Scheid Family Wines Reports First Quarter Results
SALINAS, Calif., July 21, 2021 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the three months ended May 31, 2021 (1st quarter of Fiscal 2022).
Financial Results - First Quarter Results Fiscal 2022 (March 1, 2021 – May 31, 2021) | ||||||||
Three Months Ended May 31, | ||||||||
2021 | 2020 | |||||||
REVENUES: | ||||||||
Cased goods sales | $ | 9,602 | $ | 6,684 | ||||
Bulk wine sales | 723 | 1,630 | ||||||
Winery processing and storage revenues | 594 | 403 | ||||||
Direct sales revenues | 886 | 755 | ||||||
Vineyard management revenues | 87 | 78 | ||||||
Other revenues | 1 | 5 | ||||||
Total revenues | 11,895 | 9,555 | ||||||
COST OF SALES | (9,022) | (7,495) | ||||||
GROSS PROFIT | 2,873 | 2,060 | ||||||
General and administrative expenses | (1,964) | (2,056) | ||||||
Sales and marketing expenses | (2,799) | (2,142) | ||||||
Interest expense, net | (915) | (1,178) | ||||||
Loss from investment in Gifft Wine Venture | (10) | (1) | ||||||
Gain on sale of vineyards and equipment | 23,757 | — | ||||||
INCOME (LOSS) BEFORE (PROVISION FOR) BENEFIT FROM INCOME TAXES | 20,942 | (3,315) | ||||||
(PROVISION FOR) BENEFIT FROM INCOME TAXES | (5,866) | 928 | ||||||
NET INCOME (LOSS) | $ | 15,076 | $ | (2,387) | ||||
NET INCOME (LOSS) PER SHARE | $ | 16.83 | $ | (2.70) | ||||
(amounts in thousands, except for per share data) | ||||||||
Mr. Scott Scheid, President and CEO of the Company, stated, "In April 2021, the Company sold three of its vineyard parcels for $33 million in consideration, which included the buyer's assumption of $20 million in real estate loans secured by the properties. The disposition of these parcels, which consisted of 1,193 acres of vineyards, about two-thirds on leased land and the balance on company owned land, is part of Scheid Family Wines' overall strategy to better align its asset holdings and debt with its growing premium bottled wine business. The Company recognized a gain on the sale of these properties of $23.8 million in the first quarter of fiscal 2022."
Mr. Mike Thomsen, Chief Financial Officer of the Company, commented on the first quarter results stating, "Our case goods sales continue to increase, primarily as the result of sales of the Company's Sunny with a Chance of Flowers brand, which was launched in the fall of 2021, and sales to airlines which were limited in the previous year due to COVID-19 travel restrictions. Overall, total revenues increased 24% from the previous fiscal year and gross profit margins increased from 22% to 24%. Sales and marketing expenses increased 30%, from $2.1 to $2.8 million, as the Company invested in the marketing of new brands and territories. Due to the reduction in debt after the sale of vineyard properties, interest expense decreased 22% from $1.2 million to $0.9 million. After the gain on the sale of vineyard properties, the Company had net income of $15.1 million in the first quarter of fiscal 2022 as compared to a net loss $2.4 million in fiscal 2021."
About Scheid Family Wines
Scheid Family Wines is a family-owned and operated, estate-driven wine company founded in 1972. Based in Monterey County, California, Scheid is uniquely integrated to bring high quality estate grown wines to the marketplace from its sustainably certified vineyards and innovative luxury level winery. Scheid's winery and bottling operations are powered by 100% renewable wind energy generated by a 400-foot-tall wind turbine, which also supplies energy to many homes in the local community. The Scheid Family Wines globally distributed portfolio includes Scheid Vineyards, Sunny with a Chance of Flowers, District 7, Ryder Estate, Metz Road, VDR, and Stokes' Ghost. Scheid Family Wines also produces many regionally distributed brands for specific clients and distributors.
Please visit www.scheidfamilywines.com and www.otcmarkets.com/stock/SVIN/quote for more information.
CONTACT: | Scott Scheid, President and CEO |
Mike Thomsen, Chief Financial Officer | |
(831) 455-9990 |
View original content:https://www.prnewswire.com/news-releases/scheid-family-wines-reports-first-quarter-results-301338066.html
SOURCE Scheid Family Wines
