Willamette Valley Vineyards Posts a Profit for 2014

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Mar 26, 2015, 04:56 ET

SALEM, Ore., March 26, 2015 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated net income of $2,161,340, or $0.45 cents per share, for 2014, up from $1,423,492, or $0.30 cents per share, for the prior year, representing a $737,848, or 51.8%, increase in net income compared to 2013.

The Company produced revenue of $15,156,159 and $13,271,914 in the years of 2014 and 2013, respectively, an increase of $1,884,245, or 14.2%, in the current year compared to the prior year. The reasons for this increase include increased sales in all categories; most notably retail sales but also in-state sales, out-of state sales and sales of bulk products.

Gross profit margin was 59.5% and 57.9% for 2014 and 2013, respectively.

Selling, general and administrative expenses were $6,210,384 and $5,308,931 for 2014 and 2013, respectively, an increase of $901,453 or 17.0%.

Jim Bernau, Founder and President of the winery, said "We are particularly pleased with our direct to consumer growth over the past year. Our wines and winery experience have helped us establish a solid base of Willamette Valley Vineyards enthusiasts. We look forward to providing our customers with exceptional wines for years to come."

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.

			Twelve months ended
		December 31,
		2014		2013

SALES, NET		$ 15,156,159		$ 13,271,914
COST OF SALES		6,139,553		5,588,439

GROSS PROFIT		9,016,606		7,683,475

SELLING, GENERAL & ADMINISTRATIVE EXPENSES		6,210,384		5,308,931

INCOME FROM OPERATIONS		2,806,222		2,374,544

OTHER INCOME (EXPENSE)
	Interest income	1,031		6,963
	Interest expense	(289,020)		(245,431)
	Other income, net	419,106		192,125

INCOME BEFORE INCOME TAXES		2,937,339		2,328,201

INCOME TAX PROVISION		(775,999)		(904,709)

NET INCOME		$ 2,161,340		$ 1,423,492

BASIC NET INCOME PER COMMON SHARE		$ 0.45		$ 0.30

DILUTED NET INCOME PER COMMON SHARE		$ 0.44		$ 0.29

Weighted average number of basic common shares outstanding		4,849,614		4,804,801

Weighted average number of diluted common shares outstanding		4,930,494		4,856,321