Scheid Family Wines Reports Second Quarter Results

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Oct 20, 2021, 09:00 ET

SALINAS, Calif., Oct. 20, 2021 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the six months ended August 31, 2021 (2nd quarter of Fiscal 2022).

Financial Results - Second Quarter Results Fiscal 2022 (March 1, 2021 – August 31, 2021)

	Six Months Ended August 31,
	2021		2020
REVENUES:
Cased goods sales	$	17,956	$	13,638
Bulk wine sales	2,285		4,682
Winery processing and storage revenues	934		616
Direct sales revenues	1,330		1,103
Vineyard management revenues	191		150
Other revenues	2		6
Total revenues	22,698		20,195
COST OF SALES	(18,146)		(16,045)
GROSS PROFIT	4,552		4,150
Sales and marketing expenses	(5,079)		(4,164)
General and administrative expenses	(4,064)		(3,993)
Interest expense, net	(1,723)		(2,326)
Other income (loss)	5		(15)
Gain on sale of vineyards and equipment	23,777		6
INCOME (LOSS) BEFORE (PROVISION FOR) BENEFIT FROM INCOME TAXES	17,468		(6,342)
(PROVISION FOR) BENEFIT FROM INCOME TAXES	(4,886)		1,776
NET INCOME (LOSS)	$	12,582	$	(4,566)


NET INCOME (LOSS) PER SHARE	$	14.04	$	(5.17)

WEIGHTED AVERAGE SHARES OUTSTANDING	896		884

(amounts in thousands, except for per share data)

Mr. Mike Thomsen, Chief Financial Officer of the Company, commented on the second quarter results stating, "Cased goods sales increased 32% in the current period, primarily as the result of sales of the Company's Sunny with a Chance of Flowers brand, which was launched in the fall of 2020, and sales to airlines which were limited in the previous year due to COVID-19 travel restrictions. Bulk wine sales decreased 52% from the previous year as the Company continues to increase the use of bulk wine inventories in its own cased goods production. Overall, total revenues increased 12% from the previous fiscal year. Sales and marketing expenses increased 21%, from $4.2 to $5.1 million, as the Company invested in the marketing of new brands and territories. The Company recognized a gain of $23.8 million from the sale of vineyard properties in the first quarter of fiscal 2022, and due to the reduction in debt from the sale, interest expense decreased 26% from $2.3 million to $1.7 million. The Company had net income of $12.6 million in the first six months of fiscal 2022 as compared to a net loss of $4.6 million in fiscal 2021."

2021 Harvest Update

Mr. Scott Scheid, President and CEO of the Company, stated, "The 2021 grape harvest began in late August and is expected to be completed in the third week of November. This timing is delayed by approximately two weeks from a normal harvest season for wine grape vineyards on the Central Coast of California, due primarily to a cooler than normal growing season. We are currently approximately two-thirds completed with harvest and yields appear to be trending at average levels for most varieties."

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

SOURCE Scheid Family Wines