SALEM, Ore., Aug. 14, 2019 /PRNewswire/ -- Willamette
Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated
income applicable to common shareholders of $103,459, or
$0.02 cents per share, for the second
quarter of 2019, down from $546,817, or $0.11 cents per share, for the corresponding
prior year period, representing a $443,358 or 81.1% decrease in income applicable
to common shareholders compared to second quarter 2018.
The Company produced revenues of $5,790,837 and $5,821,292 in second quarters of 2019 and 2018,
respectively, a decrease of $30,455
or 0.5%. This decrease was caused by an increase in direct
sales of $5,957 and a decrease in
sales through distributors of $36,412. The decrease in sales through
distributors was primarily the result of the Company's Oregon and Washington distributor experiencing problems
in their new order/delivery systems. This resulted in a
significant reduction in Oregon
and Washington sales and
deliveries during the second quarter 2019.
Gross profit was $3,498,358 and
$3,772,106 for the second quarters of
2019 and 2018, respectively, a decrease of $223,748 or 6.0%. This decrease is the
result of a higher cost of product sales that the Company believes
is associated with specific vintages being sold during the second
quarter 2019.
Selling, general and administrative expenses were $2,901,927 and $2,543,201 for the second quarters of 2019 and
2018, respectively, an increase of $358,726 or 14.1%. This increase was
primarily the result of increases in staffing, marketing, long-term
planning and development activities and an increase in professional
fees.
Income from operations was $596,431 and $1,178,905 for the second quarters of 2019 and
2018, respectively, a decrease of $582,474 or 49.4%. This decrease was the
result of a decrease in revenue and growth in selling, general and
administrative expenses.
Jim Bernau, Founder and President
of the winery, said, "We had a difficult quarter due to problems
executing distribution in Oregon
and Washington. We are working closely with the distributor
to address these issues and anticipate an improved process going
forward."
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.
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES,
NET
|
|
$
5,790,837
|
|
$
5,821,292
|
|
$
10,789,623
|
|
$
10,353,911
|
COST OF
SALES
|
2,292,479
|
|
2,099,186
|
|
4,010,629
|
|
3,741,561
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
3,498,358
|
|
3,722,106
|
|
6,778,994
|
|
6,612,350
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
1,906,586
|
|
1,641,372
|
|
3,681,586
|
|
3,168,451
|
|
General and
administrative
|
995,341
|
|
901,829
|
|
1,936,539
|
|
1,792,650
|
|
|
Total operating
expenses
|
2,901,927
|
|
2,543,201
|
|
5,618,125
|
|
4,961,101
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
596,431
|
|
1,178,905
|
|
1,160,869
|
|
1,651,249
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
Interest
income
|
840
|
|
2,137
|
|
10,286
|
|
9,004
|
|
Interest
expense
|
(111,088)
|
|
(116,284)
|
|
(221,502)
|
|
(235,002)
|
|
Other income,
net
|
8,091
|
|
45,336
|
|
121,100
|
|
138,042
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
494,274
|
|
1,110,094
|
|
1,070,753
|
|
1,563,293
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
PROVISION
|
(134,363)
|
|
(306,839)
|
|
(284,366)
|
|
(429,583)
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
359,911
|
|
803,255
|
|
786,387
|
|
1,133,710
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued preferred
stock dividends
|
(256,452)
|
|
(256,438)
|
|
(512,904)
|
|
(511,332)
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME APPLICABLE TO COMMON
SHAREHOLDERS
|
$
103,459
|
|
$
546,817
|
|
$
273,483
|
|
$
622,378
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common
share after preferred dividends
|
$
0.02
|
|
$
0.11
|
|
$
0.06
|
|
$
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of
|
|
|
|
|
|
|
|
|
common shares
outstanding
|
4,964,529
|
|
4,964,529
|
|
4,964,529
|
|
4,964,529
|
View original
content:http://www.prnewswire.com/news-releases/willamette-valley-vineyards-posts-a-profit-for-the-second-quarter-2019-300901898.html
SOURCE Willamette Valley Vineyards