Willamette Valley Vineyards Posts a Profit for the Third Quarter 2018

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Nov 13, 2018, 16:50 ET

SALEM, Ore., Nov. 13, 2018 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated income applicable to common shareholders of $385,199, or $0.08 cents per share, for the third quarter of 2018, down from $427,996, or $0.09 cents per share, for the corresponding prior year period, representing a $42,797 or 10.0% decrease in income applicable to common shareholders compared to third quarter 2017.

The Company produced revenues of $5,461,039 and $5,143,588 in third quarters of 2018 and 2017, respectively, an increase of $317,451 or 6.2%. This increase was caused by an increase in direct sales of $70,268 and an increase in sales through distributors of $247,183.

Selling, general and administrative expenses were $2,569,229 and $2,283,143 for the third quarters of 2018 and 2017, respectively, an increase of $286,086 or 12.5%. 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 $972,942 and $1,098,231 for the third quarters of 2018 and 2017, respectively, a decrease of $125,289 or 11.4%. This decrease was the result of growth in gross profit more than offset by growth in selling, general and administrative expenses.

Jim Bernau, Founder and President of the winery, said "We will continue to promote and protect the integrity of our wines, AVAs and the Oregon wine industry from competitive forces. Oregon's standards and values have been key to building our Oregon wine industry's success and will continue to be paramount for years to come."

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,
		2018	2017	2018	2017

SALES, NET		$ 5,461,039	$ 5,143,588	$ 15,814,950	$ 14,907,917
COST OF SALES		1,918,868	1,762,214	5,660,429	5,594,744

GROSS PROFIT		3,542,171	3,381,374	10,154,521	9,313,173

SELLING, GENERAL & ADMINISTRATIVE EXPENSES		2,569,229	2,283,143	7,530,330	6,652,674

INCOME FROM OPERATIONS		972,942	1,098,231	2,624,191	2,660,499

OTHER INCOME (EXPENSE)
	Interest income	1,964	6,535	10,968	17,596
	Interest expense	(119,270)	(127,431)	(354,272)	(346,997)
	Other income, net	25,967	45,886	164,009	180,462

INCOME BEFORE INCOME TAXES		881,603	1,023,221	2,444,896	2,511,560

INCOME TAX PROVISION		(239,966)	(398,638)	(669,549)	(978,346)

NET INCOME		641,637	624,583	1,775,347	1,533,214

Accrued preferred stock dividends		(256,438)	(196,587)	(767,770)	(460,253)

INCOME APPLICABLE TO COMMON SHAREHOLDERS		$ 385,199	$ 427,996	$ 1,007,577	$ 1,072,961

Income per common share after preferred dividends		$ 0.08	$ 0.09	$ 0.20	$ 0.21

Weighted average number of common shares outstanding		4,964,529	4,976,732	4,964,529	4,992,189