Scheid Vineyards, Inc. (SVIN)

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$SVIN Scheid Family Wines Reports Second Quarter Results
Press Release | 11/02/2020
Scheid Family Wines Reports Second Quarter Results
PR Newswire

SALINAS, Calif., Nov. 2, 2020

SALINAS, Calif., Nov. 2, 2020 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the six months ended August 31, 2020 (2nd quarter of Fiscal 2021).

Financial Results - Second Quarter Results Fiscal 2021 (March 1, 2020 – August 31, 2020)


Six Months Ended August 31,




2020


2019



REVENUES:






Cased goods sales

$

13,638


$

14,202



Bulk wine sales

4,682


2,057



Winery processing and storage revenues

616


879



Direct sales revenues

1,103


1,101



Vineyard management revenues

150


175



Other revenues

6


280



Total revenues

20,195


18,694



COST OF SALES

(16,043)


(15,149)



GROSS PROFIT

4,152


3,545



General and administrative expenses

(4,164)


(4,892)



Sales and marketing expenses

(3,993)


(4,189)



Interest expense, net

(2,326)


(2,369)



Loss from investment in Gifft Wine Venture

(15)


(4)



Gain on sale of equipment

5


35



LOSS BEFORE BENEFIT FROM INCOME TAXES

(6,341)


(7,874)



BENEFIT FROM INCOME TAXES

(1,793)


2,205



NET LOSS

$

(4,528)


$

(5,669)

















NET LOSS PER SHARE

$

(5.14)


$

(6.42)









WEIGHTED AVERAGE SHARES OUTSTANDING

884


884






















(amounts in thousands, except for per share data)

Mr. Mike Thomsen, Chief Financial Officer of the Company, commented on the second quarter results stating, "Our case goods sales and direct sales revenues continue to be relatively steady through the second quarter despite the COVID-19 related effects to many businesses. Demand for bulk wine has been strong and bulk wine sales revenue has increased 128%, from $2.1 to $4.7 million in the first six months of fiscal 2021. Overall total revenues increased 8% from the previous year six-month period and total sales, marketing and administrative expenses decreased 10%, from $9.1 to $8.2 million. As a result, the Company's net loss decreased 20% to $4.5 million as compared to $5.7 million in the first six months of fiscal 2020. Grape and bulk wine sales are seasonal and these revenues are recognized primarily during the third and fourth quarters of each fiscal year."

2020 Harvest Update

Mr. Scott Scheid, President and CEO of the Company, stated, "The 2020 grape harvest began in late August and is expected to be completed in the first week of November. This timing is normal for wine grape vineyards on the Central Coast of California. Harvest is over 90% complete and yields have come in below average levels for most varieties." Mr. Scheid continued, "The California wildfire season was severe this year and has led to industry-wide concerns about the potential of smoke exposure negatively impacting wine quality. Although fires never directly threatened the Company's vineyards and winery, we are in the process of testing all grapes and wines for indicators of smoke exposure. Our winery has many tools including filtering and blending if required. It is possible that some 2020 vintage wines could be diminished in value."

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 wind-powered 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, Ryder Estate, Ranch 32, Metz Road, VDR, Stokes' Ghost and the recently launched Sunny With a Chance of Flowers, a brand in the trending 'better for you' wine category. In addition, Scheid Family Wines produces over 20 regionally distributed brands for specific clients or 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 [phone]





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SOURCE Scheid Vineyards Inc.