Scheid Vineyards Inc. Reports 3rd Quarter Results
05 Fevereiro 2010 - 12:00PM
PR Newswire (US)
SALINAS, Calif., Feb. 5 /PRNewswire-FirstCall/ -- Scheid Vineyards
Inc. announced today its financial results for the third quarter
and nine months ended November 30, 2009. Mike Thomsen, Chief
Financial Officer, reported, "Revenues for the nine months ended
November 30, 2009 increased to $20.7 million from $14.4 million for
the same period in 2008, primarily due to increased sales of wine
grapes and bulk wine. Revenues for 2009 were offset by cost of
sales of $15.3 million; selling, general and administrative
expenses of $5.3 million; and interest expense of $2.7 million.
Revenues for the same period in 2008 were offset by cost of sales
of $9.5 million; selling, general and administrative expenses of
$6.0 million; and interest expense of $2.3 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. For the nine months ended November 30,
2009, the Company wrote-down its remaining 2008 vintage bulk wine
inventories by $2.6 million to more properly reflect current market
values." Mr. Thomsen continued by stating, "The Company's 2009
harvest was completed in late October, with the Company harvesting
over 21,800 tons of wine grapes. This year's crop was slightly
above the Company's 5-year moving average crop, and a 37% increase
over the below average harvest of 2008." "Losses from operations
for the nine months ended November 30, 2009 totaled $2.6 million
($2.92 per share), as compared to losses from operations of $3.4
million ($3.38 per share) for the same period in 2008. After
adjustments for a benefit from income taxes ($1.3 million), and an
increase in the market valuation of an interest rate swap ($0.5
million), the net loss for the nine months ended November 30, 2009
was $1.8 million ($2.03 per share). After adjustments for a benefit
from income taxes ($1.7 million), and an increase in the market
valuation of an interest rate swap ($0.4 million), the net loss for
the nine months ended November 30, 2008 was $2.1 million ($2.09 per
share)." Mr. Thomsen also stated that, "It was previously announced
that due primarily to the net loss reported in fiscal 2009, the
Company was in non-compliance with certain of its financial
covenants under the terms of its bank loans. In December 2009, the
Company and its bank agreed to amendments to the Company's credit
facility, and as such, the Company is in compliance with the terms
of its bank loans." Scheid Vineyards Inc.
(http://www.scheidvineyards.com/) operates 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 NINE MONTHS ENDED NOVEMBER 30,
2009 AND 2008 (amounts in thousands, except per share data) Three
Months Ended Nine Months Ended November 30, November 30,
-------------- ------------ 2009 2008 2009 2008 ---- ---- ---- ----
REVENUES: Grape sales $9,066 $6,198 $9,066 $6,478 Bulk wine sales
1,693 972 5,900 2,229 Winery processing and other revenues 3,601
3,315 3,988 4,343 Vineyard management, services and other fees 462
461 861 860 Direct sales revenues 310 267 921 529 --- --- --- ---
Total revenues 15,132 11,213 20,736 14,439 COST OF SALES 8,684
6,528 15,320 9,488 ----- ----- ------ ----- GROSS PROFIT 6,448
4,685 5,416 4,951 General and administrative expenses 1,218 1,408
3,923 4,374 Selling expenses 502 820 1,424 1,626 Interest expense
744 640 2,695 2,288 Market adjustment for interest rate swap 378
1,175 515 402 Other 7 44 2 44 --- --- --- --- INCOME (LOSS) BEFORE
(PROVISION FOR) BENEFIT FROM INCOME TAXES 3,599 598 (3,143) (3,783)
(PROVISION FOR) BENEFIT FROM INCOME TAXES (1,511) (107) 1,320 1,689
------ ---- ----- ----- NET INCOME (LOSS) $2,088 $491 $(1,823)
$(2,094) ====== ==== ======= ======= NET INCOME (LOSS) PER SHARE:
BASIC $2.37 $0.50 $(2.03) $(2.09) ===== ===== ====== ====== DILUTED
$2.37 $0.50 $(2.03) $(2.09) ===== ===== ====== ====== WEIGHTED
AVERAGE SHARES OUTSTANDING: BASIC 882 987 899 1,001 === === ===
===== DILUTED 883 989 899 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/
Copyright