Scheid Family Wines Reports Year End Results

SALINAS, Calif., June 19, 2018 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the fiscal year ended February 28, 2018.

Revenues for the fiscal year ended February 28, 2018 decreased to $57.3 million, from $62.3 million for the same period in fiscal 2017.  Revenues for fiscal 2018 were offset by cost of sales of $42.0 million; general and administrative expenses of $8.7 million; selling expenses of $7.1 million; and interest expense of $3.1 million. Revenues for fiscal 2017 were offset by cost of sales of $40.2 million; general and administrative expenses of $8.4 million; selling expenses of $5.3 million; and interest expense of $3.0 million. After adjustments for income taxes, net income for the year ended February 28, 2018 was $2.4 million ($2.75 per share), as compared to $2.9 million ($3.32 per share) in fiscal 2017.

Mr. Mike Thomsen, Chief Financial Officer of the Company, stated, "Harvest yields can have an impact on year over year comparisons, and the resulting grape and bulk wine revenues and overall margins may fluctuate based on such yields. Company vineyard grape yields for the fiscal 2018 harvest were approximately 16% lower than the fiscal 2017 harvest, and 8% lower than the Company's 10-year average. Grape sales decreased to $4.6 million in fiscal 2018, as compared to $7.5 million in fiscal 2017, and bulk wine revenues decreased to $19.2 million, as compared to $25.3 million in fiscal 2017. The large grape harvests in fiscal 2014 and 2015 resulted in higher bulk wine inventories available for sale in fiscal 2017."

"In addition, the Company has increased its emphasis on selling bottled, rather than bulk wine and grapes. This requires holding a larger percentage of the Company's wine production for case sales in future periods, resulting in fewer grape and bulk wine sales as the Company continues with this shift. In fiscal 2018, case sales increased 13% to $26.3 million, as compared to $23.2 million in fiscal 2017. The 16% increase in general and administrative, and selling expenses in the fiscal 2018 period was due primarily to the increased emphasis on sales, marketing and related administrative support of case sales."

Mr. Thomsen also stated that, "Due to the enactment of the Tax Cut & Jobs Act in December 2017, the Company was required to revalue its deferred income tax liabilities reflected in its financial statements, resulting in a $4.6 million benefit from income taxes on the Company's income statement for the year ended February 28, 2018."

Mr. Scott Scheid, President and CEO of the Company, stated, "The annual grape harvest usually begins in late August in the Company's southernmost vineyards, and it is expected that the harvest will be in full swing by mid-September.  This timing is normal for wine grape vineyards on the Central Coast of California. The Company does not comment on crop projections until late July or early August, as weather patterns in the spring and early summer can have significant influences on vineyard crop sizes." 

About Scheid Vineyards

Scheid Family Wines has farmed wine grapes in Monterey County, California since 1972. The Company now farms 39 varieties on approximately 4,000 acres of sustainably-certified vineyards in eleven locations - north to south - along a 70-mile stretch of the Salinas Valley. It also owns and operates a large-scale, state-of-the-art winery and a smaller boutique winery, both near Greenfield, California. The Company is a fully integrated wine producer, vineyard to the bottle. This vertical integration enables the Company to bring high quality, estate grown, wines to the marketplace at attractive retail price points. Its nationally-distributed portfolio of brands includes Scheid Vineyards, District 7, Metz Road, VDR, Stokes' Ghost, GIFFT, Ranch 32, and Ryder Estate. In addition, Scheid Family Wines produces over 15 regionally distributed brands for specific clients.

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SOURCE Scheid Vineyards Inc.