SALEM, Ore., Aug. 13, 2014 /PRNewswire/ --Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated net income of$546,535,or $0.11 cents per share, for the second quarter of 2014, up from$521,125, or $0.11cents per share, for the corresponding prior year period, representinga $25,410 or 4.9% increase in net income compared to second quarter 2013.
The Company produced revenues of $3,693,412 and $3,609,259 in second quarters of 2014 and 2013, respectively, an increase of $84,153 or 2.3%. The primary reasons for this increase are an increase in direct sales of $456,228, partially offset by a decrease in sales through distributors of $372,075, in the current year three month period over the prior year period. Gross profit margin was 60.7% and 59.4% for the second quarters of 2014 and 2013, respectively.
Selling, general and administrative expenses were $1,481,194 and $1,258,697 for the second quarters of 2014 and 2013, respectively, an increase of $222,497 or 17.7%. 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.
Other income, net, for the three months ended June 30, 2014 and 2013 was $191,443 and $31,540, respectively, an increase of $159,903 or 507.0%, in the current year period over the prior year period. The other income increase, in the three month period, is primarily the result of a net of cost and deductible insurance claim settlement of $154,722 resulting from a spillage of wine during production.
Jim Bernau, Founder and President of the winery, said "We are continuing to strengthen our brand by increasing direct sales contact with our customers. With wine tourism on the rise, we believe our remodeled Hospitality Center and Barrel Cellar will become a sought out destination for wine enthusiasts."
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 | Six months ended | ||||||||||
June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||
SALES, NET | $ 3,693,412 | $ 3,609,259 | $ 6,665,291 | $ 6,650,818 | |||||||
COST OF SALES | 1,452,648 | 1,465,365 | 2,702,538 | 2,750,262 | |||||||
GROSS PROFIT | 2,240,764 | 2,143,894 | 3,962,753 | 3,900,556 | |||||||
SELLING, GENERAL & ADMIN EXPENSES | 1,481,194 | 1,258,697 | 2,954,448 | 2,526,655 | |||||||
INCOME FROM OPERATIONS | 759,570 | 885,197 | 1,008,305 | 1,373,901 | |||||||
OTHER INCOME (EXPENSE) | |||||||||||
Interest income | 257 | 1,984 | 597 | 3,953 | |||||||
Interest expense | (61,476) | (63,866) | (127,472) | (123,208) | |||||||
Other income, net | 191,443 | 31,540 | 289,911 | 103,930 | |||||||
INCOME BEFORE INCOME TAXES | 889,794 | 854,855 | 1,171,341 | 1,358,576 | |||||||
INCOME TAX PROVISION | (343,259) | (333,730) | (449,891) | (540,858) | |||||||
NET INCOME | $ 546,535 | $ 521,125 | $ 721,450 | $ 817,718 | |||||||
BASIC NET INCOME PER COMMON SHARE | $ 0.11 | $ 0.11 | $ 0.15 | $ 0.17 | |||||||
DILUTED NET INCOME PER COMMON SHARE | $ 0.11 | $ 0.11 | $ 0.15 | $ 0.17 | |||||||
Weighted average number of | |||||||||||
basic common shares outstanding | 4,847,188 | 4,796,926 | 4,843,300 | 4,798,429 | |||||||
Weighted average number of | |||||||||||
diluted common shares outstanding | 4,933,550 | 4,842,081 | 4,934,903 | 4,838,232 | |||||||
SOURCE Willamette Valley Vineyards
