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:
December 8, 2008
SCHEID VINEYARDS
INC. REPORTS 2nd QUARTER RESULTS
President Comments on 2008 Harvest
SALINAS, CA December 8, 2008 - Scheid Vineyards Inc.
announced today its financial results for the second quarter ended August 31,
2008.
Mike Thomsen, Chief Financial
Officer, reported, Losses from
operations for the six months ended August 31, 2008 totaled $5.2 million ($5.11
per share). After an income tax
adjustment ($1.8 million) and a decrease in the market valuation of an interest
rate swap ($0.8 million), the net loss for the period was $2.6 million ($2.56
per share).
Mr. Thomsen also reported, Revenues for the period totaled $3.2 million
and consisted primarily of sales of bulk wine and fees for the processing and
storage of wines for others. These
revenues were offset by cost of sales of $3.5 million, selling, general and
administrative expenses of $3.2 million, and interest expense in the amount of
$1.6 million.
Mr. Thomsen continued, The six months ended
August 31, 2008 is the second reporting period since the Company changed its
fiscal year end from December 31 to February 28. The change in fiscal year end was made in
order to report financial results in a manner more consistent with the
Companys revenue cycle, as sales of bulk wine continue
to replace wine grapes in the Companys sales mix. The first new fiscal year reflecting this
change will end February 28, 2009.
Scott Scheid, CEO, commented on the wine grape harvest completed in mid-
November. The Company experienced a
disappointing harvest this year. Tonnage
per acre was down over 26% from our 5-year moving average and about 11% below
the harvest of 2007. This reduction in
the crop is in line with wine grape industry results throughout the California
Coastal Regions and was primarily due to adverse weather conditions in the
spring and early summer of 2008. It is
expected that the Company will report a loss at the end of its fiscal year on
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 Companys state-of-the-art winery
commenced operations in 2005 and has the capacity to process approximately
30,000 tons of grapes each harvest. The
Companys primary business is producing wine grapes and converting them into
high quality bulk wine for sale to other wineries. In addition, the Company produces ultra
premium wine under the Scheid Vineyards
label, which is sold through the Companys tasting rooms, wine club, and
Monterey, California 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
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
SIX MONTHS ENDED AUGUST 31,
2008
(amounts
in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
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REVENUES:
|
|
|
|
|
|
Bulk wine sales
|
|
|
$
|
1,257
|
|
|
Grapes sales
.
|
|
|
280
|
|
|
Winery processing and storage revenues
.
|
|
|
1,028
|
|
|
Vineyard management, services and other
fees
.
|
|
|
399
|
|
|
Direct sales revenues
...
...
.
..
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|
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261
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|
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Total revenues
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|
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3,226
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COST OF SALES
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3,508
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|
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GROSS PROFIT (LOSS)
.
.
.
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|
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(282
|
)
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General and administrative expenses
.
|
|
|
2,966
|
|
|
Selling expenses
.
|
|
|
258
|
|
|
Interest expense, net
...
....
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|
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1,648
|
|
|
Market adjustment for interest rate swap
..
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|
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(773
|
)
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LOSS BEFORE BENEFIT FROM INCOME TAXES.
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|
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(4,381
|
)
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BENEFIT FROM INCOME TAXES
.
|
|
|
1,796
|
|
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NET LOSS
..
..
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|
|
$
|
(2,585
|
)
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NET LOSS PER SHARE:
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BASIC
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$
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(2.56
|
)
|
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DILUTED
..
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$
|
(2.56
|
)
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|
|
|
|
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WEIGHTED AVERAGE SHARES OUTSTANDING:
|
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|
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BASIC
.
|
|
|
1,007
|
|
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DILUTED
..
..
|
|
|
1,007
|
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######