SCHEID FAMILY WINES REPORTS YEAR END RESULTS

Rhea-AI Summary

Scheid Vineyards Inc. (OTC Markets: SVIN) announced its financial results for the year ending February 28, 2022. The company reported a 4% increase in total revenues, reaching $65.1 million, with cased goods sales up by 32% due to the successful launch of the Sunny with a Chance of Flowers brand. Gross profit rose to $17.8 million, improving margins from 24% to 27%. Notably, net income surged to $14.2 million, compared to a net loss of $4.7 million in the previous fiscal year. However, bulk wine sales saw a significant decline of 56%.

Positive

• Total revenues increased by 4% to $65.1 million.
• Cased goods sales rose by 32%, driven by a successful brand launch.
• Gross profit improved to $17.8 million with margins up to 27%.
• Net income jumped to $14.2 million from a loss of $4.7 million.
• Sales and marketing expenses increased but were aimed at expanding market presence.

Negative

• Bulk wine sales decreased by 56% compared to the previous year.

News Market Reaction – SVIN

+7.83%

1 alert

+7.83% News Effect

On the day this news was published, SVIN gained 7.83%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SALINAS, Calif., June 6, 2022 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the year ended February 28, 2022.

Financial Results Fiscal Year Ended February 28, 2022
			Year Ended
			February 28       2022					February 28      2021
REVENUES:
Cased goods sales			$	39,631			$		29,925
Bulk wine sales			10,410				23,726
Grape sales			3,970				728
Winery processing and storage revenues			7,541				5,393
Direct sales revenues			2,718				2,576
Other revenues			817				393
Total revenues			65,087				62,741
COST OF SALES			(47,313)				(47,964)
GROSS PROFIT			17,774				14,777
Sales and marketing expenses			(10,410)				(8,516)
General and administrative expenses			(8,520)				(7,886)
Interest expense, net			(3,266)				(4,325)
Loss from investment in Gifft Wine Venture			(359)				(9)
Gain on sale of vineyards and equipment			24,377				73
INCOME (LOSS) BEFORE (PROVISON FOR)    BENEFIT FROM INCOME TAXES			19,596				(5,886)
(PROVISION FOR) BENEFIT FROM INCOME TAXES			(5,404)				1,161
NET INCOME (LOSS)			$	14,192			$		(4,725)
NET INCOME (LOSS) PER SHARE			$	15.84			$		(5.36)
WEIGHTED AVERAGE SHARES OUTSTANDING			896				881
(amounts in thousands, except for per share data)

 

Mr. Mike Thomsen, Chief Financial Officer of the Company, commented on the year end results stating, "Cased goods sales increased 32% 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 56% 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 fiscal 2021 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 40% and grape sales increased by 445% in the fiscal 2022 period, generally reflecting higher yields from the 2021 harvest. Overall, total revenues increased 4% and gross margins increased to 27% from 24% in the previous fiscal year. 

Sales and marketing expenses increased 22%, from $8.5 to $10.4 million, as the Company invested in the marketing of new brands and territories.  The Company recognized a gain of $24.4 million from the sale of vineyard properties in the first quarter of fiscal 2022 and, due to the reduction in debt from proceeds of the sale, net interest expense decreased 24% from $4.3 million to $3.3 million. The Company had net income of $14.2 million in fiscal 2022 as compared to a net loss of $4.7 million in fiscal 2021."

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-year-end-results-301561440.html

SOURCE Scheid Family Wines

FAQ

What were Scheid Vineyards' total revenues for fiscal year 2022?

Scheid Vineyards reported total revenues of $65.1 million for the fiscal year ending February 28, 2022.

How did cased goods sales perform for Scheid Vineyards in 2022?

Cased goods sales increased by 32% in fiscal 2022, primarily due to the brand Sunny with a Chance of Flowers.

What was the net income for Scheid Vineyards in fiscal 2022?

Scheid Vineyards reported a net income of $14.2 million for fiscal 2022, an improvement from a net loss of $4.7 million in fiscal 2021.

How much did bulk wine sales decrease for Scheid Vineyards?

Bulk wine sales decreased by 56% in the fiscal year ending February 28, 2022.

What was the gross profit margin for Scheid Vineyards in 2022?

The gross profit margin for Scheid Vineyards increased to 27% in fiscal 2022, up from 24% in the previous year.