SALINAS, Calif., Jan. 15, 2020 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the nine months ended November 30, 2019 (3rd quarter of Fiscal 2020).
Financial Results Third Quarter (March 1, 2019 – November 30, 2019)
Nine Months Ended November 30, | ||||||||
2019 | 2018 | |||||||
REVENUES: | ||||||||
Case goods sales | $ | 21,831 | $ | 18,862 | ||||
Bulk wine sales | 4,374 | 6,211 | ||||||
Winery processing and storage revenues | 3,153 | 4,357 | ||||||
Grape sales | 1,632 | 3,854 | ||||||
Direct sales revenues | 1,889 | 1,735 | ||||||
Vineyard management, services and other revenues | 740 | 564 | ||||||
Total revenues | 33,619 | 35,583 | ||||||
COST OF SALES | (26,576) | (26,429) | ||||||
GROSS PROFIT | 7,043 | 9,154 | ||||||
Sales and marketing expenses | (7,003) | (7,467) | ||||||
General and administrative expenses | (6,417) | (6,017) | ||||||
Interest expense, net | (3,615) | (3,312) | ||||||
Other | 57 | 24 | ||||||
LOSS BEFORE BENEFIT FROM INCOME TAXES | (9,935) | (7,618) | ||||||
BENEFIT FROM INCOME TAXES | 2,782 | 2,133 | ||||||
NET LOSS | $ | (7,153) | $ | (5,485) | ||||
NET LOSS PER SHARE | $ | (8.10) | $ | (6.21) | ||||
(amounts in thousands, except per share data) | ||||||||
Mr. Mike Thomsen, Chief Financial Officer of the Company, commented on the nine-month results stating, "Our case goods sales continue to increase over the previous fiscal year. Case goods revenues for the nine months ended November 30, 2019 were up 16% over the same period last fiscal year. Demand for wine grapes and bulk wine continues to be weak, and as a result, grape sales decreased by 58% and bulk wine sales decreased by 30% from the same period last year. Our annual grape harvest was completed in early November, and due to cool weather patterns in early spring and late summer, grape yields were down approximately 25% from long-term average yields, leading to a higher per-ton cost of grapes grown. The combination of weak demand and increased per-ton cost of grown grapes led to a drop in the Company's margins on the sale of grapes and bulk wine, which was the primary factor in the increase in the net loss during the current nine-month period."
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 Roku. In addition, Scheid Family Wines produces over 20 regionally distributed brands for specific clients or distributors.
CONTACT: | Scott Scheid, President and CEO |
Mike Thomsen, Chief Financial Officer | |
(831) 455-9990 |
SOURCE Scheid Vineyards Inc.
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