Scheid Family Wines Reports Year End Results

SALINAS, Calif., June 26, 2019 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the fiscal year ended February 28, 2019.

Year End Results

Revenues for the fiscal year ended February 28, 2019 increased to $58.5 million, from $55.2 million for the same period in fiscal 2018.  Revenues for fiscal 2019 were offset by cost of sales of $44.7 million; a write-down of bulk wine inventories of $2.0 million; general and administrative expenses of $9.8 million; sales and marketing expenses of $7.8 million; interest expense of $4.4 million; and a write-off of loan fees of $0.5 million. Revenues for fiscal 2018 were offset by cost of sales of $41.3 million; general and administrative expenses of $8.7 million; sales and marketing expenses of $7.1 million; and interest expense of $3.1 million. After adjustments for income taxes, the net loss for the year ended February 28, 2019 was $7.9 million ($8.93 per share), as compared to net income of $1.3 million ($1.56 per share) in fiscal 2018.

Mr. Mike Thomsen, Chief Financial Officer of the Company, stated, "Total revenues in fiscal 2019 increased 6% from fiscal 2018, primarily due to an increase in bulk wine and grape sales of 15%.  These increases were offset by a decrease in the sale of cased goods of 3%. Gross profit on sales decreased 15% to $11.8 million in fiscal 2019 as compared to $13.8 million in fiscal 2018.  As a percentage of sales, gross margin decreased to 20% in fiscal 2019 from 25% in fiscal 2018.  Margins were primarily affected by a combination of increased grape growing and wine making costs, leading to higher costs of bulk wine and bottled wine products, and a stagnation in the bulk wine market. The Company took a write-down on its bulk wine inventory of $2.0 in fiscal 2019 in order to more properly reflect the decreased value of its bulk wine inventory held for sale.  The Company continues to build its sales, marketing and administrative support departments, and those expenses increased 11% in fiscal 2019."

Mr. Scott Scheid, President and CEO of the Company, stated, "The Company's primary focus over the past few years has been to continue our conversion from a mostly grape and bulk wine producer to a producer of branded and private label wines by building a sales and marketing force and a robust distribution network."

2019 Harvest

Mr. Scheid stated, "The annual grape harvest usually begins in late August in the Company's southernmost vineyards, and it is expected that the harvest will be in full swing by mid-September.  This timing is normal for wine grape vineyards on the Central Coast of California. The Company does not comment on crop projections until late July or early August, as weather patterns in the spring and early summer can have significant influences on vineyard crop sizes." 

About Scheid Vineyards

Scheid Family Wines has farmed wine grapes in Monterey County, California since 1972. With 4,000 acres of sustainably certified vineyards located along a 70-mile spread of the Salinas Valley and a state-of-the-art winery, Scheid Family Wines is fully integrated to bring high quality estate grown wines to the marketplace. The Scheid Family Wines nationally distributed portfolio includes Scheid Vineyards, District 7, Ryder Estate, Ranch 32, Metz Road, VDR, Stokes' Ghost and Roku. In addition, Scheid Family Wines produces over 20 regionally distributed brands for specific clients or distributors. Please visit www.scheidfamilywines.com and www.otcmarkets.com/stock/SVIN/quote for more information.

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SOURCE Scheid Vineyards Inc.