For Further Information:
Scheid Vineyards Inc. (Nasdaq:
SVIN)
305 Hilltown Road
Salinas, CA 93908
(831) 455-9990
CONTACT: Shawna Estrada, Director of Investor Relations
For Immediate Release:
August 14, 2001
SCHEID VINEYARDS INC. REPORTS SECOND QUARTER RESULTS
President Comments on Upcoming Harvest
MARINA DEL REY, CA - August
14, 2001 - Scheid Vineyards Inc. (Nasdaq:
SVIN) announced today its financial results for the second quarter ended
June 30, 2001.
For the three months ended
June 30, 2001, revenues decreased 4% to $292,000 from $303,000 in the 2000
period. Net loss increased to $912,000,
or $.17 per share, for the 2001 period as compared to a net loss of $619,000,
or $.11 per share, for the 2000 period.
For the six months ended June
30, 2001, revenues increased 1% to $510,000 from $504,000 in the 2000
period. Net loss increased to
$1,663,000, or $.30 per share, for the 2001 period as compared to a net loss of
$1,236,000, or $.22 per share, for the 2000 period.
Mr. Mike Thomsen, Chief
Financial Officer of the Company, stated, “Because the wine grape business is
seasonal and we recognize substantially all of our crop sales revenues at the
time of our annual harvest in September and October, results from the first
half of the year are really not meaningful.
Revenues for the first half of the year are in line with our expectations.” Mr. Thomsen continued, “The increase in the
net loss for the first half of the year is due primarily to costs incurred to
relocate the Company’s executive offices and certain of its executives from
Marina del Rey, California to Salinas, California which was completed in June. These non-recurring costs, which include
relocation packages, severance packages and other moving expenses, will be
between $500,000 and $600,000 and were incurred primarily in the second
quarter. The purpose of the relocation
is to place the Company’s executive offices in greater proximity to the
Company’s vineyards.”
Commenting on the outlook for
the upcoming 2001 harvest, Mr. Scott D. Scheid, President of Scheid Vineyards,
stated, “The development of our wine grape crop for 2001 is proceeding as
expected. It is anticipated that the
first grapes will be harvested the week of August 13, 2001, several weeks ahead
of schedule. The harvest is not
expected to be in full swing, however, until early September, which is
customary for wine grapes produced on the Central Coast.”
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 label.
Note: This press release contains forward-looking
statements concerning expectations for the 2001 harvest and the Company’s 2001
financial performance. These
forward-looking statements are subject to risks and uncertainties, such as
weather conditions, that could cause actual results to differ materially and adversely
from those set forth in the forward-looking statements. For further details and a discussion of the
risks and uncertainties which affect or may affect the Company, refer to the
Company’s filings with the Securities and Exchange Commission, including its
most recent Form 10-QSB dated August 14, 2001 and Form 10-KSB dated March 30,
2001. The forward-looking statements
represent the Company’s judgment as of the date of this press release. The Company disclaims any intent or
obligation to update its forward-looking statements.
SCHEID VINEYARDS INC. AND SUBSIDIARY
STATEMENTS OF OPERATIONS
(amounts in thousands, except per share data)
(Unaudited)
|
|
Three Months Ended
June
30,
|
Six Months
Ended
June
30,
|
|
|
2001
|
2000
|
2001
|
2000
|
|
REVENUES:
|
|
|
|
|
|
Sales
|
$
72
|
$
67
|
$ 127
|
$ 116
|
|
Vineyard
management, services and other fees
|
220
|
236
|
383
|
388
|
|
|
________
|
________
|
________
|
________
|
|
Total revenues
|
292
|
303
|
510
|
504
|
|
COST OF SALES
|
124
|
126
|
220
|
144
|
|
|
________
|
________
|
________
|
________
|
|
GROSS PROFIT
|
168
|
177
|
290
|
360
|
|
General and administrative expenses
|
1,419
|
941
|
2,529
|
1,936
|
|
Interest expense, net
|
270
|
268
|
533
|
484
|
|
|
________
|
________
|
________
|
________
|
|
LOSS BEFORE INCOME TAX
BENEFIT
|
(1,521)
|
(1,032)
|
(2,772)
|
(2,060)
|
|
INCOME TAX BENEFIT
|
609
|
413
|
1,109
|
824
|
|
|
________
|
________
|
________
|
________
|
|
NET LOSS
|
$ (912)
|
$ (619)
|
$ (1,663)
|
$ (1,236)
|
|
|
________
________
|
________
________
|
________
________
|
________
________
|
|
BASIC AND DILUTED NET
LOSS PER SHARE
|
$ (0.17)
|
$ (0.11)
|
$ (0.30)
|
$ (0.22)
|
|
|
________
________
|
________
________
|
________
________
|
________
________
|
|
WEIGHTED AVERAGE SHARES
OUTSTANDING
|
5,476
|
5,590
|
5,502
|
5,637
|
|
|
________
________
|
________
________
|
________
________
|
________
________
|