Scheid Vineyards Inc. Reports Year End Results

Jun 09, 2010, 09:00 ET from Scheid Vineyards Inc.

SALINAS, Calif., June 9 /PRNewswire-FirstCall/ -- Scheid Vineyards Inc. announced today its financial results for the year ended February 28, 2010.

Mike Thomsen, Chief Financial Officer, reported, "Revenues for the year ended February 28, 2010 increased to $30.1 million from $24.8 million for the same period in 2008, a 24% increase, primarily due to increased sales of wine grapes and bulk wine.  Revenues for 2010 were offset by cost of sales of $20.8 million; selling, general and administrative expenses of $7.1 million; and interest expense of $4.1 million.  Revenues for the same period in 2009 were offset by cost of sales of $18.8 million; selling, general and administrative expenses of $7.2 million; and interest expense of $3.6 million."

"Losses from operations for the year ended February 28, 2010 totaled $2.0 million ($2.23 per share), as compared to losses from operations of $4.8 million ($4.84 per share) for the same period in 2009.  After adjustments for a benefit from income taxes ($1.5 million), a loss from the write-down of vineyard improvements ($1.0 million), and an increase in the market valuation of an interest rate swap ($0.2 million), the net loss for the year ended February 28, 2010 was $1.7 million ($1.92 per share).  After adjustments for a benefit from income taxes ($2.1 million), and an increase in the market valuation of an interest rate swap ($1.3 million), the net loss for the year ended February 28, 2009 was $4.0 million ($4.06 per share)."  

Scheid Vineyards Inc. (www.scheidvineyards.com) operates 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

CONSOLIDATED STATEMENTS OF OPERATIONS

YEARS ENDED FEBRUARY 28, 2010 AND 2009

(amounts in thousands, except per share data)





Year Ended February 28





2010


2009


REVENUES:







Bulk wine sales



$

14,440


$

11,647


Grape sales



9,066


6,478


Winery processing and storage revenues



4,262


4,882


Vineyard management, services and other fees



1,009


1,008


   Direct sales revenues



1,297


781


Total revenues



30,074


24,796


COST OF SALES



20,842


18,754


GROSS PROFIT



9,232


6,042


General and administrative expenses



5,145


5,921


Selling expenses



1,993


1,299


Interest expense, net



4,099


3,604


Market adjustment for interest rate swap



221


1,325


   Gain on sale of land and equipment



(5)


(24)


   Write-down of vineyard improvements



975


61


LOSS BEFORE BENEFIT FROM INCOME TAXES



(3,196)


(6,144)


BENEFIT FROM INCOME TAXES



1,479


2,117


NET LOSS



$

(1,717)


$

(4,027)









NET LOSS PER SHARE:









  BASIC



$

(1.92)


$

(4.06)


  DILUTED



$

(1.92)


$

(4.06)









WEIGHTED AVERAGE SHARES OUTSTANDING:







 BASIC



895


991


DILUTED



895


991





SOURCE Scheid Vineyards Inc.



RELATED LINKS

http://www.scheidvineyards.com