<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- -----
EXCHANGE ACT OF 1934
For the quarterly period ended September 27, 1997
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- -----
EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________
Commission file number 0-9904
ARDEN GROUP, INC.
--------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 95-3163136
- -------------------------------------- ------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2020 South Central Avenue, Compton, California 90220
- ---------------------------------------------- -----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (310) 638-2842
----------------
No Change
- ----------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last
report.
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to the filing
requirements for at least the past 90 days. Yes X No
----- ----
The number of shares outstanding of the registrant's classes of common stock as
of September 27, 1997 was:
554,134 of Class A common stock
342,246 of Class B common stock
This report contains a total of 15 pages including exhibits.
1
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ARDEN GROUP, INC. AND CONSOLIDATED SUBSIDIARY
BALANCE SHEETS
(In Thousands)
A S S E T S
September 27, December 28,
1997 1996
------------- -------------
Current assets:
Cash and cash equivalents $ 4,633 $ 5,473
Marketable securities 15,505 21,356
Accounts and notes receivable, net 6,466 6,629
Inventories 9,680 10,728
Prepaid and other 1,207 3,102
------------- -------------
Total current assets 37,491 47,288
Notes receivable 62 82
Property for resale or sublease 4,109 1,440
Property, plant and equipment, at cost, less
accumulated depreciation and amortization
of $28,597 and $25,667, respectively 36,358 39,875
Other assets 2,420 2,563
------------- -------------
Total assets $80,440 $91,248
------------- -------------
------------- -------------
See Notes to Financial Statements
2
<PAGE>
PART I. FINANCIAL INFORMATION, Continued
ARDEN GROUP, INC. AND CONSOLIDATED SUBSIDIARY
BALANCE SHEETS
(In Thousands)
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
September 27, December 28,
1997 1996
------------- ------------
<S> <C> <C>
Current liabilities:
Accounts payable, trade $ 10,928 $11,357
Other current liabilities 11,817 11,816
Current portion of long-term debt 1,000 973
------------- ------------
Total current liabilities 23,745 24,146
Long-term debt, including obligations under capital
leases of $3,408 and $3,578, respectively 5,924 6,663
Deferred income taxes 2,918 2,160
Other liabilities 1,710 2,542
------------- ------------
Total liabilities 34,297 35,511
------------- ------------
Commitments and contingent liabilities
Stockholders' equity:
Class A common stock 223 276
Class B common stock 86 86
Capital surplus 4,793 5,617
Notes receivable from officer/director (295) (369)
Unrealized gain on available-for-sale securities 610
Retained earnings 44,479 53,880
------------- ------------
49,896 59,490
Less: treasury stock, at cost 3,753 3,753
------------- ------------
Total stockholders' equity 46,143 55,737
------------- ------------
Total liabilities and stockholders' equity $80,440 $91,248
------------- ------------
------------- ------------
</TABLE>
See Notes to Financial Statements
3
<PAGE>
PART I. FINANCIAL INFORMATION, Continued
ARDEN GROUP, INC. AND CONSOLIDATED SUBSIDIARY
STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share and Other Data)
<TABLE>
<CAPTION>
THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED
---------------------------- ----------------------------
Sept. 27, Sept. 28, Sept. 27, Sept. 28,
1997 1996 1997 1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Sales $65,897 $62,891 $196,218 $186,371
Cost of sales 39,452 38,036 117,885 113,221
------------- ------------- ------------- -------------
Gross profit 26,445 24,855 78,333 73,150
Delivery, selling, general and administrative
expenses 22,903 22,750 68,718 68,913
------------- ------------- ------------- -------------
Operating income 3,542 2,105 9,615 4,237
Interest, dividend and other income
(expense), net 190 156 873 474
Net unrealized gain (loss) on trading
securities 136 202 76 (548)
------------- ------------- ------------- -------------
Income from continuing operations
before income taxes 3,868 2,463 10,564 4,163
Income tax provision 1,519 978 4,138 1,649
------------- ------------- ------------- -------------
Income from continuing operations,
