SALEM, Ore., Nov. 9, 2017 /PRNewswire/ -- Willamette
Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated
income applicable to common shareholders of $427,996, or
$0.09 cents per share, for the third
quarter of 2017, down from $467,979, or $0.09 cents per share, for the corresponding
prior year period, representing a $39,983 or 8.5% decrease in income applicable to
common shareholders compared to third quarter 2016. This
decrease is primarily the result of accrued preferred stock
dividends increasing more than the increase in net income.
The Company produced revenues of $5,143,588 and $4,741,711 in third quarters of 2017 and 2016,
respectively, an increase of $401,877
or 8.5%. This increase was caused by an increase in direct
sales of $211,063 and an increase in
sales through distributors of $190,814.
Selling, general and administrative expenses were $2,283,143 and $2,046,948 for the third quarters of 2017 and
2016, respectively, an increase of $236,195 or 11.5%.
Income from operations was $1,098,231 and $994,303 for the third quarters of 2017 and 2016,
respectively, an increase of $103,928
or 10.5%. This increase was the result of growth in revenue
that outpaced growth in selling, general and administrative
expenses.
Jim Bernau, Founder and President
of the winery, said "The growth in Income from operations is
healthy. As expected, the dividend expense will negatively
impact Net Income until such time as the capital raised is fully
put to work to generate additional earnings."
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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Nine months
ended
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September
30,
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September
30,
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2017
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2016
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2017
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2016
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SALES,
NET
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$
5,143,588
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$
4,741,711
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$
14,907,917
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$
13,564,508
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COST OF
SALES
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1,762,214
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1,700,460
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5,594,744
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4,999,908
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GROSS
PROFIT
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3,381,374
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3,041,251
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9,313,173
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8,564,600
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SELLING, GENERAL
& ADMINISTRATIVE EXPENSES
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2,283,143
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2,046,948
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6,652,674
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6,000,017
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INCOME FROM
OPERATIONS
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1,098,231
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994,303
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2,660,499
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2,564,583
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OTHER INCOME
(EXPENSE)
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Interest
income
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6,535
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2,688
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17,596
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7,489
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Interest
expense
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(127,431)
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(71,264)
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(346,997)
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(216,429)
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Other income,
net
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45,886
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35,626
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180,462
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162,126
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INCOME BEFORE
INCOME TAXES
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1,023,221
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961,353
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2,511,560
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2,517,769
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INCOME TAX
PROVISION
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(398,638)
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(361,542)
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(978,346)
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(952,896)
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NET
INCOME
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624,583
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599,811
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1,533,214
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1,564,873
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Accrued preferred
stock dividends
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(196,587)
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(131,832)
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(460,253)
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(325,418)
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INCOME APPLICABLE
TO COMMON SHAREHOLDERS
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$
427,996
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$
467,979
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$
1,072,961
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$
1,239,455
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Basic income per
common share after preferred dividends
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$
0.09
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$
0.09
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$
0.21
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$
0.25
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Diluted income per
common share after preferred dividends
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$
0.09
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$
0.09
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$
0.21
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$
0.25
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Weighted average
number of basic common
shares outstanding
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4,976,732
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4,994,061
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4,992,189
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4,993,571
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Weighted average
number of diluted common
shares outstanding
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4,976,732
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4,998,444
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4,992,189
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4,997,737
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View original
content:http://www.prnewswire.com/news-releases/willamette-valley-vineyards-posts-a-profit-for-the-third-quarter-2017-300553442.html
SOURCE Willamette Valley Vineyards