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 13, 2002

 

 

SCHEID VINEYARDS INC. REPORTS SECOND QUARTER RESULTS

 

President Comments on Upcoming Harvest

 

SALINAS, CA - August 13, 2002 - Scheid Vineyards Inc. (Nasdaq:  SVIN) announced today its financial results for the second quarter ended June 30, 2002.

 

            For the three months ended June 30, 2002, revenues increased 118% to $637,000 from $292,000 in the 2001 period.  Net loss decreased to $491,000, or $.09 per share, for the 2002 period as compared to a net loss of $912,000, or $.17 per share, for the 2001 period.

 

            For the six months ended June 30, 2002, revenues increased 90% to $967,000 from $510,000 in the 2001 period.  Net loss decreased to $1,192,000, or $.22 per share, for the 2002 period as compared to a net loss of $1,663,000, or $.30 per share, for the 2001 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. The increase in revenues is related primarily to the sale of bulk wine in 2002.”  Mr. Thomsen continued, “The decrease in the net loss for the first half of the year is due primarily to two non-vineyard related events.  The 2001 results include $500,000 in costs related to the relocation of the Company’s executive offices and certain of its employees from Marina del Rey, California to Salinas.  The 2002 results include a gain in the amount of $269,000 related to the sale of the building which formerly housed the Company’s executive office in Marina del Rey.  The Company holds a 20% interest in the partnership which owned the building.” 

 

 

 

 

 

SVIN Reports 2nd Quarter Results

Page 2

August 13, 2002                                                         

 

 

            Commenting on the outlook for the upcoming 2002 harvest, Mr. Scott D. Scheid, President and Chief Executive Officer of Scheid Vineyards, stated, “The development of our wine grape crop for 2002 is proceeding as expected.  It is anticipated that the first grapes will be harvested the week of August 26, 2002.  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 short and long-term contracts to wineries producing high 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 2002 harvest and the Company’s 2002 financial performance.  These forward-looking statements are subject to risks and uncertainties, such as weather and market 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 13, 2002 and Form 10-KSB dated March 29, 2002.  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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SVIN Reports 2nd Quarter Results

Page 3

August 13, 2002

 

 

 

SCHEID VINEYARDS INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

 

 

Three Months Ended

 June 30,

Six Months Ended

 June  30,

 

2002

2001

2002

2001

REVENUES:

 

 

 

 

 Sales  

$         422

$          72

$          564

$         127   

 Vineyard management, services and other fees 

          215

          220

  403

  383

 

__________

_________

__________

__________

         Total revenues    

637

292

 967

510

COST OF SALES      

460

124

 737

220 

 

__________

_________

__________

__________

GROSS PROFIT

177

168

 230

 290

 General and administrative expenses     

   1,034

1,019

 2,016

 2,029

 Relocation expenses    

–

400 

–

500

 Income from related partnership

(269)

–

(269)

–

 Interest expense, net    

231

270

470

533

 

__________

_________

__________

__________

LOSS BEFORE INCOME TAX BENEFIT

(819)

(1,521)

(1,987)

(2,772)

INCOME TAX BENEFIT    

328 

 609

     795  

     1,109

 

__________

_________

__________

__________

 

NET LOSS     

 

$       (491)

 

$      (912)

 

$     (1,192)

 

$     (1,663)

 

========

=======

========

========

 

BASIC AND DILUTED NET LOSS PER SHARE 1        

 

 

$      (0.09)

 

 

$     (0.17)

 

 

$      (0.22)

 

 

$      (0.30)

 

========

=======

========

========

 

WEIGHTED AVERAGE SHARES OUTSTANDING

 

 

5,475

 

 

5,475