, related plant transition costs, and tax valuation allowances booked in the quarter, we expect diluted loss per share to be between 23c-21c. :theflyonthewall.com |
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