Willamette Valley Vineyards Posts a Profit for the Second Quarter 2011

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Aug 12, 2011, 01:24 ET

SALEM, Ore., Aug. 12, 2011 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ: WVVI), a leading Oregon producer of Pinot Noir, generated a net profit of $172,369, or $0.04 cents per share for the second quarter of 2011. Results for the corresponding prior year period was a net profit of $128,287 or $0.03 cents per share. Second quarter 2011 sales revenue decreased 7.5% and gross profit increased 2.8% compared to the second quarter of 2010. Gross profit improvement is primarily due to production costs returning to historical levels. Sales, general and administrative expenses decreased by 2.4% over the prior year second 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 our better margins and expense reductions improved profitability."

For those around the country suffering from record heat, something often overlooked and actually a really great idea is to chill, our specialty, a Pinot. Our Whole Cluster Pinot Noir happens to lend itself perfectly to chilling due to its unique and delicious styling. In fact, on August 7th, Food & Wine Magazine executive wine editor, Ray Isle was featured in CNN.com's "Eatocracy" section with an article that asks the question, "Why don't people drink red wine cold?"

"Some Pinots don't chill well—more robust versions, for instance a good percentage of what California produces. But find a delicate, lighter style, and Pinot tastes great chilled down. Oregon's a good place to look; among the best choices there is the floral 2010 Willamette Valley Vineyards Whole Cluster Pinot Noir."

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		Six months ended
		June 30,		June 30,
		2011	2010	2011	2010
		(unaudited)	(unaudited)	(unaudited)	(unaudited)

SALES		$ 3,789,645	$ 4,095,430	$ 7,415,338	$ 7,649,005
COST OF SALES		1,879,470	2,237,543	3,765,878	4,322,392

GROSS PROFIT		1,910,175	1,857,887	3,649,460	3,326,613

SELLING GENERAL & ADMINISTRATIVE EXPENSES		1,557,125	1,594,620	3,203,676	3,336,103

INCOME (LOSS) FROM OPERATIONS		353,050	263,267	445,784	(9,490)

OTHER INCOME (EXPENSE)
	Interest income	2,247	3,310	4,847	6,129
	Interest expense	(49,369)	(56,393)	(98,546)	(109,697)
	Other income, net	2,778	1,884	3,891	12,963

INCOME (LOSS) BEFORE INCOME TAXES		308,706	212,068	355,976	(100,095)

INCOME TAX PROVISION (BENEFIT)		136,337	83,781	155,245	(40,038)

NET INCOME (LOSS)		$ 172,369	$ 128,287	$ 200,731	$ (60,057)

Retained earnings beginning of period		6,971,541	6,343,027	6,943,179	6,531,371

Retained earnings end of period		7,143,910	6,471,314	7,143,910	6,471,314



BASIC NET INCOME (LOSS) PER COMMON SHARE		$ 0.04	$ 0.03	$ 0.04	$ (0.01)

DILUTED NET INCOME (LOSS) PER COMMON SHARE		$ 0.04	$ 0.03	$ 0.04	$ (0.01)


Weighted average number of		4,892,977	4,888,977	4,892,977	4,888,977
	basic common shares outstanding

Weighted average number of		4,897,150	4,902,345	4,897,700	4,903,394
	diluted common shares outstanding