SALEM, Ore., May 13, 2021 /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
$0.05 and profit per common share of
$0.11 for the period ended
March 31, 2021 and 2020,
respectively, a decrease of $0.16,
for the period ended March 31, 2021
over the prior year period.
Sales revenue for the three months ended March 31, 2021 and 2020 were $5,765,338 and $6,521,895, respectively, a decrease of
$756,557, or 11.6%, in the current
year period over the prior year period. This decrease was caused
by a decrease in shipments to distributors of $1,110,429 being partially offset by an increase
in direct sales of $353,872 in the
current year three-month period over the same period in the prior
year. The decrease in revenue from the distributors was
primarily attributed to the timing of orders, shipments from the
winery and inventory management from distributors as first quarter
depletions from distributors to their accounts rose 9% from the
same period of the prior year and orders from distributors through
April are ahead of the previous year.
Gross profit for the three months ended March 31, 2021 and 2020 was $3,493,567 and $3,912,042, respectively, a decrease of
$418,475, or 10.7%, in the first
quarter of 2021 over the same quarter in the prior year. This
decrease was primarily the result of a decrease in case sales to
distributors in the first three months of the current year compared
to the same period in 2020.
Selling, general and administrative expenses for the three
months ended March 31, 2021 and
2020 was $3,317,558 and
$2,829,504, respectively, an increase
of $488,054, or 17.2%, in the current
quarter over the same quarter in the prior year.
Net income for the three months ended March 31, 2021 and 2020 was $122,685 and $787,082, respectively, a decrease of
$664,397, or 84.4%, in the first
quarter of 2021 over the same quarter in the prior year.
Jim Bernau, Founder and CEO of
the winery said ""Through to today, the Company's sales
performance has never been higher - remarkable given many of our
restaurant accounts are just starting to order this year. As
a result, we are installing an additional 50,000 cases of
winemaking capacity this summer and have contracted for more
wine-grapes in hopes of meeting increasing distributor demand.
Additionally, we are in the early stages of developing new
Willamette Valley Vineyards winery restaurants in Lake Oswego, Bend, Happy
Valley and on the Vancouver Washington Waterfront so far,
with the first expected to open late this year. The new
sparkling winery south of Dundee
is on schedule to open in late Spring of next year with the Highway
99 widening construction at the entrance currently underway."
For a complete discussion of the Company's financial condition
and operating results for the first quarter, see our Form 10-Q for
the three months ended March 31,
2021, 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 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 three
months ended March 31, 2021 compared
to the three months ended March 31,
2020:
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Three months
ended
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March
31,
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2021
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2020
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SALES,
NET
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$
5,765,338
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$
6,521,895
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COST OF
SALES
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2,271,771
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2,609,853
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GROSS
PROFIT
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3,493,567
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3,912,042
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OPERATING
EXPENSES
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Sales and
marketing
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2,116,665
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1,748,040
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General and
administrative
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1,200,893
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1,081,464
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Total operating
expenses
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3,317,558
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2,829,504
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INCOME FROM
OPERATIONS
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176,009
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1,082,538
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OTHER INCOME
(EXPENSE)
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Interest
income
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3,397
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9,517
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Interest
expense
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(99,576)
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(105,742)
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Other income
(expense), net
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89,134
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95,002
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INCOME BEFORE
INCOME TAXES
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168,964
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1,081,315
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INCOME TAX
PROVISION
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(46,279)
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(294,233)
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NET
INCOME
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122,685
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787,082
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Accrued preferred
stock dividends
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(359,636)
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(256,452)
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INCOME (LOSS)
APPLICABLE TO COMMON SHAREHOLDERS
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$
(236,951)
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$
530,630
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Earnings (Loss)
per common share after preferred dividends,
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basic and
diluted
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$
(0.05)
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$
0.11
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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