Scheid Family Wines Reports Year End Results

Rhea-AI Summary

Scheid Vineyards (OTC: SVIN) reported its financial results for the fiscal year ending February 28, 2021. Total revenues increased by 23% to $62.7 million, driven by strong bulk wine sales that rose 67% to $23.7 million. Gross profit margins improved from 11% to 24%, while overall expenses decreased by 9%. Despite these positive trends, the company reported a net loss of $4.7 million, a 64% reduction compared to the previous year. Additionally, the sale of three vineyard parcels for $33 million, including debt relief of $20 million, is expected to result in a gain of approximately $24 million in fiscal 2022.

Positive

• Total revenues increased 23% to $62.7 million.
• Bulk wine sales rose 67% to $23.7 million.
• Gross profit margins improved from 11% to 24%.
• Total sales and marketing expenses decreased 9% to $16.4 million.
• Net loss decreased 64% to $4.7 million.

Negative

• Grape sales declined 56% from $1.6 million to $0.7 million.

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SALINAS, Calif., June 14, 2021 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the fiscal year ended February 28, 2021.

Financial Results Fiscal Year Ended February 28, 2021

				Year Ended
			February 28       2021				February 29      2020
REVENUES:
Cased goods sales				$	29,925		$	28,216
Bulk wine sales				23,726			14,201
Grape sales				728			1,632
Winery processing and storage revenues				5,393			3,933
Direct sales revenues				2,576			2,206
Other revenues				393			840
Total revenues				62,741			51,028
COST OF SALES				(47,964)			(41,321)
WRITE-DOWN OF INVENTORY TO MARKET				—			(4,026)
GROSS PROFIT				14,777			5,681
Sales and marketing expenses				(8,516)			(9,220)
General and administrative expenses				(7,886)			(8,541)
Interest expense, net				(4,325)			(4,790)
Loss from investment in Gifft Wine Venture				(9)			(21)
Loss on disposal of vineyard improvements				—			(1,169)
Gain on sale of equipment				73			88
LOSS BEFORE BENEFIT FROM INCOME TAXES				(5,886)			(17,972)
BENEFIT FROM INCOME TAXES				1,161			5,099
NET LOSS				$	(4,725)		$	(12,873)
NET LOSS PER SHARE				$	(5.36)		$	(14.58)

(amounts in thousands, except for per share data)

Mr. Mike Thomsen, Chief Financial Officer of the Company, commented on the year end results stating, "Our case goods sales and direct sales revenues finished ahead of last fiscal year, increasing 7% for the year, despite COVID-19 related effects on the Company's business including decreased on-premise and airline/cruise ship sales and California's prohibition against wine tasting in our two tasting rooms for over four months. Demand for bulk wine was strong in the latter half of the fiscal year, and bulk wine sales revenue increased 67%, from $14.2 to $23.7 million in fiscal 2021. Grape sales declined 56% from $1.6 million to $0.7 million.  Overall, total revenues increased 23% from the previous fiscal year and gross profit margins increased from 11% to 24%.  In addition, total sales, marketing and administrative expenses decreased 9%, from $17.8 to $16.4 million.  The Company's net loss decreased 64% to $4.7 million as compared to $12.9 million in fiscal 2020."

Mr. Scott Scheid, President and CEO of the Company, stated, "On April 2, 2021 the Company announced that it had sold three of its vineyard parcels for $33 million in consideration, which included the buyer assuming $20 million of the Company's debt that was secured by the properties.  The disposition of these parcels, which comprise 1,193 acres of vineyards on leased and 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 will recognize a gain on the sale of these properties of approximately $24 million in the first quarter of fiscal 2022."

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:http://www.prnewswire.com/news-releases/scheid-family-wines-reports-year-end-results-301311354.html

SOURCE Scheid Family Wines

FAQ

What were Scheid Vineyards' total revenues for fiscal year 2021?

Total revenues for Scheid Vineyards in fiscal year 2021 were $62.7 million.

How much did bulk wine sales increase for Scheid Vineyards?

Bulk wine sales for Scheid Vineyards increased by 67% to $23.7 million.

What was the net loss reported by Scheid Vineyards for fiscal year 2021?

Scheid Vineyards reported a net loss of $4.7 million for fiscal year 2021.

What gain is Scheid Vineyards expected to recognize from the recent vineyard sales?

Scheid Vineyards is expected to recognize a gain of approximately $24 million from the recent sale of vineyard parcels.

How did Scheid Vineyards' expenses change in the last fiscal year?

Scheid Vineyards' total sales and marketing expenses decreased by 9% to $16.4 million.