Willamette Valley Vineyards Posts a Profit for the Third Quarter 2013

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Nov 12, 2013, 05:05 ET

SALEM, Ore., Nov. 12, 2013 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated net profits from continuing operations of $232,066, or $0.05 cents per share, for the third quarter of 2013, down from $272,903, or $0.06 cents per share, for the corresponding prior year period, representing a $40,837, or 15.0%, decrease in net profits from continuing operations compared to the third quarter of 2012. The Company also generated $0 and $4,675 loss from discontinued operations for the three months ended September 30, 2013 and 2012, respectively. The Company's total net income, inclusive of continuing and discontinued operations, was $232,066, or $0.05 per share, and $268,228, or $0.06 per share, for the third quarter of 2013 and 2012, respectively.

The Company produced revenue of $3,043,546 and $3,155,762 in the third quarters of 2013 and 2012, respectively, a decrease of $112,216, or 3.6%, in the current period compared to corresponding prior year period. The primary reason for this decrease is decreased sales through distributors of 7.8%, which was partially offset by an increase in retail sales of 6.0%. Gross profit margin was 57.8% and 56.8% for the third quarters of 2013 and 2012, respectively.

Selling, general and administrative expenses were $1,339,735 and $1,211,136 for the third quarters of 2013 and 2012, respectively, an increase of $128,599 or 10.6%.

Jim Bernau, Founder and President of the winery, said "We're excited to roll out our new food and wine experience as we wrap up our hospitality center expansion project. Helping our customers to understand the relationship of our wines to various food options should build our brand loyalty as well as expand sales to the retail customer."

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		Nine months ended
		September 30,		September 30,
		2013	2012	2013	2012
		(unaudited)	(unaudited)	(unaudited)	(unaudited)

SALES, NET		$ 3,043,546	$ 3,155,762	$ 9,694,364	$ 8,729,512
COST OF SALES		1,284,688	1,363,569	4,034,950	3,624,643

GROSS PROFIT		1,758,858	1,792,193	5,659,414	5,104,869

SELLING, GENERAL & ADMIN EXPENSES		1,339,735	1,211,136	3,866,390	3,585,648

INCOME FROM OPERATIONS		419,123	581,057	1,793,024	1,519,221

OTHER INCOME (EXPENSE)
	Interest income	997	3,382	4,950	7,618
	Interest expense	(61,635)	(86,180)	(184,843)	(167,969)
	Other income, net	52,480	12,749	156,410	85,803

INCOME BEFORE INCOME TAXES		410,965	511,008	1,769,541	1,444,673

INCOME TAX PROVISION		(178,899)	(238,105)	(719,757)	(621,309)

INCOME FROM CONTINUING OPERATIONS		232,066	272,903	1,049,784	823,364

DISCONTINUED OPERATIONS
	Loss from operations	-	(8,060)	-	(261,390)
	Income tax benefit	-	3,385	-	109,784

LOSS FROM DISCONTINUED OPERATIONS		-	(4,675)	-	(151,606)

NET INCOME		$ 232,066	$ 268,228	$ 1,049,784	$ 671,758

BASIC NET INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE
		$ 0.05	$ 0.06	$ 0.22	$ 0.17
BASIC NET LOSS FROM DISCONTINUED OPERATIONS PER COMMON SHARE
		-	-	-	(0.03)

BASIC NET INCOME PER COMMON SHARE		$ 0.05	$ 0.06	$ 0.22	$ 0.14

DILUTED NET INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE
		$ 0.05	$ 0.06	$ 0.22	$ 0.17
DILUTED NET LOSS FROM DISCONTINUED OPERATIONS PER COMMON SHARE
		-	-	-	(0.03)

DILUTED NET INCOME PER COMMON SHARE		$ 0.05	$ 0.06	$ 0.22	$ 0.14

Weighted average number of basic common shares outstanding
		4,791,972	4,821,084	4,796,150	4,860,692
Weighted average number of diluted common shares outstanding
		4,849,225	4,828,038	4,840,927	4,866,466