net of income taxes 2,349 1,485 6,426 2,514
Loss from discontinued operations, net of income
tax benefits of $1,602 in 1997 and $209 in 1996 (311) (2,738) (311)
------------- ------------- ------------- -------------
Net income $2,349 $1,174 $3,688 $2,203
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Net income per common share:
Income from continuing operations $ 2.29 $1.34 $ 5.94 $ 2.25
Loss from discontinued operations ( .28) (2.53) ( .28)
------------- ------------- ------------- -------------
Net income $ 2.29 $1.06 $ 3.41 $ 1.97
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Weighted average common shares
outstanding 1,027,222 1,108,999 1,081,740 1,117,303
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
See Notes to Financial Statements
4
<PAGE>
PART I. FINANCIAL INFORMATION, Continued
ARDEN GROUP, INC. AND CONSOLIDATED SUBSIDIARY
STATEMENTS OF CASH FLOWS
(In Thousands)
<TABLE>
<CAPTION>
THIRTY-NINE WEEKS ENDED
-----------------------------
September 27, September 28,
1997 1996
-------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Cash received from customers $196,888 $187,197
Cash paid to suppliers and employees (182,853) (180,452)
Investment in trading securities 8,746 (2,151)
Interest and dividends received 1,307 1,255
Interest paid (551) (730)
Income taxes paid (2,897) (2,262)
-------------- -------------
Net cash provided by operating activities 20,640 2,857
-------------- -------------
Cash flows from investing activities:
Discontinued operations (2,575) (520)
Capital expenditures (2,995) (11,341)
Property in escrow 2,664
Purchases of available-for-sale securities (2,957)
Sales of available-for-sale securities 1,380
Proceeds from the sale of property, plant and equipment 218 2,266
Payments received on notes from the sale of property,
plant and equipment and liquor licenses 53
-------------- -------------
Net cash used in investing activities (6,876) (6,931)
-------------- -------------
Cash flows from financing activities:
Principal payments under capital lease obligations (152) (254)
Purchase of Company debentures (54)
Principal payments on long-term debt (560) (563)
Payment of loan from officer/director 74
Purchase and retirement of stock (13,966) (1,613)
-------------- -------------
Net cash used in financing activities (14,604) (2,484)
-------------- -------------
Net decrease in cash (840) (6,558)
Cash and cash equivalents at beginning of year 5,473 10,102
-------------- -------------
Cash and cash equivalents at end of quarter $4,633 $3,544
-------------- -------------
-------------- -------------
</TABLE>
See Notes to Financial Statements
5
<PAGE>
PART I. FINANCIAL INFORMATION, Continued
ARDEN GROUP, INC. AND CONSOLIDATED SUBSIDIARY
STATEMENTS OF CASH FLOWS
(In Thousands)
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES:
<TABLE>
<CAPTION>
THIRTY-NINE WEEKS ENDED
----------------------------
September 27, September 28,
1997 1996
------------- -------------
<S> <C> <C>
Net income $ 3,688 $ 2,203
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Loss from discontinued operations 2,738 311
Depreciation and amortization 3,739 3,457
Unrealized (gain) loss on trading securities (76) 548
(Gain) loss on sale of available-for-sale securities (221)
Provision for losses on accounts and notes receivable 76 95
Net gain from sale of property, plant and equipment (89) (488)
Gain on purchase of Company debentures (5)
Change in assets and liabilities net of effects from noncash
investing and financing activities:
(Increase) decrease in assets:
Marketable securities 8,741 (2,081)
Notes and accounts receivable 1,461 759
Inventories 1,048 834
Prepaid expenses 145 (388)
Other assets 121 (459)
Increase (decrease) in liabilities:
Accounts payable and other current liabilities (251) (1,481)
Deferred income taxes 352 (413)
Other liabilities (832) (35)
------------- -------------
Net cash provided by operating activities $20,640 $ 2,857
------------- -------------
------------- -------------
</TABLE>
See Notes to Financial Statements
6
<PAGE>
PART I. FINANCIAL INFORMATION, Continued
ARDEN GROUP, INC. AND CONSOLIDATED SUBSIDIARY
NOTES TO FINANCIAL STATEMENTS
1 BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION:
The consolidated financial statements of Arden Group, Inc. (the "Company")
include the accounts of the Company and its direct and indirect
subsidiaries. Intercompany balances and transactions are eliminated. The
Company operates exclusively in the supermarket business.
