SALEM, Ore., March 15, 2021 /PRNewswire/ -- Willamette
Valley Vineyards, Inc. (NASDAQ:WVVI) (the "Company"), a leading
Oregon producer of Pinot Noir,
generated income per common share after preferred dividends of
$0.46 and $0.30 for the years ended December 31, 2020 and 2019, respectively, an
increase of $0.16, or 53.5%, for the
year ended December 31, 2020 over the
prior year period.
The Company had net sales revenues of $27,314,852 and $24,749,263 for the years December 31, 2020 and 2019, respectively, an
increase of $2,565,589 or 10.4%, for
the year ended December 31, 2020 over
the prior year period, primarily as a result of an increase in
revenue from direct sales of $1,069,589 or 11.3% in 2020 compared to 2019,
combined with an increase in revenue from sales to
distributors of $1,496,000 or
9.8,% in 2020 compared to 2019.
Gross profit was $16,729,776 and
$15,294,582 for the years ended
December 31, 2020 and 2019,
respectively, an increase of $1,435,194, or 9.4%, for the year ended
December 31, 2020 over the prior year
period. This increase was generally driven by an increase in sales
revenues partially offset by a higher cost of sales.
Selling, general and administrative expenses were $11,728,003 and $11,567,058 for the years ended December 31, 2020 and 2019, respectively, an
increase of $160,945, or 1.4%, for
the year ended December 31, 2020 over
the prior year period.
Net income was $3,394,996 and
$2,510,901, for the years ended
December 31, 2020 and 2019,
respectively, an increase of $884,095, or 35.2%, for the year ended
December 31, 2020 over the prior year
period.
Jim Bernau, Founder and CEO of
the winery said "Our team's sales success this year
resulted from finding opportunities in the channels remaining open,
selling directly to wine enthusiasts at home and to retail stores
where consumers were allowed to shop. The employees were so
effective at these strategies, we added employees in 2020 so no PPP
funds were needed. Our team also implemented safety measures
and new technology which resulted in no known cases of COVID being
contracted in the workplace or tasting rooms. Our vineyard
and winemaking staff produced one of our best vintages, in spite of
these challenges and the forest fires. In our 38 years, I
have never seen such remarkable performance by our managers,
employees and organization as a whole."
For a complete discussion of the Company's financial condition
and operating results, see our Form 10-K for the year ended
December 31, 2020, 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"
"intends," "plans," "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 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, 2020, 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 year
ended December 31, 2020 compared to
the year ended December 31, 2019:
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Twelve months
ended
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December
31,
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2020
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2019
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SALES,
NET
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$
27,314,852
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$
24,749,263
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COST OF
SALES
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10,585,076
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9,454,681
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GROSS
PROFIT
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16,729,776
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15,294,582
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OPERATING
EXPENSES:
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Sales and
marketing
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7,458,139
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7,449,088
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General and
administrative
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4,269,864
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4,117,970
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Total operating
expenses
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11,728,003
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11,567,058
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INCOME FROM
OPERATIONS
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5,001,773
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3,727,524
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OTHER INCOME
(EXPENSE)
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Interest
income
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21,022
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48,066
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Interest
expense
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(414,061)
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(440,999)
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Other income,
net
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165,916
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128,433
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INCOME BEFORE
INCOME TAXES
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4,774,650
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3,463,024
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INCOME TAX
PROVISION
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(1,379,654)
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(952,123)
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NET
INCOME
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3,394,996
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2,510,901
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Preferred stock
dividends
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(1,116,378)
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(1,026,063)
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INCOME APPLICABLE
TO COMMON SHAREHOLDERS
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$
2,278,618
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$
1,484,838
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Earnings per
common share after preferred dividends,
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basic and
diluted
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$
0.46
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$
0.30
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Weighted-average
number of
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common shares
outstanding
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4,964,529
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4,964,529
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SOURCE Willamette Valley Vineyards