Willamette Valley Vineyards Posts a Profit for 2016

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Mar 23, 2017, 17:06 ET

SALEM, Ore., March 23, 2017 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated income applicable to common shareholders of $2,166,446, or $0.43 cents per share, for 2016, up from $1,844,221, or $0.37 cents per share, for the prior year, representing a $322,225, or 17.5%, increase in income applicable to common shareholders when compared to 2015.

Income from operations was $4,167,401 for 2016, up from $3,272,960 for the prior year, representing an increase of $894,441, or 27.3%, when compared to 2015.

The Company produced revenue of $19,425,412 and $17,938,872 in the years of 2016 and 2015, respectively, an increase of $1,486,540, or 8.3%, in the current year compared to the prior year. The reasons for this increase include increased sales in all categories except for bulk wine.

Gross profit margin was 62.9% and 60.5% for 2016 and 2015, respectively.

Selling, general and administrative expenses were $8,053,127 and $7,578,184 for 2016 and 2015, respectively, an increase of $479,326 or 6.3%.

Income tax provision was $1,478,310 for 2016, up from $1,275,416 for the prior year, representing an increase of $202,894 or 15.9% when compared to 2015.

Jim Bernau, Founder and President of the winery, said "Our Company continues to develop our Shareholders as Customers model and grow our brand through loyal shareholders/wine enthusiasts. We are committed to providing the best possible wine while serving as stewards of the land and our community."

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.

		Twelve months ended
		December 31,
		2016	2015

SALES, NET		$ 19,425,412	$ 17,938,872
COST OF SALES		7,204,884	7,092,111

GROSS PROFIT		12,220,528	10,846,761

SELLING, GENERAL & ADMINISTRATIVE EXPENSES		8,053,127	7,573,801

INCOME FROM OPERATIONS		4,167,401	3,272,960

OTHER INCOME (EXPENSE)
	Interest income	9,851	2,237
	Interest expense	(291,370)	(311,188)
	Other income, net	221,403	213,239

INCOME BEFORE INCOME TAXES		4,107,285	3,177,248

INCOME TAX PROVISION		(1,478,310)	(1,275,416)

NET INCOME		2,628,975	1,901,832

Preferred stock dividends		(462,529)	(57,611)

INCOME APPLICABLE TO COMMON SHAREHOLDERS		$ 2,166,446	$ 1,844,221

Basic income per common share after preferred dividends		$ 0.43	$ 0.37

Diluted income per common share after preferred dividends		$ 0.43	$ 0.37

Weighted average number of basic common shares outstanding		4,991,065	4,928,712

Weighted average number of diluted common shares outstanding		4,995,343	4,963,999