SALEM, Ore., March 29 /PRNewswire-FirstCall/ -- Willamette Valley Vineyards produced a profit for 2009 which was higher than the prior year. Revenues increased 3% to $16,563,712, net earnings increased by 3% to $731,470 and diluted earnings per share increased to 15 cents - up from 14 cents in the prior year.
The increase in total revenue is mainly due to increased sales to out-of-state distributors which improved over 7% as compared to 2008. This income contribution from sales to out-of-state distributors suffered from a small amount of reduced gross margin due to higher wine production costs and promotional allowances.
Oregon wholesale sales and logistics expenses were significantly higher in 2009, in part due to one-time expenses for implementation of stronger inventory management and controls. These wholesale organizational and sales costs were the single largest cause of the Company's reduced operating income.
Retail operation's income contribution also suffered from a small amount of reduced gross margin due to higher wine production costs and the expenses of the winery's new outlet in downtown McMinnville called the Willamette Valley Vineyards Wine Center. This small retail start-up loss was expected.
Changes in the accounting treatment for farming costs contributed approximately $200,000 in reduced income tax expenses versus the prior year's tax burden.
Willamette Valley Vineyards, Inc. is a leading producer of Pinot Noir in Oregon and is headquartered at its Estate Vineyard near Salem, Oregon. The Company's 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. Statements of Operations For the Years Ended December 31, 2009 and 2008 2009 2008 Net revenues $16,563,712 $16,048,238 Cost of goods sold 8,849,800 8,229,877 --------- --------- Gross margin 7,713,912 7,818,361 Selling, general and administrative expenses 6,596,513 6,455,203 --------- --------- Income from operations 1,117,399 1,363,158 --------- --------- Other income (expenses): Interest income 17,042 36,746 Interest expense (162,113) (116,383) Other income/(expense) 3,143 (20,386) ----- ------- (141,928) (100,023) -------- -------- Income before income taxes 975,471 1,263,135 Income tax provision 244,001 554,541 ------- ------- Net income $731,470 $708,594 ======== ======== Basic net income per common share $0.15 $0.15 ===== ===== Diluted net income per common share $0.15 $0.14 ===== =====
Willamette Valley Vineyards
CONTACT: Jim Bernau, 1-800-344-9463, for Willamette Valley Vineyards
Web Site: http://www.wvv.com/
