Scheid Vineyards Inc. Reports 2nd Quarter Results
08 Dezembro 2008 - 9:30AM
PR Newswire (US)
President Comments on 2008 Harvest SALINAS, Calif., Dec. 8
/PRNewswire-FirstCall/ -- Scheid Vineyards Inc. (Pink Sheets: SVIN)
announced today its financial results for the second quarter ended
August 31, 2008. Mike Thomsen, Chief Financial Officer, reported,
"Losses from operations for the six months ended August 31, 2008
totaled $5.2 million ($5.11 per share). After an income tax
adjustment ($1.8 million) and a decrease in the market valuation of
an interest rate swap ($0.8 million), the net loss for the period
was $2.6 million ($2.56 per share)." Mr. Thomsen also reported,
"Revenues for the period totaled $3.2 million and consisted
primarily of sales of bulk wine and fees for the processing and
storage of wines for others. These revenues were offset by cost of
sales of $3.5 million, selling, general and administrative expenses
of $3.2 million, and interest expense in the amount of $1.6
million." Mr. Thomsen continued, "The six months ended August 31,
2008 is the second reporting period since the Company changed its
fiscal year end from December 31 to February 28. The change in
fiscal year end was made in order to report financial results in a
manner more consistent with the Company's revenue cycle, as sales
of bulk wine continue to replace wine grapes in the Company's sales
mix. The first new fiscal year reflecting this change will end
February 28, 2009." Scott Scheid, CEO, commented on the wine grape
harvest completed in mid- November. "The Company experienced a
disappointing harvest this year. Tonnage per acre was down over 26%
from our 5-year moving average and about 11% below the harvest of
2007. This reduction in the crop is in line with wine grape
industry results throughout the California Coastal Regions and was
primarily due to adverse weather conditions in the spring and early
summer of 2008. It is expected that the Company will report a loss
at the end of its fiscal year on February 28, 2009." Scheid
Vineyards Inc. (http://www.scheidvineyards.com/) operates
approximately 5,300 acres of premium wine grape vineyards,
primarily in Monterey County, California. The Company's
state-of-the-art winery commenced operations in 2005 and has the
capacity to process approximately 30,000 tons of grapes each
harvest. The Company's primary business is producing wine grapes
and converting them into high quality bulk wine for sale to other
wineries. In addition, the Company produces ultra premium wine
under the Scheid Vineyards label, which is sold through the
Company's tasting rooms, wine club, and Monterey, California 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/. 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.
SCHEID VINEYARDS INC. AND SUBSIDIARY UNAUDITED CONSOLIDATED
STATEMENT OF OPERATIONS SIX MONTHS ENDED AUGUST 31, 2008 (amounts
in thousands, except per share data) REVENUES: Bulk wine sales
$1,257 Grapes sales 280 Winery processing and storage revenues
1,028 Vineyard management, services and other fees 399 Direct sales
revenues 261 Total revenues 3,226 COST OF SALES 3,508 GROSS PROFIT
(LOSS) (282) General and administrative expenses 2,966 Selling
expenses 258 Interest expense, net 1,648 Market adjustment for
interest rate swap (773) LOSS BEFORE BENEFIT FROM INCOME TAXES
(4,381) BENEFIT FROM INCOME TAXES 1,796 NET LOSS $(2,585) NET LOSS
PER SHARE: BASIC $(2.56) DILUTED $(2.56) WEIGHTED AVERAGE SHARES
OUTSTANDING: BASIC 1,007 DILUTED 1,007 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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