SCHEID FAMILY WINES REPORTS FIRST QUARTER FISCAL 2025 RESULTS

Rhea-AI Summary

Scheid Family Wines (OTC: SVIN) reported its Q1 fiscal 2025 results, showing a 4% increase in total revenues to $15.0 million. Despite challenging market conditions, the company achieved a 1% increase in cased goods sales to $11.0 million and a 12% increase in winery processing and storage revenues to $1.1 million. Gross margins improved to 26% from 21% in the previous year. The company's cost-cutting efforts resulted in a 10% decrease in both sales and marketing expenses and general and administrative expenses. Notably, Scheid recognized $3.6 million in revenue from a dissolved winery processing agreement. Despite a 27% increase in interest expense, the company reported a net income of $0.9 million, compared to a net loss of $2.4 million in the same period last year. EBITDA improved significantly to $4.5 million from a loss of $0.1 million.

Positive

• 4% increase in total revenues to $15.0 million
• 1% increase in cased goods sales to $11.0 million
• 12% increase in winery processing and storage revenues to $1.1 million
• Gross margins improved to 26% from 21% in the previous year
• 10% decrease in both sales and marketing expenses and general and administrative expenses
• $3.6 million revenue recognized from dissolved winery processing agreement
• Net income of $0.9 million compared to a net loss of $2.4 million in the same period last year
• EBITDA improved to $4.5 million from a loss of $0.1 million

Negative

• 27% increase in interest expense to $1.9 million due to higher interest rates
• Challenging market conditions for both cased goods and bulk wine
• Execution of forbearance agreements with lenders, indicating potential financial difficulties

News Market Reaction

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On the day this news was published, SVIN declined NaN%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

SALINAS, Calif., July 24, 2024 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the three months ended May 31, 2024 (first quarter of fiscal 2025).

Scott Scheid, President and CEO, commented, "There's no doubt that it's been a challenging market for both cased goods and bulk wine. I'm proud of the significant efforts our team has undertaken to do more with less, highlighted by our first quarter results showing a modest increase in sales of 4% while achieving double-digit decreases in sales, marketing and G&A expenses. These efforts are ongoing. Continuous improvement is one of our core values and our teams come to work each day looking for opportunities to  improve the way we do business."

Mr. Scheid continued, "We've also made progress with our lenders and recently executed forbearance agreements with both of them. We are working diligently with them to provide a consistent flow of information as we seek to extend the forbearance period beyond its initial term of July 31, 2024."

Financial Results

Total revenues increased 4%, to $15.0 million for the three months ended May 31, 2024, from $14.4 million in fiscal 2024. Cased goods sales increased 1%, to $11.0 million in the first three months of fiscal 2025, from $10.9 million in fiscal 2024. In addition, the Company's winery processing and storage revenues increased 12%, to $1.1 million from $0.8 million, and bulk wine sales remained flat at $1.8 million. Gross margins increased to 26% in the fiscal 2025 period, as compared to 21% in fiscal 2024.

Sales and marketing expenses decreased 10%, to $2.7 million, from $3.0 million, and general and administrative expenses decreased 10%, to $1.7 million, from $1.9 million, as the Company continues its cost cutting efforts.

During the first quarter of fiscal 2025, the Company recognized revenue of $3.6 million from proceeds received from the dissolution of a winery processing agreement.

Interest expense rose 27%, to $1.9 million, from $1.5 million, due to increases in interest rates on the Company's variable rate debt. Average interest rates on Company debt increased to 6.8% for fiscal 2025, from 5.9% for fiscal 2024.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to $4.5 million, from a loss of $0.1 million.

In total, the Company reported net income of $0.9 million for the three months ended May 31, 2024, compared to a net loss of $2.4 million for the three months ended May 31, 2024.

 

SCHEID VINEYARDS INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MAY 31, 2024 AND 2023
(amounts in thousands, except per share data)
			Three Months Ended May 31,
			2024					2023
REVENUES:
Cased goods sales			$	11,006			$		10,886
Bulk wine sales			1,769				1,801
Winery processing and storage revenues			1,131				787
Direct sales revenues			936				869
Other revenues			103				96
Total revenues			14,945				14,439
COST OF SALES			(11,083)				(11,349)
GROSS PROFIT			3,862				3,090
Sales and marketing expenses			(2,686)				(3,017)
General and administrative expenses			(1,689)				(1,934)
LOSS FROM OPERATIONS			(513)				(1,861)
Interest expense, net			(1,946)				(1,485)
Proceeds from contract dissolution			3,613				—
Gain on sale of equipment			27				79
INCOME (LOSS) BEFORE (PROVISION FOR)      BENEFIT FROM INCOME TAXES			1,181				(3,267)
(PROVISION FOR) BENEFIT FROM INCOME TAXES			(331)				903
NET INCOME (LOSS)			$	850			$		(2,364)
INCOME (LOSS) PER SHARE			$	0.93			$		(2.59)
WEIGHTED AVERAGE SHARES OUTSTANDING			917				914

About Scheid Family Wines

Scheid Family Wines, a family-owned and operated wine company for over 50 years, is ranked among the top 25 largest wine producers in the United States. Based in Monterey County, California, Scheid is vertically integrated to bring high quality estate grown wines to the marketplace from its sustainably and organically certified vineyards and grower partners throughout the Central Coast. Scheid's innovative, luxury-level winery is 100% powered by renewable wind energy generated by a 400-foot-tall wind turbine, which also supplies energy to 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 (organically certified), 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 premium exclusive brands.  

Please visit www.scheidfamilywines.com and www.otcmarkets.com/stock/SVIN/quote for more information.

CONTACT:	Scott Scheid, President and CEO, scott.scheid@scheidfamilywines.com
	Mike Thomsen, Chief Financial Officer, mike.thomsen@scheidfamilywines.com

 

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SOURCE Scheid Family Wines

FAQ

What was Scheid Family Wines' (SVIN) total revenue for Q1 fiscal 2025?

Scheid Family Wines reported total revenues of $15.0 million for Q1 fiscal 2025, a 4% increase from the previous year.

How did Scheid Family Wines' (SVIN) cased goods sales perform in Q1 fiscal 2025?

Scheid Family Wines' cased goods sales increased by 1% to $11.0 million in Q1 fiscal 2025 compared to the same period in fiscal 2024.

What was Scheid Family Wines' (SVIN) net income for Q1 fiscal 2025?

Scheid Family Wines reported a net income of $0.9 million for Q1 fiscal 2025, compared to a net loss of $2.4 million in the same period last year.

How did Scheid Family Wines (SVIN) reduce expenses in Q1 fiscal 2025?

Scheid Family Wines reduced both sales and marketing expenses and general and administrative expenses by 10% in Q1 fiscal 2025 as part of their cost-cutting efforts.

What was the impact of interest rates on Scheid Family Wines' (SVIN) financials in Q1 fiscal 2025?

Interest expense for Scheid Family Wines rose 27% to $1.9 million due to increases in interest rates on the company's variable rate debt, with average interest rates increasing to 6.8% from 5.9%.