Two weeks ahead of formally reporting second-quarter results, Danbury furnishings retailer Ethan Allen Interiors Inc. says its performance and cash are solid enough that it will pay out some that cash to stockholders.
Chairman and CEO Farooq Kathwari this week announced a nickel-a-share dividend to be paid Oct. 11 to common stockholders of record on Oct. 25.
Kathwari said the company, which manufactures most of its furniture in the U.S. and overseas, on June 30 had a cash horde totaling $103 million, nearly double the amount on hand the same time last year.
In addition, Ethan Allen spent $5 million buying back some of its stock in another bid to benefit stockholders by boosting the market value of their shares.
Kathwari said the mounting cash flow reflects the company’s efforts to improve its operations and marketing.
As a result, the retailer-manufacturer had fiscal fourth-quarter sales of about $163 million, up 18 percent from a year earlier, he said.
Earnings per share are projected to be in the range of 30 cents to 32 cents compared to a loss of 23 cents in the final three months of fiscal 2009, Kathwari said.
Full results will be released Aug. 5.
The CEO said Ethan Allen’s booked orders in the fourth quarter rose 23 percent from a year ago, capping a strong retail trend for the final half of fiscal 2010.
