PR Newswire
SALINAS, Calif., Jan. 20, 2022
SALINAS, Calif., Jan. 20, 2022 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the nine months ended November 30, 2021 (3rd quarter of Fiscal 2022).
Financial Results - Third Quarter Results Fiscal 2022 (March 1, 2021 – November 30, 2021)
Nine Months Ended November 30, | ||||||||
2021 | 2020 | |||||||
REVENUES: | ||||||||
Cased goods sales | $ | 27,877 | $ | 22,278 | ||||
Bulk wine sales | 2,768 | 12,178 | ||||||
Winery processing and storage revenues | 5,876 | 4,765 | ||||||
Grape sales | 3,970 | 717 | ||||||
Direct sales revenues | 2,292 | 2,041 | ||||||
Vineyard management revenues | 581 | 296 | ||||||
Other revenues | 18 | 10 | ||||||
Total revenues | 43,382 | 42,285 | ||||||
COST OF SALES | (31,447) | (31,629) | ||||||
GROSS PROFIT | 11,935 | 10,656 | ||||||
Sales and marketing expenses | (7,492) | (6,337) | ||||||
General and administrative expenses | (6,096) | (5,967) | ||||||
Interest expense, net | (2,564) | (3,460) | ||||||
Other income (loss) | 3 | (8) | ||||||
Gain on sale of vineyards and equipment | 24,219 | 7 | ||||||
INCOME (LOSS) BEFORE (PROVISION FOR) BENEFIT FROM INCOME TAXES | 20,005 | (5,109) | ||||||
(PROVISION FOR) BENEFIT FROM INCOME TAXES | (5,601) | 1,430 | ||||||
NET INCOME (LOSS) | $ | 14,404 | $ | (3,679) | ||||
NET INCOME (LOSS) PER SHARE | $ | 16.08 | $ | (4.17) | ||||
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 third quarter results stating, "Cased goods sales increased 26% in the current period, primarily as the result of increased distribution 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 77% from the previous year as the Company continues to increase the use of its bulk wine inventories in cased goods production. In addition, bulk wine sales in the previous year were aided by increased demand from the potential threats to the 2020 crop from California wildfires, as well as lower than average industry-wide bulk wine supplies. Winery processing revenues increased by 23% and grape sales increased by 453% in the fiscal 2022 period, generally reflecting higher yields from the 2021 harvest. Overall, total revenues increased 3% and gross margins increased to 28% from 25% in the previous fiscal year.
Sales and marketing expenses increased 19%, from $6.3 to $7.5 million, as the Company invested in the marketing of new brands and territories. The Company recognized a gain of $24.2 million from the sale of vineyard properties in the first quarter of fiscal 2022 and, due to the reduction in debt from proceeds from the sale, interest expense decreased 35% from $3.5 million to $2.6 million. The Company had net income of $14.4 million in the first nine months of fiscal 2022 as compared to a net loss of $3.7 million in fiscal 2021."
Mr Thomsen also reported that, "The Company's 2021 grape harvest was completed on November 16, 2021, with yields per acre approximately 6% above the Company's five-year average"
About Scheid Family Wines
Scheid Family Wines is a family-owned and operated 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 and distributes a portfolio of imported wines through its partnership with PH Imports.
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 |
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SOURCE Scheid Family Wines