The accompanying consolidated financial statements for the quarter and nine
months ended September 27, 1997 and September 28, 1996 have been prepared
in accordance with generally accepted accounting principles ("GAAP").
These financial statements have not been audited by independent public
accountants but include all adjustments, which in the opinion of management
of the Company, are necessary for a fair presentation of the financial
position and the results of operations for the periods presented. The
accompanying consolidated balance sheet as of December 28, 1996 has been
derived from audited financial statements and, accordingly, does not
include all disclosures required by GAAP as permitted by interim reporting
requirements. The results of operations for the nine months ended
September 27, 1997 are not necessarily indicative of the results to be
expected for the full year ending January 3, 1998.
Certain prior year amounts have been reclassified to conform to current
year presentation.
2 MARKETABLE SECURITIES:
Management determines the appropriate classification of its investments in
marketable securities at the time of purchase and reevaluates such
determination at each balance sheet date. Securities that are bought and
held principally for the purpose of selling them in the near term are
classified as trading securities and unrealized holding gains and losses
are included in earnings. Debt securities for which the Company does not
have the intent or ability to hold to maturity and equity securities are
classified as available-for-sale. Available-for-sale securities are
carried at fair value, with the unrealized gains and losses, net of tax,
reported as a separate component of shareholders' equity.
3. ARBITRATION AWARD:
On March 28, 1997, the Company received notice of a decision rendered in
the arbitration proceedings relating to the sale in 1993 of its
communication equipment business to Danka Business Systems PLC. The
arbitrators upheld Arden's claim for approximately $2,200,000 and awarded
Danka on its counterclaims approximately $4,065,000. As a result of this
decision, the Company paid Danka approximately $1,865,000 in April 1997.
7
<PAGE>
PART I. FINANCIAL INFORMATION, Continued
NOTES TO FINANCIAL STATEMENTS, Continued
As the result of an earlier arbitration, Arden was awarded, in April 1994,
$1,750,000. No income or expenses related to that award and no expenses
related to the arbitration completed in 1997 were recognized in the 1994
and 1995 statements of operations of Arden. In the third and fourth
quarters of 1996, arbitration costs, net of taxes, which exceeded the first
arbitration award ($311,000 and $145,000, respectively) were expensed as
discontinued operations.
In the concluding phase of the arbitration proceedings, the arbitrators
determined that neither party was a prevailing party and, therefore,
neither party was awarded costs and fees incurred by the other party with
respect to the proceedings.
The above arbitration awards, the associated expenses not expensed in 1996
and the resulting adjustments to the purchase price for the transaction
resulted in the Company recognizing a loss, net of taxes, from discontinued
operations of $2,738,000 in 1997.
4. CAPITAL STOCK:
In the third quarter of 1997, the Company offered to purchase up to 250,000
shares of its Class A common stock for $65 per share in cash. The offer
expired August 13, 1997 and the Company purchased and retired the 212,619
shares of Class A common stock tendered pursuant to the offer for an
aggregate purchase price of approximately $13,820,000. Prior to such
purchase the Company's common stock consisted of 766,753 shares of Class A
common stock and 342,246 shares of Class B common stock.
5. NET INCOME PER SHARE:
Net income per share is based on the weighted average number of common
shares outstanding during the period. Due to the purchase of Class A
shares in August 1997 (see Note 4) the weighted average number of shares is
reduced in the third quarter and first nine months of 1997 compared to the
same periods of 1996, which calculation in part resulted in higher earnings
per share in the third quarter and first nine months of 1997 as compared to
the same periods of 1996. The weighted average number of shares will be
reduced in the future as a result of the Class A purchase.
6. IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS:
In February 1997, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings Per
Share." SFAS No. 128 supersedes and simplifies the existing computational
guidelines under Accounting Principles Board Opinion No. 15, "Earnings Per
Share." It is effective for financial statements issued for periods ending
after December 15, 1997. Among other changes, SFAS No. 128 eliminates the
presentation of primary EPS and replaces it with basic EPS for which common
stock equivalents are not considered in the computation. It also revises
the computation of diluted EPS. It is not expected that the adoption of
SFAS No. 128 will have a material impact on the earnings per share results
reported by the Company under the Company's current capital structure.
8
<PAGE>
PART I. FINANCIAL INFORMATION, Continued
NOTES TO FINANCIAL STATEMENTS, Continued
In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive
Income", which established standards for reporting and display of
comprehensive income and its components. This statement requires a
separate statement to report the components of comprehensive income for
each period reported. The provisions of this statement are effective for
fiscal years beginning after December 15, 1997. Management believes this
statement may require expanded disclosure in the Company's financial
statements.
Also in June 1997, the FASB issued SFAS No. 131, "Disclosures About
Segments of an Enterprise and Related Information". The standard requires
that companies disclose "operating segments" based on the way management
disaggregates the company for making internal operating decisions. The new
rules will be effective for the 1998 fiscal year. Abbreviated quarterly
disclosure will be required beginning first quarter of 1999, with both 1999
and 1998 information. The Company does not believe that the new standard
will have a material impact on the reporting of its segments.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
THIRD QUARTER ANALYSIS
During the third quarter of 1997, the Company had net income of $2,349,000
compared to net income of $1,174,000 during the third quarter of 1996. Pretax
income from continuing operations was $3,868,000 for the third quarter of 1997
compared to pretax income of $2,463,000 for the third quarter of 1996.
During the third quarter of 1997, the Company's operating income was $3,542,000
compared to operating income of $2,105,000 during the third quarter of 1996.
Sales from the Company's 12 supermarkets in the greater Los Angeles area (all of
which were operating in the third quarter of 1996) were $65,897,000 in the third
quarter of 1997, an increase of 4.8% from the third quarter of 1996, when sales
were $62,891,000. The increase in sales is due to a number of factors including
a more robust economy in Southern California, the effect of product pricing
decisions and the positive impact of store remodel activity. Additionally, the
Calabasas store, opened in February 1996, has experienced higher sales volume
and reduced expenses in 1997 compared to the same period in 1996.
The Company's gross profit from supermarket operations as a percentage of sales
was 40.1% in the third quarter of 1997 compared to 39.5% in the same period of
1996. Union wage and benefit increases are taken into consideration on product
pricing decisions. The sales mix in 1997 favored higher gross margin categories
than in 1996.
9
<PAGE>
PART I. FINANCIAL INFORMATION, Continued
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS, Continued
Delivery, selling, general and administrative ("DSG&A") expenses for supermarket
operations as a percentage of sales were 34.8% in the third quarter of 1997
compared to 36.2% the third quarter of 1996. DSG&A activity in 1997 reflects an
improvement in labor efficiency at the stores, improved purchasing of store
services and supplies, and reduced administrative expenses. The higher expense
in 1996 is due, in part, to promotional costs and higher than expected operating
costs associated with the Gelson's market in Calabasas which opened in February
1996. Additionally, in 1996, certain costs relating to the sublease of the
former AMG Holdings headquarters facility were expensed. Included in 1996 DSG&A
is a gain of $584,000 relating to the property sale of a former Mayfair market.
Interest and dividend income was $408,000 in the third quarter of 1997 compared
to $392,000 for the same period in 1996.
Interest expense was $188,000 in the third quarter of 1997 compared to $186,000
in the third quarter of 1996.
Other income (expense) includes realized gains (losses) on the sale of
marketable securities of ($45,000) and ($50,000) in the third quarters of 1997
and 1996, respectively.
