Willamette Valley Vineyards Posts a Profit for the Third Quarter 2019

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Nov 13, 2019, 17:56 ET

SALEM, Ore., Nov. 13, 2019 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated income applicable to common shareholders of $595,748, or $0.12 cents per share, for the third quarter of 2019, up from $385,199, or $0.08 cents per share, for the corresponding prior year period, representing a $210,549 or 54.7% increase in income applicable to common shareholders compared to the third quarter 2018.

The Company produced revenues of $6,758,367 and $5,461,039 in the third quarters of 2019 and 2018, respectively, an increase of $1,297,328 or 23.8%. This increase was caused by an increase in direct sales of $49,535 and an increase in sales through distributors of $1,247,793. The increase in revenue from sales through distributors was partially the result of timing attributed to recovering lower sales from quarter 2 in quarter 3.

Gross profit was $4,064,022 and $3,542,171 for the third quarters of 2019 and 2018, respectively, a increase of $521,851 or 14.7%. This increase was primarily the result of higher sales revenues being partially offset by higher unit cost of sales when compared to the corresponding period in the prior year.

Selling, general and administrative expense for the three months ended September 30, 2019 and 2018 was $2,789,695 and $2,569,229 respectively, an increase of $220,466, or 8.6%, in the current year period over the prior year period.

Income from operations was $1,274,327 and $972,942 for the third quarters of 2019 and 2018, respectively, an increase of $301,385 or 31.0%. This increase was the result of an increase in revenue partly offset with growth in selling, general and administrative expenses.

Jim Bernau, Founder and President of the winery, said, "We had a strong quarter as we recovered from the problems executing distribution in Oregon and Washington in the second quarter."

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,
			2019	2018	2019	2018

SALES, NET			$ 6,758,367	$ 5,461,039	$ 17,547,990	$ 15,814,950
COST OF SALES			2,694,345	1,918,868	6,704,974	5,660,429

GROSS PROFIT			4,064,022	3,542,171	10,843,016	10,154,521

OPERATING EXPENSES
	Sales and marketing		1,860,537	1,699,236	5,542,123	4,867,687
	General and administrative		929,158	869,993	2,865,697	2,662,643
		Total operating expenses	2,789,695	2,569,229	8,407,820	7,530,330

INCOME FROM OPERATIONS			1,274,327	972,942	2,435,196	2,624,191

OTHER INCOME (EXPENSE)
	Interest income		25,268	1,964	35,554	10,968
	Interest expense		(110,547)	(119,270)	(332,049)	(354,272)
	Other income/(expense), net		(18,060)	25,967	103,040	164,009

INCOME BEFORE INCOME TAXES			1,170,988	881,603	2,241,741	2,444,896

INCOME TAX PROVISION			(318,788)	(239,966)	(603,154)	(669,549)

NET INCOME			852,200	641,637	1,638,587	1,775,347

Accrued preferred stock dividends			(256,452)	(256,438)	(769,357)	(767,770)

INCOME APPLICABLE TO COMMON SHAREHOLDERS			$ 595,748	$ 385,199	$ 869,230	$ 1,007,577

Income per common share after preferred dividends			$ 0.12	$ 0.08	$ 0.18	$ 0.20

Weighted average number of common shares outstanding			4,964,529	4,964,529	4,964,529	4,964,529