Willamette Valley Vineyards Posts results for Q1 2022

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May 12, 2022, 19:09 ET

SALEM, Ore., May 12, 2022 /PRNewswire/ -- Willamette Valley Vineyards, Inc. (NASDAQ:WVVI) (the "Company"), a leading Oregon producer of Pinot Noir, generated a loss per common share after preferred dividends of $0.11 and $0.05 for the period ended March 31, 2022 and 2021, respectively, an increase of $0.06, for the period ended March 31, 2022 over the prior year period.

Sales revenue for the three months ended March 31, 2022 and 2021 was $6,242,318 and $5,765,338, respectively, an increase of $476,980, or 8.3%, in the current year period over the prior year period. This increase was caused by an increase in revenues from direct sales of $651,124 being partially offset by a decrease in revenues from shipments to distributors of $174,144 in the current year three-month period over the same period in the prior year. The increase in direct sales to consumers was primarily the result of increased retail sales revenues from our tasting rooms, wine club and kitchen. The decrease in revenue from the distributors was primarily attributed to the lack of available inventory to ship.

Gross profit for the three months ended March 31, 2022 and 2021 was $3,720,029 and $3,493,567, respectively, an increase of $226,462, or 6.5%, in the first quarter of 2022 over the same quarter in the prior year. This increase was primarily the result of an increase in direct sales in the first three months of the current year compared to the same period in 2021.

Selling, general and administrative expenses for the three months ended March 31, 2022 and 2021 was $3,856,261 and $3,317,558, respectively, an increase of $538,703, or 16.2%, in the current quarter over the same quarter in the prior year.

Net income (loss) for the three months ended March 31, 2022 and 2021 was $(98,942) and $122,685, respectively, a decrease of $221,627, or 180.6%, in the first quarter of 2022 over the same quarter in the prior year.

Jim Bernau, Founder and CEO of the winery said, "Unforeseen inventory delays have limited our ability to offset expenses related to our new developments. While we expect supply interruptions, higher supply costs and labor shortages to reduce margins and earnings in the near term, our growth initiatives are designed to produce greater profitability in the long term."

For a complete discussion of the Company's financial condition and operating results for the first quarter, see our Form 10-Q for the three months ended March 31, 2022, as filed with the United States Securities and Exchange Commission on EDGAR.

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. These forward-looking statements involve risks and uncertainties that are based on current expectations, estimates and projections about the Company's business, and beliefs and assumptions made by management. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "predicts," "potential," "should," or "will" or the negative thereof and variations of such words and similar expressions are intended to identify such forward-looking statements. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including, but 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 or smoke from forest fires, changes in consumer spending, the reduction in consumer demand for premium wines, the impact of supply chain and transportation disruptions, and the impact of the COVID-19 pandemic and the policies of United States federal, state and local governments in response to such pandemic. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic economic conditions. Many of these risks as well as other risks that may have a material adverse impact on our operations and business, are identified in Item 1A "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, as well as in the Company's other Securities and Exchange Commission filings and reports.

The following is the Company's Statement of Income for the three months ended March 31, 2022 compared to the three months ended March 31, 2021:

			Three months ended
			March 31,
			2022	2021

SALES, NET			$ 6,242,318	$ 5,765,338
COST OF SALES			2,522,289	2,271,771

GROSS PROFIT			3,720,029	3,493,567

OPERATING EXPENSES
	Sales and marketing		2,477,727	2,116,665
	General and administrative		1,378,534	1,200,893
		Total operating expenses	3,856,261	3,317,558

INCOME (LOSS) FROM OPERATIONS			(136,232)	176,009

OTHER INCOME (EXPENSE)
	Interest income		2,389	3,397
	Interest expense		(91,446)	(99,576)
	Other income		89,024	89,134

INCOME (LOSS) BEFORE INCOME TAXES			(136,265)	168,964

INCOME TAX (EXPENSE) BENEFIT			37,323	(46,279)

NET INCOME (LOSS)			(98,942)	122,685

Accrued preferred stock dividends			(466,612)	(359,636)

NET LOSS APPLICABLE TO COMMON SHAREHOLDERS			$ (565,554)	$ (236,951)

Loss per common share after preferred dividends,
	basic and diluted		$ (0.11)	$ (0.05)

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