Willamette Valley Vineyards Posts a Profit for the Second Quarter 2012

News provided by

Aug 10, 2012, 06:05 ET

SALEM, Ore., Aug. 10, 2012 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ: WVVI), a leading Oregon producer of Pinot Noir, generated a net profit of $219,912, or $0.05 cents per share for the second quarter of 2012, an increase of 27.6% from the comparable prior year period. Results for the corresponding prior year period was a net profit of $172,369, or $0.04 cents per share.

Second quarter 2012 sales revenue decreased 0.4% and gross profit increased 1.3% compared to the second quarter of 2011. Sales, general and administrative expenses increased by 11.7% over the prior year second quarter due to increases in the company's sales effort to compensate for changes from its Oregon self-distribution to restaurants and stores to selling through a wine wholesaler.

Jim Bernau, Founder and President of the winery said "This quarter shows our better net profit is resulting from focusing on our core mission. While we operated a successful wine distributorship through Bacchus Fine Wines, increasing government regulation made it a heavy administrative burden."

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,
		2012	2011	2012	2011
		(unaudited)	(unaudited)	(unaudited)	(unaudited)

SALES		$ 2,851,146	$ 2,861,609	$ 5,573,750	$ 5,597,621
COST OF SALES		1,151,833	1,183,807	2,261,075	2,449,068

GROSS PROFIT		1,699,313	1,677,802	3,312,675	3,148,553

SELLING, GENERAL & ADMIN EXPENSES		1,213,979	1,087,274	2,374,512	2,303,288

INCOME FROM OPERATIONS		485,334	590,528	938,163	845,265

OTHER INCOME (EXPENSE)
	Interest income	1,246	2,247	4,237	4,847
	Interest expense	(42,668)	(49,369)	(81,788)	(98,546)
	Other income, net	35,630	2,778	73,054	3,891

INCOME BEFORE INCOME TAXES		479,542	546,184	933,666	755,457

INCOME TAX PROVISION		(203,081)	(236,077)	(382,567)	(323,026)

INCOME FROM CONTINUING OPERATIONS		$ 276,461	$ 310,107	$ 551,099	$ 432,431

DISCONTINUED OPERATIONS
	Loss from operations	(97,499)	(237,480)	(253,330)	(399,482)
	Income tax benefit	40,950	99,742	106,399	167,782

LOSS FROM DISCONTINUED OPERATIONS		(56,549)	(137,738)	(146,931)	(231,700)

NET INCOME		$ 219,912	$ 172,369	$ 404,168	$ 200,731

BASIC NET INCOME FROM CONTINUING
	OPERATIONS PER COMMON SHARE	$ 0.06	$ 0.06	$ 0.11	$ 0.09
BASIC NET LOSS FROM DISCONTINUED
	OPERATIONS PER COMMON SHARE	$ (0.01)	$ (0.03)	$ (0.03)	$ (0.05)

BASIC NET INCOME PER COMMON SHARE		$ 0.05	$ 0.04	$ 0.08	$ 0.04

DILUTED NET INCOME FROM CONTINUING
	OPERATIONS PER COMMON SHARE	$ 0.06	$ 0.06	$ 0.11	$ 0.09
DILUTED NET LOSS FROM DISCONTINUED
	OPERATIONS PER COMMON SHARE	$ (0.01)	$ (0.03)	$ (0.03)	$ (0.05)

DILUTED NET INCOME PER COMMON SHARE		$ 0.05	$ 0.04	$ 0.08	$ 0.04

Weighted average number of
	basic common shares outstanding	4,871,303	4,892,977	4,879,494	4,892,977
Weighted average number of
	diluted common shares outstanding	4,877,145	4,897,150	4,885,336	4,897,700