SALEM, Ore., Aug. 14 /PRNewswire-FirstCall/ -- Willamette Valley Vineyards , Oregon's only publicly held winery, posted a profit for the Second Quarter 2008 which was less than the prior year. Earnings for the Second Quarter of 2008 were $157,527 as compared to $265,177 for 2007, or $0.03 per share as compared with $0.06 per share for 2007. Earnings for the first six months of 2008 were $217,625 as compared to $499,440 for 2007, or $0.04 per share as compared with $0.10 per share for 2007.
Profits were principally affected by substantial, one-time accounting and legal expenses due to problems resulting from the implementation of the new accounting and order processing system for the Company's Wholesale Department called Bacchus Fine Wines.
Additionally, winery Founder and CEO Jim Bernau warned investors the first three Quarters of 2008 could be weaker due to the outage of three key Pinot Noir products. The winery is increasing production but doesn't expect the additional case volumes to begin to be available until the Fourth Quarter.
Willamette Valley Vineyards, Inc. is Oregon's leading producer of Pinot Noir and is headquartered at its Estate Vineyard near Turner, Oregon. Willamette Valley Vineyards common stock is traded on NASDAQ (Symbol: 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 VALLEY VINEYARDS, INC. Statement of Operations (unaudited) Three months ended June 30, Six months ended June 30, 2008 2007 2008 2007 Net revenues Case revenue $3,884,983 $3,717,426 $7,287,656 $7,303,987 Facility Lease - 8,793 - 17,586 Total net revenues 3,884,983 3,726,219 7,287,656 7,321,573 Cost of sales Case 1,973,844 1,999,942 3,727,678 3,896,173 Bulk - 986 - 986 Total cost of sales 1,973,844 2,000,928 3,727,678 3,897,159 Gross profit 1,911,139 1,725,291 3,559,978 3,424,414 Selling, general and administrative expenses 1,645,963 1,266,844 3,174,471 2,577,017 Net operating income 265,176 458,447 385,507 847,397 Other income (expense) Interest income 16,222 11,053 17,193 28,111 Interest expense (17,715) (27,523) (40,043) (55,760) Other income (expense) (1,139) - 53 12,667 Net income before income taxes 262,544 441,977 362,710 832,415 Income tax 105,017 176,800 145,085 332,975 Net income 157,527 265,177 217,625 499,440 Retained earnings beginning of period 5,151,405 3,638,909 5,091,307 3,404,646 Retained earnings end of period $5,308,932 $3,904,086 $5,308,932 $3,904,086 Basic earnings per common share $.03 $.06 $.04 $.10 Diluted earnings per common share $.03 $.05 $.04 $.10
