SALEM, Ore., March 31, 2011 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ: WVVI) produced a profit for 2010 which was lower than the prior year. Revenues increased 4.9% to $17,370,803, net earnings decreased by 43.7% to $411,808 and diluted earnings per share were 8 cents as compared with 15 cents in the prior year.
The increase in total revenue is mainly due to increased sales to out-of-state distributors which improved over 9% as compared to 2009. This income contribution from sales to out-of-state distributors suffered from reduced gross margins due to higher wine production costs and promotional allowances. Oregon wholesale sales were down in 2010 due principally to a winery placement rotation out of one major retailer and as a consequence, gross profit suffered from the loss of these higher margin sales. Retail sales increased over 12% as compared to the prior year.
General and administrative expenses were higher in 2010 due to expenses for implementation of stronger inventory management and controls and staffing levels required by substantially higher local, state and federal regulatory requirements.
"The good news is wine quality has never been higher with the lower yields on the '08 and '10 vintages", said Jim Bernau, winery founder and CEO. The winery was recently named "Oregon Winery of the Year" by Wine Press Northwest Magazine.
Willamette Valley Vineyards, Inc. is a leading producer of Pinot Noir in Oregon and is headquartered at its Estate Vineyard near Salem, Oregon. The Company's common stock is traded on NASDAQ. (Symbol: 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.
Year Ended December 31,
COST OF SALES
SELLING GENERAL & ADMINISTRATIVE EXPENSES
INCOME FROM OPERATIONS
OTHER INCOME (EXPENSE)
INCOME BEFORE INCOME TAXES
INCOME TAX PROVISION
BASIC NET INCOME PER COMMON SHARE
DILUTED NET INCOME PER COMMON SHARE
SOURCE Willamette Valley Vineyards