SALEM, Ore., May 11, 2017 /PRNewswire/ -- Willamette
Valley Vineyards (NASDAQ: WVVI), a leading Oregon producer of Pinot Noir, generated
income applicable to common shareholders of $183,297, or
$0.04 cents per share, for the first
quarter of 2016, down from $408,995, or $0.08 cents per share, for the corresponding
prior year period, representing a $225,698 or 55.2% decrease in income applicable
to common shareholders compared to first quarter 2016. Items
affecting the reduction in income applicable to common shareholders
include a bulk wine inventory write down of $75,918 in first quarter 2017.
The Company produced revenues of $4,450,545 and $4,183,769 in first quarters of 2017 and 2016,
respectively, an increase of $266,776
or 6.4%. The primary reasons for this increase are an
increase in direct sales of $87,644
and an increase in sales through distributors of $179,132 in the current year three month period
over the prior year period. Gross profit margin was 61.6% and
62.1% for the first quarters of 2017 and 2016, respectively.
Selling, general and administrative expenses were $2,239,738 and $1,856,972 for the first quarters of 2017 and
2016, respectively, an increase of $382,766 or 20.6%. Increases in selling,
general and administrative costs were partially the result of
increases in sales staffing and incentives and expenses associated
with developing and implementing the Company's long-term strategic
plan.
Income from operations was $503,127 and $742,076 for the first quarters of 2017 and 2016,
respectively, a decrease of $238,949
or 32.2%.
Jim Bernau, Founder and President
of the winery, said "We are continuing to implement our strategic
plan by making the necessary financial, vineyard, winemaking and
staffing investments to sustainably engage wine enthusiasts and
provide them world class wines and winery experiences."
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,
|
|
2017
|
|
2016
|
|
|
|
|
SALES,
NET
|
$
4,450,545
|
|
$
4,183,769
|
COST OF
SALES
|
1,707,680
|
|
1,584,721
|
|
|
|
|
GROSS
PROFIT
|
2,742,865
|
|
2,599,048
|
|
|
|
|
SELLING, GENERAL
& ADMINISTRATIVE EXPENSES
|
2,239,738
|
|
1,856,972
|
|
|
|
|
INCOME FROM
OPERATIONS
|
503,127
|
|
742,076
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
Interest
income
|
7,314
|
|
2,040
|
|
Interest
expense
|
(96,700)
|
|
(73,011)
|
|
Other income,
net
|
83,144
|
|
90,742
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
496,885
|
|
761,847
|
|
|
|
|
INCOME TAX
PROVISION
|
(181,755)
|
|
(273,957)
|
|
|
|
|
NET
INCOME
|
315,130
|
|
487,890
|
|
|
|
|
Accrued preferred
stock dividends
|
(131,833)
|
|
(78,895)
|
|
|
|
|
INCOME APPLICABLE
TO COMMON SHAREHOLDERS
|
$
183,297
|
|
$
408,995
|
|
|
|
|
Basic income per
common share after preferred dividends
|
$
0.04
|
|
$
0.08
|
|
|
|
|
Diluted income per
common share after preferred dividends
|
$
0.04
|
|
$
0.08
|
|
|
|
|
Weighted average
number of basic common shares outstanding
|
5,005,749
|
|
4,987,133
|
Weighted average
number of diluted common shares outstanding
|
5,010,173
|
|
5,003,741
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/willamette-valley-vineyards-posts-a-profit-for-the-first-quarter-2017-300456511.html
SOURCE Willamette Valley Vineyards