Arden Group, Inc. Announces Third Quarter Earnings
LOS ANGELES -- November 06, 2012
Arden Group, Inc. (Nasdaq:ARDNA) today released its sales and income figures
for the third quarter ended September 29, 2012.
Arden Group, Inc. is the parent company of Gelson’s Markets which currently
operates 17 full-service supermarkets in Southern California carrying both
perishable and grocery products.
ARDEN GROUP, INC. AND CONSOLIDATED SUBSIDIARIES
THIRD QUARTER EARNINGS RELEASE
Thirteen Weeks Ended Thirty-Nine Weeks Ended
September 29, October 1, September October 1,
2012 2011 2012 2011
Per Share &
Sales (a) $ 108,150 $ 104,706 $ 323,076 $ 314,980
Operating (b) 8,541 5,646 21,674 19,153
other income (c) 25 28 73 2,238
Income before 8,566 5,674 21,747 21,391
Income tax 3,491 2,313 8,861 8,717
Net income $ 5,075 $ 3,361 $ 12,886 $ 12,674
diluted net (d) $ 1.65 $ 1.09 $ 4.20 $ 4.09
common shares (d) 3,071,000 3,071,000 3,071,000 3,101,693
(a) In 2011, the Company operated 18 full-service supermarkets in Southern
California through its wholly-owned subsidiary, Gelson’s Markets (Gelson’s).
On February 25, 2012, Gelson’s closed its store located in Northridge,
California. On May 1, 2012, the Northridge store lease was assigned to a third
party and Gelson’s was released from all obligations under the lease by the
landlord. In return, Gelson’s paid the assignee a lease assignment fee of
$1,850,000 during the second quarter of 2012 and transferred various items of
equipment to the assignee.
Same store sales from the Company’s 17 remaining supermarkets were
$107,189,000 during the third quarter of 2012 compared to $101,288,000 in the
third quarter of 2011, an increase of 5.8%. For the thirty-nine weeks ended
September 29, 2012, same store sales were $318,438,000 compared to
$304,657,000 in the same period of 2011, an increase of 4.5%. The increase in
sales is primarily the result of, among other things, an increase in the
number of transactions, as well as the shifting of the Yom Kippur holiday
which occurred in the third quarter of 2012 versus the fourth quarter of 2011.
In addition, inflation during the first six months of 2012 contributed to the
(b) Operating income in 2012 increased compared to 2011 as a result of higher
sales, improved gross margins and decreasing store expense as a percent of
sales. Operating income in the first nine months of 2012 compared to the same
period of the prior year was negatively impacted by the loss incurred from the
closing of the Northridge location. The Company incurred costs totaling
approximately $1,912,000 which includes the lease assignment fee discussed
above and other closing costs offset by the reversal of a deferred rent
liability previously recorded for the Northridge location. In addition, the
increase in operating income was partially offset by an increase in the United
Food & Commercial Workers International Union health and welfare contribution
rate at the beginning of February 2011, September 2011 and March 2012 and a
pension increase in January 2012.
(c) Other income reflects a gain of approximately $2,129,000 from the sale of
an undeveloped parcel of land during the first quarter of 2011.
(d) In April 2011, the Company purchased 90,098 shares of its Class A Common
Stock in an unsolicited private transaction which had the effect of reducing
weighted average common shares outstanding and increasing basic and diluted
net income per common share for the first nine months of 2012 compared to the
same period of 2011.
Arden Group, Inc.
Patricia S. Betance
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