Willamette Valley Vineyards Posts a Profit for the Third Quarter 2016

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Nov 10, 2016, 05:13 ET

SALEM, Ore., Nov. 10, 2016 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated income applicable to common shareholders of $467,979, or $0.09 cents per share, for the third quarter of 2016, up from $454,256, or $0.9 cents per share, for the corresponding prior year period, representing a $13,723 or 3.0% increase in income applicable to common shareholders compared to third quarter 2015.

The Company produced revenues of $4,741,711 and $4,244,519 in third quarters of 2016 and 2015, respectively, an increase of $497,192 or 11.7%. An increase in both direct sales and distributor sales, when comparing the third quarter 2016 to third quarter 2015, accounted for the increase in total sales.

Selling, general and administrative expenses were $2,046,948 and $1,889,206 for the third quarters of 2016 and 2015, respectively, an increase of $157,742 or 8.3%.

Income from operations was $994.303 and $746.745 for the third quarters of 2016 and 2015, respectively, an increase of $247,558 or 33.2%. This increase was the result of both increased sales and a higher gross profit margin for third quarter 2016 when compared to third quarter 2015.

Jim Bernau, Founder and President of the winery, said, "We are very pleased with our growth in sales and operating income. Right now, dividends are holding down net earnings per share because capital generated from the sale of Preferred Stock has yet to be deployed into enterprises that generate earnings."

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		Nine months ended
		September 30,		September 30,
		2016	2015	2016	2015

SALES, NET		$ 4,741,711	$ 4,244,519	$ 13,564,508	$ 12,878,174
COST OF SALES		1,700,460	1,608,568	4,999,908	5,178,536

GROSS PROFIT		3,041,251	2,635,951	8,564,600	7,699,638

SELLING, GENERAL & ADMINISTRATIVE EXPENSES		2,046,948	1,889,206	6,000,017	5,609,342

INCOME FROM OPERATIONS		994,303	746,745	2,564,583	2,090,296

OTHER INCOME (EXPENSE)
	Interest income	2,688	74	7,489	78
	Interest expense	(71,264)	(76,535)	(216,429)	(231,544)
	Other income, net	35,626	37,502	162,126	155,427

INCOME BEFORE INCOME TAXES		961,353	707,786	2,517,769	2,014,257

INCOME TAX PROVISION		(361,542)	(253,530)	(952,896)	(735,532)

NET INCOME		599,811	454,256	1,564,873	1,278,725

Accrued preferred stock dividends		(131,832)	-	(325,418)	-

INCOME APPLICABLE TO COMMON SHAREHOLDERS		$ 467,979	$ 454,256	$ 1,239,455	$ 1,278,725

Basic income per common share after preferred dividends		$ 0.09	$ 0.09	$ 0.25	$ 0.26

Diluted income per common share after preferred dividends		$ 0.09	$ 0.09	$ 0.25	$ 0.26

Weighted average number of basic common shares outstanding		4,994,061	4,956,163	4,993,571	4,916,467
Weighted average number of diluted common shares outstanding		4,998,444	5,007,883	4,997,737	4,964,520