Willamette Valley Vineyards Posts a Profit for the Third Quarter 2012

SALEM, Ore., Nov. 13, 2012 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ: WVVI), a leading Oregon producer of Pinot Noir, generated net profits of $268,228, or $0.06 cents per share, for the third quarter of 2012, a decrease of 28.2% from the comparable prior year period.  Results for the corresponding prior year period were net profits of $373,407, or $0.08 cents per share. 

Third quarter 2012 sales revenue decreased 7.8% and gross profit decreased 4.9% compared to the third quarter of 2011.  The reduction in revenue was primarily a result of a one-time event - an additional month's Oregon wholesale revenue in August 2011 when the Company completed its last month of self-distribution while at the same time stocking the new distributor in advance of their September 2011 start-up of sales.  Gross profit margin for the third quarter 2012 was 56.8%, an improvement of 1.7 percentage points from the corresponding prior year period.

Selling, general and administrative expenses increased by 13.8% over the prior year third quarter due to increases in the Company's sales effort to compensate for changing from self-distribution in Oregon, to selling through a wine wholesaler.

Jim Bernau, Founder and President of the winery said, "This quarter shows a strengthening of our brand in the marketplace through sustained improvements in our margins.  Shedding our self-distribution division of the company, and the heavy administrative and regulatory burden it imposed, has allowed us to focus our resources on creating elegant, classic Oregon Pinot Noir."

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.

 






Three months ended


Nine months ended






September 30,


September 30,






2012


2011


2012


2011






(unaudited)


(unaudited)


(unaudited)


(unaudited)













SALES

$       3,155,762


$       3,423,496


$       8,729,512


$       9,021,117

COST OF SALES

1,363,569


1,538,051


3,624,643


3,987,119













GROSS PROFIT

1,792,193


1,885,445


5,104,869


5,033,998













SELLING, GENERAL & ADMIN EXPENSES

1,211,136


1,064,428


3,585,648


3,367,716













INCOME FROM OPERATIONS

581,057


821,017


1,519,221


1,666,282













OTHER INCOME (EXPENSE)









Interest income

3,382


4,502


7,618


9,348


Interest expense

(86,180)


(51,480)


(167,969)


(150,026)


Other income, net

12,749


42,510


85,803


46,400













INCOME BEFORE INCOME TAXES

511,008


816,549


1,444,673


1,572,004













INCOME TAX PROVISION 

(238,105)


(318,078)


(621,309)


(641,104)













INCOME FROM CONTINUING OPERATIONS

$           272,903


$           498,471


$           823,364


$           930,900













DISCONTINUED OPERATIONS









Loss from operations

(8,060)


(215,627)


(261,390)


(615,107)


Income tax benefit

3,385


90,563


109,784


258,345













LOSS FROM DISCONTINUED OPERATIONS

(4,675)


(125,064)


(151,606)


(356,762)













NET INCOME


$           268,228


$           373,407


$           671,758


$           574,138













BASIC NET INCOME  FROM CONTINUING









 OPERATIONS PER COMMON SHARE

$                    0.06


$                    0.10


$                    0.17


$                    0.19

BASIC NET LOSS  FROM DISCONTINUED 









OPERATIONS PER COMMON SHARE

$                 (0.00)


$                 (0.03)


$                 (0.03)


$                 (0.07)













BASIC NET INCOME  PER COMMON SHARE

$                    0.06


$                    0.08


$                    0.14


$                    0.12













DILUTED NET INCOME FROM CONTINUING 









OPERATIONS  PER COMMON SHARE

$                    0.06


$                    0.10


$                    0.17


$                    0.19

DILUTED NET LOSS  FROM DISCONTINUED 









OPERATIONS PER COMMON SHARE

$                 (0.00)


$                 (0.03)


$                 (0.03)


$                 (0.07)













DILUTED NET INCOME  PER COMMON SHARE

$                    0.06


$                    0.08


$                    0.14


$                    0.12













Weighted average number of basic common shares outstanding








4,821,084


4,892,977


4,860,692


4,892,977

Weighted average number of diluted common shares outstanding








4,828,038


4,896,865


4,866,466


4,897,423

 

 

SOURCE Willamette Valley Vineyards



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