For Further Information:
Scheid Vineyards Inc. (Nasdaq:
SVIN)
305 Hilltown Road
Salinas, CA 93908
(831) 455-9990
CONTACT: Mike Thomsen, Chief
Financial Officer
For Immediate Release:
May 16, 2005
SCHEID VINEYARDS INC.
REPORTS FIRST QUARTER RESULTS
Salinas, CA - May 16, 2005 - Scheid Vineyards Inc.
(Nasdaq: SVIN) announced today its financial results for the first quarter
ended March 31, 2005.
For the three months ended March 31, 2005, total revenues
decreased to $1,060,000 from $1,124,000 in the 2004 period. Net loss increased to $643,000, or $0.13 per
share, for the first quarter of 2005 as compared to $559,000, or $0.10 per
share, for 2004.
Commenting on the results, Mr. Mike Thomsen, Chief
Financial Officer of Scheid Vineyards, said, First quarter results are in line
with our expectations and previous years.
The decrease in revenues is primarily due to a decrease in bulk wine
revenues in the 2005 period. Bulk
wine revenues decreased 8% in the first quarter of 2005 as compared to 2004. Quarterly results vary from year-to-year as
the result of the prices received for bulk wine sold under contract and on the
speculative market and the timing of such sales. The wine grape business is extremely seasonal and Scheid
Vineyards recognizes a large portion of its crop sale revenues at the time of
its annual harvest in September and October.
Commenting on the progress of the
Companys new winery facility presently under construction, Mr. Kurt Gollnick,
Chief Operating Officer of Scheid Vineyards, stated, As of this date,
construction of the Scheid Winery is progressing on schedule and costs are in
line with the Companys estimates. We
are planning for the new facility to be in partial operation by the 2005
harvest season.
Scheid Vineyards Inc. ( is an independent producer of
premium wine grapes and bulk wine and operates approximately 5,700 acres of
vineyards, primarily in Monterey County, California. The Company sells most of its grape production under short and
long-term grape and bulk wine contracts to wineries producing high quality
table wines, and the Company also produces a small amount of ultra premium wine
under its own label.
SCHEID VINEYARDS INC. AND
SUBSIDIARY
Consolidated Statements of
Operations
(amounts in thousands,
except per share data)
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
2005
|
|
2004
|
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
Sales
...
...
|
|
$
|
886
|
|
$
|
959
|
|
|
Vineyard management, services and other fees
|
|
174
|
|
165
|
|
|
|
Total revenues
|
|
1,060
|
|
1,124
|
|
|
|
COST OF SALES
...
|
|
731
|
|
655
|
|
|
|
GROSS PROFIT
.
|
|
329
|
|
469
|
|
|
|
General and administrative expenses
|
|
1,298
|
|
1,225
|
|
|
|
Selling expenses
|
|
106
|
|
114
|
|
|
|
Interest expense
...
..
|
|
147
|
|
159
|
|
|
|
Interest and investment income
...
..
|
|
(31
|
)
|
(81
|
)
|
|
|
Gain on
sale of equipment
.
|
|
(118
|
)
|
|
|
|
|
LOSS BEFORE INCOME TAX BENEFIT
.
|
|
(1,073
|
)
|
(948
|
)
|
|
|
INCOME TAX BENEFIT
..
|
|
430
|
|
389
|
|
|
|
NET LOSS
...
|
|
$
|
(643
|
)
|
$
|
(559
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED NET LOSS PER SHARE1
.
|
|
$
|
(0.13
|
)
|
$
|
(0.10
|
)
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING
...
|
|
5,105
|
|
5,475
|
|
|
|
|
|
|
|
|
|
|
|
|
1 There is no difference
between basic and diluted net loss per share.
#####