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Ethan Allen CEO Farooq Kathwari on the company paying early dividends because of fiscal cliff concerns and the need for the company to continue to re-...
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-- -- -- -- the FC the fiscal -- I'm so tired of saying that -- all investors seem to be hearing these days partly the media's fault OK but there are stories out there are not tied to the comings and goings out of Washington.
Taking Ethan Allen for example the retailer is expanding overseas keeping most of its production here in the good -- US -- does an -- -- -- Ethan Allen recently announced a special one time dividend yes we know that is related to the fiscal clips that let's get a -- a couple are -- Ethan -- chairman and CEO and president.
Okay 41 -- special dividend payable December 20 and then you and nine cent dividend that was supposed to be in January payable.
December 20 if -- fast track at all why.
-- Because.
Is good for -- stockholders.
We have to make show that we take careful -- stakeholders.
Earlier this year we decrees -- retirement for a London -- Payment retirement for our employees -- or 20%.
Now this makes sense that it directly related to the fiscal cliff potential tax tax on dividends.
Absolutely and we are fortunate that we are in a position to do it.
We have about a hundred million dollars in cash they'll -- -- relatively small of those smaller amount begin about tripped -- million dollars.
And I think it makes good sense for us and also I think it makes good sense for the government they're going to get taxes would most probably they would do well.
Is an interest in situation good for stockholders.
And also.
Good fall.
-- -- the public what.
Calendar shuffling to help the shareholder but let's just -- we like to say it's of people look magnanimous at a certain company airport but you're about nine point 8% stake -- here so.
Europe tax bill is a huge savings as well -- -- we we -- of did the crunching and you can see that.
You'll -- about 400000 dollars because of this and that do you was a shareholder that sort of articulate how people are being affected but in the end -- How important is it to strike a deal.
And you feel everything's going good to be may have if we don't.
I really don't know that I think that people like us.
And other CEOs I was in the meeting last week with a number of CEOs and asked him as -- are you preparing.
For the fiscal cliff.
-- on an almost it was a blank.
Nobody is really.
Really taking that is going to take place and if it does we have to manage -- his house argue preparing -- aside from the dividend and you know we celebrating -- he has -- on that I'm going to give you a special additional foot eight yearbook.
The reason I'm saying -- -- that to survive for India's.
You have to invent and reinvent.
Either by accident about that actually closely -- -- we have to -- today very focused on making changes.
You know almost on a moment's notice -- if they have to.
We will do what is needed you have to be -- done today.
Speaking of reinvention the Chinese were.
Kicking.
Ethan Allen down about a decade ago making cheaper imports now you've turned the tables on them you at seven piece of 7377.
By the end of the -- stores in China.
You're making -- furniture here selling it to the Chinese.
That is an example what next is well -- you just opened a store in Brussels what's your next trick up your sleeve to keep reinventing.
Well you know we have to reinvent every element of this it's not taken -- what we're doing today for -- -- in the United States is not easy.
We how are doing what I called making.
Making products.
That relevant.
That are custom real political and manufacturing to custom manufacturing and vigilant ringgit in an expressive -- Let's CarMax custom coffee but pretty fast exactly that's what we're doing -- ninth -- take a look at.
-- -- We have the repositioned our manufacturing dollar -- that throughout.
And you've got the housing recovery let me quickly ask you how do you expect holiday sales to be.
Well you know for us we -- not in the business of gifts -- hello this is.
I'm not necessarily the most important part of our business it really is for us what you're -- among its fall sales -- every month important and we are taking the Aussie.
That consumer confidence that it.
I'm indebted uncertainties that of course does concerned people but BC consumer confidence -- house in terms our area have improved.
-- house prices have gone up so I think we're going in the right direction and I think Washington has to fix this and the benefits of fast.
The stock is going in the right direction Ethan Allen up 18% year over year and up 26%.
Since the last time 22% since the last time you were here in September.
Good luck thank you so much very good to to be -- -- to talk -- you thank -- happy holidays -- -- -- -- Ethan -- chairman CEO -- president --
