Willamette Valley Vineyards Posts a Profit for the First Quarter 2014

News provided by

May 13, 2014, 04:46 ET

SALEM, Ore., May 13, 2014 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated net income of $174,915, or $0.04 cents per share, for the first three months of 2014, down from $296,593, or $0.06 cents per share, for the corresponding prior year period, representing a $121,678 or 41.0% decrease in net income compared to first quarter 2013.

The Company produced revenues of $2,971,879 and $3,041,559 in first quarters of 2014 and 2013, respectively, a decrease of $69,680 or 2.3%. The primary reasons for this decrease are decreased sales through distributors of 9.0% partially offset by increased direct sales of 16.0%. Gross profit margin was 57.9% and 57.8% for the first quarters of 2014 and 2013, respectively.

Selling, general and administrative expenses were $1,473,254 and $1,267,958 for the first three months of 2014 and 2013, respectively, an increase of $205,296 or 16.2%. This increase is primarily the result of increased operating and selling expenses, including staffing, associated with an increased focus on retail sales and the start-up expenses associated with opening the newly remodeled Hospitality Center.

Jim Bernau, Founder and President of the winery, said "We are very excited about having our remodeled Hospitality Center and Barrel Cellar complete. Now we can begin the work of growing our brand using this great new facility to further increase our customer base."

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,
		2014	2013
		(unaudited)	(unaudited)

SALES, NET		$ 2,971,879	$ 3,041,559
COST OF SALES		1,249,890	1,284,897

GROSS PROFIT		1,721,989	1,756,662

SELLING, GENERAL & ADMIN EXPENSES		1,473,254	1,267,958

INCOME FROM OPERATIONS		248,735	488,704

OTHER INCOME (EXPENSE)
	Interest income	340	1,969
	Interest expense	(65,996)	(59,342)
	Other income, net	98,468	72,390

INCOME BEFORE INCOME TAXES		281,547	503,721

INCOME TAX PROVISION		(106,632)	(207,128)

NET INCOME		$ 174,915	$ 296,593


BASIC NET INCOME PER COMMON SHARE		$ 0.04	$ 0.06


DILUTED NET INCOME PER COMMON SHARE		$ 0.04	$ 0.06


Weighted average number of basic common shares outstanding		4,839,149	4,800,008

Weighted average number of diluted common shares outstanding		4,939,412	4,832,204