SALINAS, Calif., Dec. 8 /PRNewswire-FirstCall/ -- Scheid Vineyards Inc.
(Pink Sheets: SVIN) announced today its financial results for the second
quarter ended August 31, 2008.
Mike Thomsen, Chief Financial Officer, reported, "Losses from operations
for the six months ended August 31, 2008 totaled $5.2 million ($5.11 per
share). After an income tax adjustment ($1.8 million) and a decrease in the
market valuation of an interest rate swap ($0.8 million), the net loss for the
period was $2.6 million ($2.56 per share)."
Mr. Thomsen also reported, "Revenues for the period totaled $3.2 million
and consisted primarily of sales of bulk wine and fees for the processing and
storage of wines for others. These revenues were offset by cost of sales of
$3.5 million, selling, general and administrative expenses of $3.2 million,
and interest expense in the amount of $1.6 million."
Mr. Thomsen continued, "The six months ended August 31, 2008 is the second
reporting period since the Company changed its fiscal year end from December
31 to February 28. The change in fiscal year end was made in order to report
financial results in a manner more consistent with the Company's revenue
cycle, as sales of bulk wine continue to replace wine grapes in the Company's
sales mix. The first new fiscal year reflecting this change will end February
28, 2009."
Scott Scheid, CEO, commented on the wine grape harvest completed in mid-
November. "The Company experienced a disappointing harvest this year.
Tonnage per acre was down over 26% from our 5-year moving average and about
11% below the harvest of 2007. This reduction in the crop is in line with
wine grape industry results throughout the California Coastal Regions and was
primarily due to adverse weather conditions in the spring and early summer of
2008. It is expected that the Company will report a loss at the end of its
fiscal year on February 28, 2009."
Scheid Vineyards Inc. (www.scheidvineyards.com) operates approximately
5,300 acres of premium wine grape vineyards, primarily in Monterey County,
California. The Company's state-of-the-art winery commenced operations in
2005 and has the capacity to process approximately 30,000 tons of grapes each
harvest. The Company's primary business is producing wine grapes and
converting them into high quality bulk wine for sale to other wineries. In
addition, the Company produces ultra premium wine under the Scheid Vineyards
label, which is sold through the Company's tasting rooms, wine club, and
Monterey, California area retailers.
The Class A Common Stock of Scheid Vineyards is traded on the Pink Sheets
Electric Quotation Service under the stock symbol SVIN. The "Pink Sheets" is
a centralized quotation service that collects and publishes market maker
quotes in real time, primarily through its website, www.pinksheets.com.
This release contains forward-looking statements as well as historical
information. Statements of goals and strategies and words such as "plan",
"believe", "anticipate", "expect", "objectives", "forecast", and "predict" and
other similar words are intended to identify forward-looking statements. These
forward looking statements are included in accordance with the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995, and
involve risks, uncertainties and other factors that may cause the Company's
actual results, performance, or financial condition to be materially different
from any results, performance, or financial condition suggested by the
statements in this release.
SCHEID VINEYARDS INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
SIX MONTHS ENDED AUGUST 31, 2008
(amounts in thousands, except per share data)
REVENUES:
Bulk wine sales $1,257
Grapes sales 280
Winery processing and storage revenues 1,028
Vineyard management, services and other fees 399
Direct sales revenues 261
Total revenues 3,226
COST OF SALES 3,508
GROSS PROFIT (LOSS) (282)
General and administrative expenses 2,966
Selling expenses 258
Interest expense, net 1,648
Market adjustment for interest rate swap (773)
LOSS BEFORE BENEFIT FROM INCOME TAXES (4,381)
BENEFIT FROM INCOME TAXES 1,796
NET LOSS $(2,585)
NET LOSS PER SHARE:
BASIC $(2.56)
DILUTED $(2.56)
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 1,007
DILUTED 1,007
SOURCE Scheid Vineyards Inc.