SALEM, Ore., Aug. 10, 2012 /PRNewswire/ -- Willamette Valley
Vineyards (NASDAQ: WVVI), a leading Oregon producer of Pinot Noir, generated a net
profit of $219,912, or $0.05 cents per share for the second quarter of
2012, an increase of 27.6% from the comparable prior year
period. Results for the corresponding prior year period was a
net profit of $172,369, or
$0.04 cents per share.
Second quarter 2012 sales revenue decreased 0.4% and gross
profit increased 1.3% compared to the second quarter of 2011.
Sales, general and administrative expenses increased by 11.7% over
the prior year second quarter due to increases in the company's
sales effort to compensate for changes from its Oregon self-distribution to restaurants and
stores to selling through a wine wholesaler.
Jim Bernau, Founder and President
of the winery said "This quarter shows our better net profit is
resulting from focusing on our core mission. While we operated a
successful wine distributorship through Bacchus Fine Wines,
increasing government regulation made it a heavy administrative
burden."
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.
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WILLAMETTE
VALLEY VINEYARDS, INC.
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STATEMENTS
OF OPERATIONS
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Three
months ended
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Six
months ended
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June
30,
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June
30,
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2012
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2011
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2012
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2011
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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SALES
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$
2,851,146
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$
2,861,609
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$
5,573,750
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$
5,597,621
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COST OF
SALES
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1,151,833
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1,183,807
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2,261,075
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2,449,068
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GROSS
PROFIT
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1,699,313
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1,677,802
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3,312,675
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3,148,553
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SELLING, GENERAL & ADMIN
EXPENSES
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1,213,979
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1,087,274
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2,374,512
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2,303,288
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INCOME
FROM OPERATIONS
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485,334
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590,528
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938,163
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845,265
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OTHER
INCOME (EXPENSE)
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Interest
income
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1,246
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2,247
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4,237
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4,847
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Interest
expense
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(42,668)
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(49,369)
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(81,788)
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(98,546)
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Other
income, net
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35,630
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2,778
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73,054
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3,891
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INCOME
BEFORE INCOME TAXES
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479,542
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546,184
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933,666
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755,457
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INCOME
TAX PROVISION
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(203,081)
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(236,077)
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(382,567)
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(323,026)
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INCOME
FROM CONTINUING OPERATIONS
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$
276,461
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$
310,107
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$
551,099
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$
432,431
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DISCONTINUED OPERATIONS
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Loss from
operations
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(97,499)
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(237,480)
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(253,330)
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(399,482)
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Income tax
benefit
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40,950
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99,742
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106,399
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167,782
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LOSS
FROM DISCONTINUED OPERATIONS
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(56,549)
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(137,738)
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(146,931)
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(231,700)
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NET
INCOME
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$
219,912
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$
172,369
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$
404,168
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$
200,731
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BASIC
NET INCOME FROM CONTINUING
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OPERATIONS PER COMMON SHARE
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$
0.06
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$
0.06
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$
0.11
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$
0.09
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BASIC
NET LOSS FROM DISCONTINUED
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OPERATIONS PER COMMON SHARE
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$
(0.01)
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$
(0.03)
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$
(0.03)
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$
(0.05)
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BASIC
NET INCOME PER COMMON SHARE
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$
0.05
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$
0.04
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$
0.08
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$
0.04
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DILUTED
NET INCOME FROM CONTINUING
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OPERATIONS PER COMMON SHARE
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$
0.06
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$
0.06
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$
0.11
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$
0.09
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DILUTED
NET LOSS FROM DISCONTINUED
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OPERATIONS PER COMMON SHARE
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$
(0.01)
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$
(0.03)
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$
(0.03)
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$
(0.05)
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DILUTED
NET INCOME PER COMMON SHARE
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$
0.05
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$
0.04
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$
0.08
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$
0.04
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Weighted average number of
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basic
common shares outstanding
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4,871,303
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4,892,977
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4,879,494
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4,892,977
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Weighted average number of
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diluted
common shares outstanding
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4,877,145
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4,897,150
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4,885,336
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4,897,700
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SOURCE Willamette Valley Vineyards