Arden Group's Steady Q2: Fool by Numbers

On August 9, Arden Group (Nasdaq: ARDNA  ) released Q2 2006 earnings for the period ending July 1.

• Revenues increased 2.4% because of increased customer traffic and inclusion of Easter in the current-year quarter.
• Net profit was up 3%, but EPS was up 7.5% because of share buybacks.
• Year-to-date free cash flow was down 31% from the prior year, mostly as a result of the timing of income taxes paid.

(Figures in thousands, except per-share data.)

Income Statement Highlights

	Q2 2006	Q2 2005	Change
Sales	$119,114	$116,354	2.4%
Net Profit	$4,658	$4,523	3.0%
EPS	$1.44	$1.34	7.5%
Diluted Shares	3,229	3,383	(4.5%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q2 2006	Q2 2005	Change*
Gross Margin	45.84%	45.64%	0.20
Operating Margin	6.17%	6.26%	(0.09)
Net Margin	3.91%	3.89%	0.02

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q2 2006	Q2 2005	Change
Cash + ST Invest.	$55,555	$50,735	9.5%
Accounts Rec.	$5,403	$5,428	(0.5%)
Inventory	$17,132	$16,505	3.8%

Liabilities	Q2 2006	Q2 2005	Change
Accounts Payable	$16,991	$16,400	3.6%
Long-Term Debt	$1,333	$1,567	(14.9%)

Learn the ways of the balance sheet.

Cash Flow Highlights

	Q2 2006	Q2 2005	Change
Cash From Ops.	$15,539	$20,853	(25.5%)
Capital Expenditures	$2,928	$2,607	12.3%
Free Cash Flow	$12,611	$18,246	(30.9%)

Find out why Fools always follow the money.

Related Companies:

• Whole Foods Market (Nasdaq: WFMI  )
• Wild Oats Markets (Nasdaq: OATS  )
• Great Atlantic & Pacific Tea (NYSE: GAP  )
• Albertson's (NYSE: ABS-P  )
• Safeway (NYSE: SWY  )

Arden Group's under-the-radar size and strong cash flow have earned it a spot on theMotley Fool Hidden Gems watch list. To take a free look at companies that have made the cut and become official recommendations, clickhere. Whole Foods is aMotley Fool Stock Advisorpick,and you can try that service by clicking here.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Seth Jayson had shares of Arden Group but no positions in any other firm mentioned. Fool rules are here.