For Immediate Release:
May 13, 1998
SCHEID VINEYARDS INC. REPORTS FIRST QUARTER RESULTS
MARINA DEL REY, CA - May 13, 1998 - Scheid Vineyards Inc. (NASDAQ-NMS - SVIN)
announced today its financial results for the first quarter ended March 31, 1998.
For the three months ended March 31, 1998, revenues increased 50% to $520,000 from $347,000 in the 1997 period. Net loss increased to $478,000, or $.07 per share, for 1998 as compared to pro forma net loss of $280,000, or $.06 per share, for 1997.
Commenting on the results, Mr. Alfred G. Scheid, chief executive officer of Scheid Vineyards, said "First quarter results are very much in line with our expectations. The wine grape business is extremely seasonal. Scheid Vineyards recognizes substantially all of its crop sale revenues at the time of its annual harvest in September and October."
In addition, the Company also announced the closing of a public offering of 1,000,000 shares of the Company’s Class A Common Stock sold by Alfred G. Scheid, CEO and a principal stockholder of the Company. The offering was underwritten by a syndicate of underwriters with Cruttenden Roth Incorporated as the managing underwriter.
Scheid Vineyards Inc. is an independent producer of premium wine grapes, with
5,280 acres of vineyards in operation, 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 wines under its own labels.
SVIN Reports First Quarter Results
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SCHEID VINEYARDS INC. AND SUBSIDIARY
Statements of Operations
(In thousands, except share and per share data)
Three Months Ended
March 31,
(Unaudited)
Revenues:
Sales
Vineyard management, services and other fees
Total revenues
Cost of sales
Gross profit
General and administrative
Interest expense (income), net
Income before income tax benefit
Income tax benefit
Net loss
Basic and diluted loss per share 1
Pro Forma Amounts 2:
Loss before income taxes as reported
Pro forma income tax benefit
Pro forma net loss
Pro forma basic and diluted loss per share
Weighted average shares outstanding
1998
$ 307
213
520
131
389
1,202
(15)
(798)
(320)
$ (478)
$ (0.07)
6,700,000
1997
$ — 347
347
—
628
185
(466)
$ (466)
$ (0.11)
$ (466) (186)
$ (280)
$ (0.06)
4,400,000
1 There is no difference between basic and diluted loss per share.
2 Prior to the Company’s initial public offering in July 1997, the Company was organized as an S Corporation and Partnerships. In connection with the offering, the Company was reorganized as a C Corporation. Pro forma loss per share is derived by providing an income tax benefit as if the Company had been a C Corporation during the entirety of the three months ended March 31, 1997.