Arden Group, Inc. Announces Fourth Quarter and Fiscal Year Earnings

  Arden Group, Inc. Announces Fourth Quarter and Fiscal Year Earnings  Business Wire  LOS ANGELES -- March 11, 2013  Arden Group, Inc. (Nasdaq: ARDNA) today released its sales and income figures for the fourth quarter and fiscal year ended December 29, 2012.  Arden Group, Inc. is the parent company of Gelson’s Markets which operates 17 full-service supermarkets in Southern California carrying both perishable and grocery products.   ARDEN GROUP, INC. AND CONSOLIDATED SUBSIDIARIES FOURTH QUARTER EARNINGS RELEASE                                                                                     Thirteen Weeks Ended          Fifty-Two Weeks Ended                       December 29,   December 31,   December 29,   December                                                                    31,                          2012           2011           2012          2011 (In Thousands, Except Share,        (Unaudited)                                 Per Share & Footnote Data)  Sales         (a)     $  115,962     $  114,503     $  439,038     $ 429,483  Operating     (b)        9,901          6,969          31,575        26,122 income  Interest, dividend and other income  (c)       11            63            84           2,301 (expense), net  Income before            9,912          7,032          31,659        28,423 income taxes  Income tax              3,879         2,701         12,740       11,418 provision  Net income            $  6,033       $  4,331       $  18,919      $ 17,005  Basic and diluted net   (d)     $  1.97        $  1.41        $  6.16        $ 5.50 income per common share  Weighted average       (d)        3,071,000      3,071,000      3,071,000     3,094,020 common shares outstanding                                                                              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. Same store sales from the Company’s 17 remaining       supermarkets were $114,841,000 during the fourth quarter of 2012       compared to $110,629,000 in the fourth quarter of 2011, an increase of (a)  3.8%. Sales increased despite the timing of the New Year’s Eve holiday       which fell into the January 2013 reporting period compared to December       2011 in the prior year. For the year ended December 29, 2012, same store       sales were $433,279,000 compared to $415,286,000 in the same period of       2011, an increase of 4.3%. The increase in sales is partially the result       of an increase in the number of transactions and inflation, and reflects       improvement in the economic environment in our local trade area despite       intense competition and cautious consumer purchasing behavior.        In September 2012, Gelson’s entered into a lease for a supermarket       location in Long Beach, California. Gelson’s took possession of the       property on March 1, 2013. Gelson’s plans to extensively remodel the       site and currently anticipates opening a new Gelson’s supermarket at       that location in late 2013.        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 partially offset by costs in 2012 totaling $1,912,000       to close the Northridge store as discussed above. In addition, the       fourth quarter of 2011 was negatively impacted by a ratification bonus       of approximately $714,000 paid to Gelson’s employees who are members of       the United Food & Commercial Workers International Union (UFCW). While (b)   2012 operating results do not reflect a ratification bonus, it does       include UFCW wage increases in March 2012 for an amount that was       comparable to the ratification bonus of the prior year. The increase in       operating income in 2012 was partially offset by increases in the UFCW       health and welfare and pension contribution rates at various times       throughout the past year. Operating income also reflects the impact of       stock appreciation rights (SARs) expense of $657,000 and $339,000 in the       fourth quarter of 2012 and 2011, respectively and SARs expense of       $423,000 and $488,000 for fiscal 2012 and 2011, respectively.  (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.        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 (d)   reducing weighted average common shares outstanding and increasing basic       and diluted net income per common share for fiscal 2012 compared to       2011.        On November 20, 2012, the Company’s Board of Directors declared a       special cash dividend of twenty dollars ($20) per share on its       outstanding Class A Common Stock payable on December 18, 2012 to       stockholders of record at the close of business on December 3, 2012 in       the amount of $61,420,000.         The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the Company. Certain statements contained in this Current Report on Form 8-K are forward-looking statements. These statements discuss, among other things, the opening of a new location which may or may not be accomplished. These forward-looking statements reflect the Company’s current plans and expectations and are based on information currently known to the Company. The Company cautions readers that any forward-looking statements contained in this Current Report involve risks and uncertainties and are subject to change. The Company does not undertake any obligation to update forward-looking statements.  Contact:  Arden Group, Inc. Patricia S. Betance, Assistant Secretary 310-638-2842