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
 
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