Willamette Valley Vineyards Posts a Profit for the Second Quarter 2013

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Aug 08, 2013, 06:08 ET

SALEM, Ore., Aug. 8, 2013 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated net profits from continuing operations of $521,125, or $0.11 cents per share, for the second quarter of 2013, up from $276,461, or $0.06 cents per share, for the corresponding prior year period, representing a $244,644 or 88.5% increase in net profits from continuing operations compared to second quarter 2012. The Company also generated $0 and $56,549 loss from discontinued operations for the three months ended June 30, 2013 and 2012, respectively. The Company's total net income, inclusive of continuing and discontinued operations, was $521,125, or $0.11 per share, and $219,912, or $0.05 per share, for the second quarter of 2013 and 2012, respectively.

The Company produced revenues of $3,609,259 and $2,851,146 in second quarters of 2013 and 2012, respectively, an increase of $758,113 or 26.6%. The primary reasons for this increase are increased retail sales of 13.1% and increased sales through distributors of 31.2%. Gross profit margin was 59.4% and 59.6% for the second quarters of 2013 and 2012, respectively.

Selling, general and administrative expenses were $1,258,697 and $1,213,979 for the second quarters of 2013 and 2012, respectively, an increase of $44,718 or 3.7%.

Jim Bernau, Founder and President of the winery, said "The expansion of our Pinot noir barrel cellar and enhanced wine and food experience will allow us to continue to grow our brand."

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		Six months ended
		June 30,		June 30,
		2013	2012	2013	2012
		(unaudited)	(unaudited)	(unaudited)	(unaudited)

SALES, NET		$ 3,609,259	$ 2,851,146	$ 6,650,818	$ 5,573,750
COST OF SALES		1,465,365	1,151,833	2,750,262	2,261,075

GROSS PROFIT		2,143,894	1,699,313	3,900,556	3,312,675

SELLING, GENERAL & ADMIN EXPENSES		1,258,697	1,213,979	2,526,655	2,374,512

INCOME FROM OPERATIONS		885,197	485,334	1,373,901	938,163

OTHER INCOME (EXPENSE)
	Interest income	1,984	1,246	3,953	4,237
	Interest expense	(63,866)	(42,668)	(123,208)	(81,788)
	Other income, net	31,540	35,630	103,930	73,054

INCOME BEFORE INCOME TAXES		854,855	479,542	1,358,576	933,666

INCOME TAX PROVISION		(333,730)	(203,081)	(540,858)	(382,567)

INCOME FROM CONTINUING OPERATIONS		$ 521,125	$ 276,461	$ 817,718	$ 551,099

DISCONTINUED OPERATIONS
	Loss from operations	-	(97,499)	-	(253,330)
	Income tax benefit	-	40,950	-	106,399

LOSS FROM DISCONTINUED OPERATIONS		-	(56,549)	-	(146,931)

NET INCOME		$ 521,125	$ 219,912	$ 817,718	$ 404,168

BASIC NET INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE		$ 0.11	$ 0.06	$ 0.17	$ 0.11
BASIC NET LOSS FROM DISCONTINUED OPERATIONS PER COMMON SHARE		-	$ (0.01)	-	$ (0.03)

BASIC NET INCOME PER COMMON SHARE		$ 0.11	$ 0.05	$ 0.17	$ 0.08

DILUTED NET INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE		$ 0.11	$ 0.06	$ 0.17	$ 0.11
DILUTED NET LOSS FROM DISCONTINUED OPERATIONS PER COMMON SHARE		$ -	$ (0.01)	$ -	$ (0.03)

DILUTED NET INCOME PER COMMON SHARE		$ 0.11	$ 0.05	$ 0.17	$ 0.08

Weighted average number of basic common shares outstanding		4,796,926	4,871,303	4,798,429	4,879,494
Weighted average number of diluted common shares outstanding		4,842,081	4,877,145	4,838,232	4,885,336