PR Newswire
SALINAS, Calif. , July 17, 2023 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the three months ended May 31, 2023 (1 st quarter of fiscal 2024).
Total revenues were $14.4 million , down $1.5 million , a decrease of 9%. The decrease was driven by the Company's cased goods sales which decreased 16%, from $13 million to $10.9 million , and was offset by an increase in bulk wine sales of 77%, from $1.0 million to $1.8 million .
Gross margin decreased slightly from 23% in fiscal 2023 to 22% in fiscal 2024, primarily as result of the change in sales mix. Sales and marketing expenses decreased 17%, from $3.5 to $3.0 million , as the Company reorganized its sales and marketing departments in late 2023. These expenses were 21% of total revenues in the first quarter of fiscal 2024 and 22% in fiscal 2023. General and administrative costs decreased 11%, from $2.2 million to $1.9 million . Interest expense rose 57%, from $0.9 million to $1.5 million , due to increased borrowings and increases in interest rates on the Company's variable rate debt. Average interest rates on Company debt increased from 4.3% during the first quarter of fiscal 2023 to 5.9% during the current quarter. In total, the Company reported a net loss of $2.4 million in the first quarter of fiscal 2024, as compared to a net loss of $2.2 million in fiscal 2023.
| | | Three Months Ended May 31, | | ||||
| | | 2023 | | 2022 | | ||
REVENUES: | | | | | | | ||
Cased goods sales | | | $ | 10,886 | | $ | 13,016 | |
Bulk wine sales | | | 1,801 | | 1,018 | | ||
Winery processing and storage revenues | | | 787 | | 948 | | ||
Direct sales revenues | | | 869 | | 878 | | ||
Vineyard management revenues | | | 93 | | 85 | | ||
Other revenues | | | 3 | | 1 | | ||
Total revenues | | | 14,439 | | 15,946 | | ||
COST OF SALES | | | (11,349) | | (12,379) | | ||
GROSS PROFIT | | | 3,090 | | 3,567 | | ||
Sales and marketing expenses | | | (3,017) | | (3,514) | | ||
General and administrative expenses | | | (1,934) | | (2,184) | | ||
Interest expense, net | | | (1,485) | | (944) | | ||
Gain on sale of equipment | | | 79 | | 15 | | ||
LOSS BEFORE BENEFIT FROM INCOME TAXES | | | (3,267) | | (3,060) | | ||
BENEFIT FROM INCOME TAXES | | | 903 | | 862 | | ||
NET LOSS | | | $ | (2,364) | | $ | (2,198) | |
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NET LOSS PER SHARE | | | $ | (2.59) | | $ | (2.40) | |
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WEIGHTED AVERAGE SHARES OUTSTANDING | | | 914 | | 914 | | ||
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(amounts in thousands, except for per share data) |
About Scheid Family Wines
Scheid Family Wines, a family-owned and operated wine company founded in 1972, is ranked among the top 25 largest wine producers in California . Based in Monterey County , Scheid is uniquely integrated to bring high quality estate grown wines to the marketplace from its sustainably certified vineyards and grower partners throughout the Central Coast. Scheid's innovative, luxury-level winery is 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 brand portfolio includes Scheid Vineyards, Sunny with a Chance of Flowers, VDR (Very Dark Red), Grandeur (made with organic grapes), Fog & Light, Metz Road, District 7, Ryder Estate, and HOXIE, a premium wine spritzer. Scheid Family Wines sells internationally to 30 countries and is one of the largest producers of nationally distributed exclusive brands.
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