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Ethan Allen Interiors: Ethan Allen Highlights Board Independence And Track Record Of

The following excerpt is from the company's SEC filing.

Performance and Value Creation

DANBURY, CT (October 14, 2015) -- Ethan Allen Interiors Inc. (NYSE: ETH) (“Ethan Allen” or the “Company”), a leading interior design Company and manufacturer and retailer of quality home furnishings, today issued the following statement:

Ethan Allen’s Board of Directors and management team are committed to acting in the best interest of all Ethan Allen shareholders and open to constructive ideas to create value.

We have held a number of meetings and discussions with Sandell Asset Management Corp. and its affiliates (together, “Sandell”) since learning of its inve stment in Ethan Allen. We have engaged with Sandell and, after carefully considering its strategies, believe it has become apparent that Sandell’s strategies would deprive shareholders of the significant value we expect to deliver through our successful on-going transformation strategy, targeted for completion in 2016.

Since 2010, Ethan Allen has delivered: net sales compound annual growth rate (CAGR) of five percent; adjusted operating income CAGR of 119 percent; adjusted earnings per share CAGR of 25 percent; and adjusted EBITDA CAGR of 27 percent. The Company has also delivered a return on assets of approximately seven percent and return on invested capital of approximately nine percent since 2010.

Over the same period, the Company has driven strong shareholder returns, including returning $61 million to shareholders through dividends, reflecting a dividend per share that has increased by 127 percent, and repurchasing approximately $20 million of common stock. Since 2010, the Company has maintained return on equity of approximately 10 percent. Ethan Allen also recently announced its intent to use its real estate assets as collateral to raise up to $250 million in debt financing once market volatility stabilizes. The financing is expected to be utilized for general corporate needs and to further increase shareholder returns, including providing shareholders with a special dividend and/or share repurchase.

The Ethan Allen Board’s nominees for election at the 2015 Annual Meeting of Stockholders includes seven directors, six of whom are independent other than Farooq Kathwari, the Company’s Chairman and Chief Executive Officer and Ethan Allen’s largest shareholder owning more than 11% of the Company’s outstanding shares. In addition...