Ethan Allen Interiors Inc. (NYSE:ETH) Q4 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 05:00 pm ET

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Ethan Allen Interiors Inc. (NYSE:ETH) Q4 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Hello, and welcome to the Ethan Allen Fiscal 2020 Fourth Quarter Analyst Conference call. [Operator Instructions] As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to Matt McNulty, Vice President of Finance. Please go ahead, sir.

Executive
Matthew J. McNulty

Thank you, Kevin. Good afternoon, and welcome to Ethan Allen's conference call for our fiscal fourth quarter ended June 30, 2020. This conference call is being recorded and webcast live on ethanallen.com, where you will find a copy of our press release, which contains reconciliations of non-GAAP financial information referred to in the release and on this call. A replay of today's call will also be made available via phone and on our website. After our prepared remarks, we will open the call to questions.

As a reminder, our comments today will include forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to our SEC filings for a complete review of those risks. The company assumes no obligation to update or revise any forward-looking matters discussed during this call.

Joining me on the call today is our Chairman and CEO, Farooq Kathwari; and our Chief Financial Officer, Corey Whitley.

I am pleased to now turn the call over to Farooq Kathwari.

Executive
Farooq Kathwari

Thank you, Matt. And thank you all for participating in our fourth quarter and fiscal year ending June 30, 2020 call.

As we all know, the last few months have been very challenging. COVID-19, according to a recent economic study, has wiped out the last five years of economic growth. We are pleased and gratified that we have been able to generate business despite major closure of our retail network for most part of the fourth quarter. We have been able to maintain business due to a number of factors, including a strong talent in our vertically integrated structure, the trust in our brand, great quality, value and service, combining personal service of our interior designers and combined with technology. Adding technology for client interaction was a major focus in the last few years, maintaining strong marketing initiatives during the quarter; and fifth, emphasizing safety and social responsibility.

Due to many initiatives, we were able to generate a positive $14 million cash during the fourth quarter. We also decided to pay back $50 million of the $100 million we had drawn from our line of credit for precautionary purposes. We are especially pleased that our written orders for the three months ending June were strong when for most of the time period, most of our design centers were closed. Our wholesale orders as compared to previous year were for April, 35%; May, 70%; June, 117%; and July, 103%. And these numbers also reflect doubling of sales online during the quarter ended June 30 from previous year quarter. We are pleased, today the Board reinstated the quarterly dividend of $0.21 per share.

And after Corey provides a financial overview, I'll be happy to give more detail, some