SALEM, Ore., March 21, 2019 /PRNewswire/ -- Willamette Valley
Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated
income applicable to common shareholders
of $1,839,665, or $0.37
cents per share, for 2018, down from $2,289,730, or
$0.46 cents per share, for the
prior year, representing a $450,065, or 19.7%, decrease in income applicable
to common shareholders when compared to 2017. The decrease
was primarily the effect of $493,081
increase in income before income taxes being more than offset by a
$628,280 increase in income tax
provision as well as a $314,866
increase in preferred stock dividends. The higher income tax
provision was the result of the 2017 tax provision being smaller
due to the cumulative effects of the "Tax Cuts and Jobs Act"
enacted by the US government in 2017.
Income from operations was $4,182,715 for 2018, up from $3,636,044 for the prior year, representing an
increase of $546,671, or 15.0%, when
compared to 2017. The increase in income from operations was
primarily the result of higher gross profit partially offset by
higher selling and administrative costs.
The Company produced revenue of $23,079,739 and $20,853,527 in the years of 2018 and 2017,
respectively, an increase of $2,226,212, or 10.7%, in the current year
compared to the prior year. The reasons for this increase
include increased sales in all categories.
Gross profit was $14,781,499 and
$12,881,851 for 2018 and 2017,
respectively, an increase of $1,899,648.
Operating expenses were $10,598,784 and $9,245,807 for 2018 and 2017, respectively, an
increase of $1,352,977 or
14.6%. Increased operating expenses were primarily the result
of efforts to increase sales and accommodate and develop new direct
to consumer opportunities.
Jim Bernau, Founder and President of the
winery, said "We are pleased Income from Operations was
up 15% for the year. Earnings are affected by the dividend
cost as we raised the money needed for the planned winery near
Dundee prior to construction.
As we are able to deploy these development funds, we expect
the projected earnings to more than offset the higher dividend
costs."
Willamette Valley Vineyards, Inc. is headquartered at its Estate
Vineyard near Salem, Oregon.
The Company's common stock is traded on NASDAQ (WVVI).
Forward-looking statements in this release are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995, and are identified by such words and phrases as
"expects," "thinks," "believes," "anticipates" and words of similar
import. Such forward-looking statements are subject to risks
and uncertainties and actual results could differ materially from
those projected. Such risks and uncertainties include, but
are not limited to: availability of financing for growth,
availability of adequate supply of high quality grapes, successful
performance of internal operations, impact of competition, changes
in wine broker or distributor relations or performance, impact of
possible adverse weather conditions, impact of reduction in grape
quality or supply due to disease, impact of governmental regulatory
decisions and other risks.
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Twelve months
ended
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December
31,
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2018
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2017
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SALES,
NET
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$
23,079,739
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$
20,853,527
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COST OF
SALES
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8,298,240
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7,971,676
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GROSS
PROFIT
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14,781,499
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12,881,851
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OPERATING
EXPENSES:
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Sales and
marketing
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6,701,837
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5,912,977
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General and
administrative
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3,896,947
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3,332,830
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Total operating
expenses
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10,598,784
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9,245,807
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INCOME FROM
OPERATIONS
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4,182,715
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3,636,044
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OTHER INCOME
(EXPENSE)
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Interest
income
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26,591
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25,257
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Interest
expense
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(457,689)
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(473,608)
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Other income,
net
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187,969
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258,812
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INCOME BEFORE
INCOME TAXES
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3,939,586
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3,446,505
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INCOME TAX
PROVISION
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(1,081,006)
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(452,726)
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NET
INCOME
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2,858,580
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2,993,779
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Preferred stock
dividends
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(1,018,915)
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(704,049)
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INCOME APPLICABLE
TO COMMON SHAREHOLDERS
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$
1,839,665
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$
2,289,730
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Basic income per
common share after preferred dividends
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$
0.37
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$
0.46
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Weighted average
number of basic common shares outstanding
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4,964,529
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4,985,219
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SOURCE Willamette Valley Vineyards