Scheid Family Wines Reports First Quarter Results

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Scheid Vineyards (OTC Markets: SVIN) reported significant financial growth for Q1 of Fiscal 2022, ending May 31, 2021. Total revenues soared by 24% to $11.9 million, compared to $9.6 million in 2020. Key drivers included a 43% increase in cased goods sales, boosted by the Sunny with a Chance of Flowers brand. A notable gain of $23.8 million was recognized from the sale of vineyard properties. The company achieved a net income of $15.1 million, a substantial turnaround from a net loss of $2.4 million in the same quarter last year.

Positive

Total revenues increased by 24% to $11.9 million from $9.6 million in the prior year.
Cased goods sales rose 43%, driven by the new Sunny with a Chance of Flowers brand.
Recognized a gain of $23.8 million from the sale of vineyard properties.
Achieved net income of $15.1 million, compared to a loss of $2.4 million in the previous year.
Gross profit margins improved from 22% to 24%.

Negative

Sales and marketing expenses increased by 30%, rising from $2.1 million to $2.8 million.

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07/21/2021 - 09:00 AM

SALINAS, Calif., July 21, 2021 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the three months ended May 31, 2021 (1^st quarter of Fiscal 2022).

Financial Results - First Quarter Results Fiscal 2022 (March 1, 2021 – May 31, 2021)

	Three Months Ended May 31,
	2021		2020
REVENUES:
Cased goods sales	$	9,602	$	6,684
Bulk wine sales	723		1,630
Winery processing and storage revenues	594		403
Direct sales revenues	886		755
Vineyard management revenues	87		78
Other revenues	1		5
Total revenues	11,895		9,555
COST OF SALES	(9,022)		(7,495)
GROSS PROFIT	2,873		2,060
General and administrative expenses	(1,964)		(2,056)
Sales and marketing expenses	(2,799)		(2,142)
Interest expense, net	(915)		(1,178)
Loss from investment in Gifft Wine Venture	(10)		(1)
Gain on sale of vineyards and equipment	23,757		—
INCOME (LOSS) BEFORE (PROVISION FOR) BENEFIT FROM INCOME TAXES	20,942		(3,315)
(PROVISION FOR) BENEFIT FROM INCOME TAXES	(5,866)		928
NET INCOME (LOSS)	$	15,076	$	(2,387)


NET INCOME (LOSS) PER SHARE	$	16.83	$	(2.70)

(amounts in thousands, except for per share data)

Mr. Scott Scheid, President and CEO of the Company, stated, "In April 2021, the Company sold three of its vineyard parcels for $33 million in consideration, which included the buyer's assumption of $20 million in real estate loans secured by the properties. The disposition of these parcels, which consisted of 1,193 acres of vineyards, about two-thirds on leased land and the balance on company owned land, is part of Scheid Family Wines' overall strategy to better align its asset holdings and debt with its growing premium bottled wine business. The Company recognized a gain on the sale of these properties of $23.8 million in the first quarter of fiscal 2022."

Mr. Mike Thomsen, Chief Financial Officer of the Company, commented on the first quarter results stating, "Our case goods sales continue to increase, primarily as the result of sales of the Company's Sunny with a Chance of Flowers brand, which was launched in the fall of 2021, and sales to airlines which were limited in the previous year due to COVID-19 travel restrictions. Overall, total revenues increased 24% from the previous fiscal year and gross profit margins increased from 22% to 24%. Sales and marketing expenses increased 30%, from $2.1 to $2.8 million, as the Company invested in the marketing of new brands and territories. Due to the reduction in debt after the sale of vineyard properties, interest expense decreased 22% from $1.2 million to $0.9 million. After the gain on the sale of vineyard properties, the Company had net income of $15.1 million in the first quarter of fiscal 2022 as compared to a net loss $2.4 million in fiscal 2021."

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-first-quarter-results-301338066.html

SOURCE Scheid Family Wines

FAQ

What were Scheid Vineyards' Q1 2022 financial results?

Scheid Vineyards reported Q1 2022 revenues of $11.9 million, a 24% increase from $9.6 million in Q1 2021.

How much net income did Scheid Vineyards report for Q1 2022?

Scheid Vineyards achieved a net income of $15.1 million in Q1 2022, compared to a net loss of $2.4 million in Q1 2021.

What contributed to the revenue increase for Scheid Vineyards in Q1 2022?

The revenue increase was primarily driven by a 43% rise in cased goods sales, particularly from the Sunny with a Chance of Flowers brand.

What gain did Scheid Vineyards recognize from property sales in Q1 2022?

Scheid Vineyards recognized a gain of $23.8 million from the sale of vineyard properties in Q1 2022.

How did Scheid Vineyards' gross profit margins change in Q1 2022?

Gross profit margins improved from 22% in Q1 2021 to 24% in Q1 2022.

Scheid Family Wines Reports First Quarter Results