2022-06-06 | OTCPK:SVIN | Press release | Scheid Vineyards Inc.

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

Financial results Year ended February 28, 2022

Year ended

February 28

2022

February 28

2021

REVENUES:

Sales of packaged goods

$

39,631

$

29,925

Sale of bulk wine

10,410

23,726

Sale of grapes

3,970

728

Income from transformation and storage in the cellar

7,541

5,393

Direct sales revenue

2,718

2,576

Other income

817

393

Total revenue

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 of investment in Giftt Wine Venture

(359)

(9)

Capital gain on sale of vines and equipment

24,377

73

PROFIT (LOSS) BEFORE (PROVISION FOR)

BENEFIT FROM INCOME TAX

19,596

(5,886)

(PROVISION FOR) INCOME TAX BENEFIT

(5,404)

1,161

NET INCOME (LOSS)

$

14,192

$

(4,725)

NET EARNINGS (LOSS) PER SHARE

$

15.84

$

(5.36)

WEIGHTED AVERAGE OUTSTANDING SHARES

896

881

(amounts in thousands, except for per share data)

Mr. Mike Thomsonthe company’s chief financial officer, commented on the year-end results by stating, “Sales of boxed products increased 32% in the current period, primarily due to increased distribution of the company’s products. Sunny with a chance of flowers brand, which launched in the fall of 2020, and airline sales which were limited the previous year due to COVID-19 travel restrictions.

Bulk wine sales were down 56% from the prior year as the Company continued to increase the use of its bulk wine inventory in the production of case-based products. Additionally, bulk wine sales in fiscal 2021 were aided by increased demand due to potential threats to the 2020 harvest from California wildfires, as well as lower than industry-wide average bulk wine supplies. Winery processing revenue increased 40% and grape sales increased 445% in fiscal 2022, generally reflecting higher yields from the 2021 harvest. Overall, total revenue increased increased by 4% and gross margins increased from 24% to 27% in the prior year.

Sales and marketing expenses increased by 22%, from $8.5 at $10.4 million, because the Company has invested in the marketing of new brands and new territories. The Company recognized a gain of $24.4 million from the sale of wine properties in the first quarter of fiscal 2022 and, due to the reduction in debt related to the proceeds of the sale, net interest expense decreased by 24% compared to $4.3 million at $3.3 million. The company made a net profit of $14.2 million in fiscal year 2022 compared to a net loss of $4.7 million in fiscal year 2021.”

About Scheid Family Wines

Scheid family wines is a family winery founded in 1972. Based in Monterey County, California, Scheid is uniquely integrated to bring high quality wines to market from its certified sustainable vineyards and innovative luxury winery. Scheid’s winery and bottling operations are powered by 100% renewable wind energy generated by a 400-foot-tall wind turbine, which also powers many homes in the local community. Scheid Family Wines’ globally distributed portfolio includes its eponymous 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

Comments are closed.