Willamette Valley Vineyards Posts Profit for 2011

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Mar 27, 2012, 04:24 ET

SALEM, Ore., March 27, 2012 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI) produced a profit for 2011 which was higher than the previous year. Revenues decreased 10% to $15,661,905, net earnings increased by 108% to $857,755 and diluted earnings per share were 18 cents as compared with 8 cents in the prior year.

These positive financial results are primarily a result of the Company winding down its Oregon wholesale operation, Bacchus Fine Wines, and reducing the expenses of representing its own wines as well as many other winery brands from around the world directly to restaurants and stores. Since September of 2011, Young's Market distributes the winery's products in nearly all of Oregon and the winery is selling off its remaining inventory of wine purchased from other wineries.

The winery earned numerous accolades for its top quality Pinot Noirs and was named among "One of the Top 100 Wineries in the World" this past October by Wine & Spirits magazine.

"We are focusing on growing and making high quality Pinot Noir from the Willamette Valley," said founder and CEO Jim Bernau. "It is possible to be a good steward of the land and produce positive financial results for investors."

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 words 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,
		2011	2010
		(audited)	(audited)

SALES		$ 15,661,905	$ 17,370,803
COST OF SALES		7,944,635	9,679,414

GROSS PROFIT		7,717,270	7,691,389

SELLING GENERAL & ADMINISTRATIVE EXPENSES		6,216,833	6,844,785

INCOME FROM OPERATIONS		1,500,437	846,604

OTHER INCOME (EXPENSE)
	Interest income	12,772	12,814
	Interest expense	(217,037)	(192,206)
	Other income, net	76,509	17,947

INCOME BEFORE INCOME TAXES		1,372,681	685,159

INCOME TAX PROVISION		514,926	273,351

NET INCOME		$ 857,755	$ 411,808

Retained earnings beginning of period		6,943,179	6,531,371

Retained earnings end of period		7,800,934	6,943,179



BASIC NET INCOME PER COMMON SHARE		$ 0.18	$ 0.08

DILUTED NET INCOME PER COMMON SHARE		$ 0.18	$ 0.08