SALEM, Ore., March 29, 2013 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated net profits of $1,202,849 or $0.25per share for 2012, up from $857,755 or $0.18 per share for 2011, representing a $345,094 or 40.2% increase in net profits.
The Company produced revenues of $12,527,268 and $12,235,986 in the years 2012 and 2011, respectively, an increase of $291,282 or 2.4%. The primary reasons for this increase are increased retail sales, partially offset by decreases in out-of-state sales to distributors. Gross profit margin was 58.1% and 57.0% for 2012 and 2011, respectively.
Selling, general and administrative expenses were $5,075,052 and $4,548,125 for the years 2012 and 2011, respectively, an increase of $526,927 or 11.6%. This increase was primarily the result of the absorption of costs from activities that had previously been shared by the in-state distribution activities, which were discontinued during 2012.
During 2012, the company completed the wind-down of all in-state self-distribution activities. Losses from these discontinued operations before taxes were $242,878 and $919,961 for the years 2012 and 2011, respectively, a reduction of $677,083 or 73.6%.
Jim Bernau, Founder and President of the winery said, "We are very encouraged by the positive performance of our wines in 2012. We believe our tradition of creating elegant, classic Oregon Pinot Noir is getting noticed. We hope to continue to grow our direct-to-consumer sales programs by expanding the hospitality services at our winery."
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.
Twelve months ended | ||||
December 31, | ||||
2012 | 2011 | |||
(audited) | (audited) | |||
SALES | $ 12,527,268 | $ 12,235,986 | ||
COST OF SALES | 5,253,336 | 5,267,460 | ||
GROSS PROFIT | 7,273,932 | 6,968,526 | ||
SELLING, GENERAL & ADMIN EXPENSES | 5,075,052 | 4,548,125 | ||
INCOME FROM OPERATIONS | 2,198,880 | 2,420,401 | ||
OTHER INCOME (EXPENSE) | ||||
Interest income | 8,548 | 12,772 | ||
Interest expense | (232,291) | (217,037) | ||
Other income, net | 124,531 | 76,506 | ||
INCOME BEFORE INCOME TAXES | 2,099,668 | 2,292,642 | ||
INCOME TAX PROVISION | (739,434) | (859,911) | ||
INCOME FROM CONTINUING OPERATIONS | $ 1,360,234 | $ 1,432,731 | ||
DISCONTINUED OPERATIONS | ||||
Loss from operations | (242,878) | (919,961) | ||
Income tax benefit | 85,493 | 344,985 | ||
LOSS FROM DISCONTINUED OPERATIONS | (157,385) | (574,976) | ||
NET INCOME | $ 1,202,849 | $ 857,755 | ||
BASIC NET INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE | $ 0.28 | $ 0.29 | ||
BASIC NET LOSS FROM DISCONTINUED OPERATIONS PER COMMON SHARE | $ (0.03) | $ (0.11) | ||
BASIC NET INCOME PER COMMON SHARE | $ 0.25 | $ 0.18 | ||
DILUTED NET INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE | $ 0.28 | $ 0.29 | ||
DILUTED NET LOSS FROM DISCONTINUED OPERATIONS PER COMMON SHARE | $ (0.03) | $ (0.11) | ||
DILUTED NET INCOME PER COMMON SHARE | $ 0.25 | $ 0.18 | ||
SOURCE Willamette Valley Vineyards
