Willamette Valley Vineyards Posts a Profit for the First Quarter 2011

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May 13, 2011, 06:22 ET

SALEM, Ore., May 13, 2011 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated a net profit of $28,362, or $0.01 cents per share for the first three months of 2011. Results for the corresponding prior year period was a net loss of $188,344 or $0.04 cents per share. First quarter 2011 sales revenue increased 2.0% and gross profit increased 18.4% compared to the first quarter of 2010. The increased sales revenue is principally driven by orders from out-of-state distributors. Gross profit improvement is primarily due to production costs returning to historical levels. Sales, general and administrative expenses decreased by 5.5% over the prior year first quarter due to cost-cutting measures implemented by the Company which contributed to the improvement in operating income.

Jim Bernau, Founder and President of the winery, said, "This quarter shows the economy is improving lifting fine wine sales. The low yields over the past several years have contributed to some the best wines ever made in Oregon."

At the LIVE (Low Input Viticulture Enology) annual meeting in April, Jim Bernau was awarded Salmon-Safe's "Hero of Salmon" award for his implementation of the high impact Salmon-Safe SIP-SAVE campaign in print, retail, web and even truck wraps. The nonprofit Salmon-Safe has joined with LIVE to become a leading U.S. certifier of ecologically sustainable viticulture with more than 250 Oregon and Washington vineyards achieving certification.

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.

WILLAMETTE VALLEY VINEYARDS, INC. STATEMENTS OF OPERATIONS
		Three months ended
		March 31,
		2011	2010
		(unaudited)	(unaudited)

SALES		$ 3,625,693	$ 3,553,576
COST OF SALES		1,886,408	2,084,849

GROSS PROFIT		1,739,285	1,468,727

SELLING GENERAL & ADMINISTRATIVE EXPENSES		1,646,551	1,741,483

INCOME (LOSS) FROM OPERATIONS		92,734	(272,756)

OTHER INCOME (EXPENSE)
	Interest income	2,600	2,819
	Interest expense	(49,177)	(53,304)
	Other income, net	1,113	11,078

INCOME (LOSS) BEFORE INCOME TAXES		47,270	(312,163)

INCOME TAX PROVISION (BENEFIT)		18,908	(123,819)

NET INCOME (LOSS)		$ 28,362	$ (188,344)

BASIC NET INCOME (LOSS) PER COMMON SHARE		$ 0.01	$ (0.04)

DILUTED NET INCOME (LOSS) PER COMMON SHARE		$ 0.01	$ (0.04)