Willamette Valley Vineyards Posts a Profit for the First Quarter 2013

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May 14, 2013, 07:09 ET

SALEM, Ore., May 14, 2013 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated net profits from continuing operations of $296,593, or $0.06 cents per share, for the first three months of 2013, up from $281,766, or $0.06 cents per share, for the corresponding prior year period, representing a $14,827 or 5.3% increase in net profits from continuing operations compared to first quarter 2012. The Company also generated $0 and $95,401 loss from discontinued operations for the three months ended March 31, 2013 and 2012, respectively. The Company's total net income, inclusive of continuing and discontinued operations, was $296,593, or $0.06 per share, and $186,365, or $0.04 per share, for the first quarter of 2013 and 2012, respectively.

The Company produced revenues of $3,041,559 and $2,722,604 in first quarters of 2013 and 2012, respectively, an increase of $318,955 or 11.7%. The primary reasons for this increase are increased retail sales of 22.5% and increased out-of-state sales to distributors of 9.7%. Gross profit margin was 57.8% and 59.3% for the first quarters of 2013 and 2012, respectively.

Selling, general and administrative expenses were $1,267,958 and $1,160,533 for the first three months of 2013 and 2012, respectively, an increase of $107,425 or 9.3%. This increase was primarily the result of increased retail labor and increased national sales travel.

Jim Bernau, Founder and President of the winery, said, "We are very excited about expanding the hospitality services at our winery to further develop our relationships with retail customers and continue to cultivate our brand loyalty."

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,
		2013	2012
		(unaudited)	(unaudited)

SALES, NET		$ 3,041,559	$ 2,722,604
COST OF SALES		1,284,897	1,109,242

GROSS PROFIT		1,756,662	1,613,362

SELLING, GENERAL & ADMIN EXPENSES		1,267,958	1,160,533

INCOME FROM OPERATIONS		488,704	452,829

OTHER INCOME (EXPENSE)
	Interest income	1,969	2,991
	Interest expense	(59,342)	(39,120)
	Other income, net	72,390	37,474

INCOME BEFORE INCOME TAXES		503,721	454,174

INCOME TAX PROVISION		(207,128)	(172,408)

INCOME FROM CONTINUING OPERATIONS		296,593	281,766

DISCONTINUED OPERATIONS
	Loss from operations	-	(153,773)
	Income tax benefit	-	58,372

LOSS FROM DISCONTINUED OPERATIONS		-	(95,401)

NET INCOME		$ 296,593	$ 186,365

BASIC NET INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE		$ 0.06	$ 0.06
BASIC NET LOSS FROM DISCONTINUED OPERATIONS PER COMMON SHARE		-	(0.02)

BASIC NET INCOME PER COMMON SHARE		$ 0.06	$ 0.04

DILUTED NET INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE		$ 0.06	$ 0.06
DILUTED NET LOSS FROM DISCONTINUED OPERATIONS PER COMMON SHARE		-	(0.02)

DILUTED NET INCOME PER COMMON SHARE		$ 0.06	$ 0.04

Weighted average number of basic common shares outstanding		4,800,008	4,887,487

Weighted average number of diluted common shares outstanding		4,832,204	4,891,725