Willamette Valley Vineyards Posts a Profit for the Second Quarter 2017

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Aug 10, 2017, 18:06 ET

SALEM, Ore., Aug. 10, 2017 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated income applicable to common shareholders of $461,668, or $0.09 cents per share, for the second quarter of 2017, up from $362,481, or $0.07 cents per share, for the corresponding prior year period, representing a $99,187 or 27.4% increase in income applicable to common shareholders compared to first quarter 2016.

The Company produced revenues of $5,313,784 and $4,639,028 in second quarters of 2017 and 2016, respectively, an increase of $674,756 or 14.5%. This increase was caused by an increase in direct sales, including bulk wine, of $429,653 and an increase in sales through distributors of $245,103.

Selling, general and administrative expenses were $2,129,794 and $2,096,097 for the first quarters of 2017 and 2016, respectively, an increase of $33,697 or 1.6%.

Income from operations was $1,059,140 and $828,204 for the second quarters of 2017 and 2016, respectively, an increase of $230,936 or 27.9%. This increase was the result of growth in revenue that outpaced growth in selling, general and administrative expenses.

Jim Bernau, Founder and President of the winery, said "More and more wine lovers are discovering the quality of Willamette Valley Pinot Noir - even California wineries who are buying their way into Oregon!"

Willamette Valley Vineyards, Inc. is headquartered at its Estate Vineyard near Salem, Oregon. The Company's common stock is traded on NASDAQ (WVVI) and preferred stock on NASDAQ (WVVIP).

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,
		2017	2016	2017	2016

SALES, NET		$ 5,313,784	$ 4,639,028	$ 9,764,329	$ 8,822,797
COST OF SALES		2,124,850	1,714,727	3,832,530	3,299,448

GROSS PROFIT		3,188,934	2,924,301	5,931,799	5,523,349

SELLING, GENERAL & ADMINISTRATIVE EXPENSES		2,129,794	2,096,097	4,369,532	3,953,069

INCOME FROM OPERATIONS		1,059,140	828,204	1,562,267	1,570,280

OTHER INCOME (EXPENSE)
	Interest income	3,747	2,761	11,061	4,801
	Interest expense	(122,866)	(72,154)	(219,566)	(145,165)
	Other income, net	51,433	35,758	134,576	126,500

INCOME BEFORE INCOME TAXES		991,454	794,569	1,488,338	1,556,416

INCOME TAX PROVISION		(397,953)	(317,397)	(579,708)	(591,354)

NET INCOME		593,501	477,172	908,630	965,062

Accrued preferred stock dividends		(131,833)	(114,691)	(263,665)	(193,586)

INCOME APPLICABLE TO COMMON SHAREHOLDERS		$ 461,668	$ 362,481	$ 644,965	$ 771,476

Basic income per common share after preferred dividends		$ 0.09	$ 0.07	$ 0.13	$ 0.15

Diluted income per common share after preferred dividends		$ 0.09	$ 0.07	$ 0.13	$ 0.15

Weighted average number of basic common shares outstanding
		4,994,407	4,999,514	5,000,046	4,993,324
Weighted average number of diluted common shares outstanding
		4,994,407	5,003,583	5,000,046	4,997,304