Scheid Vineyards Inc. Reports 2nd Quarter Results
14 Agosto 2007 - 10:30AM
PR Newswire (US)
SALINAS, Calif., Aug. 14 /PRNewswire-FirstCall/ -- Scheid Vineyards
Inc. announced today its financial results for the second quarter
ended June 30, 2007. Financial Results Mike Thomsen, Chief
Financial Officer, reports, "Revenues for the six months ended June
30, 2007 increased to $14.5 million from $8.5 million for the same
period in 2006, an increase of 71%. This increase was primarily due
to increased sales of bulk wine. However, gross profit for the six
months ended June 30, 2007 totaled $3.5 million, as compared to
$3.2 million in the 2006 period for an increase of only 9%. Due to
record level yields during the 2005 harvest, which resulted in
lower bulk wine production costs, margins were higher in 2006 (when
most of this wine was sold) than in 2007 when primarily 2006 bulk
wine was sold." Mr. Thomsen continued, "Losses from operations for
the six months ended June 30, 2007 totaled $1.0 million ($0.98 per
share), compared to $1.5 million ($1.47 per share) for the same
period in 2006. Early in 2007, the Company sold a 360-acre
vineyard, resulting in a one-time gain of $4.2 million. After
reflecting the gain on the vineyard sale and taxes on the gain, net
income for the six months ended June 30, 2007 was $1.7 million
($1.68 per share), compared to a net loss of $0.9 million ($0.91
per share) in 2006." 2007 Harvest and Winery Construction
Commenting on the outlook for the upcoming 2007 harvest, Scott
Scheid, President and Chief Executive Officer, stated, "The 2007
growing season has been characterized by a dry and cool spring
followed by a mild early summer. The 2007 harvest is expected to
begin in mid-August in the Company's southernmost vineyards, and,
weather permitting, the harvest will be in full swing in early
September. This timing is normal for wine grape vineyards in the
Central Coast." Mr. Scheid added, "Construction of the second phase
of the Company's winery facility will be completed in time for the
2007 harvest. This expansion will increase capacity from a current
18,000 tons of processing capability to approximately 30,000 tons."
About Scheid Vineyards Inc. Scheid Vineyards Inc.
(http://www.scheidvineyards.com/) operates approximately 5,300
acres of premium wine grape vineyards, primarily in Monterey
County, California. The Company is in the business of selling
grapes and bulk wine to wineries producing high quality table wine.
The Company also operates a winery that currently has approximately
18,000 tons of annual processing capability, an amount that will
increase to approximately 30,000 tons upon completion of ongoing
construction, in which it crushes grapes for its own account, as
well as for outside wineries. The Company also produces a small
amount of ultra premium wine under the Scheid Vineyards label,
which is sold through the Company's tasting room, wine club, and
local-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, http://www.pinksheets.com/.
Forward Looking Statements 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. DATASOURCE: Scheid Vineyards Inc. CONTACT: Scott
Scheid, President and CEO, or Mike Thomsen, Chief Financial
Officer, both of Scheid Vineyards Inc., +1-831-455-9990 Web site:
http://www.scheidvineyards.com/
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