SALINAS, Calif., Jan. 15, 2019 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the nine months ended November 30, 2018 (3rd quarter of Fiscal 2019).
Nine Month Results (March 1, 2018 — November 30, 2018)
Revenues for the nine months ended November 30, 2018 increased to $36.7 million, from $33.4 million for the same period in 2017. Revenues for the nine months ended November 30, 2018 were offset by cost of sales of $27.5 million; general and administrative expenses of $7.5 million; selling expenses of $6.0 million; and interest expense of $3.3 million. Revenues for the nine months ended November 30, 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. After adjustments for income taxes, the net loss for nine months ended November 30, 2018 was $5.5 million ($6.21 per share), as compared to $2.5 million ($2.78 per share) for the nine months ended November 30, 2017.
Mr. Mike Thomsen, Chief Financial Officer of the Company, stated, "The 10% increase in revenues is primarily due to an increase in the sale of bulk wine. The increase in revenues was offset by increased product costs, primarily as the result of increases in farming and bottling costs. These increases lowered overall gross profit margins to 25% in the current period, as compared to margins of 28% in the prior fiscal period. The increase in general and administrative, and selling expenses was due primarily to the continued emphasis on sales, marketing and related administrative support of case sales. The Company's business is seasonal and skewed towards the second half of its fiscal year. This is primarily due to grape sales and processing fee income during harvest, and the majority of our contracted bulk wine sales being recognized as revenue in the fourth quarter of the fiscal year."
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.
SCHEID VINEYARDS INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
NINE MONTHS ENDED NOVEMBER 30, 2018 AND 2017
(amounts in thousands, except per share data)
Nine Months Ended November 30,
Cased goods sales
Bulk wine sales
Winery processing and storage revenues
Direct sales revenues
Vineyard management, services and other fees
COST OF SALES
General and administrative expenses
Interest expense, net
Loss from investment in Gifft Wine Venture
Gain on sale of equipment
LOSS BEFORE BENEFIT FROM INCOME TAXES
BENEFIT FROM INCOME TAXES
NET LOSS PER SHARE
WEIGHTED AVERAGE SHARES OUTSTANDING
Scott Scheid, President and CEO
Mike Thomsen, Chief Financial Officer
SOURCE Scheid Vineyards Inc.