SALEM, Ore., Nov. 13, 2014 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated net income of $573,946, or $0.12 cents per share, for the third quarter of 2014, up from $232,066, or $0.05 cents per share, for the corresponding prior year period, representing a $341,880 or 147.3% increase in net income compared to third quarter 2013.
The Company produced revenues of $4,046,201 and $3,043,546 in third quarters of 2014 and 2013, respectively, an increase of $1,002,655 or 32.9%. The primary reasons for this increase are an increase in direct sales of $375,988 and an increase in sales through distributors of $626,667, in the current year three month period over the prior year period. Gross profit margin was 61.8% and 57.8% for the third quarters of 2014 and 2013, respectively.
Selling, general and administrative expenses were $1,526,956 and $1,339,735 for the third quarters of 2014 and 2013, respectively, an increase of $187,221 or 14.0%. This increase is primarily the result of increased selling expenses, including staffing, associated with an increased focus on retail sales and operating the newly remodeled Hospitality Center.
Jim Bernau, Founder and President of the winery, said, "We are very pleased with this year's harvest, both in yield and quality."
Willamette Valley Vineyards, Inc. is headquartered at its Estate Vineyard near Salem, Oregon. The Company's common stock is traded on NASDAQ (WVVI).
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are identified by such words and phrases as "expects," "thinks," "believes," "anticipates" and words of similar import. Such forward-looking statements are subject to risks and uncertainties and actual results could differ materially from those projected. Such risks and uncertainties include, but are not limited to: availability of financing for growth, availability of adequate supply of high quality grapes, successful performance of internal operations, impact of competition, changes in wine broker or distributor relations or performance, impact of possible adverse weather conditions, impact of reduction in grape quality or supply due to disease, impact of governmental regulatory decisions and other risks.
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Three months ended
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Nine months ended
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September 30,
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September 30,
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2014
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2013
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2014
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2013
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SALES, NET
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$ 4,046,201
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$ 3,043,546
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$ 10,711,492
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$ 9,694,364
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COST OF SALES
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1,546,588
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1,284,688
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4,249,126
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4,034,950
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GROSS PROFIT
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2,499,613
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1,758,858
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6,462,366
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5,659,414
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SELLING, GENERAL & ADMIN EXPENSES
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1,526,956
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1,339,735
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4,481,404
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3,866,390
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INCOME FROM OPERATIONS
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972,657
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419,123
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1,980,962
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1,793,024
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OTHER INCOME (EXPENSE)
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Interest income
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421
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997
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1,018
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4,950
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Interest expense
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(81,242)
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(61,635)
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(208,714)
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(184,843)
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Other income, net
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39,885
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52,480
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329,796
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156,410
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INCOME BEFORE INCOME TAXES
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931,721
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410,965
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2,103,062
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1,769,541
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INCOME TAX PROVISION
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(357,775)
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(178,899)
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(807,666)
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(719,757)
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NET INCOME
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$ 573,946
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$ 232,066
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$ 1,295,396
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$ 1,049,784
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BASIC NET INCOME PER COMMON SHARE
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$ 0.12
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$ 0.05
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$ 0.27
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$ 0.22
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DILUTED NET INCOME PER COMMON SHARE
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$ 0.12
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$ 0.05
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$ 0.26
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$ 0.22
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Weighted average number of basic common shares outstanding
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4,847,765
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4,791,972
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4,844,821
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4,796,150
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Weighted average number of diluted common shares outstanding
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4,930,860
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4,849,225
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4,934,107
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4,840,927
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SOURCE Willamette Valley Vineyards