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Scheid Vineyards loses $2.7m in Q1

Published:  29 July, 2008

Scheid Vineyards Inc announced today its financial results for the first quarter ended May 31, 2008.

Mike Thomsen, chief financial officer, said: "Losses from operations for the three months ended May 31, 2008 totaled $2.7 million ($2.62 per share).

"After an income tax adjustment ($0.7 million) and a decrease in the market valuation of an interest rate swap ($0.9 million), the net loss for the period was $1.0 million ($1.00 per share)."

Mr. Thomsen added: "Revenues for the period totaled $1.5 million and consisted primarily of sales of bulk wine and fees for the processing and storage of wines for others. These revenues were offset by cost of sales of $1.5 million, selling, general and administrative expenses of $1.8 million, and interest expense in the amount of $0.9 million."

Scheid Vineyards Inc. operates approximately 5,300 acres of premium wine grape vineyards, primarily in Monterey County, California.

The Company's new, state of the art, winery commenced operations in 2005 and has the capacity to process approximately 30,000 tons of grapes each harvest.
Scheid Vineyards' primary business is producing wine grapes and converting them into high quality bulk wine for sale to large, and some small, California wineries.

It also produces ultra premium wine under the Scheid Vineyards label, which is sold through the Company's tasting room, wine club, and Monterey, California area retailers.