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:
June 9, 2010
SCHEID
VINEYARDS INC. REPORTS YEAR END RESULTS
SALINAS, CA – June 9, 2010 -
Scheid Vineyards Inc. announced today its financial results for the year ended
February 28, 2010.
Mike Thomsen,
Chief Financial Officer, reported, “Revenues for the year ended February 28, 2010
increased to $30.1 million from $24.8 million for the same period in 2008, a
24% increase, primarily due to increased sales of wine grapes and bulk
wine. Revenues for 2010 were offset by
cost of sales of $20.8 million; selling, general and administrative expenses of
$7.1 million; and interest expense of $4.1 million. Revenues for the same period in 2009 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.”
“Losses from operations for the year ended
February 28, 2010 totaled $2.0 million ($2.23 per share), as compared to losses
from operations of $4.8 million ($4.84 per share) for the same period in
2009. After adjustments for a benefit
from income taxes ($1.5 million), a loss from the write-down of vineyard
improvements ($1.0 million), and an increase in the market valuation of an
interest rate swap ($0.2 million), the net loss for the year ended February 28,
2010 was $1.7 million ($1.92 per share).
After adjustments for a benefit from income taxes ($2.1 million), and an
increase in the market valuation of an interest rate swap ($1.3 million), the
net loss for the year ended February 28, 2009 was $4.0 million ($4.06 per
share).”
Scheid
Vineyards Inc. (www.scheidvineyards.com)
operates 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
STATEMENTS OF OPERATIONS
YEARS ENDED FEBRUARY 28, 2010 AND 2009
(amounts in thousands, except per share data)
|
|
|
|
Year
Ended February 28
|
|
|
|
|
|
2010
|
|
2009
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
Bulk wine sales
|
|
|
$
|
14,440
|
|
$
|
11,647
|
|
|
Grape sales
|
|
|
9,066
|
|
6,478
|
|
|
Winery processing and storage revenues
|
|
|
4,262
|
|
4,882
|
|
|
Vineyard management, services and other
fees
|
|
|
1,009
|
|
1,008
|
|
|
Direct sales revenues
|
|
|
1,297
|
|
781
|
|
|
Total revenues
|
|
|
30,074
|
|
24,796
|
|
|
COST OF SALES
|
|
|
20,842
|
|
18,754
|
|
|
GROSS PROFIT
|
|
|
9,232
|
|
6,042
|
|
|
General and administrative expenses
|
|
|
5,145
|
|
5,921
|
|
|
Selling expenses
|
|
|
1,993
|
|
1,299
|
|
|
Interest expense, net
|
|
|
4,099
|
|
3,604
|
|
|
Market adjustment for interest rate swap
|
|
|
221
|
|
1,325
|
|
|
Gain on sale of land and equipment
|
|
|
(5
|
)
|
(24
|
)
|
|
Write-down of vineyard improvements
|
|
|
975
|
|
61
|
|
|
LOSS
BEFORE BENEFIT FROM INCOME TAXES
|
|
|
(3,196
|
)
|
(6,144
|
)
|
|
BENEFIT FROM INCOME TAXES
|
|
|
1,479
|
|
2,117
|
|
|
NET LOSS
|
|
|
$
|
(1,717
|
)
|
$
|
(4,027
|
)
|
|
|
|
|
|
|
|
|
|
NET LOSS PER SHARE:
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
|
$
|
(1.92
|
)
|
$
|
(4.06
|
)
|
|
DILUTED
|
|
|
$
|
(1.92
|
)
|
$
|
(4.06
|
)
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
BASIC
|
|
|
895
|
|
991
|
|
|
DILUTED
|
|
|
895
|
|
991
|
|
|
|
|
|
|
|
|
|
|
|
######