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:
November 14, 2001
SCHEID VINEYARDS
INC. REPORTS THIRD QUARTER RESULTS
President Gives
Update on 2001 Harvest
SALINAS, CA - November 14, 2001 - Scheid Vineyards Inc.
(Nasdaq: SVIN) announced today its
financial results for the third quarter ended September 30, 2001.
For the
three months ended September 30, 2001, revenues were $9,773,000 as compared to
$10,305,000 in the 2000 period. Net
income was $1,749,000, or $0.32 per share, for the 2001 period as compared to
$2,597,000, or $0.47 per share, for the 2000 period.
For the
nine months ended September 30, 2001, revenues were $10,283,000 as compared to
$10,809,000 in the 2000 period. Net
income was $86,000, or $0.02 per share, for the 2001 period as compared to
$1,361,000, or $0.24 per share, for the 2000 period. The weighted average number of shares outstanding decreased to
5.5 million in 2001 from 5.6 million in 2000.
Mr. Mike
Thomsen, Chief Financial Officer of the Company, stated, “The revenue decreases
for the 2001 periods were primarily due to the fact that through September 30, 2001,
the Company had harvested 49% of its producing acres as compared to 53% at
September 30, 2000.” In addition, Mr.
Thomsen stated, “Net income decreases for the nine months ended September 30,
2001 as compared to September 30, 2000 were due primarily to the costs
associated with the relocation of the Company’s executive office from Marina
del Rey, California to Salinas, California.”
Commenting
on the 2001 harvest, Scott D. Scheid, President of the Company, stated, “The
Company completed the harvest of its own vineyards on November 7, with total
tons harvested in 2001 approximately 25% more than in 2000. Acres in partial or full production
increased approximately 17% in 2001.
The 2001 growing season for Scheid Vineyards was similar to most growers
in the state, with some minor frost damage in April, heat waves in May and
June, followed by a cool late summer and fall.
The cold spells coupled with heat spikes resulted in extended hang time,
allowing for the complete physiological maturity and ripening of the grapes,
with quality generally being described by industry experts as good to
excellent.”
Mr. Scheid
continued, “We are currently estimating that revenues for the fiscal year
ending December 31, 2001 will be in excess of $20 million, an increase of over
15% from fiscal 2000 revenues. We
caution that historical amounts of cost of sales and other expenses deducted in
arriving at net income, and historical and third quarter 2001 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 2001. ”
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
2001 harvest and the Company’s 2001 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 30, 2001. 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)