NYSE$ETD

Ethan Allen Interiors Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Ethan Allen experienced a significant decrease in net sales and earnings per share due to COVID-19 disruptions, but took actions to maintain a strong cash position and reinstated the quarterly dividend.

Ethan Allen's Q4 2020 results were significantly impacted by COVID-19, with a 50.2% decrease in consolidated net sales to $91.6 million. The company reported a diluted loss per share of ($0.48) and an adjusted loss per share of ($0.15). Despite these challenges, Ethan Allen maintained a strong cash position, generated $14 million in cash from operating activities, and reinstated its regular quarterly cash dividend.

  • Consolidated net sales decreased by 50.2% to $91.6 million due to COVID-19 related disruptions.
  • The company had a diluted loss per share of ($0.48) and an adjusted loss per share of ($0.15).
  • Cash from operating activities increased by 28.1% to $14.0 million.
  • The Board of Directors reinstated the regular quarterly cash dividend of $0.21 per share.

Headline financials

Total Revenue

$91.6M

Previous: $184M-50.2%
EPS (adj)

-$0.15

Previous: $0.46-132.6%
Gross margin

52.3%

Previous: 54.8%-4.6%
Capital Expenditures

$3.25M

Previous: $2.13M+52.7%
Free Cash Flow

$10.8M

Previous: $8.81M+22.1%
Net Income

-$12.7M

Previous: -$3.31M-283.7%
Operating Income

-$12.4M

Previous: -$4.65M-166.7%
Gross Profit

$47.9M

Previous: $101M-52.5%
Cash & Equivalents

$72.3M

Previous: $20.8M+247.2%
Total Assets

$521M

Previous: $510M+2.0%
Stock-Based Comp

$134K

Previous: -$865K+115.5%

Revenue & EPS history

Ethan Allen · Revenue · Quarterly

$91.6M

Q4 2020-50.2%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Ethan Allen · $122M total across 2 segments · Q4 2020

  • Retail net sales
    $70.7M-51.9%
  • Wholesale net sales
    $51.6M

Forward guidance

Ethan Allen is cautiously optimistic about growing sales and profits, focusing on its retail network, North American manufacturing, and technology.

Tailwinds

  • Focus on retail network.
  • Vertical structure with 75% of products made in North American workshops.
  • Increasing use of technology in all aspects of the enterprise.
  • Maintaining focus on strong governance and social responsibility.
  • Reinstated regular quarterly cash dividend.

Headwinds

  • Unprecedented disruption due to COVID-19.
  • Temporary closure of design centers and manufacturing facilities.
  • Furlough of approximately 70% of global workforce.
  • Net sales negatively impacted by COVID-19.
  • COVID-19 ongoing concerns made it difficult to quickly return to desired staffing levels, particularly in the manufacturing plants, which kept production and net shipments below last year’s rate, resulting in higher ending backlog at the end of the quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-0.3%

Avg return

Earnings day

-1.4%

Avg return

5 days after

-1.4%

Avg return

30 days after

50%

32 / 64 earnings

Positive

+21.7%

Q1 2013

Best reaction

-14.7%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.9%-8.8%-7.1%
Q2 2026-6.2%-3.4%-5.7%
Q1 2026-9.8%-12.2%-13.1%
Q3 2025-11.7%-10.5%-10.7%
Q2 2025+11.0%+7.2%-0.2%
Q1 2025-6.2%-4.5%+4.2%
Q4 2024+4.2%-0.4%+2.3%
Q3 2024-14.7%-15.2%-15.7%
Q2 2024+0.2%+3.7%+6.6%
Q1 2024-9.5%-7.1%-1.8%
Q4 2023+13.9%+12.2%+1.2%
Q3 2023+4.0%+2.5%-0.6%
Q2 2023-5.5%-3.2%+3.8%
Q1 2023+9.4%+14.3%+28.0%
Q4 2022+11.4%+12.0%+3.0%
Q3 2022-11.0%-6.3%-11.5%
Q2 2022+1.3%+4.9%+6.6%
Q1 2022-4.1%+2.6%-1.9%
Q4 2021+6.1%+10.5%-2.7%
Q3 2021-8.8%-1.5%-8.3%
Q2 2021-3.4%-0.8%+4.7%
Q1 2021-1.7%+2.8%+14.2%
Q4 2020+7.7%+5.7%+18.2%
Q3 2020-14.7%-5.4%+8.9%
Q2 2020-6.5%-10.0%-17.5%
Q1 2020+0.2%-1.1%-12.8%
Q4 2019-11.8%-15.9%-17.5%
Q3 2019+9.6%+11.8%+6.0%
Q2 2019-4.2%+0.7%+5.2%
Q1 2019-1.1%-2.8%+1.9%
Q4 2018-4.5%-4.7%-3.0%
Q3 2018-1.7%-3.4%+3.9%
Q2 2018-7.4%-7.8%-7.8%
Q1 2018-0.5%-7.2%-9.6%
Q4 2017+3.7%+2.9%-10.8%
Q3 2017-6.8%-1.3%-11.9%
Q2 2017-11.0%-13.0%-14.2%
Q1 2017-1.0%+0.0%+14.1%
Q4 2016-3.7%-1.7%-4.1%
Q3 2016+11.0%
Q2 2016+0.4%
Q1 2016-5.4%
Q4 2015+10.5%
Q3 2015-2.4%
Q2 2015-13.5%
Q1 2015+2.0%
Q4 2014+0.9%
Q3 2014+5.1%
Q2 2014+7.4%
Q1 2014+2.9%
Q4 2013-3.0%
Q3 2013-2.6%
Q2 2013+2.1%
Q1 2013+21.7%
Q4 2011+6.6%
Q4 2010+6.6%
Q4 2012-5.6%
Q3 2011-4.6%
Q3 2012+1.6%
Q2 2011+3.3%
Q2 2012+3.3%
Q1 2012+4.7%
Q1 2011+4.7%
Q3 2010+8.4%

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