SALEM, Ore., Nov. 13, 2019 /PRNewswire/ -- Willamette
Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated
income applicable to common shareholders of $595,748, or
$0.12 cents per share, for the third
quarter of 2019, up from $385,199, or $0.08 cents per share, for the corresponding
prior year period, representing a $210,549 or 54.7% increase in income applicable
to common shareholders compared to the third quarter
2018.
The Company produced revenues of $6,758,367 and $5,461,039 in the third quarters of 2019 and
2018, respectively, an increase of $1,297,328 or 23.8%. This increase was
caused by an increase in direct sales of $49,535 and an increase in sales through
distributors of $1,247,793. The
increase in revenue from sales through distributors was partially
the result of timing attributed to recovering lower sales from
quarter 2 in quarter 3.
Gross profit was $4,064,022 and
$3,542,171 for the third quarters of
2019 and 2018, respectively, a increase of $521,851 or 14.7%. This increase was
primarily the result of higher sales revenues being partially
offset by higher unit cost of sales when compared to the
corresponding period in the prior year.
Selling, general and administrative expense for the three months
ended September 30, 2019 and
2018 was $2,789,695 and
$2,569,229 respectively, an increase
of $220,466, or 8.6%, in the current
year period over the prior year period.
Income from operations was $1,274,327 and $972,942 for the third quarters of 2019 and 2018,
respectively, an increase of $301,385
or 31.0%. This increase was the result of an increase in
revenue partly offset with growth in selling, general and
administrative expenses.
Jim Bernau, Founder and President
of the winery, said, "We had a strong quarter as we recovered from
the problems executing distribution in Oregon and Washington in the second quarter."
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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|
|
|
|
2019
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2018
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2019
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2018
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SALES,
NET
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$
6,758,367
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$
5,461,039
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$
17,547,990
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$
15,814,950
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COST OF
SALES
|
|
2,694,345
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1,918,868
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6,704,974
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5,660,429
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GROSS
PROFIT
|
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4,064,022
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3,542,171
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10,843,016
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10,154,521
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OPERATING
EXPENSES
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Sales and
marketing
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1,860,537
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1,699,236
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5,542,123
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4,867,687
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General and
administrative
|
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929,158
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869,993
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2,865,697
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2,662,643
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Total operating
expenses
|
|
2,789,695
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2,569,229
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8,407,820
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7,530,330
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INCOME FROM
OPERATIONS
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1,274,327
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972,942
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2,435,196
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2,624,191
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OTHER INCOME
(EXPENSE)
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Interest
income
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25,268
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|
1,964
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|
35,554
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|
10,968
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Interest
expense
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(110,547)
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(119,270)
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(332,049)
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(354,272)
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Other
income/(expense), net
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(18,060)
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25,967
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103,040
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164,009
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INCOME BEFORE
INCOME TAXES
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1,170,988
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881,603
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2,241,741
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2,444,896
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INCOME TAX
PROVISION
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(318,788)
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(239,966)
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(603,154)
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(669,549)
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NET
INCOME
|
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852,200
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641,637
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1,638,587
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1,775,347
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Accrued preferred
stock dividends
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(256,452)
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(256,438)
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(769,357)
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(767,770)
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INCOME APPLICABLE
TO COMMON SHAREHOLDERS
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$
595,748
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$
385,199
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$
869,230
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$
1,007,577
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Income per common
share after preferred dividends
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$
0.12
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$
0.08
|
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$
0.18
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$
0.20
|
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Weighted average
number of common
shares outstanding
|
|
4,964,529
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|
4,964,529
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|
4,964,529
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4,964,529
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View original
content:http://www.prnewswire.com/news-releases/willamette-valley-vineyards-posts-a-profit-for-the-third-quarter-2019-300957926.html
SOURCE Willamette Valley Vineyards