Willamette Valley Vineyards Posts Results for Q2 2021

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Aug 12, 2021, 17:43 ET

SALEM, Ore., Aug. 12, 2021 /PRNewswire/ -- Willamette Valley Vineyards, Inc. (NASDAQ:WVVI) (the "Company"), a leading Oregon producer of Pinot Noir, generated income applicable to common shareholders for the three months ended June 30, 2021 and 2020 of $715,045 and $363,969, respectively, an increase of $351,076, or 96.5%, in the second quarter of 2021 over the same quarter in the prior year.

Sales revenue for the three months ended June 30, 2021 and 2020 were $8,949,951 and $5,568,654, respectively, an increase of $3,381,297, or 60.7%, in the current year period over the prior year period. This increase was caused by an increase in sales through distributors of $2,434,315 and an increase in direct sales of $946,982 in the current year three-month period over the prior year period. The increase in direct sales to consumers was primarily the result of retail sales increases in tasting room revenue, phone sales and wine club sales. The increase in revenue from sales through distributors was primarily attributed to higher chain sales and the timing of orders between the first and second quarters.

Gross profit for the three months ended June 31, 2021 and 2020 was $5,139,723 and $3,501,532, respectively, an increase of $1,638,191, or 46.8%, in the second quarter of 2021 over the same quarter in the prior year.

Selling, general and administrative expense for the three months ended June 30, 2021 and 2020 was $3,602,129 and $2,555,958 respectively, an increase of $1,046,171, or 40.9%, in the current quarter over the same quarter in the prior year.

Net income for the three months ended June 30, 2021 and 2020 was $1,077,551 and $620,421, respectively, an increase of $457,130, or 73.7%, in the second quarter of 2021 over the same quarter in the prior year.

Jim Bernau, Founder and CEO of the winery said, "The Company's performance continues to build on the sales growth of 2020. Our wine sales directly to wine enthusiasts and to our wholesalers' accounts has never been higher during this first six months of 2021. While labor shortages and supply chain disruptions have been challenging, we remain on course to open our new sparkling winery near Dundee and winery restaurants as planned. The construction of an additional 50,000 cases of fermentation capacity is on schedule and expected to be ready before what now appears to be one of Oregon's earliest harvests."

For a complete discussion of the Company's financial condition and operating results for the second quarter, see our Form 10-Q for the three months ended June 30, 2021, 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 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, 2020, 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 and six months ended June 30, 2021 compared to the three and six months ended June 30, 2020:

			Three months ended		Six months ended
			June 30,		June 30,
			2021	2020	2021	2020

SALES, NET			$ 8,949,951	$ 5,568,654	$ 14,715,289	$ 12,090,549
COST OF SALES			3,810,228	2,067,122	6,081,999	4,676,975

GROSS PROFIT			5,139,723	3,501,532	8,633,290	7,413,574

OPERATING EXPENSES
	Sales and marketing		2,235,124	1,613,998	4,351,789	3,362,038
	General and administrative		1,367,005	941,960	2,567,898	2,023,424
		Total operating expenses	3,602,129	2,555,958	6,919,687	5,385,462

INCOME FROM OPERATIONS			1,537,594	945,574	1,713,603	2,028,112

OTHER INCOME (EXPENSE)
	Interest income		3,081	5,713	6,478	15,230
	Interest expense		(97,499)	(105,133)	(197,075)	(210,875)
	Other income (expense), net		40,679	5,800	129,813	100,802

INCOME BEFORE INCOME TAXES			1,483,855	851,954	1,652,819	1,933,269

INCOME TAX PROVISION			(406,304)	(231,533)	(452,583)	(525,766)

NET INCOME			1,077,551	620,421	1,200,236	1,407,503

Accrued preferred stock dividends			(362,506)	(256,452)	(722,142)	(512,904)

INCOME APPLICABLE TO COMMON SHAREHOLDERS			$ 715,045	$ 363,969	$ 478,094	$ 894,599

Earnings per common share after preferred dividends,
	basic and diluted		$ 0.14	$ 0.07	$ 0.10	$ 0.18

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