For Further Information:
Scheid
Vineyards Inc. (Nasdaq: SVIN)
CONTACT:
Shawna Estrada, Director of Investor Relations
For
Immediate Release:
November
13, 2000
SCHEID
VINEYARDS INC. REPORTS THIRD QUARTER RESULTS
CFO
Gives Update on 2000 Harvest
MARINA DEL REY, CA - November 13, 2000 - Scheid Vineyards Inc. (Nasdaq:
SVIN) announced today its financial results for the third quarter
ended September 30, 2000.
Through September 30, 2000, the Company had harvested approximately
53% of its producing acres, compared to only 7% for the comparable
period in 1999. Due to a delay in beginning the 1999 harvest due to
cool weather conditions, crop sale revenues for 1999 were almost entirely
recognized in the fourth quarter. The timing difference of the annual
harvest is a significant factor in comparing the three months and
nine months ended September 30, 1999 and 2000.
For the three months ended September 30, 2000, revenues increased
to $10,305,000 from $928,000 in the 1999 period. Net income increased
to $2,597,000, or $0.47 per share, for the 2000 period as compared
to a net loss of $298,000, or $0.05 per share, for the 1999 period.
For the nine months ended September 30, 2000, revenues increased to
$10,809,000 from $1,636,000 in the 1999 period. Net income increased
to $1,361,000, or $0.24 per share, for the 2000 period as compared
to a net loss of $1,132,000, or $0.19 per share, for the 1999 period.
The weighted average number of shares outstanding decreased to 5.6
million in 2000 from 6.1 million in 1999.
Commenting on the 2000 harvest, Heidi M. Scheid, Chief Financial Officer
of the Company, stated, "As of today, harvest for the Company is substantially
complete and the Company estimates that total tons harvested in 2000
are approximately 40% more than in 1999. This increase is primarily
due to more favorable growing conditions in 2000 and approximately
15% more acres in partial or full production than in 1999. Overall,
white wine grape varieties for the Company produced average yields
in 2000, compared to white grape yields that were significantly below
average in 1999. For red wine grape varieties, representing about
55% of acres in production, both the crops of 1999 and 2000 were considered
to be below average. As previously reported, the Company's red wine
grape crop of 2000 was impacted by triple digit heat waves in mid-May
and early June. These heat waves hit when the red varieties were in
bloom and caused the developing grape clusters to retain fewer berries
than normal, a condition known as "shatter." The result of shattered
clusters was a lighter than expected crop in the red varieties."
Ms. Scheid continued, "We are currently estimating that revenues for
the fiscal year ending December 31, 2000 will be in excess of $17
million, an increase of over 30% from fiscal 1999 revenues. We caution
that historical amounts of cost of sales and other expenses deducted
in arriving at net income, and historical and third quarter 2000 ratios
of cost of sales and other expenses to revenues, should not be expected
to provide an indication of gross profit or net income to be reported
by the Company for fiscal 2000. "
Scheid Vineyards Inc. is a leading independent producer of premium
wine grapes and operates approximately 6,000 acres of vineyards, primarily
in Monterey County, California. The Company sells most of its grape
production under long-term contracts to wineries producing primarily
premium quality table wines, and the Company also produces a small
amount of ultra premium wine under its own labels.
Note: This press release contains forward-looking statements concerning
expectations for the 2000 harvest and the Company's 2000 financial
performance. These forward-looking statements can generally be identified
as such because the context of the statement will include such words
as the Company "believes," "anticipates," "expects," or words of similar
import. Similarly, statements that describe the Company's future operating
performance, financial results, plans, objectives or goals are also
forward-looking statements. Such forward looking statements are subject
to certain factors, risks and uncertainties which could cause actual
results to differ materially from those currently anticipated. Such
factors, risks and uncertainties include, but are not limited to,
(i) success in planting, cultivating and harvesting of existing and
new vineyards, including the effects of weather conditions, (ii) the
potential effect on the Company's vineyards of certain diseases, insects
and pests, including the glassy-winged sharpshooter, (iii) effects
of variances in grape yields and prices from harvest to harvest due
to agricultural, market and other factors and relatively fixed farming
costs, (iv) success in, and the timing of, future acquisitions, if
any, of additional properties for vineyard development and related
businesses as well as variability in acquisition and development costs,
(v) consumer demand and preferences for the wine grape varieties produced
by the Company, (vi) general health and social concerns regarding
consumption of wine and spirits, (vii) the size and growth rate of
the California wine industry, (viii) seasonality of the wine grape
producing business, (ix) increases or changes in government regulations
regarding environmental impact, water use, labor or consumption of
alcoholic beverages, (x) competition from other producers and wineries,
(xi) proposed expansion of the Company's wine business, (xii) the
Company's dependence on a small number of clients for the purchase
of a substantial portion of the Company's grape production, (xiii)
the availability of financing on terms acceptable to the Company,
and (xiv) the Company's labor relations. These and other factors,
risks and uncertainties are discussed in greater detail under the
caption "Business - Cautionary Information Regarding Forward Looking
Statements" in the Company's Annual Report on Form 10-KSB filed with
the Securities and Exchange Commission on March 13, 2000. Stockholders,
potential investors and other readers are urged to consider these
factors carefully in evaluating the forward-looking statements and
are cautioned not to place undo reliance on such forward-looking statements.
The forward-looking statements made herein are only made as of the
date of this press release and the Company undertakes no obligation
to publicly update such forward-looking statements to reflect subsequent
events or circumstances.
SCHEID VINEYARDS INC. AND SUBSIDIARY
STATEMENTS OF OPERATIONS
(amounts
in thousands, except per share data)
(Unaudited)
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|
|
2000
|
1999
|
2000
|
1999
|
|
REVENUES:
|
|
|
|
|
|
Sales
|
$ 10,127
|
$ 709
|
$ 10,243
|
$ 1,004
|
|
Vineyard management, services and other fees
|
178
|
219
|
566
|
632
|
|
|
|
|
|
|
|
Total revenues
|
10,305
|
928
|
10,809
|
1,636
|
|
COST OF SALES
|
5,108
|
482
|
5,252
|
662
|
|
|
|
|
|
|
|
GROSS PROFIT
|
5,197
|
446
|
5,557
|
974
|
|
General and administrative expenses
|
934
|
897
|
2,870
|
2,842
|
|
Interest expense (income), net
|
(65)
|
45
|
419
|
18
|
|
|
|
|
|
|
|
INCOME ( LOSS) BEFORE INCOME TAX PROVISION
(BENEFIT)
|
4,328
|
(496)
|
2,268
|
(1,886)
|
|
INCOME TAX PROVISION (BENEFIT)
|
1,731
|
(198)
|
907
|
(754)
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
|
$ 2,597
|
$ (298)
|
$ 1,361
|
$ (1,132)
|
|
|
|
|
|
|
|
BASIC AND DILUTED NET INCOME (LOSS)
PER SHARE
|
$ 0.47
|
$ (0.05)
|
$ 0.24
|
$ (0.19)
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING
|
5,547
|
6,038
|
5,607
|
6,087
|
|
|
|
|
|
|
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