Willamette Valley Vineyards Posts a Profit for the First Quarter 2017

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May 11, 2017, 17:02 ET

SALEM, Ore., May 11, 2017 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ: WVVI), a leading Oregon producer of Pinot Noir, generated income applicable to common shareholders of $183,297, or $0.04 cents per share, for the first quarter of 2016, down from $408,995, or $0.08 cents per share, for the corresponding prior year period, representing a $225,698 or 55.2% decrease in income applicable to common shareholders compared to first quarter 2016. Items affecting the reduction in income applicable to common shareholders include a bulk wine inventory write down of $75,918 in first quarter 2017.

The Company produced revenues of $4,450,545 and $4,183,769 in first quarters of 2017 and 2016, respectively, an increase of $266,776 or 6.4%. The primary reasons for this increase are an increase in direct sales of $87,644 and an increase in sales through distributors of $179,132 in the current year three month period over the prior year period. Gross profit margin was 61.6% and 62.1% for the first quarters of 2017 and 2016, respectively.

Selling, general and administrative expenses were $2,239,738 and $1,856,972 for the first quarters of 2017 and 2016, respectively, an increase of $382,766 or 20.6%. Increases in selling, general and administrative costs were partially the result of increases in sales staffing and incentives and expenses associated with developing and implementing the Company's long-term strategic plan.

Income from operations was $503,127 and $742,076 for the first quarters of 2017 and 2016, respectively, a decrease of $238,949 or 32.2%.

Jim Bernau, Founder and President of the winery, said "We are continuing to implement our strategic plan by making the necessary financial, vineyard, winemaking and staffing investments to sustainably engage wine enthusiasts and provide them world class wines and winery experiences."

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
		March 31,
		2017	2016

SALES, NET		$ 4,450,545	$ 4,183,769
COST OF SALES		1,707,680	1,584,721

GROSS PROFIT		2,742,865	2,599,048

SELLING, GENERAL & ADMINISTRATIVE EXPENSES		2,239,738	1,856,972

INCOME FROM OPERATIONS		503,127	742,076

OTHER INCOME (EXPENSE)
	Interest income	7,314	2,040
	Interest expense	(96,700)	(73,011)
	Other income, net	83,144	90,742

INCOME BEFORE INCOME TAXES		496,885	761,847

INCOME TAX PROVISION		(181,755)	(273,957)

NET INCOME		315,130	487,890

Accrued preferred stock dividends		(131,833)	(78,895)

INCOME APPLICABLE TO COMMON SHAREHOLDERS		$ 183,297	$ 408,995

Basic income per common share after preferred dividends		$ 0.04	$ 0.08

Diluted income per common share after preferred dividends		$ 0.04	$ 0.08

Weighted average number of basic common shares outstanding		5,005,749	4,987,133
Weighted average number of diluted common shares outstanding		5,010,173	5,003,741