Willamette Valley Vineyards Posts a Profit for the Second Quarter
Willamette Valley Vineyards Posts a Profit for the Second Quarter 2012
SALEM, Ore., Aug. 10, 2012 - Willamette Valley Vineyards (NASDAQ: WVVI), a leading Oregon producer of Pinot Noir, generated a net profit of $219,912, or $0.05 cents per share for the second quarter of 2012, an increase of 27.6% from the comparable prior year period. Results for the corresponding prior year period was a net profit of $172,369, or $0.04 cents per share.
Second quarter 2012 sales revenue decreased 0.4% and gross profit increased 1.3% compared to the second quarter of 2011. Sales, general and administrative expenses increased by 11.7% over the prior year second quarter due to increases in the company’s sales effort to compensate for changes from its Oregon self-distribution to restaurants and stores to selling through a wine wholesaler.
Jim Bernau, Founder and President of the winery said “This quarter shows our better net profit is resulting from focusing on our core mission. While we operated a successful wine distributorship through Bacchus Fine Wines, increasing government regulation made it a heavy administrative burden.”
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, impact of governmental regulatory decisions and other risks.
WILLAMETTE VEY VINEYARDS, INC.
STATEMENTS OF OPERATIONS
—-
Three months ended Six months ended
June 30, June 30,
- -
2012 2011 2012 2011
(unaudited) (unaudited) (unaudited) (unaudited)
—- —- —- —-
SALES $2,851,146 $2,861,609 $5,573,750 $5,597,621
COST OF SALES 1,151,833 1,183,807 2,261,075 2,449,068
— — — —
GROSS PROFIT 1,699,313 1,677,802 3,312,675 3,148,553
SELLING, GENERAL & ADMIN EXPENSES 1,213,979 1,087,274 2,374,512 2,303,288
— — — —
INCOME FROM OPERATIONS 485,334 590,528 938,163 845,265
OTHER INCOME (EXPENSE)
Interest
income 1,246 2,247 4,237 4,847
Interest
expense (42,668) (49,369) (81,788) (98,546)
Other income,
net 35,630 2,778 73,054 3,891
———
INCOME BEFORE INCOME TAXES 479,542 546,184 933,666 755,457
INCOME TAX PROVISION (203,081) (236,077) (382,567) (323,026)
- - - -
INCOME FROM CONTINUING OPERATIONS $276,461 $310,107 $551,099 $432,431
======== ======== ======== ========
DISCONTINUED OPERATIONS
Loss from
operations (97,499) (237,480) (253,330) (399,482)
Income tax
benefit 40,950 99,742 106,399 167,782
LOSS FROM DISCONTINUED OPERATIONS (56,549) (137,738) (146,931) (231,700)
- - -
NET INCOME $219,912 $172,369 $404,168 $200,731
======== ======== ======== ========
BASIC NET INCOME FROM CONTINUING
OPERATIONS PER
COMMON SHARE $0.06 $0.06 $0.11 $0.09
BASIC NET LOSS FROM DISCONTINUED
OPERATIONS PER
COMMON SHARE $(0.01) $(0.03) $(0.03) $(0.05)
BASIC NET INCOME PER COMMON SHARE $0.05 $0.04 $0.08 $0.04
===== ===== ===== =====
DILUTED NET INCOME FROM CONTINUING
OPERATIONS
PER COMMON
SHARE $0.06 $0.06 $0.11 $0.09
DILUTED NET LOSS FROM DISCONTINUED
OPERATIONS PER
COMMON SHARE $(0.01) $(0.03) $(0.03) $(0.05)
DILUTED NET INCOME PER COMMON SHARE $0.05 $0.04 $0.08 $0.04
===== ===== ===== =====
Weighted average number of
basic common
shares
outstanding 4,871,303 4,892,977 4,879,494 4,892,977
=============
Weighted average number of
diluted common
shares
outstanding 4,877,145 4,897,150 4,885,336 4,897,700
=============
SOURCE Willamette Valley Vineyards
Willamette Valley Vineyards
CONTACT: Jim Bernau, 1-800-344-9463
Web Site: http://www.wvv.com