U.S. Markets close in 4 hrs 9 mins

Scheid Family Wines Reports Six Month Results

SALINAS, Calif. , Oct. 15, 2018 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the six months ended August 31, 2018 (2 nd quarter of Fiscal 2019).

Six Month Results ( March 1, 2018August 31, 2018 )

Revenues for the six months ended August 31, 2018 increased to $17.4 million , from $16.2 million for the same period in 2017.  Revenues for the six months ended August 31, 2018 were offset by cost of sales of $14.6 million ; general and administrative expenses of $5.0 million ; selling expenses of $4.0 million ; and interest expense of $2.1 million . Revenues for the six months ended August 31, 2017 were offset by cost of sales of $12.7 million ; general and administrative expenses of $4.1 million ; selling expenses of $3.3 million ; and interest expense of $1.5 million . After adjustments for income taxes, the net loss for six months ended August 31, 2018 was $6.0 million ( $6.76 per share), as compared to $3.2 million ( $3.66 per share) for the six months ended August 31, 2018 .

Mr. Mike Thomsen , Chief Financial Officer of the Company, stated, "The 7% increase in revenues is primarily due to an increase in the sale of cased goods and bulk wine. The increase in revenues was offset by increased product costs, primarily as the result of increases in wine costs due to a lower than average harvest for the 2017 vintage, as well as increases in bottling costs. These increases lowered overall gross profit margins to 16% in the current period, as compared to margins of 22% in the prior fiscal period. The increase in general and administrative, and selling expenses was due primarily to the increased emphasis on sales, marketing and related administrative support of case sales. The Company's business is seasonal and skewed towards the second half of its fiscal year. This is primarily caused by grape sales and processing fee income during harvest, and bulk wine sales soon after harvest."

Harvest Update

Mr. Scott Scheid , President and CEO of the Company, stated, "Our annual grape harvest began in late August, and it is anticipated that we will complete this years' harvest in early November.  This timing is normal for wine grape vineyards on the Central Coast of California . We are currently approximately 65% completed with harvest and yields appear to be at average levels for most varieties."

About Scheid Family Wines

Scheid Family Wines has farmed wine grapes in Monterey County, California since 1972. With 4,000 acres of sustainably-certified vineyards located along a 70-mile spread of the Salinas Valley and a state-of-the-art winery, Scheid Family Wines is fully-integrated to bring high quality estate grown wines to the marketplace. The Scheid Family Wines nationally-distributed portfolio includes Scheid Vineyards, District 7, Metz Road, VDR, Stokes' Ghost, GIFFT, Ranch 32 and Ryder Estate. In addition, Scheid Family Wines produces over 20 regionally distributed brands for specific clients or distributors.

SCHEID VINEYARDS INC. AND SUBSIDIARY

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

SIX MONTHS ENDED AUGUST 31, 2018 AND 2017

(amounts in thousands, except per share data)





Six Months Ended August 31,





2018


2017


REVENUES:







Cased goods sales



$

12,496


$

12,683


Bulk wine sales



3,174


1,809


Winery processing and storage revenues



591


543


    Direct sales revenues



937


924


Vineyard management, services and other fees



182


233


Total revenues



17,380


16,192


COST OF SALES



(14,565)


(12,699)


GROSS PROFIT



2,815


3,493


General and administrative expenses



(5,022)


(4,091)


Selling expenses



(3,989)


(3,320)


Interest expense, net



(2,117)


(1,496)


Loss from investment in Gifft Wine Venture



(9)


(6)


    Gain on sale of equipment



20


40


LOSS BEFORE BENEFIT FROM INCOME TAXES



(8,302)


(5,380)


BENEFIT FROM INCOME TAXES



2,324


2,152


NET LOSS



$

(5,978)


$

(3,228)


















NET LOSS PER SHARE



$

(6.76)


$

(3.66)









WEIGHTED AVERAGE SHARES OUTSTANDING



884


883


CONTACT: 

Scott Scheid, President and CEO


Mike Thomsen, Chief Financial Officer


(831) 455-9990

Cision

View original content: http://www.prnewswire.com/news-releases/scheid-family-wines-reports-six-month-results-300730723.html