SALEM, Ore., May 13, 2014 /PRNewswire/ -- Willamette Valley
Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated net
income of $174,915, or $0.04
cents per share, for the first three months of 2014, down
from $296,593, or $0.06 cents per share, for the corresponding
prior year period, representing a $121,678 or 41.0% decrease in net income compared
to first quarter 2013.
The Company produced revenues of $2,971,879 and $3,041,559 in first quarters of 2014 and 2013,
respectively, a decrease of $69,680
or 2.3%. The primary reasons for this decrease are decreased
sales through distributors of 9.0% partially offset by increased
direct sales of 16.0%. Gross profit margin was 57.9% and
57.8% for the first quarters of 2014 and 2013, respectively.
Selling, general and administrative expenses were $1,473,254 and $1,267,958 for the first three months of 2014 and
2013, respectively, an increase of $205,296 or 16.2%. This increase is
primarily the result of increased operating and selling expenses,
including staffing, associated with an increased focus on retail
sales and the start-up expenses associated with opening the newly
remodeled Hospitality Center.
Jim Bernau, Founder and President
of the winery, said "We are very excited about having our remodeled
Hospitality Center and Barrel Cellar complete. Now we can
begin the work of growing our brand using this great new facility
to further increase our customer base."
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.
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2014
|
|
2013
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
SALES,
NET
|
|
$
2,971,879
|
|
$
3,041,559
|
|
COST OF
SALES
|
|
1,249,890
|
|
1,284,897
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
1,721,989
|
|
1,756,662
|
|
|
|
|
|
|
SELLING, GENERAL
& ADMIN EXPENSES
|
|
1,473,254
|
|
1,267,958
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
248,735
|
|
488,704
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
Interest
income
|
|
340
|
|
1,969
|
|
Interest
expense
|
|
(65,996)
|
|
(59,342)
|
|
Other income,
net
|
|
98,468
|
|
72,390
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
|
281,547
|
|
503,721
|
|
|
|
|
|
|
INCOME TAX
PROVISION
|
|
(106,632)
|
|
(207,128)
|
|
|
|
|
|
|
NET
INCOME
|
|
$
174,915
|
|
$
296,593
|
|
|
|
|
|
|
|
|
|
|
|
BASIC NET
INCOME PER COMMON SHARE
|
|
$
0.04
|
|
$
0.06
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED NET
INCOME PER COMMON SHARE
|
|
$
0.04
|
|
$
0.06
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of basic common
shares outstanding
|
|
4,839,149
|
|
4,800,008
|
|
|
|
|
|
|
Weighted average number of diluted
common shares outstanding
|
|
4,939,412
|
|
4,832,204
|
SOURCE Willamette Valley Vineyards