SALINAS, Calif., Feb. 27 /PRNewswire-FirstCall/ -- Scheid Vineyards Inc. (Pink Sheets: SVIN) announced today its financial results for the third quarter ended November 30, 2008. Mike Thomsen, Chief Financial Officer, reported, "Losses from operations for the nine months ended November 30, 2008 totaled $3.4 million ($3.40 per share). After an adjustment for a benefit from income taxes ($1.7 million) and a decrease in the market valuation of an interest rate swap ($0.4 million), the net loss for the period was $2.1 million ($2.10 per share)." Mr. Thomsen also reported, "Revenues for the period totaled $14.4 million and consisted primarily of grape and bulk wine sales and wine processing and storage fees. Revenues were offset by cost of sales of $10.2 million, selling, general and administrative expenses of $5.3 million, and interest expense of $2.3 million." Mr. Thomsen continued, "The nine months ended November 30, 2008 is the third reporting period since the Company changed its fiscal year end from December 31 to February 28. The change in fiscal year end was made in order to report financial results in a manner more consistent with the Company's revenue cycle, as sales of bulk wine continue to replace wine grapes in the Company's sales mix. The first new fiscal year reflecting this change will end February 28, 2009." Scott Scheid, CEO, commented on the loss, "The primary cause of the loss for the nine month period was a major decrease in grape production in the Company's vineyards. Tonnage harvested this year was down over 26% from the Company's 5-year moving average and about 11% below the harvest of 2007. This significant decrease in the size of the crop was primarily due to adverse weather conditions in the spring and early summer of 2008. It is expected that the Company will report a loss at the end of its fiscal year on February 28, 2009." Scheid Vineyards Inc. (http://www.scheidvineyards.com/) operates approximately 5,300 acres of premium wine grape vineyards, primarily in Monterey County, California. The Company's state-of-the-art winery commenced operations in 2005 and has the capacity to process approximately 30,000 tons of grapes each harvest. The Company's primary business is producing wine grapes and converting them into high quality bulk wine for sale to other wineries. In addition, the Company produces ultra premium wine under the Scheid Vineyards label, which is sold through the Company's tasting rooms, wine club, and Monterey, California area retailers. The Class A Common Stock of Scheid Vineyards is traded on the Pink Sheets Electric Quotation Service under the stock symbol SVIN. The "Pink Sheets" is a centralized quotation service that collects and publishes market maker quotes in real time, primarily through its website, http://www.pinksheets.com/. This release contains forward-looking statements as well as historical information. Statements of goals and strategies and words such as "plan", "believe", "anticipate", "expect", "objectives", "forecast", and "predict" and other similar words are intended to identify forward-looking statements. These forward looking statements are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, and involve risks, uncertainties and other factors that may cause the Company's actual results, performance, or financial condition to be materially different from any results, performance, or financial condition suggested by the statements in this release. SCHEID VINEYARDS INC. AND SUBSIDIARY UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS NINE MONTHS ENDED NOVEMBER 30, 2008 (amounts in thousands, except per share data) REVENUES: Grape sales $6,478 Winery processing and storage revenues 4,343 Bulk wine sales 2,229 Vineyard management, services and other fees 860 Direct sales revenues 529 Total revenues 14,439 COST OF SALES 10,151 GROSS PROFIT 4,288 General and administrative expenses 4,434 Selling expenses 903 Write down of vineyard improvements 44 Interest expense, net 2,288 Market adjustment for interest rate swap 402 LOSS BEFORE BENEFIT FROM INCOME TAXES. (3,783) BENEFIT FROM INCOME TAXES 1,689 NET LOSS $(2,094) NET LOSS PER SHARE: BASIC $(2.09) DILUTED $(2.09) WEIGHTED AVERAGE SHARES OUTSTANDING: BASIC 1,001 DILUTED 1,001 DATASOURCE: Scheid Vineyards Inc. CONTACT: Scott Scheid, President and CEO, or Mike Thomsen, Chief Financial Officer, both of Scheid Vineyards Inc., +1-831-455-9990 Web Site: http://www.scheidvineyards.com/

Copyright