Willamette Valley Vineyards Posts a Profit for 2020

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Mar 15, 2021, 18:35 ET

SALEM, Ore., March 15, 2021 /PRNewswire/ -- Willamette Valley Vineyards, Inc. (NASDAQ:WVVI) (the "Company"), a leading Oregon producer of Pinot Noir, generated income per common share after preferred dividends of $0.46 and $0.30 for the years ended December 31, 2020 and 2019, respectively, an increase of $0.16, or 53.5%, for the year ended December 31, 2020 over the prior year period.

The Company had net sales revenues of $27,314,852 and $24,749,263 for the years December 31, 2020 and 2019, respectively, an increase of $2,565,589 or 10.4%, for the year ended December 31, 2020 over the prior year period, primarily as a result of an increase in revenue from direct sales of $1,069,589 or 11.3% in 2020 compared to 2019, combined with an increase in revenue from sales to distributors of $1,496,000 or 9.8,% in 2020 compared to 2019.

Gross profit was $16,729,776 and $15,294,582 for the years ended December 31, 2020 and 2019, respectively, an increase of $1,435,194, or 9.4%, for the year ended December 31, 2020 over the prior year period. This increase was generally driven by an increase in sales revenues partially offset by a higher cost of sales.

Selling, general and administrative expenses were $11,728,003 and $11,567,058 for the years ended December 31, 2020 and 2019, respectively, an increase of $160,945, or 1.4%, for the year ended December 31, 2020 over the prior year period.

Net income was $3,394,996 and $2,510,901, for the years ended December 31, 2020 and 2019, respectively, an increase of $884,095, or 35.2%, for the year ended December 31, 2020 over the prior year period.

Jim Bernau, Founder and CEO of the winery said "Our team's sales success this year resulted from finding opportunities in the channels remaining open, selling directly to wine enthusiasts at home and to retail stores where consumers were allowed to shop. The employees were so effective at these strategies, we added employees in 2020 so no PPP funds were needed. Our team also implemented safety measures and new technology which resulted in no known cases of COVID being contracted in the workplace or tasting rooms. Our vineyard and winemaking staff produced one of our best vintages, in spite of these challenges and the forest fires. In our 38 years, I have never seen such remarkable performance by our managers, employees and organization as a whole."

For a complete discussion of the Company's financial condition and operating results, see our Form 10-K for the year ended December 31, 2020, as filed with the United States Securities and Exchange Commission on EDGAR.

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. These forward-looking statements involve risks and uncertainties that are based on current expectations, estimates and projections about the Company's business, and beliefs and assumptions made by management. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" "intends," "plans," "predicts," "potential," "should," or "will" or the negative thereof and variations of such words and similar expressions are intended to identify such forward-looking statements. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including, but 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 or smoke from forest fires, changes in consumer spending, the reduction in consumer demand for premium wines and the impact of the COVID-19 pandemic and the policies of United States federal, state and local governments in response to such pandemic. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic economic conditions. Many of these risks as well as other risks that may have a material adverse impact on our operations and business, are identified in Item 1A "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, as well as in the Company's other Securities and Exchange Commission filings and reports.

The following is the Company's Statement of Income for the year ended December 31, 2020 compared to the year ended December 31, 2019:

			Twelve months ended
			December 31,
			2020	2019

SALES, NET			$ 27,314,852	$ 24,749,263
COST OF SALES			10,585,076	9,454,681

GROSS PROFIT			16,729,776	15,294,582

OPERATING EXPENSES:
	Sales and marketing		7,458,139	7,449,088
	General and administrative		4,269,864	4,117,970
		Total operating expenses	11,728,003	11,567,058

INCOME FROM OPERATIONS			5,001,773	3,727,524

OTHER INCOME (EXPENSE)
	Interest income		21,022	48,066
	Interest expense		(414,061)	(440,999)
	Other income, net		165,916	128,433

INCOME BEFORE INCOME TAXES			4,774,650	3,463,024

INCOME TAX PROVISION			(1,379,654)	(952,123)

NET INCOME			3,394,996	2,510,901

Preferred stock dividends			(1,116,378)	(1,026,063)

INCOME APPLICABLE TO COMMON SHAREHOLDERS			$ 2,278,618	$ 1,484,838

Earnings per common share after preferred dividends,
	basic and diluted		$ 0.46	$ 0.30

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