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SCHEID
VINEYARDS INC. REPORTS YEAR END RESULTS
REVENUES
INCREASE 70%
MARINA DEL REY, CA
- February 19, 1998 - Scheid Vineyards Inc. (NASDAQ-NMS: SVIN) announced
today record sales and earnings for the year ended December 31, 1997.
For 1997, revenues
increased 70% to $19.9 million from $11.7 million in 1996. Net income,
before a one-time, non-cash charge to earnings of $1.4 million for a deferred
tax adjustment, rose to $4.8 million, or $0.91 per share, for 1997 compared
with pro forma net income of $2.3 million, or $0.53 per share, for 1996.
Weighted average shares outstanding for 1997 were 5.3 million compared
to 4.4 million for 1996.
The deferred tax
adjustment arose from the reorganization of the Company's business from
an S-Corporation and partnerships to a taxable C-corporation in connection
with the Company’s initial public offering in July 1997. Net income, after
deducting the one-time deferred tax charge, was $3.5 million, or $0.65
per share for 1997.
"1997 was a
record year for Scheid Vineyards," said Mr. Al Scheid, CEO of Scheid
Vineyards. "We harvested about 15,500 tons, compared to 11,200 tons
in 1996. We are very pleased that in our first year as a publicly held
company, we were able to outperform expectations and produce such excellent
results." Mr. Scheid added a comment on the effects of El Nino, "The
heavy rains brought by El Nino have had no ill effects on our vineyards.
The vines are dormant and can withstand excessive ground water for weeks
at a time."
Scheid Vineyards
Inc. is a leading independent producer of premium wine grapes and operates
4,950 acres of vineyards, primarily in Monterey County, California. The
Company sells most of its grape production under long-term contracts to
wineries producing primarily premium quality table wines, and the Company
also produces a small amount of ultra premium wine under its own labels.
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SCHEID VINEYARDS INC. AND SUBSIDIARY
STATEMENTS OF OPERATIONS
(amounts in thousands, except per share data)
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Three Months Ended
December 31, (Unaudited)
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Year Ended
December 31,
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1998
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1997
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1998
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1997
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REVENUES:
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Sales
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$ 14,682
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$ 6,257
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$ 16,436
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$ 18,683
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Vineyard management, services and other fees
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341
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283
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1,037
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1,187
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Total revenues
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15,023
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6,540
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17,473
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19,870
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COST OF SALES
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7,099
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1,686
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7,911
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6,222
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GROSS PROFIT
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7,924
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4,854
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9,562
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13,648
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General and administrative expenses
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1,236
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1,497
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4,274
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4,215
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Deferred compensation provision
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–
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–
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(706)
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–
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Interest expense (income), net
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(43)
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27
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(46)
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700
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INCOME BEFORE PROVISION FOR INCOME
TAXES
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6,731
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3,330
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6,040
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8,733
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PROVISION FOR INCOME TAXES
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2,697
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1,457
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2,421
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3,887
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INCOME BEFORE DEFERRED TAX ADJUSTMENT
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–
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1,873
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3,619
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4,846
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DEFERRED INCOME TAXES FROM REORGANIZATION
TO C CORPORATION
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–
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–
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–
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1,390
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NET INCOME
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$ 4,034
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$ 1,873
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$ 3,619
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$ 3,456
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BASIC AND DILUTED EARNINGS PER SHARE
1
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$ 0.62
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$ 0.28
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$ 0.55
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$ 0.65
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PRO FORMA AMOUNTS 2:
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INCOME BEFORE INCOME TAXES AS REPORTED
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$ 3,330
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$ 8,733
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PRO FORMA INCOME TAX PROVISION
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1,332
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3,493
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PRO FORMA NET INCOME
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$ 1,998
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$ 5,240
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PRO FORMA NET INCOME PER SHARE
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$ 0.30
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$ 0.98
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WEIGHTED AVERAGE SHARES OUTSTANDING
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6,474
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6,700
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6,611
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5,344
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1 There is no difference between
basic and diluted loss per share.
2 Prior to the Company’s initial
public offering in July 1997, the Company was organized as an S Corporation
and partnerships. In connection with the offering, the Company was reorganized
as a C Corporation. Pro forma net income per share is derived by providing
an income tax provision as if the Company had been a C Corporation during
the entirety of the year ended December 31, 1997. |