Scheid Vineyards Inc. Reports 3rd Quarter Results
27 Fevereiro 2009 - 11:00AM
PR Newswire (US)
SALINAS, Calif., Feb. 27 /PRNewswire-FirstCall/ -- Scheid Vineyards
Inc. (Pink Sheets: SVIN) announced today its financial results for
the third quarter ended November 30, 2008. Mike Thomsen, Chief
Financial Officer, reported, "Losses from operations for the nine
months ended November 30, 2008 totaled $3.4 million ($3.40 per
share). After an adjustment for a benefit from income taxes ($1.7
million) and a decrease in the market valuation of an interest rate
swap ($0.4 million), the net loss for the period was $2.1 million
($2.10 per share)." Mr. Thomsen also reported, "Revenues for the
period totaled $14.4 million and consisted primarily of grape and
bulk wine sales and wine processing and storage fees. Revenues were
offset by cost of sales of $10.2 million, selling, general and
administrative expenses of $5.3 million, and interest expense of
$2.3 million." Mr. Thomsen continued, "The nine months ended
November 30, 2008 is the third 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 loss, "The primary cause of the loss for the nine month period
was a major decrease in grape production in the Company's
vineyards. Tonnage harvested this year was down over 26% from the
Company's 5-year moving average and about 11% below the harvest of
2007. This significant decrease in the size of the crop 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 NINE MONTHS ENDED NOVEMBER 30, 2008
(amounts in thousands, except per share data) REVENUES: Grape sales
$6,478 Winery processing and storage revenues 4,343 Bulk wine sales
2,229 Vineyard management, services and other fees 860 Direct sales
revenues 529 Total revenues 14,439 COST OF SALES 10,151 GROSS
PROFIT 4,288 General and administrative expenses 4,434 Selling
expenses 903 Write down of vineyard improvements 44 Interest
expense, net 2,288 Market adjustment for interest rate swap 402
LOSS BEFORE BENEFIT FROM INCOME TAXES. (3,783) BENEFIT FROM INCOME
TAXES 1,689 NET LOSS $(2,094) NET LOSS PER SHARE: BASIC $(2.09)
DILUTED $(2.09) WEIGHTED AVERAGE SHARES OUTSTANDING: BASIC 1,001
DILUTED 1,001 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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