SALEM, Ore., Aug. 11, 2022 /PRNewswire/ -- Willamette Valley Vineyards, Inc. (NASDAQ: WVVI) (the "Company"), a leading Oregon producer of Pinot Noir, generated a loss per common share after preferred dividends of $0.04 and a profit per common share after preferred dividends of $0.14 for the three months ended June 30, 2022 and 2021, respectively, a decrease of $0.18, for the three months ended June 30, 2022 over the prior year period.

(PRNewsfoto/Willamette Valley Vineyards)

Sales revenue for the three months ended June 30, 2022 and 2021 was $8,700,861 and $8,949,951, respectively, a decrease of $249,090, or 2.8%, in the current year three-month period over the same prior year period. This decrease was caused by a decrease in sales through distributors of $929,661 being partially offset by an increase in direct sales of $680,571 in the current year three-month period over the same prior year period. The decrease in revenue from sales through distributors was primarily attributed to later availability of new vintage wines compared to the prior year period. The increase in direct sales to consumers was primarily the result of retail sales increases in tasting room revenue. 

Gross profit for the three months ended June 30, 2022 and 2021 was $4,827,257 and $5,139,723, respectively, a decrease of $312,466, or 6.1%, in the current year three-month period over the same prior year period.

Selling, general and administrative expense for the three months ended June 30, 2022 and 2021 was $4,382,814 and $3,602,129 respectively, an increase of $780,685, or 21.7%, in the current year three-month period over the same prior year period. 

Net income for the three months ended June 30, 2022 and 2021 was $257,401 and $1,077,551, respectively, a decrease of $820,150, or 76.1%, in the current year three-month period over the same prior year period. 

Jim Bernau, Founder and CEO of the winery said "Inventory delays at the start of the year have negatively impacted our sales through distributors in the first six months of the year.  We have also incurred additional planned expenses in the first half of the year in connection with our planned opening of three new locations later this year. While we expect higher supply costs and labor shortages to reduce margins and earnings in the near term, our growth initiatives are designed to produce greater profitability in the long term."

For a complete discussion of the Company's financial condition and operating results for the first quarter, see our Form 10-Q for the six months ended June 30, 2022, as filed with the United States Securities and Exchange Commission on EDGAR. 

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. These forward-looking statements involve risks and uncertainties that are based on current expectations, estimates and projections about the Company's business, and beliefs and assumptions made by management.  Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "predicts," "potential," "should," or "will" or the negative thereof and variations of such words and similar expressions are intended to identify such forward-looking statements.  Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including, but 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 or smoke from forest fires, changes in consumer spending, the reduction in consumer demand for premium wines, the impact of supply chain and transportation disruptions,  and the impact of the COVID-19 pandemic and the policies of United States federal, state and local governments in response to such pandemic. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic economic conditions.  Many of these risks as well as other risks that may have a material adverse impact on our operations and business, are identified in Item 1A "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, as well as in the Company's other Securities and Exchange Commission filings and reports.

The following is the Company's Statement of Income for the three months and six months ended June 30, 2022 compared to the three and six months ended June 30, 2021:

 

 






Three months ended 


Six months ended 






June 30,


June 30,






2022


2021


2022


2021













SALES, NET


$       8,700,861


$       8,949,951


$     14,943,179


$     14,715,289

COST OF SALES


3,873,604


3,810,228


6,395,893


6,081,999













GROSS PROFIT


4,827,257


5,139,723


8,547,286


8,633,290













OPERATING EXPENSES









Sales and marketing

3,019,613


2,235,124


5,497,340


4,351,789


General and administrative

1,363,201


1,367,005


2,741,735


2,567,898



Total operating expenses

4,382,814


3,602,129


8,239,075


6,919,687













INCOME FROM OPERATIONS

444,443


1,537,594


308,211


1,713,603













OTHER INCOME (EXPENSE)









Interest income

904


3,081


3,293


6,478


Interest expense

(90,371)


(97,499)


(181,817)


(197,075)


Other income (expense), net

(355)


40,679


88,669


129,813













INCOME BEFORE INCOME TAXES

354,621


1,483,855


218,356


1,652,819













INCOME TAX PROVISION 

(97,220)


(406,304)


(59,897)


(452,583)













NET INCOME


257,401


1,077,551


158,459


1,200,236













Accrued preferred stock dividends

(466,613)


(362,506)


(933,225)


(722,142)













NET INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS

$        (209,212)


$           715,045


$        (774,766)


$           478,094













Earnings (loss) per common share after preferred dividends,









basic and diluted

$               (0.04)


$                  0.14


$               (0.16)


$                  0.10













Weighted-average number of 









common shares outstanding

4,964,529


4,964,529


4,964,529


4,964,529

 

 

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SOURCE Willamette Valley Vineyards

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