SALEM, Ore., March 27, 2014 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated net profits from continuing operations of $1,423,492, or $0.30 cents per share, for 2013, up from $1,360,234, or $0.28 cents per share, for the prior year, representing a $63,258, or 4.7%, increase in net profits from continuing operations compared to 2012. The Company also generated $0 and $157,385 loss from discontinued operations for the twelve months ended December 31, 2013 and 2012, respectively. The Company's total net income, inclusive of continuing and discontinued operations, was $1,423,492, or $0.30 per share, and $1,202,849, or $0.25 per share, for the years 2013 and 2012, respectively.
The Company produced revenue of $13,271,914 and $12,527,268 in the years of 2013 and 2012, respectively, an increase of $744,646, or 5.9%, in the current year compared to the prior year. The primary reasons for this increase are increased out-of-state and retail sales, partially offset by decreased in-state sales. Gross profit margin was 57.9% and 58.1% for 2013 and 2012, respectively.
Selling, general and administrative expenses were $5,308,931 and $5,075,052 for 2013 and 2012, respectively, an increase of $233,879 or 4.6%.
Jim Bernau, Founder and President of the winery, said "We are nearing the completion of our cellar and tasting room expansion with the Grand Opening scheduled for Saturday, May 3rd of what promises to be one of the West Coast's winery destinations."
Willamette Valley Vineyards, Inc. is headquartered at its Estate Vineyard near Salem, Oregon. The Company's common stock is traded on NASDAQ (WVVI).
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are identified by such words and phrases as "expects,", "thinks," "believes," "anticipates" and words of similar import. Such forward-looking statements are subject to risks and uncertainties and actual results could differ materially from those projected. Such risks and uncertainties include, but are not limited to: availability of financing for growth, availability of adequate supply of high quality grapes, successful performance of internal operations, impact of competition, changes in wine broker or distributor relations or performance, impact of possible adverse weather conditions, impact of reduction in grape quality or supply due to disease, impact of governmental regulatory decisions and other risks.
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Twelve months ended
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December 31,
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2013
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2012
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SALES, NET
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$ 13,271,914
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$ 12,527,268
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COST OF SALES
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5,588,439
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5,253,336
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GROSS PROFIT
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7,683,475
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7,273,932
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SELLING, GENERAL & ADMIN EXPENSES
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5,308,931
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5,075,052
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INCOME FROM OPERATIONS
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2,374,544
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2,198,880
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OTHER INCOME (EXPENSE)
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Interest income
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6,963
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8,548
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Interest expense
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(245,431)
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(232,291)
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Other income, net
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192,125
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124,531
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INCOME BEFORE INCOME TAXES
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2,328,201
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2,099,668
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INCOME TAX PROVISION
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(904,709)
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(739,434)
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INCOME FROM CONTINUING OPERATIONS
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1,423,492
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1,360,234
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DISCONTINUED OPERATIONS
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Loss from operations
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-
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(242,878)
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Income tax benefit
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-
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85,493
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LOSS FROM DISCONTINUED OPERATIONS
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-
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(157,385)
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NET INCOME
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$ 1,423,492
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$ 1,202,849
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BASIC NET INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE
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$ 0.30
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$ 0.28
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BASIC NET LOSS FROM DISCONTINUED OPERATIONS PER COMMON SHARE
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0.00
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(0.03)
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BASIC NET INCOME PER COMMON SHARE
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$ 0.30
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$ 0.25
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DILUTED NET INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE
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$ 0.29
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$ 0.28
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DILUTED NET LOSS FROM DISCONTINUED OPERATIONS PER COMMON SHARE
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0.00
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(0.03)
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DILUTED NET INCOME PER COMMON SHARE
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$ 0.29
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$ 0.25
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Weighted average number of basic common shares outstanding
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4,804,801
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4,849,163
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Weighted average number of diluted common shares outstanding
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4,856,321
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4,855,756
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SOURCE Willamette Valley Vineyards