Arden Group, Inc. Announces First Quarter Earnings
09 May 2013 - 3:29AM
Business Wire
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 (expense),
net 5,000 23,000 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
common share $ 1.42 $ 0.95 Basic and diluted weighted average
common shares outstanding 3,071,000 3,071,000
(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.
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