For Further Information:
Scheid Vineyards Inc. (Nasdaq: SVIN)
13470 Washington Blvd.
Marina del Rey, CA 90292
(310) 301-1555
Contact: Shawna Estrada, Director of Investor Relations
For Immediate Release:
February 23, 2001
SCHEID VINEYARDS INC. REPORTS
YEAR END RESULTS,
COMMENTS ON EXPECTED PRICES
FOR 2001
Marina del Rey, CA - February 23, 2001 - Scheid Vineyards
Inc. (Nasdaq: SVIN) announced today its financial results for the year ended
December 31, 2000.
Company revenues increased 35% to $17.4 million from $12.8 million in 1999.
Net income increased to $2.5 million, or $0.45 per share, for 2000 compared to
net income of $636,000, or $0.11 per share, for 1999. Weighted average shares
outstanding were 5.6 million in 2000 and 6.0 million in 1999.
Alfred G. Scheid, President and Chief Executive Officer, said, "For the
year 2000, we harvested approximately 10,700 tons of wine grapes, a 39%
increase from the 1999 harvest of 7,700 tons. This increase is primarily due to
more favorable growing conditions in 2000 and approximately 15% more acres in
partial or full production." Mr. Scheid continued, "We would
characterize the overall 2000 growing season as 'average'. Our white wine grape
varieties, primarily Chardonnay, produced average yields. Our red wine grape
varieties, primarily Cabernet Sauvignon and Merlot, were impacted by severe
heat waves in mid-May and early June and produced a below average crop."
The Company also commented on the recently released Preliminary Grape Crush
Report which covers the 2000 harvest. The California Department of Food and
Agriculture publishes the Preliminary Grape Crush Report on February 10 and the
Final Grape Crush Report on March 10 each year. This report shows prices paid
during the previous year's harvest for grapes purchased for wine, concentrate,
juice, vinegar and beverage brandy by California processors. The majority of
the Company's prices for current wine grape production is determined by pricing
formulas utilizing the Final Grape Crush Report. Based on the Preliminary
Report, the Company anticipates receiving prices for its 2001 crop ranging from
a slight decrease to a moderate increase from last year's prices.
Heidi M. Scheid, Chief Financial Officer, stated, "Prices remain strong
for the majority of wine grapes we expect to harvest in 2001. Based on our
preliminary estimates, we will receive prices ranging from a 2% decrease to a
14% increase from last year's prices for the majority of our wine grape
production." Although historically there have not been significant
differences in the pricing data reported in the Preliminary and the Final Grape
Crush Reports, it is possible that there may be some adjustments to the
Company's expected 2001 grape prices when the Final Report is published on
March 10.
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 pricing expectations for the 2001 harvest. 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, ofadditional
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
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share data)
|
|
Three Months
Ended
December 31, (Unaudited)
|
Year Ended
December 31,
|
|
|
2000
|
1999
|
2000
|
1999
|
|
REVENUES:
|
|
|
|
|
|
Sales
|
$ 6,173
|
$ 10,800
|
$ 16,416
|
$ 11,804
|
|
Vineyard
management, services and other fees
|
392
|
408
|
958
|
1,040
|
|
|
|
|
|
|
|
Total
revenues
|
6,565
|
11,208
|
17,374
|
12,844
|
|
COST
OF SALES
|
3,695
|
7,557
|
8,947
|
8,219
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
2,870
|
3,651
|
8,427
|
4,625
|
|
General
and administrative expenses
|
724
|
730
|
3,594
|
3,572
|
|
Interest
expense (income), net
|
185
|
(51)
|
604
|
(33)
|
|
|
|
|
|
|
|
INCOME
BEFORE PROVISION FOR INCOME TAXES
|
1,961
|
2,972
|
4,229
|
1,086
|
|
PROVISION
FOR INCOME TAXES
|
797
|
1,204
|
1,704
|
450
|
|
|
|
|
|
|
|
NET
INCOME
|
$ 1,164
|
$ 1,768
|
$ 2,525
|
$ 636
|
|
|
|
|
|
|
|
BASIC
AND DILUTED EARNINGS PER SHARE 1
|
$ 0.21
|
$ 0.31
|
$ 0.45
|
$ 0.11
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING
|
5,529
|
5,723
|
5,587
|
5,996
|
|
|
|
|
|
|
1 There is no difference between basic and diluted
earnings per share.
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