SALEM, Ore., Nov. 15, 2010 /PRNewswire-FirstCall/ -- Willamette Valley Vineyards , a leading producer of Pinot Noir, generated a profit of $171,345 or $0.04 cents per share for the three months ending September 30, 2010. Comparable results for the comparable prior year period include a net profit of $248,021 and $0.05 cents per share.
Third quarter 2010 sales revenue increased 5.5% and gross profit decreased 7.4% compared to the third quarter of 2009. The decrease in gross profit is due to higher cost of goods relative to prices received and is the reason for the decrease in net profit over comparable periods.
Jim Bernau, Founder and President of the winery said "The economy is showing signs of life evidenced by our higher revenues. Now, we just need to work through some high cost of goods to get back to historical gross margins."
Bernau noted Company cash flow has improved due to his Bacchus Fine Wines sales staff dramatically reducing purchased wine inventory while growing customer service and wine sales.
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 works and phrases as "experts,", "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 Nine months ended September 30, September 30, 2010 2009 2010 2009 Net revenues Case revenue $4,600,344 $4,360,206 $12,249,349 $12,052,828 ---------- ---------- ----------- ----------- Total net revenues 4,600,344 4,360,206 12,249,349 12,052,828 --------- --------- ---------- ---------- Cost of sales Case 2,629,786 2,231,411 6,952,178 6,051,242 --------- --------- --------- --------- Total cost of sales 2,629,786 2,231,411 6,952,178 6,051,242 --------- --------- --------- --------- Gross profit 1,970,558 2,128,795 5,297,171 6,001,586 Selling, general and administrative expenses 1,638,320 1,668,935 4,974,422 4,768,443 --------- --------- --------- --------- Net operating income 332,238 459,860 322,749 1,233,143 Other income (expense) Interest income 3,419 - 9,546 - Interest expense (53,265) (42,135) (162,962) (111,013) Other income 3,182 895 16,146 2,818 ----- --- ------ ----- Net income before income taxes 285,574 418,620 185,479 1,124,948 Income tax expense 114,229 170,599 74,191 457,987 ------- ------- ------ ------- Net income 171,345 248,021 111,288 666,961 Retained earnings beginning of period 6,471,314 6,218,841 6,531,371 5,799,901 --------- --------- --------- --------- Retained earnings end of period $6,642,659 $6,466,862 $6,642,659 $6,466,862 ========== ========== ========== ========== Basic earnings per common share $0.04 $0.05 $0.02 $0.14 Diluted earnings per $0.03 $0.05 $0.02 $0.14 common share Weighted average number of basic common shares outstanding 4,891,760 4,877,020 4,889,915 4,862,667 Weighted average number of diluted common shares outstanding 4,898,203 4,888,667 4,896,530 4,845,304
Willamette Valley Vineyards
CONTACT: Jim Bernau of Willamette Valley Vineyards, 1-800-344-9463
Web Site: http://www.wvv.com/
