Willamette Valley Vineyards Posts a Profit for the Second Quarter 2018

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Aug 14, 2018, 16:30 ET

SALEM, Ore., Aug. 14, 2018 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ: WVVI), a leading Oregon producer of Pinot Noir, generated income applicable to common shareholders of $546,817, or $0.11 cents per share, for the second quarter of 2018, up from $461,668, or $0.09 cents per share, for the corresponding prior year period, representing a $85,148 or 18.4% increase in income applicable to common shareholders compared to second quarter 2017.

The Company produced revenues of $5,821,292 and $5,313,784 in second quarters of 2018 and 2017, respectively, an increase of $507,508 or 9.6%. This increase was caused by an increase in direct sales of $358,479 and an increase in sales through distributors of $149,029.

Selling, general and administrative expenses were $2,543,201 and $2,129,794 for the second quarters of 2018 and 2017, respectively, an increase of $413,407 or 19.4%. This increase was primarily the result of increases in staffing, marketing, long-term planning and development activities and costs associated with operating a new retail outlet in Walla Walla in 2018.

Income from operations was $1,178,905 and $1,059,140 for the second quarters of 2018 and 2017, respectively, an increase of $119,765 or 11.3%. 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 "We will continue to develop and strengthen our direct to consumer presence. This will allow us enhanced positioning as a brand of choice in this competitive market."

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,
		2018	2017	2018	2017

SALES, NET		$ 5,821,292	$ 5,313,784	$ 10,353,911	$ 9,764,329
COST OF SALES		2,099,186	2,124,850	3,741,561	3,832,530

GROSS PROFIT		3,722,106	3,188,934	6,612,350	5,931,799

SELLING, GENERAL & ADMINISTRATIVE EXPENSES		2,543,201	2,129,794	4,961,101	4,369,532

INCOME FROM OPERATIONS		1,178,905	1,059,140	1,651,249	1,562,267

OTHER INCOME (EXPENSE)
	Interest income	2,137	3,747	9,004	11,061
	Interest expense	(116,284)	(122,866)	(235,002)	(219,566)
	Other income, net	45,336	51,433	138,042	134,576

INCOME BEFORE INCOME TAXES		1,110,094	991,454	1,563,293	1,488,338

INCOME TAX PROVISION		(306,839)	(397,953)	(429,583)	(579,708)

NET INCOME		803,255	593,501	1,133,710	908,630

Accrued preferred stock dividends		(256,438)	(131,833)	(511,332)	(263,665)

INCOME APPLICABLE TO COMMON SHAREHOLDERS		$ 546,817	$ 461,668	$ 622,378	$ 644,965

Income per common share after preferred dividends		$ 0.11	$ 0.09	$ 0.13	$ 0.13

Weighted average number of common shares outstanding		4,964,529	4,994,407	4,964,529	5,000,046