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:
August 17, 2010
SCHEID
VINEYARDS INC. REPORTS 1st QUARTER RESULTS
SALINAS, CA – August 17, 2010
- Scheid Vineyards Inc. announced today its financial results for the first
quarter ended May 31, 2010.
Mike Thomsen,
Chief Financial Officer, reported, “Revenues for the three months ended May 31, 2010
decreased to $2.6 million from $4.7 million for the same period in 2009,
primarily due to decreased sales of bulk wine.
Revenues for 2010 were offset by cost of sales of $3.1 million; selling,
general and administrative expenses of $1.7 million; and interest expense of $1.1
million. Revenues for 2009 were offset
by cost of sales of $3.6 million; selling, general and administrative expenses
of $2.1 million; and interest expense of $0.9 million.”
“Losses from operations for the first quarter
ended May 31, 2010 totaled $2.1 million ($2.38 per share), as compared to
losses from operations of $1.8 million ($1.77 per share) for the same period in
2009. After adjustments for a benefit
from income taxes ($1.1 million), and a decrease in the market valuation of an
interest rate swap ($0.5 million), the net loss for the three months ended May
31, 2010 was $1.6 million ($1.82 per share).
After adjustments for a benefit from income taxes ($0.8 million), and an
increase in the market valuation of an interest rate swap ($0.2 million), the
net loss for the first quarter ended May 31, 2009 was $1.3 million ($1.40 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
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE
MONTHS ENDED MAY 31, 2010 AND 2009
(amounts in thousands, except per share data)
|
|
|
|
Three
Months Ended May 31,
|
|
|
|
|
|
2010
|
|
2009
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
Bulk wine sales
|
|
|
$
|
1,848
|
|
$
|
3,919
|
|
|
Winery processing and storage revenues
|
|
|
259
|
|
297
|
|
|
Vineyard management, services and other
fees
|
|
|
223
|
|
230
|
|
|
Direct sales revenues
|
|
|
299
|
|
269
|
|
|
Total revenues
|
|
|
2,629
|
|
4,715
|
|
|
COST OF SALES
|
|
|
3,122
|
|
3,564
|
|
|
GROSS PROFIT
|
|
|
(493
|
)
|
1,151
|
|
|
General and administrative expenses
|
|
|
1,264
|
|
1,591
|
|
|
Selling expenses
|
|
|
389
|
|
469
|
|
|
Interest expense, net
|
|
|
1,072
|
|
933
|
|
|
Market adjustment for interest rate swap
|
|
|
(490
|
)
|
238
|
|
|
Gain on sale of land and equipment
|
|
|
—
|
|
(2
|
)
|
|
LOSS
BEFORE BENEFIT FROM INCOME TAXES
|
|
|
(2,728
|
)
|
(2,078
|
)
|
|
BENEFIT FROM INCOME TAXES
|
|
|
1,119
|
|
772
|
|
|
NET LOSS
|
|
|
$
|
(1,609
|
)
|
$
|
(1,306
|
)
|
|
|
|
|
|
|
|
|
|
NET LOSS PER SHARE:
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
|
$
|
(1.82
|
)
|
$
|
(1.40
|
)
|
|
DILUTED
|
|
|
$
|
(1.82
|
)
|
$
|
(1.40
|
)
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
BASIC
|
|
|
882
|
|
1,013
|
|
|
DILUTED
|
|
|
882
|
|
1,013
|
|
####