SALEM, Ore., May 10, 2018 /PRNewswire/ -- Willamette
Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated
income applicable to common shareholders of $75,561, or
$0.02 cents per share, for the first
quarter of 2018, down from $183,297, or $0.04 cents per share, for the corresponding
prior year period, representing a $107,736 or 58.8% decrease in income applicable
to common shareholders compared to first quarter 2017. Items
affecting the reduction in income applicable to common shareholders
include increased preferred stock accrued dividends when compared
to first quarter 2017.
The Company produced revenues of $4,532,619 and $4,450,545 in first quarters of 2018 and 2017,
respectively, an increase of $82,074
or 1.8%. The primary reasons for this increase are an
increase in direct sales of $61,036
and an increase in sales through distributors of $21,038 in the current year three month period
over the prior year period. Gross profit margin was 63.8% and
61.6% for the first quarters of 2018 and 2017, respectively.
Selling, general and administrative expenses were $2,417,900 and $2,239,738 for the first quarters of 2018 and
2017, respectively, an increase of $178,162 or 8.0%. Increases in selling,
general and administrative costs were partially the result of
increases in sales staffing and incentives.
Income from operations was $472,344 and $503,127 for the first quarters of 2018 and 2017,
respectively, a decrease of $30,783
or 6.1%.
Jim Bernau, Founder and President
of the winery, said "Our net results will show the new dividend
expense until we are able to deploy the large amount of new
invested cash in business development. Our new construction
is in the permitting process, so buckle-up, big things are on their
way."
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,
|
|
2018
|
|
2017
|
|
|
|
|
SALES,
NET
|
$
4,532,619
|
|
$
4,450,545
|
COST OF
SALES
|
1,642,375
|
|
1,707,680
|
|
|
|
|
GROSS
PROFIT
|
2,890,244
|
|
2,742,865
|
|
|
|
|
SELLING, GENERAL
& ADMINISTRATIVE EXPENSES
|
2,417,900
|
|
2,239,738
|
|
|
|
|
INCOME FROM
OPERATIONS
|
472,344
|
|
503,127
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
Interest
income
|
6,867
|
|
7,314
|
Interest
expense
|
(118,718)
|
|
(96,700)
|
Other income,
net
|
92,705
|
|
83,144
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
453,198
|
|
496,885
|
|
|
|
|
INCOME TAX
PROVISION
|
(122,744)
|
|
(181,755)
|
|
|
|
|
NET
INCOME
|
330,454
|
|
315,130
|
|
|
|
|
Accrued preferred
stock dividends
|
(254,893)
|
|
(131,833)
|
|
|
|
|
INCOME APPLICABLE
TO COMMON SHAREHOLDERS
|
$
75,561
|
|
$
183,297
|
|
|
|
|
Basic income per
common share after preferred dividends
|
$
0.02
|
|
$
0.04
|
|
|
|
|
Diluted income per
common share after preferred dividends
|
$
0.02
|
|
$
0.04
|
|
|
|
|
Weighted average
number of basic common shares
outstanding
|
4,964,529
|
|
5,005,749
|
Weighted average
number of diluted common shares
outstanding
|
4,964,529
|
|
5,010,173
|
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SOURCE Willamette Valley Vineyards