Willamette Valley Vineyards Posts a Profit for the Third Quarter 2016

From www.prnewswire.com by Willamette Valley Vineyards
Willamette Valley Vineyards Posts a Profit for the Third Quarter 2016

SALEM, Ore., Nov. 10, 2016 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated income applicable to common shareholders of $467,979, or $0.09 cents per share, for the third quarter of 2016, up from $454,256, or $0.9 cents per share, for the corresponding prior year period, representing a $13,723 or 3.0% increase in income applicable to common shareholders compared to third quarter 2015. 

The Company produced revenues of $4,741,711 and $4,244,519 in third quarters of 2016 and 2015, respectively, an increase of $497,192 or 11.7%.  An increase in both direct sales and distributor sales, when comparing the third quarter 2016 to third quarter 2015, accounted for the increase in total sales.

Selling, general and administrative expenses were $2,046,948 and $1,889,206 for the third quarters of 2016 and 2015, respectively, an increase of $157,742 or 8.3%.

Income from operations was $994.303 and $746.745 for the third quarters of 2016 and 2015, respectively, an increase of $247,558 or 33.2%.  This increase was the result of both increased sales and a higher gross profit margin for third quarter 2016 when compared to third quarter 2015.

Jim Bernau, Founder and President of the winery, said, "We are very pleased with our growth in sales and operating income.  Right now, dividends are holding down net earnings per share because capital generated from the sale of Preferred Stock has yet to be deployed into enterprises that generate earnings."

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


Nine months ended

September 30,


September 30,

2016


2015


2016


2015


SALES, NET

$   4,741,711


$   4,244,519


$   13,564,508


$   12,878,174

COST OF SALES

1,700,460


1,608,568


4,999,908


5,178,536


GROSS PROFIT

3,041,251


2,635,951


8,564,600


7,699,638


SELLING, GENERAL & ADMINISTRATIVE EXPENSES

2,046,948


1,889,206


6,000,017


5,609,342


INCOME FROM OPERATIONS

994,303


746,745


2,564,583


2,090,296


OTHER INCOME (EXPENSE)

Interest income

2,688


74


7,489


78


Interest expense

(71,264)


(76,535)


(216,429)


(231,544)


Other income, net

35,626


37,502


162,126


155,427


INCOME BEFORE INCOME TAXES

961,353


707,786


2,517,769


2,014,257


INCOME TAX PROVISION 

(361,542)


(253,530)


(952,896)


(735,532)


NET INCOME

599,811


454,256


1,564,873


1,278,725


Accrued preferred stock dividends

(131,832)


-


(325,418)


-


INCOME APPLICABLE TO COMMON SHAREHOLDERS

$         467,979


$         454,256


$         1,239,455


$         1,278,725


Basic income per common share after preferred dividends

$                0.09


$                0.09


$                   0.25


$                   0.26


Diluted income per common share after preferred dividends

$                0.09


$                0.09


$                   0.25


$                   0.26


Weighted average number of basic common shares outstanding

4,994,061


4,956,163


4,993,571


4,916,467

Weighted average number of diluted common shares outstanding

4,998,444


5,007,883


4,997,737


4,964,520

 

 

SOURCE Willamette Valley Vineyards

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