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:
July 24, 2009
SCHEID VINEYARDS
INC. REPORTS 1st QUARTER RESULTS
SALINAS, CA – July 24, 2009 - Scheid Vineyards Inc.
announced today its financial results for the first quarter ended May 31, 2009.
Mike Thomsen, Chief Financial
Officer, reported, “Revenues for the three months ended May 31,
2009 increased to $4.7 million from $1.5 million for the same period in 2008,
primarily due to increased sales of bulk wine.
Revenues for 2009 were offset by cost of sales of $3.6 million; selling,
general and administrative expenses of $2.0 million; and interest expense of
$0.9 million. Revenues for 2008 were
offset by cost of sales of $1.3 million; selling, general and administrative
expenses of $2.0 million; and interest expense of $0.9 million.”
“Losses from operations for the first quarter ended May 31, 2009 totaled
$1.8 million ($1.93 per share), as compared to losses from operations of $2.6
million ($2.62 per share) for the same period in 2008. After adjustments for a benefit from income
taxes ($0.7 million), and a decrease in the market valuation of an interest
rate swap ($0.2 million), the net loss for the three months ended May 31, 2009 was
$1.3 million ($1.40 per share). After
adjustments for a benefit from income taxes ($0.7 million), and an increase in
the market valuation of an interest rate swap ($0.9 million), the net loss for
the first quarter ended May 31, 2008 was $1.0 million ($1.00 per share).”
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 STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MAY 31, 2009 AND 2008
(amounts
in thousands, except per share data)
|
|
|
|
Three
Months Ended May 31,
|
|
|
|
|
|
2009
|
|
2008
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
Bulk wine sales
|
|
|
$
|
3,919
|
|
$
|
539
|
|
|
Winery processing and storage revenues
|
|
|
297
|
|
653
|
|
|
Vineyard management, services and other
fees
|
|
|
230
|
|
220
|
|
|
Direct sales revenues
|
|
|
269
|
|
132
|
|
|
Total revenues
|
|
|
4,715
|
|
1,544
|
|
|
COST OF SALES
|
|
|
3,564
|
|
1,366
|
|
|
GROSS PROFIT
|
|
|
1,151
|
|
178
|
|
|
General and administrative expenses
|
|
|
1,591
|
|
1,646
|
|
|
Selling expenses
|
|
|
469
|
|
309
|
|
|
Interest expense, net.
|
|
|
933
|
|
878
|
|
|
Market adjustment for interest rate swap
|
|
|
238
|
|
(946)
|
|
|
Gain on sale of land and equipment
|
|
|
(2
|
)
|
—
|
|
|
LOSS
BEFORE BENEFIT FROM INCOME TAXES
|
|
|
(2,078
|
)
|
(1,709
|
)
|
|
BENEFIT FROM INCOME TAXES
|
|
|
772
|
|
701
|
|
|
NET LOSS
|
|
|
$
|
(1,306
|
)
|
$
|
(1,008
|
)
|
|
|
|
|
|
|
|
|
|
NET LOSS PER SHARE:
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
|
$
|
(1.40
|
)
|
$
|
(1.00
|
)
|
|
DILUTED
|
|
|
$
|
(1.40
|
)
|
$
|
(1.00
|
)
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
BASIC
|
|
|
931
|
|
1,013
|
|
|
DILUTED
|
|
|
931
|
|
1,013
|
|
#####