SALEM, Ore., Aug. 11, 2016 /PRNewswire/ -- Willamette
Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated
income applicable to common shareholders of $362,481, or
$0.07 cents per share, for the second
quarter of 2016, down from $510,231, or $0.10 cents per share, for the corresponding
prior year period, representing a $147,750 or 29.0% decrease in income applicable
to common shareholders compared to first quarter 2015.
The Company produced revenues of $4,639,028 and $4,721,154 in second quarters of 2016 and 2015,
respectively, a decrease of $82,126
or 1.7%. A decrease in bulk wine sales of $390,825, when comparing the second quarter 2016
to second quarter 2015, accounted for the reduction in total sales
with all other direct and distributor based sales showing
increases.
Selling, general and administrative expenses were $2,096,097 and $1,914,769 for the first quarters of 2016 and
2015, respectively, an increase of $181,328 or 9.5%.
Income from operations was $828,204 and $844,884 for the second quarters of 2016 and
2015, respectively, a decrease of $16,680 or 2.0%. This decrease was the
result of a reduction in income from bulk wine sales which offset
an increase in sales from core sales channels as well as improved
profit margins for first quarter 2016 when compared to first
quarter 2015.
Jim Bernau, Founder and President
of the winery, said "Removing the effect of incidental bulk wine
sales to other wineries, Income from Operations for the first six
months of 2016 increased $511,096 or
over 48%. This is the best operating performance we have
achieved to date. Earnings will continue to be reduced by
preferred stock dividends until those new funds are deployed in new
wineries and generating a return."
Willamette Valley Vineyards, Inc. is headquartered at its Estate
Vineyard near Salem, Oregon.
The Company's common stock is traded on NASDAQ (WVVI) and preferred
stock on NASDAQ (WVVIP).
Forward-looking statements in this release are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995, and are identified by such words and phrases as
"expects," "thinks," "believes," "anticipates" and words of similar
import. Such forward-looking statements are subject to risks
and uncertainties and actual results could differ materially from
those projected. Such risks and uncertainties include, but
are not limited to: availability of financing for growth,
availability of adequate supply of high quality grapes, successful
performance of internal operations, impact of competition, changes
in wine broker or distributor relations or performance, impact of
possible adverse weather conditions, impact of reduction in grape
quality or supply due to disease, impact of governmental regulatory
decisions and other risks.
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Three months
ended
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Six months
ended
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June
30,
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June
30,
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2016
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2015
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2016
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2015
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SALES,
NET
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$
4,639,028
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$
4,721,154
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$
8,822,797
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$
8,633,655
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COST OF
SALES
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1,714,727
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1,961,501
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3,299,448
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3,569,968
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GROSS
PROFIT
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2,924,301
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2,759,653
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5,523,349
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5,063,687
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SELLING, GENERAL
& ADMINISTRATIVE EXPENSES
|
2,096,097
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1,914,769
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3,953,069
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3,720,136
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INCOME FROM
OPERATIONS
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828,204
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844,884
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1,570,280
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1,343,551
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OTHER INCOME
(EXPENSE)
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Interest
income
|
2,761
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4
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4,801
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4
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Interest
expense
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(72,154)
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(77,975)
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(145,165)
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(155,009)
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Other income,
net
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35,758
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35,715
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126,500
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117,925
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INCOME BEFORE
INCOME TAXES
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794,569
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802,628
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1,556,416
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1,306,471
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INCOME TAX
PROVISION
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(317,397)
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(292,397)
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(591,354)
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(482,002)
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NET
INCOME
|
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477,172
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510,231
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965,062
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824,469
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Accrued preferred
stock dividends
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(114,691)
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-
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(193,586)
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-
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INCOME APPLICABLE
TO COMMON SHAREHOLDERS
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$
362,481
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$
510,231
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$
771,476
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$
824,469
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Basic income per
common share after preferred dividends
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$
0.07
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$
0.10
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$
0.15
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$
0.17
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Diluted income per
common share after preferred dividends
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$
0.07
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$
0.10
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$
0.15
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$
0.17
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Weighted average
number of basic common
shares outstanding
|
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4,999,514
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4,908,605
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4,993,324
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4,896,289
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Weighted average
number of diluted
common shares outstanding
|
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|
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|
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|
|
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5,003,583
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4,983,207
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4,997,304
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|
4,965,954
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/willamette-valley-vineyards-posts-a-profit-for-the-second-quarter-2016-300312717.html
SOURCE Willamette Valley Vineyards