Revenue for the fiscal first quarter increased to $10.2 million, from $8.5 million a year earlier. The company nearly doubled its net loss, to $2.7 million from $1.4 million.
Mike Thomsen, Chief Financial Officer, said the results “are in line with our expectations.
“The increase in revenues is primarily due to an increase in the sale of cased goods and bulk wine. The bulk wine and grape business is seasonal, and a significant portion of grape crop sales revenue comes at the time of the annual harvest in September and October. Contracted bulk wine sales takes place primarily in December and beyond each year.
“The increase in general and administrative, and selling expenses in the Fiscal 2019 period,” which contributed to the net loss, “was due primarily to the increased emphasis on sales, marketing and related administrative support of case sales.”
Scott Scheid, President/CEO, explained, “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. At the present time, management anticipates that yields from the Company’s vineyards during the upcoming harvest will be at average levels for most varieties.”
The company restated its fiscal 2018 results, Thomsen said, after discovering “an error that occurred during the changeover to a new business intelligence reporting system that duplicated an accrual of certain bulk wine sales in the amount of $1,469,000.” The company reversed the accrual, and as a result, reducing accounts receivable and sales by $1,469,000, and net income by $1,058,000 to $1,377,000, or $1,56 a share, from $2.93 million, of $3.32 a share.