Scheid Vineyards Inc. Reports 1st Quarter Results
SALINAS, Calif., July 28 CA-Scheid-Q1Earnings
SALINAS, Calif., July 28 /PRNewswire-FirstCall/ -- Scheid Vineyards Inc.
(Pink Sheets: SVIN) announced today its financial results for the first
quarter ended May 31, 2008.
Mike Thomsen, Chief Financial Officer, reported, "Losses from operations
for the three months ended May 31, 2008 totaled $2.7 million ($2.62 per
share). After an income tax adjustment ($0.7 million) and a decrease in the
market valuation of an interest rate swap ($0.9 million), the net loss for the
period was $1.0 million ($1.00 per share)."
Mr. Thomsen also reported, "Revenues for the period totaled $1.5 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
$1.5 million, selling, general and administrative expenses of $1.8 million,
and interest expense in the amount of $0.9 million."
Mr. Thomsen continued, "The three months ended May 31, 2008 is the first
quarterly 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."
Scheid Vineyards Inc. (http://www.scheidvineyards.com) operates
approximately 5,300 acres of premium wine grape vineyards, primarily in
Monterey County, California. The Company's new, 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 large, and some small, California wineries. The Company also produces
ultra premium wine under the Scheid Vineyards label, which is sold through the
Company's tasting room, 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, http://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
THREE MONTHS ENDED MAY 31, 2008
(amounts in thousands, except per share data)
REVENUES:
Bulk wine sales $ 539
Winery processing and storage revenues653
Vineyard management, services and other fees 220
Tasting room revenues 132
Total revenues1,544
COST OF SALES 1,511
GROSS PROFIT 33
General and administrative expenses 1,646
Selling expenses 164
Interest expense, net 878
Market adjustment for interest rate swap (946)
LOSS BEFORE BENEFIT FROM INCOME TAXES(1,709)
BENEFIT FROM INCOME TAXES 701
NET LOSS $ (1,008)
NET LOSS PER SHARE:
BASIC $ (1.00)
DILUTED$ (1.00)
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 1,013
DILUTED 1,013