Statement of Financial Accounting Standards No. 115, "Accounting for Certain
Investments in Debt and Equity Securities" ("SFAS 115") requires that unrealized
holding gains and losses for trading securities be included in the determination
of net income. As a result, net unrealized gains of $136,000 related to trading
securities were recognized in the third quarter of 1997 compared to net
unrealized gains of $202,000 in the third quarter of 1996. Unrealized gains in
the third quarter of 1997 on available-for-sale securities were $419,000 (net of
income tax expense of $281,000) and were recorded as a separate component of
shareholders' equity.
Income per share from continuing operations and net income increased due to
increased income from continuing operations and net income for the period, as
well as from a reduction in the weighted average shares outstanding due to
the purchase of Class A Common Stock in August 1997. See Capital
Expenditures/Liquidity.
YEAR-TO-DATE ANALYSIS
During the first nine months of 1997, the Company had net income of $3,688,000
compared to net income of $2,203,000 during the first nine months of 1996.
Pretax income from continuing operations was $10,564,000 for the first nine
months of 1997 compared to pretax income of $4,163,000 for the first nine months
of 1996.
During the first nine months of 1997, the Company's operating income from its
supermarket operations was $9,615,000 compared to operating income of $4,237,000
during the first nine months of 1996.
Sales from the Company's 12 supermarkets in the greater Los Angeles area were
$196,218,000 in the first nine months of 1997, an increase of 5.3% from the
first nine months of 1996, when sales were $186,371,000. Same store sales for
stores open for the entire year increased 4.9% in the first nine months of 1997
compared to the prior year. The increase in sales is due to a number of factors
including a more robust economy in Southern California, the effect of product
pricing decisions and the positive impact of
10
<PAGE>
PART I. FINANCIAL INFORMATION, Continued
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS, Continued
store remodel activity. Additionally, the Calabasas store, opened in February
1996, has experienced higher sales and lower expenses in 1997 compared to the
same period in 1996.
The Company's gross profit from supermarket operations as a percentage of sales
was 39.9% in the first nine months of 1997 compared to 39.2% in the same period
of 1996. Union wage and benefit increases are taken into consideration on
product pricing decisions. The sales mix in 1997 favored higher gross margin
categories than in 1996.
Delivery, selling, general and administrative ("DSG&A") expenses for
supermarket operations as a percentage of sales were 35.0% in the first nine
months of 1997 compared to 37.0% the first nine months of 1996. DSG&A
activity in 1997 reflects an improvement in labor efficiency at the stores,
improved purchasing of store services and supplies, reduced administrative
expenses and lower workers' compensation costs. The higher expense in 1996
is due, in part, to preopening expenses, promotional costs and higher than
expected operating costs associated with the Gelson's market in Calabasas
which opened in February 1996. Additionally, in 1996, certain costs relating
to the sublease of the former AMG Holdings headquarters facility were
expensed. Included in 1996 DSG&A is a gain of $584,000 relating to the
property sale of a former Mayfair market.
Interest and dividend income was $1,179,000 in the first nine months of 1997
compared to $1,287,000 for the same period in 1996 due to a decrease in earnings
rates.
Interest expense decreased to $525,000 in the first nine months of 1997 from
$711,000 in the first nine months of 1996 primarily due to 1996 interest expense
resulting from a Federal income tax audit and lower levels of debt in 1997
compared to 1996.
Other income (expense) includes realized gains (losses) on the sale of
marketable securities of $226,000 and ($70,000) in the first nine months of 1997
and 1996, respectively.
Statement of Financial Accounting Standards No. 115, "Accounting for Certain
Investments in Debt and Equity Securities" ("SFAS 115") requires that unrealized
holding gains and losses for trading securities be included in the determination
of net income. As a result, net unrealized gains of $76,000 related to trading
securities were recognized in the first nine months of 1997 compared to net
unrealized losses of $548,000 in the first nine months of 1996. Unrealized
gains in the first nine months of 1997 on available-for-sale securities were
$610,000 (net of income tax expense of $406,000) and were recorded as a separate
component of shareholders' equity.
