SALEM, Ore., May 13, 2014 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated net income of$174,915,or $0.04 cents per share, for the first three months of 2014, down from$296,593, or $0.06cents per share, for the corresponding prior year period, representinga $121,678 or 41.0% decrease in net income compared to first quarter 2013.
The Company produced revenues of $2,971,879 and $3,041,559 in first quarters of 2014 and 2013, respectively, a decrease of $69,680 or 2.3%. The primary reasons for this decrease are decreased sales through distributors of 9.0% partially offset by increased direct sales of 16.0%. Gross profit margin was 57.9% and 57.8% for the first quarters of 2014 and 2013, respectively.
Selling, general and administrative expenses were $1,473,254 and $1,267,958 for the first three months of 2014 and 2013, respectively, an increase of $205,296 or 16.2%. This increase is primarily the result of increased operating and selling expenses, including staffing, associated with an increased focus on retail sales and the start-up expenses associated with opening the newly remodeled Hospitality Center.
Jim Bernau, Founder and President of the winery, said "We are very excited about having our remodeled Hospitality Center and Barrel Cellar complete. Now we can begin the work of growing our brand using this great new facility to further increase our customer base."
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.
Three months ended | |||||
March 31, | |||||
2014 | 2013 | ||||
(unaudited) | (unaudited) | ||||
SALES, NET | $ 2,971,879 | $ 3,041,559 | |||
COST OF SALES | 1,249,890 | 1,284,897 | |||
GROSS PROFIT | 1,721,989 | 1,756,662 | |||
SELLING, GENERAL & ADMIN EXPENSES | 1,473,254 | 1,267,958 | |||
INCOME FROM OPERATIONS | 248,735 | 488,704 | |||
OTHER INCOME (EXPENSE) | |||||
Interest income | 340 | 1,969 | |||
Interest expense | (65,996) | (59,342) | |||
Other income, net | 98,468 | 72,390 | |||
INCOME BEFORE INCOME TAXES | 281,547 | 503,721 | |||
INCOME TAX PROVISION | (106,632) | (207,128) | |||
NET INCOME | $ 174,915 | $ 296,593 | |||
BASIC NET INCOME PER COMMON SHARE | $ 0.04 | $ 0.06 | |||
DILUTED NET INCOME PER COMMON SHARE | $ 0.04 | $ 0.06 | |||
Weighted average number of basic common shares outstanding | 4,839,149 | 4,800,008 | |||
Weighted average number of diluted common shares outstanding | 4,939,412 | 4,832,204 | |||
SOURCE Willamette Valley Vineyards
