Willamette Valley Vineyards Posts a Profit for the First Quarter 2019

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May 14, 2019, 17:14 ET

SALEM, Ore., May 14, 2019 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated income applicable to common shareholders of $170,024, or $0.03 cents per share, for the first quarter of 2019, up from $75,561, or $0.02 cents per share, for the corresponding prior year period, representing a $94,463 or 125.0% increase in income applicable to common shareholders compared to first quarter 2018.

The Company produced revenues of $4,998,786 and $4,532,619 in first quarters of 2019 and 2018, respectively, an increase of $466,167 or 10.3%. The primary reasons for this increase are an increase in direct sales of $170,022 and an increase in sales through distributors of $296,145 in the current year three-month period over the prior year period. Gross profit margin was 65.6% and 63.8% for the first quarters of 2019 and 2018, respectively.

Selling, general and administrative expenses were $2,716,198 and $2,417,900 for the first quarters of 2019 and 2018, respectively, an increase of $298,298 or 12.3%. Increases in selling, general and administrative expenses were partially the result of increases in sales staffing, demo activity and incentives.

Income from operations was $564,438 and $472,344 for the first quarters of 2019 and 2018, respectively, an increase of $92,094 or 19.5%.

Jim Bernau, Founder and President of the winery, said, "We are very pleased to start strong in 2019. We hope to continue this momentum while we develop our Bernau Estate winery in Dundee, Oregon."

Willamette Valley Vineyards, Inc. is headquartered at its Estate Vineyard near Salem, Oregon. The Company's common stock is traded on NASDAQ (WVVI).

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are identified by such words and phrases as "expects," "thinks," "believes," "anticipates" and words of similar import. Such forward-looking statements are subject to risks and uncertainties and actual results could differ materially from those projected. Such risks and uncertainties include, but are not limited to: availability of financing for growth, availability of adequate supply of high quality grapes, successful performance of internal operations, impact of competition, changes in wine broker or distributor relations or performance, impact of possible adverse weather conditions, impact of reduction in grape quality or supply due to disease, impact of governmental regulatory decisions and other risks.

	Three months ended
	March 31,
	2019	2018

SALES, NET	$ 4,998,786	$ 4,532,619
COST OF SALES	1,718,150	1,642,375

GROSS PROFIT	3,280,636	2,890,244

OPERATING EXPENSES
Sales and marketing	1,775,000	1,527,079
General and administrative	941,198	890,821
Total operating expenses	2,716,198	2,417,900

INCOME FROM OPERATIONS	564,438	472,344

OTHER INCOME (EXPENSE)
Interest income	9,446	6,867
Interest expense	(110,414)	(118,718)
Other income, net	113,009	92,705

INCOME BEFORE INCOME TAXES	576,479	453,198

INCOME TAX PROVISION	(150,003)	(122,744)

NET INCOME	426,476	330,454

Accrued preferred stock dividends	(256,452)	(254,893)

INCOME APPLICABLE TO COMMON SHAREHOLDERS	$ 170,024	$ 75,561

Income per common share after preferred dividends	$ 0.03	$ 0.02

Weighted average number of common shares outstanding	4,964,529	4,964,529