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:
February 27, 2009
SCHEID VINEYARDS
INC. REPORTS 3rd QUARTER RESULTS
SALINAS, CA – February 27, 2009 - Scheid Vineyards Inc.
announced today its financial results for the third quarter ended November 30,
2008.
Mike Thomsen, Chief Financial
Officer, reported, “Losses from operations
for the nine months ended November 30, 2008 totaled $3.4 million ($3.40 per
share). After an adjustment for a
benefit from income taxes ($1.7 million) and a decrease in the market valuation
of an interest rate swap ($0.4 million), the net loss for the period was $2.1
million ($2.10 per share).”
Mr. Thomsen also reported, “Revenues for the period totaled $14.4 million
and consisted primarily of grape and bulk wine sales and wine processing and
storage fees. Revenues were offset by
cost of sales of $10.2 million, selling, general and administrative expenses of
$5.3 million, and interest expense of $2.3 million.”
Mr. Thomsen continued, “The nine months
ended November 30, 2008 is the third 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
Company’s revenue cycle, as sales of bulk wine continue to replace wine grapes
in the Company’s sales mix. The first
new fiscal year reflecting this change will end February 28, 2009.”
Scott Scheid, CEO, commented on the loss, “The primary cause of the loss
for the nine month period was a major decrease in grape production in the
Company’s vineyards. Tonnage harvested
this year was down over 26% from the Company’s 5-year moving average and about
11% below the harvest of 2007. This
significant decrease in the size of the crop 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 Company’s state-of-the-art winery
commenced operations in 2005 and has the capacity to process approximately
30,000 tons of grapes each harvest. The
Company’s 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 Company’s 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 Company’s 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
NINE MONTHS ENDED NOVEMBER 30, 2008
(amounts in thousands, except per share data)
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REVENUES:
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Grape sales
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$
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6,478
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Winery processing and storage revenues
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4,343
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Bulk wine sales
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2,229
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Vineyard management, services and other
fees
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860
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Direct sales revenues
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529
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Total revenues
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14,439
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COST OF SALES
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10,151
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GROSS PROFIT
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4,288
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General and administrative expenses
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4,434
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Selling expenses
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903
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Write down of vineyard improvements
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44
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Interest expense, net.
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2,288
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Market adjustment for interest rate swap
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402
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LOSS BEFORE BENEFIT FROM INCOME TAXES.
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(3,783
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)
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BENEFIT FROM INCOME TAXES
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1,689
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NET LOSS
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$
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(2,094
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)
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NET LOSS PER SHARE:
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BASIC
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$
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(2.09
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)
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DILUTED
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$
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(2.09
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)
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WEIGHTED AVERAGE SHARES OUTSTANDING:
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BASIC
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1,001
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DILUTED
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1,001
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######