Arden Group, Inc. Announces Third Quarter Earnings

November 11, 2009 12:18 PM EST

LOS ANGELES--(BUSINESS WIRE)-- Arden Group, Inc. (Nasdaq: ARDNA) today released its sales and income figures for the third quarter ended October 3, 2009.

Arden Group, Inc. is the parent company of Gelson's Markets which operates 18 full-service supermarkets in Southern California carrying both perishable and grocery products.

(TABULAR INFORMATION ATTACHED)

ARDEN GROUP, INC. AND CONSOLIDATED SUBSIDIARIES

THIRD QUARTER EARNINGS RELEASE

(UNAUDITED)

                         Thirteen Weeks Ended        Thirty-Nine Weeks Ended

                         October 3,   September 27,  October 3,   September 27,

(In Thousands,
Except Share and         2009         2008           2009         2008
Per Share Data)

Sales               (a)  $ 103,754    $ 114,156      $ 320,452    $ 349,588

Operating income    (b)    7,821        6,342          25,436       27,355

Interest, dividend
and other income    (c)    57           600            170          1,766
(expense), net

Income before              7,878        6,942          25,606       29,121
income taxes

Income tax                 3,210        2,828          10,434       11,864
provision

Net income               $ 4,668      $ 4,114        $ 15,172     $ 17,257

Basic and diluted
net income per           $ 1.48       $ 1.30         $ 4.80       $ 5.46
common share

Basic and diluted
weighted average           3,161,098    3,161,098      3,161,098    3,161,098
common share
outstanding

     Same store sales decreased 9.1% and 8.3% during the thirteen and
     thirty-nine weeks ended October 3, 2009, respectively, compared to the same
(a)  periods of 2008. Sales have been negatively impacted by economic conditions
     and increased competition in our trade area; however, the Company has
     implemented new marketing programs in an effort to retain and attract
     customers.

     Operating income increased during the third quarter of 2009, compared to
     the third quarter of 2008, primarily due to a significant reduction in
     stock appreciation rights (SARs) compensation expense partially offset by
(b)  the negative impact of reduced sales and an increase in hourly union wage
     rates. During the third quarter of the prior year, the Company recorded
     SARs compensation expense of $2,489, whereas in the same period of the
     current year, the Company reversed previously recognized SARs compensation
     expense of $135.

     On a year-to-date basis, the Company experienced a decrease in operating
     income as the result of lower sales and higher hourly wage rates as
     discussed above. Lower operating income was partially offset by a decrease
     in SARs compensation expense. The Company recognized SARs compensation
     expense of $286 and $2,300 for the first thirty-nine weeks of fiscal 2009
     and 2008, respectively.

     Net interest and dividend income is substantially lower for the thirteen
     and thirty-nine weeks ended October 3, 2009 compared to the same periods in
(c)  2008 due to significantly lower interest rates and cash available for
     investment due to a special cash dividend totaling $79,027 paid on December
     8, 2008.

    Source: Arden Group, Inc.

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