SALEM, Ore., March 27, 2012 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI) produced a profit for 2011 which was higher than the previous year. Revenues decreased 10% to $15,661,905, net earnings increased by 108% to $857,755 and diluted earnings per share were 18 cents as compared with 8 cents in the prior year.
These positive financial results are primarily a result of the Company winding down its Oregon wholesale operation, Bacchus Fine Wines, and reducing the expenses of representing its own wines as well as many other winery brands from around the world directly to restaurants and stores. Since September of 2011, Young's Market distributes the winery's products in nearly all of Oregon and the winery is selling off its remaining inventory of wine purchased from other wineries.
The winery earned numerous accolades for its top quality Pinot Noirs and was named among "One of the Top 100 Wineries in the World" this past October by Wine & Spirits magazine.
"We are focusing on growing and making high quality Pinot Noir from the Willamette Valley," said founder and CEO Jim Bernau. "It is possible to be a good steward of the land and produce positive financial results for investors."
Willamette Valley Vineyards, Inc. is a leading producer of Pinot Noir in Oregon and is headquartered at its Estate Vineyard near Salem, Oregon. The Company's common stock is traded on NASDAQ. (Symbol: 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 "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.
Year Ended | ||||||||
December 31, | ||||||||
2011 | 2010 | |||||||
(audited) | (audited) | |||||||
SALES | $ 15,661,905 | $ 17,370,803 | ||||||
COST OF SALES | 7,944,635 | 9,679,414 | ||||||
GROSS PROFIT | 7,717,270 | 7,691,389 | ||||||
SELLING GENERAL & ADMINISTRATIVE EXPENSES | 6,216,833 | 6,844,785 | ||||||
INCOME FROM OPERATIONS | 1,500,437 | 846,604 | ||||||
OTHER INCOME (EXPENSE) | ||||||||
Interest income | 12,772 | 12,814 | ||||||
Interest expense | (217,037) | (192,206) | ||||||
Other income, net | 76,509 | 17,947 | ||||||
INCOME BEFORE INCOME TAXES | 1,372,681 | 685,159 | ||||||
INCOME TAX PROVISION | 514,926 | 273,351 | ||||||
NET INCOME | $ 857,755 | $ 411,808 | ||||||
Retained earnings beginning of period | 6,943,179 | 6,531,371 | ||||||
Retained earnings end of period | 7,800,934 | 6,943,179 | ||||||
BASIC NET INCOME PER COMMON SHARE | $ 0.18 | $ 0.08 | ||||||
DILUTED NET INCOME PER COMMON SHARE | $ 0.18 | $ 0.08 | ||||||
SOURCE Willamette Valley Vineyards