Arden Group, Inc. Announces Third Quarter Earnings.LOS ANGELES Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. -- Arden Group, Inc. (Nasdaq:ARDNA) today released its sales and income figures for the third quarter ended September 30, 2006. Arden Group, Inc. is the parent company of Gelson's Markets, which operates 18 full-service supermarkets in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, carrying both perishable per·ish·a·ble adj. Subject to decay, spoilage, or destruction. n. Something, especially foodstuff, subject to decay or spoilage. Often used in the plural. and other grocery products. [TABLE OMITTED] (a) Sales increased 3.8% and 2.6% during the thirteen and thirty-nine weeks ended September 30, 2006, respectively, compared to the same periods of 2005. The Company has experienced sales growth due in part to product pricing decisions and an increase in customer count. (b) Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 14.9% and 2.8% during the third quarter and first nine months of 2006 compared to the same periods of 2005. A decrease in labor and other related payroll expense as a percent of sales contributed to the increase. In addition, the Company purchased a one-year guaranteed cost workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. insurance policy effective July 1, 2006 which limits the Company's maximum exposure. In 2005, the Company was primarily self-insured and recognized expense based on reported claims and an estimate of claims incurred but not reported Incurred but not reported (IBNR) is a term in common use in general insurance. When a policy of general insurance is written it will typically cover a 12 month period from inception of the policy. . Workers' compensation expense in the third quarter of 2006 compared to the same period of the prior year is lower as the policy premium under the new guaranteed cost program is less than what was accrued in the prior year under the Company's former self-insured plan. The increase in operating income was partially offset by higher stock appreciation rights (SARs) expense during the thirteen and thirty-nine weeks ended September 30, 2006 compared to the same periods of the prior year. During the third quarter of 2006, the Company recognized approximately $422 in SARs compensation expense compared to expense of $62 during the third quarter of 2005. The Company recorded approximately $2,842 in SARs compensation expense during the first nine months of 2006 due to the implementation of Statement of Financial Accounting Standards No. 123(R) (revised 2004), "Share-Based Payment," an increase in the fair value of SARs since fiscal 2005 year end and additional vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: of SARs. During the first nine months of 2005, the Company reversed $689 of SARs compensation expense recognized in previous periods as a result of a reduction in the Company's Class A Common Stock price during that period. (c) Interest income increased during the thirteen and thirty-nine weeks ended September 30, 2006 compared to the same periods of the prior year due to an increase in cash levels and higher interest rates in 2006. (d) During January and February 2006, the Company purchased an aggregate of 149,573 shares of its Class A Common Stock from unrelated parties in private transactions which resulted in a reduction of the weighted average common shares outstanding and an increase in basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net income per common share. |
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