Willamette Valley Vineyards Posts a Profit for the First Quarter 2018

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May 10, 2018, 04:50 ET

SALEM, Ore., May 10, 2018 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated income applicable to common shareholders of $75,561, or $0.02 cents per share, for the first quarter of 2018, down from $183,297, or $0.04 cents per share, for the corresponding prior year period, representing a $107,736 or 58.8% decrease in income applicable to common shareholders compared to first quarter 2017. Items affecting the reduction in income applicable to common shareholders include increased preferred stock accrued dividends when compared to first quarter 2017.

The Company produced revenues of $4,532,619 and $4,450,545 in first quarters of 2018 and 2017, respectively, an increase of $82,074 or 1.8%. The primary reasons for this increase are an increase in direct sales of $61,036 and an increase in sales through distributors of $21,038 in the current year three month period over the prior year period. Gross profit margin was 63.8% and 61.6% for the first quarters of 2018 and 2017, respectively.

Selling, general and administrative expenses were $2,417,900 and $2,239,738 for the first quarters of 2018 and 2017, respectively, an increase of $178,162 or 8.0%. Increases in selling, general and administrative costs were partially the result of increases in sales staffing and incentives.

Income from operations was $472,344 and $503,127 for the first quarters of 2018 and 2017, respectively, a decrease of $30,783 or 6.1%.

Jim Bernau, Founder and President of the winery, said "Our net results will show the new dividend expense until we are able to deploy the large amount of new invested cash in business development. Our new construction is in the permitting process, so buckle-up, big things are on their way."

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,
	2018	2017

SALES, NET	$ 4,532,619	$ 4,450,545
COST OF SALES	1,642,375	1,707,680

GROSS PROFIT	2,890,244	2,742,865

SELLING, GENERAL & ADMINISTRATIVE EXPENSES	2,417,900	2,239,738

INCOME FROM OPERATIONS	472,344	503,127

OTHER INCOME (EXPENSE)
Interest income	6,867	7,314
Interest expense	(118,718)	(96,700)
Other income, net	92,705	83,144

INCOME BEFORE INCOME TAXES	453,198	496,885

INCOME TAX PROVISION	(122,744)	(181,755)

NET INCOME	330,454	315,130

Accrued preferred stock dividends	(254,893)	(131,833)

INCOME APPLICABLE TO COMMON SHAREHOLDERS	$ 75,561	$ 183,297

Basic income per common share after preferred dividends	$ 0.02	$ 0.04

Diluted income per common share after preferred dividends	$ 0.02	$ 0.04

Weighted average number of basic common shares outstanding	4,964,529	5,005,749
Weighted average number of diluted common shares outstanding	4,964,529	5,010,173