The loss on discontinued operations resulted from a decision in an arbitration
proceeding relating to the sale in 1993 of the Company's communication equipment
business and is reflected as an adjustment to the purchase price.
Income per share from continuing operations and net income increased due to
increased income from continuing operations and net income for the period, as
well as from a reduction in the weighted average shares outstanding due to the
purchase of Class A Common Stock in August 1997. See Capital
Expenditures/Liquidity.
11
<PAGE>
PART I. FINANCIAL INFORMATION, Continued
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS, Continued
CAPITAL EXPENDITURES/LIQUIDITY
In August 1997, the Company completed a self tender offer pursuant to which
it purchased 212,619 shares of its Class A Common Stock for cash at the price
of $65 per share. The Company funded the aggregate purchase price of
$13,820,000 from cash-on-hand, the liquidation of marketable securities and
from a short-term bank loan of $5,000,000 under the Company's revolving line
of credit. By the end of the third quarter, the Company had repaid the
$5,000,000 bank loan from working capital.
In 1996, the Company purchased a site for a potential Gelson's Market in Santa
Barbara, California. The Company has leased the Santa Barbara property on a
short-term lease to maximize its return on its investment in the property on an
interim basis. After extensive demographic and competitive analysis the Company
has decided not to enter the Santa Barbara marketplace and is negotiating the
sale of the property. In 1995, the Company entered into long-term leases to
open two new Gelson's markets. One of these sites is located in Northridge,
California and is scheduled to open in November 1997. The opening of a Gelson's
Market on the second site is subject to, among other things, the Company's due
diligence, receipt of necessary governmental approvals and the fulfillment of
certain conditions.
The Company plans to utilize cash-on-hand (including marketable securities) and
cash flow from operations to fund capital expenditures in 1997. Additionally,
the Company has a term loan line of credit totaling $10,000,000 to finance store
fixtures and equipment. At the end of the third quarter of 1997, the
outstanding borrowed balance on the line was $1,788,000.
The Company also has two revolving lines of credit totaling $12,000,000. The
Company borrowed and repaid $5,000,000 on one revolving line during the third
quarter of 1997. There were no outstanding balances against either of the
revolving lines as of September 27, 1997.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not applicable.
12
<PAGE>
PART II. OTHER INFORMATION
ITEMS 1. THROUGH 5.
Not applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
Exhibit 27 - Financial Data Schedules
(b) Reports on Form 8-K:
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ARDEN GROUP, INC.
----------------------------------------
Registrant
Date NOVEMBER 6, 1997 ERNEST T. KLINGER
-------------------------- -----------------------------------------
Ernest T. Klinger
Vice President Finance and Administration
and Chief Financial Officer
(Authorized Signatory)
13
<PAGE>
ARDEN GROUP, INC.
AND CONSOLIDATED SUBSIDIARY
INDEX TO EXHIBITS
EXHIBIT
27. Financial Data Schedules.
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JAN-03-1998
<PERIOD-START> DEC-29-1996
<PERIOD-END> SEP-27-1997
<CASH> 4,633
<SECURITIES> 15,505
<RECEIVABLES> 7,199
<ALLOWANCES> 733
<INVENTORY> 9,680
<CURRENT-ASSETS> 37,491
<PP&E> 64,955
<DEPRECIATION> 28,597
<TOTAL-ASSETS> 80,440
<CURRENT-LIABILITIES> 23,745
<BONDS> 5,924
0
0
<COMMON> 309
<OTHER-SE> 45,834
<TOTAL-LIABILITY-AND-EQUITY> 80,440
<SALES> 196,218
<TOTAL-REVENUES> 196,218
<CGS> 117,885
<TOTAL-COSTS> 117,885
<OTHER-EXPENSES> 68,642
<LOSS-PROVISION> 76
<INTEREST-EXPENSE> 525
<INCOME-PRETAX> 10,564
<INCOME-TAX> 4,138
<INCOME-CONTINUING> 6,426
<DISCONTINUED> (2,738)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,688
<EPS-PRIMARY> 3.41
<EPS-DILUTED> 3.41
</TABLE>
