SALEM, Ore., Nov. 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 $640,347, or $0.13 cents
per share, for the third quarter of 2020, up from $595,748 or
$0.12 cents per share, for the
third quarter in the prior year, representing a $44,599, or 7.5%, increase in income applicable
to common shareholders in the third quarter of 2020 compared to the
third quarter of 2019.
Sales revenue for the three months ended September 30, 2020 and 2019 were $6,918,131 and $6,758,367, respectively, an increase of
$159,764, or 2.4%, in the current
year period over the prior year period. This increase was mainly
caused by an increase in direct sales of $265,018 being partially offset by a decrease in
sales through distributors of $105,254 in the current year three-month period
over the same period in the prior year. The increase in revenue
from direct sales to consumers was primarily the result of
increased retail sales revenues from our brand ambassador program
and increased wine sales made over the internet, which more than
offset lower revenues from hospitality and kitchen sales mostly due
to the restrictions on the operation of our tasting rooms resulting
from the COVID-19 pandemic in 2020. The decrease in revenue from
sales through distributors was primarily attributed to lower sales
to restaurants and similar businesses as many of these
establishments have been closed or had other restrictions placed on
them due to the COVID-19 pandemic in 2020.
Gross profit for the three months ended September 30, 2020 and 2019 was $4,221,197 and $4,064,022, respectively, an increase of
$157,175, or 3.9%, in the third
quarter of 2020 over the same quarter in the prior year.
Selling, general and administrative expenses for the three
months ended September 30, 2020 and
2019 was $2,917,363 and
$2,789,695 respectively, an increase
of $127,668, or 4.6%, in the current
quarter over the same quarter in the prior year. This increase was
primarily the result of an increase in selling expenses of
$15,918, or 0.9% and an increase in
general and administrative expenses of $111,750, or 12.0% in the current quarter
compared to the same quarter last year.
Net income for the three months ended September 30, 2020 and 2019 was $896,799 and $852,200, respectively, an increase of
$44,599, or 5.2%, in the third
quarter of 2020 over the same quarter in the prior year.
Jim Bernau, Founder and CEO of the
winery, said, "The winery has continued to demonstrate
brand strength, in the face of COVID-19 regulatory restrictions,
benefiting from strong stockholder support in retail stores and
direct shipments from the winery. It is inspiring to witness our
employees' resourcefulness in protecting their fellow employees and
guests while driving sales and making excellent wines."
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 third quarter, see our Form 10-Q for
the three months ended September 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. These forward-looking statements involve risks
and uncertainties that are based on current expectations, estimates
and projections about the Company's business, and beliefs and
assumptions made by management. Words such as "expects,"
"anticipates," "intends," "plans," "believes," "seeks," "estimates"
"intends," "plans," "predicts," "potential," "should," or "will" or
the negative thereof and variations of such words and similar
expressions are intended to identify such forward-looking
statements. Therefore, actual outcomes and results may differ
materially from what is expressed or forecasted in such
forward-looking statements due to numerous factors, including, but
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 or smoke from forest fires,
changes in consumer spending, the reduction in consumer demand for
premium wines and the impact of the COVID-19 pandemic and the
policies of United States federal,
state and local governments in response to such pandemic. In
addition, such statements could be affected by general industry and
market conditions and growth rates, and general domestic economic
conditions. Many of these risks as well as other risks that
may have a material adverse impact on our operations and business,
are identified in Item 1A "Risk Factors" in the Company's Annual
Report on Form 10-K for the year ended December 31, 2019, as well as in the Company's
other Securities and Exchange Commission filings and
reports.
The following is the Company's Condensed Statement of Income for
the three months and nine months ended September 30, 2020 compared to the three and nine
months ended September 30, 2019:
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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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|
|
|
|
2020
|
|
2019
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2020
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2019
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SALES,
NET
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$
6,918,131
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$
6,758,367
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|
$
19,008,680
|
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$
17,547,990
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COST OF
SALES
|
|
2,696,934
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|
2,694,345
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|
7,373,909
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6,704,974
|
|
|
|
|
|
|
|
|
|
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GROSS
PROFIT
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4,221,197
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4,064,022
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11,634,771
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10,843,016
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OPERATING
EXPENSES
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|
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Sales and
marketing
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1,876,455
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1,860,537
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5,238,493
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5,542,123
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General and
administrative
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1,040,908
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|
929,158
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3,064,332
|
|
2,865,697
|
|
|
Total operating
expenses
|
|
2,917,363
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|
2,789,695
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8,302,825
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8,407,820
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INCOME FROM
OPERATIONS
|
|
1,303,834
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|
1,274,327
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|
3,331,946
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2,435,196
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OTHER INCOME
(EXPENSE)
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Interest
income
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2,615
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25,268
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|
17,845
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|
35,554
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Interest
expense
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(103,283)
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(110,547)
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(314,158)
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(332,049)
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Other income
(expense), net
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37,097
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(18,060)
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137,899
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103,040
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INCOME BEFORE
INCOME TAXES
|
|
1,240,263
|
|
1,170,988
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|
3,173,532
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|
2,241,741
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INCOME TAX
PROVISION
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(343,464)
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(318,788)
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(869,230)
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(603,154)
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NET
INCOME
|
|
896,799
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|
852,200
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2,304,302
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1,638,587
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Accrued preferred
stock dividends
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(256,452)
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(256,452)
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(769,356)
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(769,357)
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INCOME APPLICABLE
TO COMMON SHAREHOLDERS
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$
640,347
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$
595,748
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$
1,534,946
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$
869,230
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Earnings per
common share after preferred dividends, basic and diluted
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$
0.13
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$
0.12
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$
0.31
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$
0.18
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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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content:http://www.prnewswire.com/news-releases/willamette-valley-vineyards-posts-a-profit-for-q3-2020-301172469.html
SOURCE Willamette Valley Vineyards