SALEM, Ore., March 11, 2020 /PRNewswire/ -- Willamette
Valley Vineyards, Inc. (NASDAQ:WVVI) (the "Company"), a leading
Oregon producer of Pinot Noir,
generated income applicable to common shareholders
of $1,484,838, or $0.30
cents per share, for 2019, down from $1,839,665, or
$0.37 cents per share, for the
prior year, representing a $354,827, or 19.3%, decrease in income applicable
to common shareholders in 2019 when compared to
2018. This decrease was primarily driven by lower net
income.
Income from operations was $3,727,524 and $4,182,715 for the years ended December 31, 2019 and 2018, respectively, a
decrease of $455,191, or 10.9%, for
the year ended December 31, 3019
compared to the prior year period. The primary reason for this
decrease was increased gross profit being more than offset by
increased selling and administrative expense.
The Company had net sales of $24,749,263 and $23,079,739 for the years December 31, 2019 and 2018, respectively, an
increase of $1,669,524 or 7.2%, for
the year ended December 31, 2019 over
the prior year period. The reasons for this increase include
increased retail sales 6.4%, in-state sales 6.0% and out-of-state
sales 11.2%.
Gross profit was $15,294,582 and
$14,781,499 for the years ended
December 31, 2019 and 2018,
respectively, an increase of $513,083, or 3.5%, for the year ended
December 31, 2019 over the prior year
period. This increase was generally driven by an increase in sales
revenues partially offset by a higher cost of sales.
Operating expenses were $11,567,058 and $10,598,784 for 2019 and 2018, respectively, an
increase of $968,274 or
9.1%. Increased operating expenses were primarily the result
of efforts to increase sales and accommodate and develop new direct
to consumer opportunities in 2019.
Jim Bernau, Founder and President of the
winery, said, "We are pleased sales revenues increased by
over 7% for the year while we invested in growing our brand and
retail operations. Our earnings are affected by the dividend cost
associated with our outstanding shares of preferred stock which
were issued in 2015 and 2017 to help fund our winery under
construction near Dundee, Oregon
and the micro-winery, Willamette Wineworks, in Folsom, California. As these two new wineries
come on line and are integrated into our organization, we expect
them to eventually generate aggregate annual earnings that
will more than offset the annual dividend costs associated with our
currently outstanding preferred stock."
For a complete discussion of the Company's financial condition
and operating results, see our Form 10-K for the year ended
December 31, 2019, as filed with the
United States Securities and Exchange Commission on EDGAR.
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, the ability of our planned winery in Dundee Oregon and planned micro-winery in
Folsom California to generate
revenues in excess of costs, the impact of governmental regulatory
decisions and other risks set forth under Item 1A "Risk Factors" in
our Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the United
States Securities and Exchange Commission.
The following is the Company's Statement of Income for the year
ended December 31, 2019 compared to
the year ended December 31, 2018:
|
Twelve months
ended
|
|
December
31,
|
|
2019
|
|
2018
|
|
|
|
|
|
|
SALES,
NET
|
$
24,749,263
|
|
$
23,079,739
|
COST OF
SALES
|
9,454,681
|
|
8,298,240
|
|
|
|
|
|
|
GROSS
PROFIT
|
15,294,582
|
|
14,781,499
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
Sales and
marketing
|
7,449,088
|
|
6,701,837
|
|
General and
administrative
|
4,117,970
|
|
3,896,947
|
|
|
Total operating
expenses
|
11,567,058
|
|
10,598,784
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
3,727,524
|
|
4,182,715
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
Interest
income
|
48,066
|
|
26,591
|
|
Interest
expense
|
(440,999)
|
|
(457,689)
|
|
Other income,
net
|
128,433
|
|
187,969
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
3,463,024
|
|
3,939,586
|
|
|
|
|
|
|
INCOME TAX
PROVISION
|
(952,123)
|
|
(1,081,006)
|
|
|
|
|
|
|
NET
INCOME
|
2,510,901
|
|
2,858,580
|
|
|
|
|
|
|
Preferred stock
dividends
|
(1,026,063)
|
|
(1,018,915)
|
|
|
|
|
|
|
INCOME APPLICABLE
TO COMMON SHAREHOLDERS
|
$
1,484,838
|
|
$
1,839,665
|
|
|
|
|
|
|
Basic income per
common share after preferred dividends
|
$
0.30
|
|
$
0.37
|
|
|
|
|
|
|
Weighted average
number of basic common shares outstanding
|
4,964,529
|
|
4,964,529
|
View original
content:http://www.prnewswire.com/news-releases/willamette-valley-vineyards-posts-a-profit-for-2019-301021933.html
SOURCE Willamette Valley Vineyards