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:
March 17, 2008
SCHEID VINEYARDS
INC. REPORTS YEAR END RESULTS
AND ANNOUNCES
CHANGE IN FISCAL YEAR END
SALINAS, CA March 17, 2008 - Scheid Vineyards Inc.
announced today its financial results for the year ended December 31, 2007.
Mike Thomsen, Chief Financial
Officer, reports, Income from
operations for the year ended December 31, 2007 totaled $0.6 million ($0.59 per
share), compared to $3.0 million ($2.93 per share) for the same period in
2006. Taking into account non-recurring
items and income taxes, net income for 2007 was $1.9 million ($1.86 per share),
compared to $1.1 million ($1.12 per share) in 2006. Non-recurring items in 2007 included the sale of a 360-acre
vineyard which resulted in a gain of $4.2 million, and the decrease in the
market valuation of an interest rate swap of $1.2 million.
Mr. Thomsen continued, Revenues
for the year ended December 31, 2007 increased to $36.7 million from $30.1
million for the same period in 2006, an increase of 22%. This increase was driven primarily by sales
of bulk wine and processing and storage revenues generated by the Companys
winery. These increases were partially
offset by a decrease in grape sales, primarily because the Company converted
69% of its grape production into bulk wine in 2007, as compared to only 42% in
2006.
Mr. Thomsen also reported that the Companys Board of Directors has
approved a change in the Companys fiscal year end from December 31 to February
28. The change was made to report
financial results in a manner more consistent with the Companys revenue cycle
which has changed as the result of the shift from the sales of primarily wine
grapes to primarily bulk wine. The
Companys first full new fiscal year after this change will be February 28,
2009.
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)
|
|
Year
Ended December 31,
|
|
|
2007
|
|
2006
|
|
REVENUES:
|
|
|
|
|
Bulk wine
sales
..
.
|
$
|
24,722
|
|
$
|
9,005
|
|
Grape
sales.
.
.
|
6,075
|
|
16,371
|
|
Winery processing and storage revenues
.
|
4,384
|
|
3,145
|
|
Vineyard management, services and other fees
...
|
1,001
|
|
1,056
|
|
Tasting room revenues
...
.
..
..
|
549
|
|
495
|
|
Total revenues
..
|
36,731
|
|
30,072
|
|
COST OF SALES
..
|
26,625
|
|
17,687
|
|
GROSS PROFIT
..
|
10,106
|
|
12,385
|
|
General and administrative expenses
...
|
6,130
|
|
6,366
|
|
Selling expenses
...
|
567
|
|
576
|
|
Interest expense, net
...
..............
|
2,786
|
|
2,439
|
|
INCOME FROM OPERATIONS
....
|
623
|
|
3,004
|
|
Market adjustment for interest rate
swap
.............
|
1,249
|
|
|
|
Litigation settlement
..
...
....
|
|
|
966
|
|
Write-down of vineyard
improvements
.
|
256
|
|
119
|
|
Gain on sale of land and
equipment
..
..
.............
|
(4,142
|
)
|
|
|
INCOME BEFORE PROVISION FOR INCOME
TAXES.
|
3,260
|
|
1,919
|
|
PROVISION FOR INCOME TAXES
.
|
1,360
|
|
774
|
|
NET INCOME
...
|
$
|
1,900
|
|
$
|
1,145
|
|
|
|
|
|
|
NET INCOME PER SHARE:
|
|
|
|
|
|
|
BASIC
..
....
|
$
|
1.86
|
|
$
|
1.12
|
|
DILUTED
..
..
|
$
|
1.86
|
|
$
|
1.11
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING:
|
|
|
|
|
BASIC
..
...
..
|
1,021
|
|
1,023
|
|
DILUTED
.
.....
|
1,023
|
|
1,029
|
######