SCHEID FAMILY WINES REPORTS SECOND QUARTER FISCAL 2024 RESULTS

Rhea-AI Summary

Scheid Vineyards Inc. reports financial results for the six months ended August 31, 2023. Total revenues were $27.7 million, down 9%. Gross margin decreased to 20%. Sales and marketing expenses decreased 14% and general and administrative costs decreased 16%. Interest expense rose 57%. The company reported a net loss of $4.9 million. The 2023 grape harvest is 40% complete and yields are close to the company's five-year average.

Positive

• Total revenues were $27.7 million, down 9%. Gross margin decreased to 20%. Sales and marketing expenses decreased 14% and general and administrative costs decreased 16%. The 2023 grape harvest is 40% complete and yields are close to the company's five-year average.

Negative

• The company reported a net loss of $4.9 million. Interest expense rose 57%.

SALINAS, Calif., Oct. 16, 2023 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the six months ended August 31, 2023 (2^nd quarter of fiscal 2024).

Financial Results

Total revenues were $27.7 million, down $2.7 million, a decrease of 9%. This decrease was driven by the Company's cased goods sales which decreased 6%, from $23.9 million to $22.5 million, and a decrease in bulk wine sales of 28%, from $2.9 million to $2.1 million.

Gross margin decreased slightly from 23% in fiscal 2023 to 20% in fiscal 2024, primarily as result of the change in sales mix and increases in product production costs.  Sales and marketing expenses decreased 14%, from $6.6 to $5.7 million, as the Company reorganized its sales and marketing departments in late 2023. These expenses were 21% of total revenues in the first six months of fiscal 2024 and 22% in fiscal 2023. General and administrative costs decreased 16%, from $4.4 million to $3.7 million. Interest expense rose 57%, from $2.0 million to $3.0 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 4.6% during the six first six months of fiscal 2023 to 6.1% during the current period.

During the six months ended August 31, 2022, the Company received forgiveness from the Small Business Association of a $3.7 million loan made to the Company pursuant to the Paycheck Protection Plan ("PPP") administered by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The Company recognized a gain for such forgiveness in fiscal 2023. In addition, in the 2023 period, the Company settled a class action lawsuit which alleged violations of California wage and hour employment laws, for $1.25 million. In total, the Company reported a net loss of $4.9 million in the first six months of fiscal 2024, as compared to a net loss of $1.4 million in fiscal 2023.

2023 Harvest Update

The 2023 grape harvest began in late September, approximately three weeks later than a normal harvest season on the Central Coast, due to a cool summer growing season that has affected all of California. Mr. Scott Scheid, President and CEO of the Company, stated, "We are currently about 40% complete with harvest, as compared to 80% completion at this time during the 2022 harvest. Overall yields are trending close to slightly above the Company's five-year average yields. Our winemaking team is impressed with the quality thus far; the winter rains and extended growing season have lent themselves to favorable conditions for producing high quality wine grapes."

						Six Months Ended August 31,
						2023			2022
REVENUES:
Cased goods sales						$	22,539		$	23,928
Bulk wine sales						2,145			2,922
Winery processing and storage revenues						1,451			1,980
Direct sales revenues						1,329			1,265
Vineyard management revenues						229			184
Grape sales						—			60
Other revenues						5			2
Total revenues						27,698			30,341
COST OF SALES						(22,121)			(23,290)
GROSS PROFIT						5,577			7,051
Sales and marketing expenses						(5,696)			(6,600)
General and administrative expenses						(3,674)			(4,385)
Interest expense, net						(3,008)			(2,006)
LOSS BEFORE OTHER INCOME AND EXPENSES						(6,801)			(5,940)
Loan forgiveness						—			3,731
Other income (loss)						(40)			(1,250)
Gain on sale of property, plant and equipment						80			15
LOSS BEFORE BENEFIT FROM INCOME TAXES						(6,761)			(3,444)
BENEFIT FROM INCOME TAXES						1,915			2,005
NET LOSS						$	(4,846)		$	(1,439)
NET LOSS PER SHARE						$	(5.30)		$	(1.58)
WEIGHTED AVERAGE SHARES OUTSTANDING						915			912
(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 over 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

 

View original content:https://www.prnewswire.com/news-releases/scheid-family-wines-reports-second-quarter-fiscal-2024-results-301956920.html

SOURCE Scheid Family Wines

FAQ

What were the total revenues for Scheid Vineyards Inc. in the six months ended August 31, 2023?

Total revenues were $27.7 million.

What was the net loss for the company in the first six months of fiscal 2024?

The company reported a net loss of $4.9 million.

What is the progress of the 2023 grape harvest?

The 2023 grape harvest is 40% complete.

How did interest expense change in fiscal 2024?

Interest expense rose 57%.