Arden Group, Inc. Announces Third Quarter Earnings

Arden Group, Inc. (Nasdaq:ARDNA) today released its sales and income figures for the third quarter ended October 2, 2010.

Arden Group, Inc. is the parent company of Gelson’s Markets which operates eighteen full-service supermarkets in Southern California carrying both perishable and grocery products.
     
ARDEN GROUP, INC. AND CONSOLIDATED SUBSIDIARIES
THIRD QUARTER EARNINGS RELEASE
(UNAUDITED)
 
Thirteen Weeks Ended Thirty-Nine Weeks Ended
October 2,  

October 3,
October 2,   October 3,

(In Thousands, Except Share, Per Share & Footnote Data)
2010 2009 2010 2009
 
Sales (a) $ 100,308 $ 103,754 $ 307,045 $ 320,452
 
Operating income (b) 5,756 7,821 20,968 25,436
 
Interest, dividend and other income (expense), net   67   57   180   170
 
Income before income taxes 5,823 7,878 21,148 25,606
 
Income tax provision   2,369   3,210   8,614   10,434
 
Net income $ 3,454 $ 4,668 $ 12,534 $ 15,172
 
Basic and diluted net income per common share $ 1.09 $ 1.48 $ 3.97 $ 4.80
 
Basic and diluted weighted average common shares outstanding 3,161,098 3,161,098 3,161,098 3,161,098
 

(a) Same store sales decreased 3.3% and 4.2% during the thirteen and thirty-nine weeks ended October 2, 2010, respectively, compared to the same periods of 2009. Sales continue to be negatively impacted by economic conditions and competition in our trade area.

(b) Beginning in March 2010, operating income was negatively impacted by an increase in the health and welfare contribution rate for the majority of Company’s union employees to the maximum allowable rate under the current collective bargaining agreement resulting in additional expense of approximately $75,000 per week. The decrease in operating income in the third quarter of 2010 compared to the third quarter of 2009 also reflects an increase in SARs compensation expense. The Company recognized SARs compensation expense of $81,000 in the third quarter of 2010 compared to a reversal of previously recognized SARs compensation expense of $135,000 in the same period of the prior year. During the thirty-nine weeks ended October 2, 2010, the Company reversed SARs compensation expense of $484,000 recognized in prior periods. For the same period of the prior year, the Company recorded $286,000 of SARs compensation expense.

Copyright Business Wire 2010

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