Scheid Family Wines Reports Year End Results.

SALINAS, Calif: Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the fiscal year ended February 29, 2020.

Financial Results Fiscal Year Ended February 29, 2020

Year Ended

February 29

2020

February 28

2019

REVENUES:

Cased goods sales

$

28,216

$

24,985

Bulk wine sales

14,201

21,985

Grape sales

1,632

3,857

Winery processing and storage revenues

3,933

5,016

Direct sales revenues

2,206

2,025

Vineyard management, services and other fees

840

633

Total revenues

51,028

58,501

COST OF SALES

(41,321)

(44,740)

WRITE-DOWN OF BULK WINE INVENTORIES TO MARKET

(4,026)

(2,000)

GROSS PROFIT

5,681

11,761

General and administrative expenses

(8,541)

(9,757)

Sales and marketing expenses

(9,220)

(7,820)

Interest expense, net

(4,790)

(4,392)

Write-off of loan fees

--

(543)

Loss from investment in Gifft Wine Venture

(21)

(21)

Loss on disposal of vineyard improvements

(1,169)

(218)

Gain on sale of equipment

88

32

LOSS BEFORE BENEFIT FROM INCOME TAXES

(17,972)

(10,958)

BENEFIT FROM INCOME TAXES

5,099

3,031

NET LOSS

$

(12,873)

$

(7,927)

NET LOSS PER SHARE

$

(14.56)

$

(8.97)

(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 continue to increase over the previous fiscal year. Case goods revenues for the year ended February 29, 2020 were up 13% over last fiscal year. Demand for wine grapes and bulk wine continues to be weak, and as a result, grape sales decreased by 58% and bulk wine sales decreased by 35% from last year. In addition, due to cool weather patterns in early spring and late summer of 2019, grape yields were down approximately 20% from long-term average yields, leading to a higher per-ton cost of grapes grown. The combination of weak demand and increased per-ton cost of grown grapes led to a drop in the Company's margins on the sale of grapes and bulk wine, which was the primary factor in...