Scheid Family Wines Reports Second Quarter Results

Rhea-AI Summary

Scheid Vineyards announced its financial results for the six months ending August 31, 2021, showing total revenues of $22.7 million, up 12% from $20.2 million in 2020. Cased goods sales surged 32% to $18 million, while bulk wine sales plummeted 52% to $2.3 million. The company reported a net income of $12.6 million, a significant turnaround from a net loss of $4.6 million in 2020. Sales and marketing expenses increased by 21% to $5.1 million, reflecting investments in marketing efforts.

Positive

• Total revenues increased 12% to $22.7 million for the first six months of fiscal 2022.
• Cased goods sales rose 32%, driven by the successful launch of 'Sunny with a Chance of Flowers' and eased COVID-19 travel restrictions.
• Net income reached $12.6 million compared to a net loss of $4.6 million in 2020.
• Interest expense decreased 26% to $1.7 million due to reduced debt from vineyard sales.

Negative

• Bulk wine sales decreased 52% to $2.3 million, impacting overall revenue diversity.
• Sales and marketing expenses grew 21%, increasing operational costs despite higher revenues.

SALINAS, Calif., Oct. 20, 2021 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the six months ended August 31, 2021 (2nd quarter of Fiscal 2022).

Financial Results - Second Quarter Results Fiscal 2022 (March 1, 2021 – August 31, 2021)

			Six Months Ended August 31,
			2021			2020
REVENUES:
Cased goods sales			$	17,956		$	13,638
Bulk wine sales			2,285			4,682
Winery processing and storage revenues			934			616
Direct sales revenues			1,330			1,103
Vineyard management revenues			191			150
Other revenues			2			6
Total revenues			22,698			20,195
COST OF SALES			(18,146)			(16,045)
GROSS PROFIT			4,552			4,150
Sales and marketing expenses			(5,079)			(4,164)
General and administrative expenses			(4,064)			(3,993)
Interest expense, net			(1,723)			(2,326)
Other income (loss)			5			(15)
Gain on sale of vineyards and equipment			23,777			6
INCOME (LOSS) BEFORE (PROVISION FOR)   BENEFIT FROM INCOME TAXES			17,468			(6,342)
(PROVISION FOR) BENEFIT FROM INCOME TAXES			(4,886)			1,776
NET INCOME (LOSS)			$	12,582		$	(4,566)
NET INCOME (LOSS) PER SHARE			$	14.04		$	(5.17)
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 second quarter results stating, "Cased goods sales increased 32% in the current period, primarily as the result of sales 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 52% from the previous year as the Company continues to increase the use of bulk wine inventories in its own cased goods production. Overall, total revenues increased 12% from the previous fiscal year.  Sales and marketing expenses increased 21%, from $4.2 to $5.1 million, as the Company invested in the marketing of new brands and territories.  The Company recognized a gain of $23.8 million from the sale of vineyard properties in the first quarter of fiscal 2022, and due to the reduction in debt from the sale, interest expense decreased 26% from $2.3 million to $1.7 million. The Company had net income of $12.6 million in the first six months of fiscal 2022 as compared to a net loss of $4.6 million in fiscal 2021."

2021 Harvest Update

Mr. Scott Scheid, President and CEO of the Company, stated, "The 2021 grape harvest began in late August and is expected to be completed in the third week of November.  This timing is delayed by approximately two weeks from a normal harvest season for wine grape vineyards on the Central Coast of California, due primarily to a cooler than normal growing season. We are currently approximately two-thirds completed with harvest and yields appear to be trending at average levels for most varieties." 

About Scheid Family Wines

Scheid Family Wines is a family-owned and operated, estate-driven 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 for specific clients and distributors.

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-results-301404143.html

SOURCE Scheid Family Wines

FAQ

What were the total revenues for Scheid Vineyards (SVIN) in the second quarter of fiscal 2022?

Scheid Vineyards reported total revenues of $22.7 million for the six months ended August 31, 2021.

How much net income did Scheid Vineyards (SVIN) report for the six months ending August 31, 2021?

The company reported a net income of $12.6 million for the first six months of fiscal 2022.

What was the reason for the increase in cased goods sales for Scheid Vineyards (SVIN)?

Cased goods sales increased by 32% mainly due to the successful launch of the 'Sunny with a Chance of Flowers' brand and the easing of COVID-19 restrictions.

How did bulk wine sales perform for Scheid Vineyards (SVIN) in the latest financial report?

Bulk wine sales decreased by 52% to $2.3 million compared to the previous year.

What was the impact of sales and marketing expenses on Scheid Vineyards (SVIN) financial results?

Sales and marketing expenses increased by 21% to $5.1 million, raising operational costs despite higher revenues.