Scheid Family Wines Reports First Quarter Results

SALINAS, Calif., July 15, 2019 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the three months ended May 31, 2019 (1^st quarter of Fiscal 2020).

First Quarter Results (March 1, 2019 – May 31, 2019)

Revenues for the 1^st quarter of Fiscal 2020 decreased to $9.4 million, from $9.9 million for the same period in the 1^st quarter of Fiscal 2019.  Revenues for the period were offset by cost of sales of $7.3 million; general and administrative expenses of $2.2 million; sales and marketing expenses of $2.6 million; and interest expense of $1.2 million. Revenues for the 1^st quarter of Fiscal 2019 were offset by cost of sales of $7.9 million; general and administrative expenses of $2.6 million; sales and marketing expenses of $2.2 million; and interest expense of $1.0 million. After adjustments for income taxes, the net loss for 1^st quarter of Fiscal 2020 was $2.8 million ($3.15 per share), as compared to $2.7 million ($3.08 per share) in the 1^st quarter of Fiscal 2019.

Mr. Mike Thomsen, Chief Financial Officer of the Company, stated, "First quarter results are in line with our expectations and are comparable to the first quarter of last year.  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 Company continues to expand its sales and marketing divisions resulting in an increase in those costs from the previous year, which were partially offset by a decrease in spending on general and administrative expenses."

2019 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.

SOURCE Scheid Vineyards Inc.