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 13, 2002
SCHEID VINEYARDS
INC. REPORTS THIRD QUARTER RESULTS
Late Harvest Shifts
Revenues to 4th Quarter
SALINAS, CA - November 13, 2002 - Scheid Vineyards Inc.
(Nasdaq: SVIN) announced today its
financial results for the third quarter ended September 30, 2002.
For the three months ended September
30, 2002, revenues were $7,598,000 as compared to $9,773,000 in the 2001
period. Net income was $873,000, or
$0.16 per share, for the 2002 period as compared to $1,749,000, or $0.32 per
share, for the 2001 period. The
decreases were due to a later harvest in 2002 than 2001.
For the nine months ended September
30, 2002, revenues were $8,565,000 as compared to $10,283,000 in the 2001
period. The Company posted a loss of
$303,000, or $0.06 per share, for the 2002 period as compared to net income of
$86,000, or $0.02 per share, for the 2001 period. The weighted average number of shares outstanding was 5.5 million
for both periods.
Mr. Mike Thomsen, Chief Financial
Officer of the Company, stated,
“Through September 30, 2002, the Company had harvested 34% of its
producing acres, compared to 49% at September 30, 2001. In addition, there was an approximately 14%
decrease in the average price per ton received through September 30, 2002,
compared to the average price through September 30, 2001.@
Commenting on the 2002 harvest,
Scott D. Scheid, President of the Company, stated, AThe Company substantially completed the
harvest of its own vineyards the week of November 4, with an increase in total
tons harvested in 2002 of approximately 18%.
Acres in partial or full production increased approximately 3% in
2002.
Mr. Scheid continued, AWe are currently estimating
that revenues for the fiscal year ending December 31, 2002 will be in excess of
$23 million, an increase of over 6% from fiscal 2001 revenues. We caution that historical cost of sales and
other expenses deducted in arriving at net income should not be expected to
provide an indication of gross profit or net income to be reported by the
Company for fiscal 2002. @
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 can generally be identified as such because the
context of the statement will include such words as the Company Aestimates@ 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 ABusiness - 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 29, 2002. 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.