Scheid Family Wines Reports Second Quarter Results

SALINAS, Calif., Oct. 15, 2019 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the six months ended August 31, 2019 (2^nd quarter of Fiscal 2020).

Second Quarter Results (March 1, 2019 – August 31, 2019)

Revenues for the 2^nd quarter of Fiscal 2020 increased to $18.7 million, from $16.7 million for the same period in the 2^nd quarter of Fiscal 2019. Revenues for the period were offset by cost of sales of $15.1 million; sales and marketing expenses of $4.9 million; general and administrative expenses of $4.2 million; and interest expense of $2.4 million. Revenues for the 2^nd quarter of Fiscal 2019 were offset by cost of sales of $13.9 million; sales and marketing expenses of $4.0 million; general and administrative expenses of $5.0 million; and interest expense of $2.1 million. After adjustments for income taxes, the net loss for 2^nd quarter of Fiscal 2020 was $5.7 million ($6.42 per share), as compared to $6.0 million ($6.77 per share) in the 1^st quarter of Fiscal 2019.

Mr. Mike Thomsen, Chief Financial Officer of the Company, stated, "During the second quarter of fiscal 2020, our cased goods sales accelerated from the first quarter. Cased goods revenues for the six months ended August 31, 2019 finished up 21% over the same period last fiscal year. On the other hand, bulk wine sales decreased by 35% from the previous years' period, as demand for bulk wine continues to be weak throughout the entire wine industry. This has led to a decrease in overall margins."

"In addition, the bulk wine and grape business is seasonal, and a significant portion of grape crop sales revenue comes at the time of the annual harvest in September and October. Contracted bulk wine sales take place primarily in the fourth quarter of each fiscal year. The Company continues to expand its sales and marketing divisions resulting in an increase in those costs from the previous year, which were partially offset by a decrease in spending on general and administrative expenses."

2019 Harvest Update

Mr. Scott Scheid, President and CEO of the Company, stated, "Our annual grape harvest began in late August, and it is anticipated that we will complete this years' harvest in early November. This timing is normal for wine grape vineyards on the Central Coast of California. We are currently just over two-thirds completed with harvest and yields appear to be trending below average levels for most varieties."

About Scheid Family Wines

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, Metz Road, VDR, Stokes' Ghost, GIFFT, Ranch 32 and Ryder Estate. In addition, Scheid Family Wines produces over 20 regionally distributed brands for specific clients or distributors.

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SOURCE Scheid Vineyards Inc.