Willamette Valley Vineyards Posts a Profit for the Second Quarter 2016

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Aug 11, 2016, 05:22 ET

SALEM, Ore., Aug. 11, 2016 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated income applicable to common shareholders of $362,481, or $0.07 cents per share, for the second quarter of 2016, down from $510,231, or $0.10 cents per share, for the corresponding prior year period, representing a $147,750 or 29.0% decrease in income applicable to common shareholders compared to first quarter 2015.

The Company produced revenues of $4,639,028 and $4,721,154 in second quarters of 2016 and 2015, respectively, a decrease of $82,126 or 1.7%. A decrease in bulk wine sales of $390,825, when comparing the second quarter 2016 to second quarter 2015, accounted for the reduction in total sales with all other direct and distributor based sales showing increases.

Selling, general and administrative expenses were $2,096,097 and $1,914,769 for the first quarters of 2016 and 2015, respectively, an increase of $181,328 or 9.5%.

Income from operations was $828,204 and $844,884 for the second quarters of 2016 and 2015, respectively, a decrease of $16,680 or 2.0%. This decrease was the result of a reduction in income from bulk wine sales which offset an increase in sales from core sales channels as well as improved profit margins for first quarter 2016 when compared to first quarter 2015.

Jim Bernau, Founder and President of the winery, said "Removing the effect of incidental bulk wine sales to other wineries, Income from Operations for the first six months of 2016 increased $511,096 or over 48%. This is the best operating performance we have achieved to date. Earnings will continue to be reduced by preferred stock dividends until those new funds are deployed in new wineries and generating a return."

Willamette Valley Vineyards, Inc. is headquartered at its Estate Vineyard near Salem, Oregon. The Company's common stock is traded on NASDAQ (WVVI) and preferred stock on NASDAQ (WVVIP).

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		Six months ended
		June 30,		June 30,
		2016	2015	2016	2015

SALES, NET		$ 4,639,028	$ 4,721,154	$ 8,822,797	$ 8,633,655
COST OF SALES		1,714,727	1,961,501	3,299,448	3,569,968

GROSS PROFIT		2,924,301	2,759,653	5,523,349	5,063,687

SELLING, GENERAL & ADMINISTRATIVE EXPENSES		2,096,097	1,914,769	3,953,069	3,720,136

INCOME FROM OPERATIONS		828,204	844,884	1,570,280	1,343,551

OTHER INCOME (EXPENSE)
	Interest income	2,761	4	4,801	4
	Interest expense	(72,154)	(77,975)	(145,165)	(155,009)
	Other income, net	35,758	35,715	126,500	117,925

INCOME BEFORE INCOME TAXES		794,569	802,628	1,556,416	1,306,471

INCOME TAX PROVISION		(317,397)	(292,397)	(591,354)	(482,002)

NET INCOME		477,172	510,231	965,062	824,469

Accrued preferred stock dividends		(114,691)	-	(193,586)	-

INCOME APPLICABLE TO COMMON SHAREHOLDERS		$ 362,481	$ 510,231	$ 771,476	$ 824,469

Basic income per common share after preferred dividends		$ 0.07	$ 0.10	$ 0.15	$ 0.17

Diluted income per common share after preferred dividends		$ 0.07	$ 0.10	$ 0.15	$ 0.17

Weighted average number of basic common shares outstanding
		4,999,514	4,908,605	4,993,324	4,896,289
Weighted average number of diluted common shares outstanding
		5,003,583	4,983,207	4,997,304	4,965,954