Scheid Family Wines Reports First Quarter Results And Restatement Of Fiscal 2018 Results
SALINAS, Calif., July 16, 2018 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the three months ended May 31, 2018 (1st quarter of Fiscal 2019), and the restatement of its Fiscal 2018 (March 1, 2017 to February 28, 2018) year end results.
First Quarter Results (March 1, 2018 – May 31, 2018)
Revenues for the 1st quarter of Fiscal 2019 increased to $10.2 million, from $8.5 million for the same period in the 1st quarter of Fiscal 2018. Revenues for the period were offset by cost of sales of $8.3 million; general and administrative expenses of $2.6 million; selling expenses of $2.2 million; and interest expense of $1.0 million. Revenues for the 1st quarter of Fiscal 2018 were offset by cost of sales of $6.3 million; general and administrative expenses of $2.2 million; selling expenses of $1.6 million; and interest expense of $0.7 million. After adjustments for income taxes, the net loss for 1st quarter of Fiscal 2019 was $2.7 million ($3.08 per share), as compared to $1.4 million ($1.54 per share) in the 1st quarter of Fiscal 2018.
Mr. Mike Thomsen, Chief Financial Officer of the Company, stated, "First quarter results are in line with our expectations. The increase in revenues is primarily due to an increase in the sale of cased goods and bulk wine. The bulk wine and grape business is seasonal, and a significant portion of grape crop sales revenue comes at the time of the annual harvest in September and October. Contracted bulk wine sales takes place primarily in December and beyond each year. The increase in general and administrative, and selling expenses in the Fiscal 2019 period was due primarily to the increased emphasis on sales, marketing and related administrative support of case sales."
Restatement of Fiscal 2018 Results
Mr. Thomsen also reported that the Company had restated its earnings for the fiscal year ended February 28, 2018. "Subsequent to the issuance of our annual financial statements, the Company discovered an error that occurred during the changeover to a new business intelligence reporting system that duplicated an accrual of certain bulk wine sales in the amount of $1,469,000. The consolidated financial statements for the Fiscal year ended February 28, 2018 have been revised to include the reversal of this accrual, and as a result accounts receivable and sales have been reduced by $1,469,000, and net income has been reduced by $1,058,000 from previously reported amounts. Restated financial statements will be sent to shareholders in a few days."
2018 Harvest Update
Mr. Scott Scheid, President and CEO of the Company, stated, "The annual grape harvest usually begins in late August in the Company's southernmost vineyards, and it is expected that the harvest will be in full swing by mid-September. This timing is normal for wine grape vineyards on the Central Coast of California. At the present time, management anticipates that yields from the Company's vineyards during the upcoming harvest will be at average levels for most varieties."
About Scheid Family Wines
Scheid Family Wines has farmed wine grapes in Monterey County, California since 1972. With 4,000 acres of sustainably-certified vineyards located along a 70-mile spread of the Salinas Valley and a state-of-the-art winery, Scheid Family Wines is fully-integrated to bring high quality estate grown wines to the marketplace. The Scheid Family Wines nationally-distributed portfolio includes Scheid Vineyards, District 7, Metz Road, VDR, Stokes' Ghost, GIFFT, Ranch 32 and Ryder Estate. In addition, Scheid Family Wines produces over 20 regionally distributed brands for specific clients or distributors.
