SALINAS, Calif., Jan. 25, 2018 /PRNewswire/ -- Scheid Vineyards Inc. (OTC Markets: SVIN) announced today its financial results for the nine months ended November 30, 2017.
Revenues for the nine months ended November 30, 2017 decreased to $33.4 million, from $39.8 million for the same period in 2016. Revenues for 2017 were offset by cost of sales of $24.0 million; general and administrative expenses of $6.3 million; selling expenses of $4.9 million; and interest expense of $2.3 million. Revenues for 2016 were offset by cost of sales of $24.9 million; general and administrative expenses of $5.7 million; selling expenses of $4.4 million and interest expense of $2.3 million. After adjustments for income taxes, the net loss for the nine months ended November 30, 2017 was $2.5 million ($2.78 per share), as compared to net income for the nine months ended November 30, 2016 of $1.2 million ($1.34 per share).
Mr. Scott Scheid, President and CEO, noted, "The 2017 wine grape harvest in Monterey County was completed in early November, and it has been characterized by somewhat lower yields and good overall quality."
Mr. Mike Thomsen, Chief Financial Officer of the Company, stated, "Harvest yields can have an impact on year over year comparisons, and the resulting grape and bulk wine revenues and overall margins may fluctuate based on such yields. Company vineyard grape yields for the 2017 harvest were approximately 16% lower than the 2016 harvest, and 8% lower than the Company's 10-year average. Grape sales decreased to $4.6 million in 2017, as compared to $7.5 million in 2016. Bulk wine revenues decreased to $3.4 million, as compared to $8.5 million in 2016. The large grape harvests in 2013 and 2014 resulted in higher bulk wine inventories available for sale in 2016."
"In addition, the Company has increased its emphasis on selling bottled, rather than bulk wine and grapes. This requires holding a larger percentage of the Company's wine production for case sales in future periods, resulting in fewer grape and bulk wine sales as the Company continues with this shift. In 2017, case sales increased 3% to $19.3 million, as compared to $18.7 million in 2016. The 11% increase in general and administrative, and selling expenses in the 2017 period was due primarily to the increased emphasis on sales, marketing and related administrative support of case sales."
About Scheid Vineyards
Scheid Vineyards has farmed wine grapes in Monterey County, California since 1972. The Company now farms approx. 4,000 acres of sustainably-certified vineyards in eleven locations - north to south - along a 70-mile stretch of the Salinas Valley. It also owns and operates a large scale, state-of-the-art winery and a smaller boutique winery, both near Greenfield, California. The Company is a fully integrated wine producer, vineyard to the bottle. This vertical integration enables the Company to bring high quality, estate grown, wines to the marketplace at attractive retail price points. Its nationally-distributed portfolio of labels includes Scheid Vineyards, District 7, Metz Road, VDR, Stokes' Ghost, GIFFT, Ranch 32, and Ryder Estate. In addition, Scheid Vineyards produces over 15 regionally distributed brands for specific clients.
SCHEID VINEYARDS INC. AND SUBSIDIARY UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS NINE MONTHS ENDED NOVEMBER 30, 2017 AND 2016 (amounts in thousands, except per share data) | ||||||||
Nine Months Ended November 30, | ||||||||
2017 | 2016 | |||||||
REVENUES: | ||||||||
Cased goods sales | $ | 19,251 | $ | 18,675 | ||||
Bulk wine sales | 3,387 | 8,486 | ||||||
Grape sales | 4,642 | 7,480 | ||||||
Winery processing and storage revenues | 3,883 | 3,168 | ||||||
Direct sales revenues | 1,670 | 1,383 | ||||||
Vineyard management, services and other fees | 613 | 584 | ||||||
Total revenues | 33,446 | 39,776 | ||||||
COST OF SALES | (24,032) | (24,880) | ||||||
GROSS PROFIT | 9,414 | 14,896 | ||||||
General and administrative expenses | (6,258) | (5,653) | ||||||
Selling expenses | (4,946) | (4,441) | ||||||
Interest expense, net | (2,314) | (2,340) | ||||||
(Loss) income from investment in Gifft Wine Venture | (29) | 25 | ||||||
Loss on disposal of vineyard improvements | — | (581) | ||||||
Gain on sale of equipment | 42 | 72 | ||||||
(LOSS) INCOME BEFORE BENEFIT FROM (PROVISION FOR) INCOME TAXES | (4,091) | 1,978 | ||||||
BENEFIT FROM (PROVISION FOR) INCOME TAXES | 1,636 | (792) | ||||||
NET (LOSS) INCOME | $ | (2,455) | $ | 1,186 | ||||
NET (LOSS) INCOME PER SHARE: | ||||||||
BASIC | $ | (2.78) | $ | 1.34 | ||||
DILUTED | $ | (2.78) | $ | 1.34 | ||||
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||||||
BASIC | 883 | 882 | ||||||
DILUTED | 883 | 882 | ||||||
CONTACT: | Scott Scheid, President and CEO |
Mike Thomsen, Chief Financial Officer | |
(831) 455-9990 |
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SOURCE Scheid Vineyards Inc.
