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:

May 18, 2009

 

 

SCHEID VINEYARDS INC. REPORTS YEAR END RESULTS

 

SALINAS, CA – May 18, 2009 - Scheid Vineyards Inc. announced today its financial results for the year ended February 28, 2009.

 

Mike Thomsen, Chief Financial Officer, reported, “Losses from operations for the year ended February 28, 2009 totaled $4.8 million ($4.86 per share).  After adjustments for a benefit from income taxes ($2.1 million) and a decrease in the market valuation of an interest rate swap ($1.3 million), the net loss for the year was $4.0 million ($4.06 per share).”

 

Mr. Thomsen also reported, “Revenues for the period totaled $24.8 million and consisted primarily of grape and bulk wine sales and wine processing and storage fees.   Revenues were offset by cost of sales of $18.8 million, selling, general and administrative expenses of $7.2 million, and interest expense of $3.6 million.”

 

Mr. Thomsen continued, “The year ended February 28, 2009 is the first full 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.”  

 

Scott Scheid, CEO, commented on the loss, “The primary cause of the loss for the year 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.”

 

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

                      CONSOLIDATED STATEMENT OF OPERATIONS

                                  YEAR ENDED FEBRUARY 28, 2009

                            (amounts in thousands, except per share data)

 

 

 

 

 

 

 

 

 

REVENUES:

 

 

 

Bulk wine sales

 

$

11,647

 

Grapes sales

 

6,478

 

Winery processing and storage revenues

 

4,882

 

Vineyard management, services and other fees

 

1,008

 

    Direct sales revenues

 

781

 

Total revenues

 

24,796

 

COST OF SALES

 

18,754

 

GROSS PROFIT

 

6,042

 

General and administrative expenses

 

5,921

 

Selling expenses

 

1,299

 

Write down of vineyard improvements

 

61

 

Gain on sale of property, plant and equipment

 

(24

)

Interest expense, net

 

3,604

 

Market adjustment for interest rate swap

 

1,325

 

LOSS BEFORE BENEFIT FROM INCOME TAXES

 

(6,144

) 

BENEFIT FROM INCOME TAXES

 

2,117

 

NET LOSS

 

$

(4,027

) 

 

 

 

 

NET LOSS PER SHARE:

 

 

 

 

   BASIC

 

$

(4.06

)

   DILUTED

 

$

(4.06

) 

 

 

 

 

WEIGHTED AVERAGE SHARES OUTSTANDING:

 

 

 

  BASIC

 

991

 

  DILUTED

 

991

 

 

 

 

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