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 (1st 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.
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| Three Months Ended May 31,
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| 2023
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| 2022
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REVENUES:
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Cased goods sales
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| $
| 10,886
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| $
| 13,016
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Bulk wine sales
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| 1,801
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| 1,018
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Winery processing and storage revenues
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| 787
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| 948
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Direct sales revenues
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| 869
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| 878
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Vineyard management revenues
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| 93
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| 85
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Other revenues
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| 3
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| 1
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Total revenues
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| 14,439
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| 15,946
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COST OF SALES
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| (11,349)
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| (12,379)
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GROSS PROFIT
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| 3,090
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| 3,567
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Sales and marketing expenses
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| (3,017)
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| (3,514)
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General and administrative expenses
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| (1,934)
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| (2,184)
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Interest expense, net
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| (1,485)
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| (944)
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Gain on sale of equipment
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| 79
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| 15
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LOSS BEFORE BENEFIT FROM INCOME TAXES
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| (3,267)
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| (3,060)
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BENEFIT FROM INCOME TAXES
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| 903
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| 862
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NET LOSS
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| $
| (2,364)
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| $
| (2,198)
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NET LOSS PER SHARE
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| $
| (2.59)
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| $
| (2.40)
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WEIGHTED AVERAGE SHARES OUTSTANDING
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| 914
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| 914
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(amounts in thousands, except for per share data)
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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
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| Mike Thomsen, Chief Financial Officer
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| (831) 455-9990
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View original content:https://www.prnewswire.com/news-releases/scheid-family-wines-reports-first-quarter-fiscal-2024-results-301877928.html
SOURCE Scheid Family Wines
