Willamette Valley Vineyards Posts a Profit for the Second Quarter 2012

Aug 10, 2012, 18:05 ET from Willamette Valley Vineyards

SALEM, Ore., Aug. 10, 2012 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ: WVVI), a leading Oregon producer of Pinot Noir, generated a net profit of $219,912, or $0.05 cents per share for the second quarter of 2012, an increase of 27.6% from the comparable prior year period.  Results for the corresponding prior year period was a net profit of $172,369, or $0.04 cents per share. 

Second quarter 2012 sales revenue decreased 0.4% and gross profit increased 1.3% compared to the second quarter of 2011. Sales, general and administrative expenses increased by 11.7% over the prior year second quarter due to increases in the company's sales effort to compensate for changes from its Oregon self-distribution to restaurants and stores to selling through a wine wholesaler.

Jim Bernau, Founder and President of the winery said "This quarter shows our better net profit is resulting from focusing on our core mission. While we operated a successful wine distributorship through Bacchus Fine Wines, increasing government regulation made it a heavy administrative burden."

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, 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.

WILLAMETTE VALLEY VINEYARDS, INC.

STATEMENTS OF OPERATIONS

Three months ended

Six months ended

June 30,

June 30,

2012

2011

2012

2011

(unaudited)

(unaudited)

(unaudited)

(unaudited)

SALES

$  2,851,146

$  2,861,609

$  5,573,750

$  5,597,621

COST OF SALES

1,151,833

1,183,807

2,261,075

2,449,068

GROSS PROFIT

1,699,313

1,677,802

3,312,675

3,148,553

SELLING, GENERAL & ADMIN EXPENSES

1,213,979

1,087,274

2,374,512

2,303,288

INCOME FROM OPERATIONS

485,334

590,528

938,163

845,265

OTHER INCOME (EXPENSE)

Interest income

1,246

2,247

4,237

4,847

Interest expense

(42,668)

(49,369)

(81,788)

(98,546)

Other income, net

35,630

2,778

73,054

3,891

INCOME BEFORE INCOME TAXES

479,542

546,184

933,666

755,457

INCOME TAX PROVISION 

(203,081)

(236,077)

(382,567)

(323,026)

INCOME FROM CONTINUING OPERATIONS

$  276,461

$  310,107

$  551,099

$  432,431

DISCONTINUED OPERATIONS

Loss from operations

(97,499)

(237,480)

(253,330)

(399,482)

Income tax benefit

40,950

99,742

106,399

167,782

LOSS FROM DISCONTINUED OPERATIONS

(56,549)

(137,738)

(146,931)

(231,700)

NET INCOME

$  219,912

$  172,369

$  404,168

$  200,731

BASIC NET INCOME  FROM CONTINUING

OPERATIONS PER COMMON SHARE

$  0.06

$  0.06

$  0.11

$  0.09

BASIC NET LOSS  FROM DISCONTINUED 

OPERATIONS PER COMMON SHARE

$  (0.01)

$  (0.03)

$  (0.03)

$  (0.05)

BASIC NET INCOME  PER COMMON SHARE

$  0.05

$  0.04

$  0.08

$  0.04

DILUTED NET INCOME FROM CONTINUING 

OPERATIONS  PER COMMON SHARE

$  0.06

$  0.06

$  0.11

$  0.09

DILUTED NET LOSS  FROM DISCONTINUED 

OPERATIONS PER COMMON SHARE

$  (0.01)

$  (0.03)

$  (0.03)

$  (0.05)

DILUTED NET INCOME  PER COMMON SHARE

$  0.05

$  0.04

$  0.08

$  0.04

Weighted average number of 

basic common shares outstanding

4,871,303

4,892,977

4,879,494

4,892,977

Weighted average number of 

diluted common shares outstanding

4,877,145

4,897,150

4,885,336

4,897,700

 

SOURCE Willamette Valley Vineyards



RELATED LINKS

http://www.wvv.com