SALINAS, Calif., June 18, 2020 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the fiscal year ended February 29, 2020.
Financial Results Fiscal Year Ended February 29, 2020
Year Ended | |||||
February 29 | February 28 | ||||
REVENUES: | |||||
Cased goods sales | $ | 28,216 | $ | 24,985 | |
Bulk wine sales | 14,201 | 21,985 | |||
Grape sales | 1,632 | 3,857 | |||
Winery processing and storage revenues | 3,933 | 5,016 | |||
Direct sales revenues | 2,206 | 2,025 | |||
Vineyard management, services and other fees | 840 | 633 | |||
Total revenues | 51,028 | 58,501 | |||
COST OF SALES | (41,321) | (44,740) | |||
WRITE-DOWN OF BULK WINE INVENTORIES TO MARKET | (4,026) | (2,000) | |||
GROSS PROFIT | 5,681 | 11,761 | |||
General and administrative expenses | (8,541) | (9,757) | |||
Sales and marketing expenses | (9,220) | (7,820) | |||
Interest expense, net | (4,790) | (4,392) | |||
Write-off of loan fees | — | (543) | |||
Loss from investment in Gifft Wine Venture | (21) | (21) | |||
Loss on disposal of vineyard improvements | (1,169) | (218) | |||
Gain on sale of equipment | 88 | 32 | |||
LOSS BEFORE BENEFIT FROM INCOME TAXES | (17,972) | (10,958) | |||
BENEFIT FROM INCOME TAXES | 5,099 | 3,031 | |||
NET LOSS | $ | (12,873) | $ | (7,927) | |
NET LOSS PER SHARE | $ | (14.56) | $ | (8.97) | |
(amounts in thousands, except for per share data) | |||||
Mr. Mike Thomsen, Chief Financial Officer of the Company, commented on the year-end results stating, "Our case goods sales continue to increase over the previous fiscal year. Case goods revenues for the year ended February 29, 2020 were up 13% over 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 35% from last year. In addition, due to cool weather patterns in early spring and late summer of 2019, grape yields were down approximately 20% 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 fiscal year. In addition, the Company took a write-down on its bulk wine inventory of $4.0 million in fiscal 2020 in order to more properly reflect the decreased value of its bulk wine inventory held for sale."
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 | |
(831) 455-9990 |
View original content:http://www.prnewswire.com/news-releases/scheid-family-wines-reports-year-end-results-301079196.html
SOURCE Scheid Vineyards Inc.
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