SALEM, Ore., March 22, 2018 /PRNewswire/ -- Willamette
Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated
income applicable to common shareholders
of $2,289,730, or $0.46
cents per share, for 2017, up from $2,166,446, or
$0.43 cents per share, for the
prior year, representing a $123,284,
or 5.7%, increase in income applicable to common shareholders when
compared to 2016.
Income from operations was $3,636,044 for 2017, down from $4,167,401 for the prior year, representing a
decrease of $531,357, or 12.8%, when
compared to 2016. The decrease in income from operations was
primarily the result in selling and administrative expense growth
exceeding growth in gross profit.
The Company produced revenue of $20,853,527 and $19,425,412 in the years of 2017 and 2016,
respectively, an increase of $1,428,115, or 7.4%, in the current year compared
to the prior year. The reasons for this increase include
increased sales in all categories.
Gross profit was $12,881,851 and
$12,220,528 for 2017 and 2016,
respectively, an increase of $661,323.
Selling, general and administrative expenses were $9,245,807 and $8,053,127 for 2017 and 2016, respectively, an
increase of $1,192,680 or
14.8%. Increased selling and administrative expenses were
primarily the result of efforts to increase sales and accommodate
and develop retail growth and new operations.
Income tax provision was $452,726
for 2017, down from $1,478,310 for
the prior year, representing a decrease of $1,025,584 or 69.4% when compared to 2016.
The decrease in income taxes was primarily the result of taxable
income and the cumulative effect of the "Tax Cuts and Jobs Act"
enacted by the US government in 2017.
Jim Bernau, Founder and President of the
winery, said, "With our expanded wine enthusiast
stockholder base, additional capital from the preferred stock sale
and retained earnings, we are making new investments and incurring
additional operating expense to develop new wines and
direct-to-consumer venues. The wine market is changing, and
we are moving quickly."
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.
|
|
|
Twelve months
ended
|
|
|
|
December
31,
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
SALES,
NET
|
$
20,853,527
|
|
$
19,425,412
|
COST OF
SALES
|
7,971,676
|
|
7,204,884
|
|
|
|
|
|
|
GROSS
PROFIT
|
12,881,851
|
|
12,220,528
|
|
|
|
|
|
|
SELLING, GENERAL
& ADMINISTRATIVE EXPENSES
|
9,245,807
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|
8,053,127
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
3,636,044
|
|
4,167,401
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
Interest
income
|
25,257
|
|
9,851
|
|
Interest
expense
|
(473,608)
|
|
(291,370)
|
|
Other income,
net
|
258,812
|
|
221,403
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
3,446,505
|
|
4,107,285
|
|
|
|
|
|
|
INCOME TAX
PROVISION
|
(452,726)
|
|
(1,478,310)
|
|
|
|
|
|
|
NET
INCOME
|
2,993,779
|
|
2,628,975
|
|
|
|
|
|
|
Preferred stock
dividends
|
(704,049)
|
|
(462,529)
|
|
|
|
|
|
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INCOME APPLICABLE
TO COMMON SHAREHOLDERS
|
$
2,289,730
|
|
$
2,166,446
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|
|
|
|
|
|
Basic income per
common share after preferred dividends
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$
0.46
|
|
$
0.43
|
|
|
|
|
|
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Diluted income per
common share after preferred dividends
|
$
0.46
|
|
$
0.43
|
|
|
|
|
|
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Weighted average
number of basic common shares outstanding
|
4,985,219
|
|
4,991,065
|
|
|
|
|
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Weighted average
number of diluted common shares outstanding
|
4,985,219
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|
4,995,343
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SOURCE Willamette Valley Vineyards