SCHEID FAMILY WINES REPORTS THIRD QUARTER RESULTS

Rhea-AI Summary

Scheid Vineyards reported its financial results for the nine months ending November 30, 2021. Total revenues increased 3% to $43.4 million, driven by a 26% rise in cased goods sales, especially from the Sunny with a Chance of Flowers brand. However, bulk wine sales plummeted 77% as the company shifted focus to cased goods production. Net income reached $14.4 million, a significant turnaround from the $3.7 million loss in the previous year. Operating expenses increased, but lower interest expenses contributed positively to the overall financial health.

Positive

• Cased goods sales increased 26%, largely from new brand distribution.
• Total revenues grew by 3% to $43.4 million.
• Net income reached $14.4 million compared to a loss of $3.7 million in the previous year.
• Gross margins improved to 28%, up from 25% in the prior year.
• Interest expense decreased by 35% due to reduction in debt.

Negative

• Bulk wine sales dropped 77%, indicating a significant reliance on cased goods production.
• Sales and marketing expenses increased 19%, raising concerns about cost management.

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

           

View original content:https://www.prnewswire.com/news-releases/scheid-family-wines-reports-third-quarter-results-301465040.html

SOURCE Scheid Family Wines

FAQ

What were Scheid Vineyards' total revenues for the nine months ended November 30, 2021?

Scheid Vineyards reported total revenues of $43.4 million for the nine months ended November 30, 2021.

How much did net income increase for Scheid Vineyards in 2021?

Net income for Scheid Vineyards increased to $14.4 million in 2021, compared to a loss of $3.7 million in the previous year.

What was the percentage increase in cased goods sales for Scheid Vineyards?

Cased goods sales for Scheid Vineyards increased by 26%.

How did bulk wine sales perform for Scheid Vineyards in 2021?

Bulk wine sales decreased by 77% for Scheid Vineyards in 2021.

What is the stock symbol for Scheid Vineyards?

The stock symbol for Scheid Vineyards is SVIN.