Scheid Vineyards Inc. Reports 2nd Quarter Results
29 Outubro 2009 - 11:30AM
PR Newswire (US)
SALINAS, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Scheid Vineyards
Inc. (Pink Sheets: SVIN) announced today its financial results for
the second quarter and six months ended August 31, 2009. Financial
Results Mike Thomsen, Chief Financial Officer, reported, "Revenues
for the six months ended August 31, 2009 increased to $5.6 million
from $3.2 million for the same period in 2008, primarily due to
increased sales of bulk wine. Revenues for 2009 were offset by cost
of sales of $6.6 million; selling, general and administrative
expenses of $3.6 million; and interest expense of $2.0 million.
Revenues for the same period in 2008 were offset by cost of sales
of $3.0 million; selling, general and administrative expenses of
$3.8 million; and interest expense of $1.6 million." Mr. Thomsen
explained, "Although revenues have increased from last year's
levels, margins are down in 2009 due to decreased demand for
certain bulk wine varieties and a resulting decline in the sales
price for those varieties. The Company wrote-down its remaining
2008 vintage bulk wine inventories by $2.3 million in the second
quarter ended August 31, 2009 to more properly reflect their
current market values." "Losses from operations for the six months
ended August 31, 2009 totaled $6.6 million ($7.28 per share), as
compared to losses from operations of $5.2 million ($5.16 per
share) for the same period in 2008. After adjustments for a benefit
from income taxes ($2.8 million), and an increase in the market
valuation of an interest rate swap ($0.1 million), the net loss for
the six months ended August 31, 2009 was $3.9 million ($4.31 per
share). After adjustments for a benefit from income taxes ($1.8
million), and a decrease in the market valuation of an interest
rate swap ($0.8 million), the net loss for the six months ended
August 31, 2008 was $2.6 million ($2.56 per share). Because of the
timing of the Company's annual harvest, which typically begins in
the first part of September each year, the Company recognizes the
majority of its revenues in the third and fourth quarters of each
fiscal year ending on February 28th." Mr. Thomsen also stated that,
"Due primarily to the net loss reported in fiscal 2009, which was
the result of a major decrease in grape production in the Company's
vineyards, and the losses for the first six months of fiscal 2010,
the Company is currently in non-compliance of certain of its
financial covenants under the terms of its bank loans. The Company
is in the process of working with its bank to resolve this
situation." 2009 Harvest Mr. Scott Scheid, President and CEO,
reported that the 2009 harvest will be complete by the end of this
week. "Through this date we have harvested approximately 95% of our
acreage, with average to above average yields in most of the
varieties we have picked thus far." 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 STATEMENTS OF OPERATIONS THREE AND SIX MONTHS ENDED
AUGUST 31, 2009 AND 2008 (amounts in thousands, except per share
data) Three Months Ended Six Months Ended August 31, August 31,
-------------- -------------- 2009 2008 2009 2008 ---- ---- ----
---- REVENUES: Bulk wine sales $288 $718 $4,207 $1,257 Grape sales
- 280 - 280 Winery processing and other revenues 90 375 387 1,028
Vineyard management, services and other fees 169 179 399 399 Direct
sales revenues 342 130 611 262 --- --- --- --- Total revenues 889
1,682 5,604 3,226 COST OF SALES 3,072 1,597 6,636 2,960 ----- -----
----- ----- GROSS PROFIT (LOSS) (2,183) 85 (1,032) 266 General and
administrative expenses 1,114 1,320 2,705 2,966 Selling expenses
453 494 922 806 Interest expense 1,018 770 1,951 1,648 Market
adjustment for interest rate swap (101) 173 137 (773) Gain on sale
of land and equipment (3) - (5) - --- --- --- --- LOSS BEFORE
BENEFIT FROM INCOME TAXES (4,664) (2,672) (6,742) (4,381) BENEFIT
FROM INCOME TAXES 2,059 1,095 2,831 1,796 ----- ----- ----- -----
NET LOSS $(2,605) $(1,577) $(3,911) $(2,585) ======= =======
======= ======= NET LOSS PER SHARE: BASIC $(2.95) $(1.57) $(4.31)
$(2.56) ====== ====== ====== ====== DILUTED $(2.95) $(1.57) $(4.31)
$(2.56) ====== ====== ====== ====== WEIGHTED AVERAGE SHARES
OUTSTANDING: BASIC 883 1,002 907 1,007 === ===== === ===== DILUTED
883 1,002 907 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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