Scheid Family Wines Reports Third Quarter Results
SALINAS, Calif., Jan. 20, 2021 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the nine months ended November 30, 2020 (3rd quarter of Fiscal 2021).
Financial Results - Third Quarter Results Fiscal 2021 (March 1, 2020 – November 30, 2020)
Nine Months Ended November 30, | |||||
2020 | 2019 | ||||
REVENUES: | |||||
Cased goods sales | $ | 22,278 | $ | 21,831 | |
Bulk wine sales | 12,178 | 4,374 | |||
Winery processing and storage revenues | 4,765 | 3,153 | |||
Grape sales | 717 | 1,632 | |||
Direct sales revenues | 2,041 | 1,889 | |||
Vineyard management revenues | 296 | 460 | |||
Other revenues | 10 | 280 | |||
Total revenues | 42,285 | 33,619 | |||
COST OF SALES | (31,629) | (26,576) | |||
GROSS PROFIT | 10,656 | 7,043 | |||
Sales and marketing expenses | (6,337) | (7,003) | |||
General and administrative expenses | (5,967) | (6,417) | |||
Interest expense, net | (3,460) | (3,615) | |||
Other | (1) | 57 | |||
LOSS BEFORE BENEFIT FROM INCOME TAXES | (5,109) | (9,935) | |||
BENEFIT FROM INCOME TAXES | 1,430 | 2,782 | |||
NET LOSS | $ | (3,679) | $ | (7,153) | |
NET LOSS PER SHARE | $ | (4.17) | $ | (8.10) | |
(amounts in thousands, except per share data) | |||||
Mr. Mike Thomsen, Chief Financial Officer of the Company, commented on the third quarter results stating, "Our case goods sales and direct sales revenues are slightly ahead of last fiscal year, increasing 3% through the third quarter, despite COVID-19 related effects on the Company's business including decreased on-premise and airline/cruise ship sales and California's prohibition against wine tasting in our two tasting rooms for over four months. Demand for bulk wine continues to be strong and bulk wine sales revenue has increased 177%, from $4.4 to $12.2 million in the first nine months of fiscal 2021. Grape sales declined 56% from $1.6 million to $0.7 million. Overall, total revenues increased 26% from the previous year nine-month period and gross profit margins increased from 21% to 25%. In addition, total sales, marketing and administrative expenses decreased 8%, from $13.4 to $12.3 million. The Company's net loss decreased 49% to $3.7 million as compared to $7.2 million in the first nine months of fiscal 2020."
The 2020 Harvest
Mr. Scott Scheid, President and CEO of the Company, stated, "Our 2020 wine grape harvest was completed on November 9, 2020. Yields were down approximately 25% from the Company's five-year average and it appears that wine grape yields are down state-wide, particularly in the northern areas most affected by the late summer wildfires. As we previously reported, there has been wine industry concern about the potential of smoke exposure negatively impacting wine quality. At this time however, we have experienced only minor issues and believe that the vast majority of our wines have not been negatively impacted and are of high quality."
About Scheid Family Wines
Scheid Family Wines is a family-owned, estate-driven wine company founded in 1972. With 4,000 acres of sustainably certified vineyards located in Monterey County, California, and an innovative luxury level winery, Scheid Family Wines is fully integrated to bring high quality estate grown wines to the marketplace. Scheid's winery and bottling operations are powered by 100% renewable wind energy generated by a 396-foot tall wind turbine, which also supplies energy to many homes in the local community. The Scheid Family Wines globally distributed portfolio includes Scheid Vineyards, Sunny with a Chance of Flowers, Ryder Estate, District 7, Ranch 32, Metz Road, VDR and Stokes' Ghost. Scheid Family Wines also produces many regionally distributed brands for specific clients and distributors.
Please visit www.scheidfamilywines.com and www.otcmarkets.com/stock/SVIN/quote for more information.
CONTACT: | Scott Scheid, President and CEO |
Mike Thomsen, Chief Financial Officer | |
(831) 455-9990 |
SOURCE Scheid Family Wines
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