Arden Group, Inc. Announces Second Quarter Earnings

  Arden Group, Inc. Announces Second Quarter Earnings  Business Wire  LOS ANGELES -- August 8, 2013  Arden Group, Inc. (Nasdaq:ARDNA) today released its sales and income figures for the second quarter ended June 29, 2013.  Arden Group, Inc. is the parent company of Gelson’s Markets which currently operates 16 full-service supermarkets in Southern California carrying both perishable and grocery products.  ARDEN GROUP, INC. AND CONSOLIDATED SUBSIDIARIES SECOND QUARTER EARNINGS RELEASE (UNAUDITED)                      Thirteen Weeks Ended         Twenty-Six Weeks Ended                      June 29,       June 30,      June 29,       June 30, (In Thousands, Except Share, Per     2013         2012           2013         2012 Share & Footnote Data) Sales          (a)   $ 111,031      $ 107,699     $ 224,686      $ 214,926 Operating      (b)     8,185           8,236         15,528          13,133 income Interest, dividend and          (7        )    25           (2        )    48 other income (expense), net Income before          8,178           8,261         15,526          13,181 income taxes Income tax            3,332         3,366        6,326         5,370 provision Net income           $ 4,846        $ 4,895       $ 9,200        $ 7,811 Basic and diluted net          $ 1.58          $ 1.59        $ 3.00          $ 2.54 income per common share Basic and diluted weighted               3,071,000       3,071,000     3,071,000       3,071,000 average common shares outstanding             Same store sales from the Company’s 16 supermarkets (excluding the       Pasadena location which was closed June 15, 2013) were $107,994,000       during the second quarter of 2013 compared to $104,207,000 in the second       quarter of 2012, an increase of 3.6%. The increase in same store sales       is due to an increase in the number of transactions, as well as       inflation, but was partially offset by a shift in holiday sales. Easter (a)   and Passover sales occurred in the second quarter of 2012 but fell into       the first quarter of 2013. For the twenty-six weeks ended June 29, 2013,       same store sales (which also excludes the Northridge location which was       closed on February 25, 2012, in addition to the Pasadena store mentioned       above) were $218,050,000 compared to $206,294,000 in the same period of       2012, an increase of 5.7%. The year-to-date increase in same store sales       is the result of inflation, as well as an increase in the number of       transactions in 2013 compared to the prior year.        In September 2012, Gelson’s entered into a lease for a supermarket       location in the marina area of Long Beach, California. Gelson’s took       possession of the property on March 1, 2013. Gelson’s is in the process       of extensively remodeling the site and currently anticipates opening a       new Gelson’s supermarket at that location in late 2013.        Operating income in the second quarter of 2013 decreased slightly       primarily due to higher stock appreciation rights (SARs) compensation       expense and the timing of the Easter and Passover holidays as described       above. The Company recorded SARs compensation expense of $670,000 in the       second quarter of 2013 due to an increase in SARs fair value since the       beginning of the quarter and additional vesting. Conversely, in the (b)   second quarter of 2012, the Company reversed $170,000 of SARs       compensation expense recognized in prior periods. Operating income also       decreased due to 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. The negative impact of       higher SARs compensation expense and union benefits costs on operating       income was offset by the positive impact of higher sales.        Operating income in the first half of 2013 and 2012 reflects the impact       of two store closures – the Pasadena and Northridge locations. Closing       costs of $170,000 and $1,906,000 related to the closing of the Pasadena       and Northridge stores were accrued in the first half of 2013 and 2012,       respectively. Excluding the costs related to store closings, operating       income increased by 4.4% in the first half of 2013 compared to the same       period of 2012. This increase is the result of higher sales, slightly       improved gross margins and a decrease in store expense as a percent of       sales. 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 unprofitable locations. The increase in operating income       was partially offset by an increase in SARs compensation expense,       increased UFCW benefit contribution rates and a UFCW bonus of       approximately $768,000 paid in March 2013. The Company recorded SARs       compensation expense of $1,110,000 in the first half of 2013.       Conversely, in the first half of 2012, the Company reversed $434,000 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 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