For Further Information:
Scheid Vineyards Inc.
305
Hilltown Road
Salinas,
CA 93908
(831) 455-9990
CONTACT: Scott Scheid, President and CEO
Mike Thomsen,
Chief Financial Officer
For Immediate Release:
November 21, 2007
SCHEID
VINEYARDS INC. REPORTS 3rd QUARTER RESULTS
SALINAS,
CA November 21, 2007 -
Scheid Vineyards Inc. announced today its financial results for the third
quarter ended September 30, 2007.
Mike Thomsen,
Chief Financial Officer, reports,
Losses from continuing operations for the nine months ended September 30, 2007
totaled $1.6 million ($1.54 per share), compared to a loss of $1.6 million ($1.60
per share) for the same period in 2006.
Early in 2007, the Company sold a 360-acre vineyard, resulting in a
one-time gain of $4.2 million. After
reflecting the gain on the vineyard sale, taxes on the gain, and other non-operational
items, net income for the nine months ended September 30, 2007 was $1.1 million
($1.10 per share), compared to a net loss of $1.0 million ($1.00 per share) in
2006.
Mr. Thomsen continued, Revenues for the nine months ended September
30, 2007 increased to $19.2 million from $15.6 million for the same period in
2006 (23%). This increase was driven
primarily by sales of bulk wine and other revenues generated by the Companys
winery. These increases were partially
offset by a decrease in grape sales, primarily because the Company converted
80% of its third quarter grape production into bulk wine in 2007, as compared
to only 38% in the third quarter of 2006.
Looking at the 2007 harvest as a whole, Mr.
Thomsen stated, The Companys 2007 harvest was completed in early
November. Yields in the Companys
vineyards, and throughout the state of California, were lower than those of
2006 and 2005. These lower yields and
the sale of the 360-acre vineyard, combined to decrease the 2007 harvest to 17,000
tons, as compared to 22,800 tons in 2006, a 25% reduction.
Scheid
Vineyards Inc. (www.scheidvineyards.com)
operates approximately 5,300 acres of premium wine grape vineyards, primarily
in Monterey County, California.
The Company is in the business of selling grapes and bulk wine to wineries
producing high quality table wine. The
Company also operates a winery that has approximately 30,000 tons of annual
processing capability in which it crushes grapes for its own account, as well
as for winery customers. The Company
also produces a small amount of ultra premium wine under the Scheid Vineyards label, which is sold
through the Companys tasting room, wine club, and local-area retailers. The Class A Common Stock of Scheid Vineyards
is traded on the Pink Sheets Electric Quotation Service under the stock symbol
SVIN. The Pink Sheets is a centralized
quotation service that collects and publishes market maker quotes in real time,
primarily through its website, www.pinksheets.com.
This release
contains forward-looking statements as well as historical information.
Statements of goals and strategies and words such as plan, believe,
anticipate, expect, objectives, forecast, and predict and other
similar words are intended to identify forward-looking statements. These
forward looking statements are included in accordance with the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995, and involve
risks, uncertainties and other factors that may cause the Companys actual
results, performance, or financial condition to be materially different from any
results, performance, or financial condition suggested by the statements in
this release.
SCHEID VINEYARDS INC. AND
SUBSIDIARY
CONSOLIDATED STATEMENTS OF
OPERATIONS
(amounts in thousands, except per share data)
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
Bulk wine sales
...
...
|
|
$
|
1,102
|
|
$
|
912
|
|
$
|
13,890
|
|
$
|
8,303
|
|
|
Grape sales
....
|
|
1,897
|
|
4,895
|
|
1,897
|
|
4,895
|
|
|
Winery processing and
storage revenues
...
|
|
1,298
|
|
862
|
|
2,365
|
|
1,322
|
|
|
Vineyard management,
services and other fees
.
|
|
265
|
|
281
|
|
661
|
|
690
|
|
|
Tasting room revenues
..
.
|
|
152
|
|
146
|
|
411
|
|
360
|
|
|
Total revenues
.
..
|
|
4,714
|
|
7,096
|
|
19,224
|
|
15,570
|
|
|
COST OF SALES
..
..
|
|
3,065
|
|
4,971
|
|
14,089
|
|
10,227
|
|
|
GROSS PROFIT
....
..
|
|
1,649
|
|
2,125
|
|
5,135
|
|
5,343
|
|
|
General and
administrative expenses
..
|
|
1,500
|
|
1,513
|
|
4,594
|
|
4,689
|
|
|
Selling expenses
...
|
|
96
|
|
135
|
|
374
|
|
446
|
|
|
Write-down of
vineyard improvements
.
|
|
|
|
|
|
256
|
|
120
|
|
|
Interest expense, net
..
...
|
|
633
|
|
651
|
|
1,738
|
|
1,849
|
|
|
Market adjustment for interest rate swap
.
|
|
425
|
|
|
|
425
|
|
|
|
|
(Gain) loss on sales of land and equipment
|
|
(3
|
)
|
(13
|
)
|
(4,136
|
)
|
(20
|
)
|
|
INCOME (LOSS)
BEFORE PROVISION
FOR (BENEFIT FROM) INCOME TAXES
|
|
(1,002
|
)
|
(161
|
)
|
1,884
|
|
(1,741
|
)
|
|
PROVISION FOR
(BENEFIT FROM)
INCOME TAXES
.
|
|
(405
|
)
|
(66
|
)
|
763
|
|
(714
|
)
|
|
NET INCOME (LOSS)
...
|
|
$
|
(597
|
)
|
$
|
(95
|
)
|
$
|
1,121
|
|
$
|
(1,027
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
BASIC
.....
..
|
|
$
|
(0.58
|
)
|
$
|
(0.09
|
)
|
$
|
1.10
|
|
$
|
(1.00
|
)
|
|
DILUTED
.....
|
|
$
|
(0.58
|
)
|
$
|
(0.09
|
)
|
$
|
1.09
|
|
$
|
(1.00
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
BASIC
.....
|
|
1,023
|
|
1,024
|
|
1,023
|
|
1,026
|
|
|
DILUTED
...
|
|
1,023
|
|
1,024
|
|
1,026
|
|
1,026
|
|