Willamette Valley Vineyards Posts a Profit for the First Quarter 2016

SALEM, Ore., May 12, 2016 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated income applicable to common shareholders of $408,995, or $0.08 cents per share, for the first quarter of 2016, up from $314,238, or $0.06 cents per share, for the corresponding prior year period, representing a $94,757 or 30.2% increase in income applicable to common shareholders compared to first quarter 2015.

The Company produced revenues of $4,183,769 and $3,912,501 in first quarters of 2016 and 2015, respectively, an increase of $271,268 or 6.9%.  The primary reasons for this increase are an increase in direct sales of $190,987, offset by a bulk wine sales decrease of $246,076, and an increase in sales through distributors of $326,357 in the current year three month period over the prior year period.  Gross profit margin was 62.1% and 58.9% for the first quarters of 2016 and 2015, respectively.

Selling, general and administrative expenses were $1,856,972 and $1,805,367 for the first quarters of 2016 and 2015, respectively, an increase of $51,605 or 2.9%.

Income from operations was $742,076 and $498,667 for the first quarters of 2016 and 2015, respectively, an increase of $243,409 or 48.8%.  This increase was the result of an increase in overall sales and improved profit margins for first quarter 2016 compared to first quarter 2015.

Jim Bernau, Founder and President of the winery, said, "What a first quarter!  We strengthened the wine making team with two leading winemakers; our 2015 Whole Cluster Pinot Noir was our best blend in 25 years; and, we released a new wine, the 2015 Whole Cluster Rose.  We planted more vines in the Eola Hills and Walla Walla AVA's, funded in part by our expanding group of preferred shareholders/wine enthusiasts.  We also added the position of 'Sales Director', to further strengthen our presence in national markets, freeing me up to spend more time on strategic growth planning."

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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SOURCE Willamette Valley Vineyards