For Further Information:
Scheid Vineyards Inc. (Nasdaq:
SVIN)
305 Hilltown Road
Salinas, CA 93908
(831) 455-9990
CONTACT: Mike Thomsen,
Chief Financial Officer
For Immediate Release:
November 13__, 2003
SCHEID
VINEYARDS INC. REPORTS THIRD QUARTER RESULTS
President
Comments on 2003 Harvest
SALINAS, CA November 13, 2003 -
Scheid Vineyards Inc. (Nasdaq: SVIN)
announced today its financial results for the third quarter ended September 30,
2003.
For the three
months ended September 30, 2003, revenues increased 51% to $11,501,000 from
$7,598,000 in the 2002 period. Net
income increased to $2,175,000, or $0.40 per share, for the 2003 period as
compared to $873,000, or $0.16 per share, for the 2002 period.
For
the nine months ended September 30, 2003, revenues increased 53% to $13,092,000
from $8,565,000 in the 2002 period. Net
income was $821,000, or $0.15 per share, for the 2003 period as compared to a
net loss of $303,000, or $0.06 per share, for the 2002 period.
Mr. Mike Thomsen,
Chief Financial Officer of the Company, stated, The increase in revenues was
due primarily to the fact that through September 30, 2003, the Company had
harvested 48% of its producing acres, compared to 34% at September 30, 2002. In addition, the acres harvested through
September 30, 2003 produced a higher average yield than those acres harvested
through September 30, 2002. These
increases were offset by a decrease in the number of producing acres of
approximately 4% and a decrease in the average price per ton received through
September 30, 2003 of approximately 4%, as compared to the average price
through September 30, 2002.@ Mr. Thomsen continued by stating, The
percentage of completion of harvest at September 30th of each year is highly dependent on weather
conditions in the growing season and can be expected to fluctuate from year to
year.
Commenting on the 2003 harvest,
Scott D. Scheid, President of the Company, stated, AThe Company completed the harvest of its vineyards
the week of November 3rd, with an increase in total tons harvested in 2003 as
compared to 2002 of approximately 15%.
We are currently estimating that revenues for the fiscal year ending
December 31, 2003 will be in excess of $25 million, an increase of
approximately 3% from fiscal 2002 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 2003. @
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 label.
Note: This press
release contains forward-looking statements concerning expectations for the
2003 harvest and the Company=s
2003 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 28, 2003. 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.