| SCHEID VINEYARDS INC. AND SUBSIDIARY |
||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
| THREE MONTHS ENDED MAY 31, 2018 AND 2017 |
||||||||
| (amounts in thousands, except per share data) |
||||||||
| Three Months Ended May 31, |
||||||||
| 2018 |
2017 |
|||||||
| REVENUES: |
||||||||
| Cased goods sales |
$ |
7,773 |
$ |
6,304 |
||||
| Bulk wine sales |
1,393 |
1,139 |
||||||
| Winery processing and storage revenues |
330 |
335 |
||||||
| Direct sales revenues |
630 |
631 |
||||||
| Vineyard management, services and other fees |
123 |
104 |
||||||
| Total revenues |
10,249 |
8,513 |
||||||
| COST OF SALES |
(8,283) |
(6,317) |
||||||
| GROSS PROFIT |
1,966 |
2,196 |
||||||
| General and administrative expenses |
(2,623) |
(2,204) |
||||||
| Selling expenses |
(2,158) |
(1,584) |
||||||
| Interest expense, net |
(1,012) |
(708) |
||||||
| Loss from investment in Gifft Wine Venture |
(5) |
(6) |
||||||
| Gain on sale of equipment |
1 |
39 |
||||||
| LOSS BEFORE BENEFIT FROM INCOME TAXES |
(3,831) |
(2,267) |
||||||
| BENEFIT FROM INCOME TAXES |
1,111 |
906 |
||||||
| NET LOSS |
$ |
(2,720) |
$ |
(1,361) |
||||
| NET LOSS PER SHARE: |
||||||||
| BASIC |
$ |
(3.08) |
$ |
(1.54) |
||||
| DILUTED |
$ |
(3.08) |
$ |
(1.54) |
||||
| WEIGHTED AVERAGE SHARES OUTSTANDING: |
||||||||
| BASIC |
884 |
882 |
||||||
| DILUTED |
884 |
882 |
||||||
| SCHEID VINEYARDS INC. AND SUBSIDIARY |
||||||||||
| RESTATED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||
| YEARS ENDED FEBRUARY 28, 2018 AND 2017 |
||||||||||
| (amounts in thousands, except per share data) |
||||||||||
| Year Ended February 28, |
||||||||||
| 2018 |
2017 |
|||||||||
| (as restated) |
||||||||||
| REVENUES: |
||||||||||
| Cased goods sales |
$ |
26,336 |
$ |
23,246 |
||||||
| Bulk wine sales |
17,740 |
25,334 |
||||||||
| Grape sales |
4,642 |
7,477 |
||||||||
| Winery processing and storage revenues |
4,447 |
3,897 |
||||||||
| Direct sales revenues |
1,933 |
1,653 |
||||||||
| Vineyard management, services and other fees |
699 |
648 |
||||||||
| Total revenues |
55,797 |
62,255 |
||||||||
| COST OF SALES |
(41,968) |
(40,151) |
||||||||
| GROSS PROFIT |
13,829 |
22,104 |
||||||||
| General and administrative expenses |
(8,722) |
(8,373) |
||||||||
| Selling expenses |
(7,118) |
(5,333) |
||||||||
| Interest expense, net |
(3,060) |
(3,010) |
||||||||
| Gain (loss) from investment in Gifft Wine Venture |
12 |
(97) |
||||||||
| Loss on disposal of vineyard improvements |
(126) |
(582) |
||||||||
| Gain on sale of equipment |
47 |
71 |
||||||||
| (LOSS) INCOME BEFORE BENEFIT FROM (PROVISION FOR) INCOME TAXES |
(5,138) |
4,780 |
||||||||
| BENEFIT FROM (PROVISION FOR) INCOME TAXES |
6,515 |
(1,850) |
||||||||
| NET INCOME |
$ |
1,377 |
$ |
2,930 |
||||||
| NET INCOME PER SHARE: |
||||||||||
| BASIC |
$ |
1.56 |
$ |
3.32 |
||||||
| DILUTED |
$ |
1.56 |
$ |
3.32 |
||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING: |
||||||||||
| BASIC |
884 |
883 |
||||||||
| DILUTED |
884 |
883 |
||||||||
For Further Information:
Scheid Vineyards Inc. (dba Scheid Family Wines)
305 Hilltown Road
Salinas, CA 93908
(831) 455-9990
CONTACT: Scott Scheid, President and CEO
Mike Thomsen, Chief Financial Officer
SOURCE Scheid Vineyards Inc.
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