SCHEID FAMILY WINES REPORTS FIRST QUARTER RESULTS

Rhea-AI Summary

Scheid Vineyards (OTC: SVIN) reported a 34% revenue increase for Q1 of fiscal 2023, totaling $15.9 million, driven by significant rises in cased goods (36%), bulk wine (41%), and winery processing revenues (60%). However, gross margins decreased from 24% to 22%, attributed to product mix changes and rising material costs, resulting in a gross profit of $3.6 million, up 24%. The company experienced a net loss of $2.2 million, contrasting with a net income of $15.1 million the previous year, influenced by a notable gain from vineyard sales last period. Earnings per share stood at -$2.40.

Positive

• Total revenues increased 34% year-over-year to $15.9 million.
• Cased goods sales rose 36%, bulk wine sales increased by 41%, and winery processing revenues saw a 60% boost.

Negative

• Gross profit decreased to 22% from 24%, primarily due to product mix changes and rising material costs.
• Net loss of $2.2 million compared to a net income of $15.1 million in the previous year.

News Market Reaction – SVIN

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+2.74% News Effect

On the day this news was published, SVIN gained 2.74%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SALINAS, Calif., July 15, 2022 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the three months ended May 31, 2022 (1^st Quarter of Fiscal 2023).

Financial Results – First Quarter Results Fiscal 2023 (March 1, 2022 – May 31, 2022)

			Three Months Ended May 31,
			2022			2021
REVENUES:
Cased goods sales			$	13,016		$	9,602
Bulk wine sales			1,018			723
Winery processing and storage revenues			948			594
Direct sales revenues			878			886
Vineyard management revenues			85			88
Other revenues			1			1
Total revenues			15,946			11,894
COST OF SALES			(12,379)			(9,022)
GROSS PROFIT			3,567			2,872
Sales and marketing expenses			(3,514)			(2,809)
General and administrative expenses			(2,184)			(1,963)
Interest expense, net			(944)			(915)
Gain on sale of vineyards and equipment			15			23,757
(LOSS) INCOME BEFORE BENEFIT FROM   (PROVISION FOR) INCOME TAXES			(3,060)			20,942
BENEFIT FROM (PROVISION FOR) INCOME TAXES			862			(5,866)
NET (LOSS) INCOME			$	(2,198)		$	15,076
NET (LOSS) INCOME PER SHARE			$	(2.40)		$	16.83
WEIGHTED AVERAGE SHARES OUTSTANDING			914			896
(amounts in thousands, except for per share data)

Mr. Mike Thomsen, Chief Financial Officer of the Company, commented on the first quarter results stating, "Overall revenues increased 34% in the first quarter of fiscal 2023. Cased goods sales increased 36%, bulk wine sales increased 41%, and winery processing and storage revenues increased 60% from the previous year. Overall increases in revenues were partially offset by gross margins decreases from 24% in the 2021 period to 22% in 2022. Margins decreased primarily due to changes in product mix, as well as increases in material costs. Total gross profit increased 24%.

Sales and marketing expenses increased 25%, from $2.8 to $3.5 million, as the Company continued its investment 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. The net loss before the effects of the gain on vineyard sales and income taxes totaled $2.8 million in the first quarter of fiscal 2022 of as compared to a net loss before income taxes of $3.1 million in fiscal 2023. In total, the Company had a net loss of $2.2 million in the first quarter of fiscal 2023 as compared to net income of $15.1 million in fiscal 2022."

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 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 its namesake brand Scheid Vineyards, Sunny with a Chance of Flowers, District 7, Ryder Estate, Metz Road, VDR (Very Dark Red), Stokes' Ghost, and HOXIE, an artisanal dry wine spritzer. 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-first-quarter-results-301587254.html

SOURCE Scheid Family Wines

FAQ

What were the financial results for Scheid Vineyards for the first quarter of fiscal 2023?

Scheid Vineyards reported a revenue increase of 34% to $15.9 million and a net loss of $2.2 million for Q1 of fiscal 2023.

How did the cased goods and bulk wine sales perform in the first quarter for SVIN?

Cased goods sales rose 36% and bulk wine sales increased by 41% compared to the previous year.

What is the earnings per share for Scheid Vineyards in Q1 fiscal 2023?

The earnings per share for Scheid Vineyards in Q1 fiscal 2023 was -$2.40.

What caused the decline in gross profit margin for Scheid Vineyards?

The decline in gross profit margin from 24% to 22% was primarily due to changes in product mix and increases in material costs.

What was the total gross profit for Scheid Vineyards in Q1 fiscal 2023?

The total gross profit for Scheid Vineyards in Q1 fiscal 2023 was $3.6 million.