Scheid Vineyards Inc. Reports Six Month Results

SALINAS, Calif., Nov. 13, 2017 /PRNewswire/ -- Scheid Vineyards Inc. (OTC Markets: SVIN) announced today its financial results for the six months ended August 31, 2017.

Revenues for the six months ended August 31, 2017 decreased to $16.2 million, from $19.7 million for the same period in 2016.  Revenues for 2017 were offset by cost of sales of $12.7 million; general and administrative expenses of $4.0 million; selling expenses of $3.3 million; and interest expense of $1.5 million. Revenues for 2016 were offset by cost of sales of $13.0 million; general and administrative expenses of $3.7 million; selling expenses of $2.9 million and interest expense of $1.6 million.

After adjustments for the benefit from income taxes of $2.1 million, the net loss for the six months ended August 31, 2017 was $3.2 million ($3.66 per share), as compared to a net loss for the six months ended August 31, 2016 of $1.2 million ($1.39 per share).

Mr. Scott Scheid, President and CEO, noted, "It is the nature of the vineyard and wine business to be seasonal. Harvest occurs in autumn followed by the holiday season, which tends to increase case shipments. The early part of the year tends to have lower case and bulk wine shipments, and higher inventory buildups. Revenues and expenses tend to fluctuate based on these seasonality factors."

Mr. Scheid also reported, "We are pleased to announce that the harvest of 2017 was completed on November 1. Despite an early autumn heat wave, yields for most varieties were in line with Company averages, and the 2017 vintage appears to be of excellent quality."

Mr. Mike Thomsen, Chief Financial Officer of the Company, stated, "The 2017 results were primarily affected by a decrease in bulk wine sales to $1.8 million, as compared to $6.2 million in 2016. The 2016 revenues were driven primarily by sales of 2013 and 2014 vintage bulk wine inventories which were created by larger than average grape yields during those harvests."

"The Company has increased its emphasis on selling bottled, rather than bulk wine. This requires holding a larger percentage of the Company's wine production for case sales in future periods. In 2017, case sales increased 5% to $12.7 million, as compared to $12.1 million in 2016.  The 12% increase in general and administrative, and selling expenses in the 2017 period was due primarily to the increased emphasis on sales, marketing and related administrative support of case sales."

About Scheid Vineyards

Scheid Vineyards has farmed wine grapes in Monterey County, California since 1972. The Company now farms approx. 4,000 acres of sustainably-certified vineyards in eleven locations - north to south - along a 70-mile stretch of the Salinas Valley. It also owns and operates a large scale, state-of-the-art winery and a smaller boutique winery, both near Greenfield, California. The Company is a fully integrated wine producer, vineyard to the bottle. This vertical integration enables the Company to bring high quality, estate grown, wines to the marketplace at attractive retail price points. Its nationally-distributed portfolio of labels includes Scheid Vineyards, District 7, Metz Road, VDR, Stokes' Ghost, GIFFT, Ranch 32, and Ryder Estate. In addition, Scheid Vineyards produces over 15 regionally distributed brands for specific clients.

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SOURCE Scheid Vineyards Inc.