Willamette Valley Vineyards Posts a Third Quarter 2010 Profit

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Nov 15, 2010, 05:51 ET

SALEM, Ore., Nov. 15, 2010 /PRNewswire-FirstCall/ -- Willamette Valley Vineyards (Nasdaq: WVVI), a leading producer of Pinot Noir, generated a profit of $171,345 or $0.04 cents per share for the three months ending September 30, 2010. Comparable results for the comparable prior year period include a net profit of $248,021 and $0.05 cents per share.

Third quarter 2010 sales revenue increased 5.5% and gross profit decreased 7.4% compared to the third quarter of 2009. The decrease in gross profit is due to higher cost of goods relative to prices received and is the reason for the decrease in net profit over comparable periods.

Jim Bernau, Founder and President of the winery said "The economy is showing signs of life evidenced by our higher revenues. Now, we just need to work through some high cost of goods to get back to historical gross margins."

Bernau noted Company cash flow has improved due to his Bacchus Fine Wines sales staff dramatically reducing purchased wine inventory while growing customer service and wine sales.

Willamette Valley Vineyards, Inc. is headquartered at its Estate Vineyard near Salem, Oregon. The Company's common stock is traded onNASDAQ: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 works and phrases as "experts,", "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.

WILLAMETTE VALLEY VINEYARDS, INC.
Statement of Operations
(unaudited)

		Three months ended		Nine months ended
		September 30,		September 30,
		2010	2009	2010	2009


Net revenues
	Case revenue	$ 4,600,344	$ 4,360,206	$ 12,249,349	$ 12,052,828

Total net revenues		4,600,344	4,360,206	12,249,349	12,052,828

Cost of sales
	Case	2,629,786	2,231,411	6,952,178	6,051,242

Total cost of sales		2,629,786	2,231,411	6,952,178	6,051,242

Gross profit		1,970,558	2,128,795	5,297,171	6,001,586

Selling, general and
	administrative expenses	1,638,320	1,668,935	4,974,422	4,768,443

Net operating
	income	332,238	459,860	322,749	1,233,143

Other income (expense)
	Interest income	3,419	-	9,546	-
	Interest expense	(53,265)	(42,135)	(162,962)	(111,013)
	Other income	3,182	895	16,146	2,818

Net income before
	income taxes	285,574	418,620	185,479	1,124,948

Income tax expense		114,229	170,599	74,191	457,987

Net income		171,345	248,021	111,288	666,961

Retained earnings beginning
	of period	6,471,314	6,218,841	6,531,371	5,799,901

Retained earnings
	end of period	$ 6,642,659	$ 6,466,862	$ 6,642,659	$ 6,466,862

Basic earnings per
	common share	$ 0.04	$ 0.05	$ 0.02	$ 0.14

Diluted earnings per		$ 0.03	$ 0.05	$ 0.02	$ 0.14
	common share

Weighted average number of
	basic common shares
	outstanding	4,891,760	4,877,020	4,889,915	4,862,667

Weighted average number of
	diluted common shares
	outstanding	4,898,203	4,888,667	4,896,530	4,845,304