Willamette Valley Vineyards Posts a Profit for the Third Quarter 2011

News provided by

Nov 10, 2011, 02:02 ET

SALEM, Ore., Nov. 10, 2011 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ: WVVI), a leading Oregon producer of Pinot Noir, generated a net profit of $373,407, or $0.08 cents per share for the third quarter of 2011. Results for the corresponding prior year period was a net profit of $171,345 or $0.04 cents per share.

Overall gross margins increased $118,972 or 6% and sales, general and administrative expenses decreased $166,085 or 10% for the three months ended September 30, 2011 from the corresponding prior year period.

"Distributed sales of wine purchased from other wineries are declining and are expected to continue to decline as the winery is discontinuing its wholesale operations called Bacchus Fine Wines by year end," stated founder Jim Bernau. He explained that the winery, as a small public company, could no longer afford the public reporting compliance costs of distributing wines. The winery's own wines are now distributed by Young's Northwest as they have been in California, Washington, Hawaii and Alaska.

This Third Quarter, the prominent magazine, Wine & Spirits, recognized the winery as one of the "Top 100 Wineries in the World for 2011." Editor, Joshua Greene stated, "Willamette Valley Vineyards' performance makes it a great ambassador for the wines of Oregon." Their recent reviews factored into their decision including the 93pt assessment of the 2008 South Block Pinot Noir from grapes planted by founder Bernau in 1983.

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		Nine months ended
		September 30,		September 30,
		2011	2010	2011	2010
		(unaudited)	(unaudited)	(unaudited)	(unaudited)

SALES		$ 4,344,920	$ 4,600,344	$ 11,760,257	$ 12,249,349
COST OF SALES		2,255,390	2,629,786	6,021,268	6,952,178

GROSS PROFIT		2,089,530	1,970,558	5,738,989	5,297,171

SELLING GENERAL & ADMINISTRATIVE EXPENSES		1,472,235	1,638,320	4,675,864	4,974,422

INCOME FROM OPERATIONS		617,295	332,238	1,063,125	322,749

OTHER INCOME (EXPENSE)
	Interest income	4,502	3,419	9,348	9,546
	Interest expense	(51,480)	(53,265)	(150,026)	(162,962)
	Other income, net	30,606	3,182	34,449	16,146

INCOME BEFORE INCOME TAXES		600,923	285,574	956,896	185,479

INCOME TAX PROVISION		227,516	114,229	382,758	74,191

NET INCOME		$ 373,407	$ 171,345	$ 574,138	$ 111,288

Retained earnings beginning of period		7,143,910	6,471,314	6,943,179	6,531,371

Retained earnings end of period		7,517,317	6,642,659	7,517,317	6,642,659



BASIC NET INCOME PER COMMON SHARE		$ 0.08	$ 0.04	$ 0.12	$ 0.02

DILUTED NET INCOME PER COMMON SHARE		$ 0.08	$ 0.03	$ 0.12	$ 0.02


Weighted average number of		4,892,977	4,891,760	4,892,977	4,889,915
	basic common shares outstanding

Weighted average number of		4,896,865	4,898,203	4,897,423	4,896,530
	diluted common shares outstanding