Willamette Valley Vineyards Posts a Profit for the Third Quarter 2015

Nov 12, 2015, 17:05 ET from Willamette Valley Vineyards

SALEM, Ore., Nov. 12, 2015 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ: WVVI), a leading Oregon producer of Pinot Noir, generated net income of $454,256, or $0.09 cents per share, for the third quarter of 2015, down from $573,946, or $0.12 cents per share, for the corresponding prior year period, representing a $119,690 or 20.9% decrease in net income compared to third quarter 2014. 

Income from operations was $746,745 and $972,657 for the third quarters of 2015 and 2014, respectively, a decrease of $225,912 or 23.2%.  This decrease is partially the result of a one–time write down in inventory of $142,972 in the third quarter 2015.

The Company produced revenues of $4,224,519 and $4,046,201 in third quarters of 2015 and 2014, respectively, an increase of $198,318, or 4.9%.  The primary reasons for this increase are an increase in direct sales of $372,474, partially offset by a decrease in sales through distributors of $174,156, for the third quarter 2015 when compared to 2014.  Gross profit margin was 62.1% and 61.8% for the third quarters of 2015 and 2014, respectively.

Selling, general and administrative expenses were $1,889,206 and $1,526,956 for the third quarters of 2015 and 2014, respectively, an increase of $362,250 or 23.7%.  This increase is primarily the result of increased selling expenses, including depreciation and staffing, associated with an increased focus on retail sales and operating the remodeled Hospitality Center, and an increased emphasis on promoting sales through distributors including product demonstrations.

In August 2015, the Company commenced a public offering of Series A Redeemable Preferred Stock.  As of September 30, 2015 the Company held sufficient subscriptions to list the preferred stock on the NASDAQ and subsequent to the close of the third quarter listed it under the trading symbol WVVIP.

Subsequent to the close of the third quarter, the Board of Directors authorized the repurchase of $250,000 of the Company's common stock through the open market. 

Jim Bernau, Founder and President of the winery, said "I am very excited about the growth plans for our Company.  With the successful sales of our preferred stock, and its new NASDAQ listing, we are able to provide wine enthusiasts with an opportunity to be part this growth and experience future wines that we believe will be of exceptional quality."

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,

2015

2014

2015

2014

SALES, NET

$   4,244,519

$   4,046,201

$   12,878,174

$   10,711,492

COST OF SALES

1,608,568

1,546,588

5,178,536

4,249,126

GROSS PROFIT

2,635,951

2,499,613

7,699,638

6,462,366

SELLING, GENERAL & ADMINISTRATIVE EXPENSES

1,889,206

1,526,956

5,609,342

4,481,404

INCOME FROM OPERATIONS

746,745

972,657

2,090,296

1,980,962

OTHER INCOME (EXPENSE)

Interest income

74

421

78

1,018

Interest expense

(76,535)

(81,242)

(231,544)

(208,714)

Other income, net

37,502

39,885

155,427

329,796

INCOME BEFORE INCOME TAXES

707,786

931,721

2,014,257

2,103,062

INCOME TAX PROVISION 

(253,530)

(357,775)

(735,532)

(807,666)

NET INCOME

$     454,256

$      573,946

$      1,278,725

$      1,295,396

BASIC NET INCOME  PER COMMON SHARE

$           0.09

$            0.12

$               0.26

$               0.27

DILUTED NET INCOME  PER COMMON SHARE

$           0.09

$            0.12

$               0.26

$               0.26

Weighted average number of basic common shares outstanding

4,956,163

4,847,765

4,916,467

4,844,821

Weighted average number of diluted common shares outstanding

5,007,883

4,930,860

4,964,520

4,934,107

 

SOURCE Willamette Valley Vineyards



RELATED LINKS

http://www.wvv.com