SALEM, Ore., Aug. 12, 2020 /PRNewswire/ -- Willamette Valley
Vineyards, Inc. (NASDAQ:WVVI) (the "Company"), a leading
Oregon producer of Pinot Noir,
generated income applicable to common shareholders
of $363,969, or $0.07 cents
per share, for the second quarter of 2020, up from $103,459 or
$0.02 cents per share, for the
second quarter in the prior year, representing a $260,510, or 251.8%, increase in income
applicable to common shareholders compared to the second quarter
of 2019.
Sales revenue for the second quarters of 2020 and 2019 were
$5,568,654 and $5,790,837, respectively, a decrease of
$222,183, or 3.8%, in the current
year period over the prior year period. This decrease was mainly
caused by a decrease in direct sales of $156,802 and a decrease in sales through
distributors of $65,381 in the
current year quarter over the prior year period. The decrease in
direct sales to consumers was primarily the result of retail sales
decreases in tasting room revenue, hospitality and kitchen sales
mostly due to the temporary closure and restrictions on the
operation of our tasting rooms resulting from the COVID-19
pandemic. The decrease in revenue from sales through distributors
was primarily attributed to lower sales to the on-premise market as
many of these establishments have been closed or had other
restrictions placed on them due to the COVID-19 pandemic.
Gross profit for the second quarters of 2020 and 2019 was
$3,501,532 and $3,498,358, respectively, an increase of
$3,174, or 0.1%, in the second
quarter of 2020 over the same quarter in the prior year.
Selling, general and administrative expense for the second
quarters of 2020 and 2019 was $2,555,958 and $2,901,927 respectively, a decrease of
$345,969, or 11.9%, in the current
quarter over the same quarter in the prior year. This
decrease was primarily the result of a decrease in selling expenses
of $292,588, or 15.3% and a decrease
in general and administrative expenses of $53,381, or 5.4% in the current quarter compared
to the same quarter last year.
Net income for the second quarters of 2020 and 2019 was
$620,421 and $359,911, respectively, an increase of
$260,510, or 72.4%, in the second
quarter of 2020 over the same quarter in the prior year.
Jim Bernau, Founder and CEO of the
winery, said "The winery has shown remarkable resilience
during the Pandemic due to the brand's strength in grocery and
direct shipments to consumers," said Jim
Bernau, Founder and CEO, "Our employees' resourcefulness in
protecting their fellow employees and guests while driving sales
and making excellent wines is inspiring."
The extent of the impact of the COVID-19 pandemic on the
Company's business is highly uncertain and difficult to predict, as
the response to the pandemic is continuing to evolve. The severity
of the impact of the COVID-19 pandemic on the Company's business
will depend on a number of factors, including, but not limited to,
the duration and severity of the pandemic and the extent and
severity of the impact on the Company's customers, all of which are
uncertain and cannot be predicted.
For a complete discussion of the Company's financial condition
and operating results for the second quarter, see our Form 10-Q for
the three months ended June 30, 2020,
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 the COVID-19
pandemic and the policies of United
States federal, state, and local governments in response to
such pandemic, 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, and in our Quarterly Report on
Form 10-Q for the quarterly period ended June 30, 2020, each as filed with the United
States Securities and Exchange Commission.
The following is the Company's Statement of Income for the three
months and six months ended June 30,
2020 compared to the three and six months ended June 30, 2019:
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Three months
ended
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Six months
ended
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|
June
30,
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June
30,
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|
|
2020
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|
2019
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2020
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2019
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SALES,
NET
|
$
5,568,654
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$
5,790,837
|
|
$
12,090,549
|
|
$
10,789,623
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COST OF
SALES
|
2,067,122
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|
2,292,479
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4,676,975
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4,010,629
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GROSS
PROFIT
|
3,501,532
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3,498,358
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7,413,574
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|
6,778,994
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OPERATING
EXPENSES
|
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Sales and
marketing
|
1,613,998
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1,906,586
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3,362,038
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3,681,586
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General and
administrative
|
941,960
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995,341
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2,023,424
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1,936,539
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Total operating
expenses
|
2,555,958
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2,901,927
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5,385,462
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5,618,125
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INCOME FROM
OPERATIONS
|
945,574
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596,431
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2,028,112
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1,160,869
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OTHER INCOME
(EXPENSE)
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Interest
income
|
5,713
|
|
840
|
|
15,230
|
|
10,286
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Interest
expense
|
(105,133)
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(111,088)
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(210,875)
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(221,502)
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Other income,
net
|
5,800
|
|
8,091
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|
100,802
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|
121,100
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INCOME BEFORE
INCOME TAXES
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851,954
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494,274
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1,933,269
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1,070,753
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INCOME TAX
PROVISION
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(231,533)
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(134,363)
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(525,766)
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(284,366)
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NET
INCOME
|
620,421
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359,911
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1,407,503
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786,387
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Accrued preferred
stock dividends
|
(256,452)
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(256,452)
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(512,904)
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(512,904)
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INCOME APPLICABLE
TO COMMON SHAREHOLDERS
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$
363,969
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$
103,459
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$
894,599
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$
273,483
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Earnings per
common share after preferred dividends, basic and
diluted
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$
0.07
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$
0.02
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$
0.18
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$
0.06
|
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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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SOURCE Willamette Valley Vineyards