Willamette Valley Vineyards Posts a Profit for the First Quarter 2015

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May 13, 2015, 06:06 ET

SALEM, Ore., May 13, 2015 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated net income of $314,238, or $0.06 cents per share, for the first quarter of 2015, up from $174,915, or $0.04 cents per share, for the corresponding prior year period, representing a $139,323 or 79.7% increase in net income compared to first quarter 2014.

The Company produced revenues of $3,912,501 and $2,971,879 in first quarters of 2015 and 2014, respectively, an increase of $940,622 or 31.7%. The primary reasons for this increase are an increase in direct sales of $512,913, including bulk wine sales of $248,138 and an increase in sales through distributors of $427,709, in the current year three month period over the prior year period. Gross profit margin was 58.9% and 57.9% for the first quarters of 2015 and 2014, respectively.

Selling, general and administrative expenses were $1,805,367 and $1,473,254 for the first quarters of 2015 and 2014, respectively, an increase of $332,113 or 22.5%. This increase is primarily the result of increased selling expenses, including depreciation and staffing, associated with an increased focus on retail sales and operating the remodeled hospitality center in addition to increases in general marketing expenses.

Jim Bernau, Founder and President of the winery, said "We are pleasantly surprised to see how many new customers are now visiting our remodeled Estate Tasting Room. This, combined with a bountiful harvest and a strong distributor sell-in for Oregon Wine Month resulted in a strong First Quarter."

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,
	2015	2014

SALES, NET	$ 3,912,501	$ 2,971,879
COST OF SALES	1,608,467	1,249,890

GROSS PROFIT	2,304,034	1,721,989

SELLING, GENERAL & ADMINISTRATIVE EXPENSES	1,805,367	1,473,254

INCOME FROM OPERATIONS	498,667	248,735

OTHER INCOME (EXPENSE)
Interest income	-	340
Interest expense	(77,034)	(65,996)
Other income, net	82,210	98,468

INCOME BEFORE INCOME TAXES	503,843	281,547

INCOME TAX PROVISION	(189,605)	(106,632)

NET INCOME	$ 314,238	$ 174,915


BASIC NET INCOME PER COMMON SHARE	$ 0.06	$ 0.04


DILUTED NET INCOME PER COMMON SHARE	$ 0.06	$ 0.04

Weighted average number of basic common shares outstanding
	4,884,503	4,839,149
Weighted average number of diluted common shares outstanding
	4,957,041	4,939,412