Arden Group, Inc. Announces First Quarter Earnings

  Arden Group, Inc. Announces First Quarter Earnings

Business Wire

LOS ANGELES -- May 8, 2013

Arden Group, Inc. (Nasdaq:ARDNA) today released its sales and income figures
for the first quarter ended March 30, 2013.

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

FIRST QUARTER EARNINGS RELEASE

(UNAUDITED)
                                            
                                               Thirteen Weeks Ended
                                               March 30, 2013  March 31, 2012

Sales                                    (a)   $  113,655,000   $  107,227,000
Operating income                         (b)      7,343,000        4,897,000
Interest, dividend and other income               5,000           23,000
(expense), net
Income before income taxes                        7,348,000        4,920,000
Income tax provision                              2,994,000       2,004,000
Net income                                     $  4,354,000     $  2,916,000
Basic and diluted net income per               $  1.42          $  0.95
common share
Basic and diluted weighted average                3,071,000        3,071,000
common shares outstanding
                                                                   

(a) Same store sales from the Company’s 17 supermarkets (which excludes the
Northridge location which was closed February 25, 2012 and also excludes
revenue from licensing arrangements, subleases, leases and finance charges)
were $112,613,000 during the first quarter of 2013 compared to $104,527,000 in
the first quarter of 2012, an increase of 7.7%. The increase in same store
sales reflects to some extent a shift in holiday sales, as well as inflation
and an increase in the number of transactions in the first quarter of 2013
compared to the same period of the prior year. Sales in the first quarter of
2013 include sales from Easter and Passover which did not occur until the
second quarter of 2012.

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. In March
2013, Gelson’s announced its decision to close its Pasadena store. Gelson’s
plans to close the Pasadena store on or about July 21, 2013. The Company
accrued $370,000 in March 2013 for anticipated closing costs. Gelson’s
anticipates that some of the equipment at the Pasadena location will be
transferred to the new Long Beach store.

(b) Operating income in the first quarter of 2013 increased compared to the
first quarter of 2012 as a result of higher sales, improved gross margins and
a slight decrease in store expense as a percent of sales, as well as lower
costs related to exit activities. Closing costs of $370,000 and $1,842,000
related to the closing of the Pasadena and Northridge stores were accrued in
the first quarter of 2013 and 2012, respectively. The decrease in store
expense as a percent of sales is due to an increase in sales without a
comparable increase in expense, as well as the closing of the Northridge
location which did not operate profitably. The decrease in store expense was
partially offset by an increase in the United Food & Commercial Workers
International Union (UFCW) health and welfare and pension contribution rates
at various times throughout 2012 and 2013 and a UFCW bonus of approximately
$768,000 paid in March 2013, as well as an increase in stock appreciation
rights (SARs) expense. The Company recorded SARs compensation expense of
$440,000 in the first quarter of 2013. Conversely, in the first quarter of
2012, the Company reversed $264,000 of SARs compensation expense recognized in
prior periods.

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 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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