Growth stock image

Willamette Valley Vineyards Posts a Profit for 2018


News Provided By

Willamette Valley Vineyards

Mar 21, 2019, 18:08 ET

SALEM, Ore., March 21, 2019 /PRNewswire/ — Willamette Valley Vineyards (NASDAQ: WVVI), a leading Oregon producer of Pinot Noir, generated income applicable to common shareholders of $1,839,665, or $0.37 cents per share, for 2018, down from $2,289,730, or $0.46 cents per share, for the prior year, representing a $450,065, or 19.7%, decrease in income applicable to common shareholders when compared to 2017.  The decrease was primarily the effect of $493,081increase in income before income taxes being more than offset by a $628,280 increase in income tax provision as well as a $314,866 increase in preferred stock dividends.  The higher income tax provision was the result of the 2017 tax provision being smaller due to the cumulative effects of the “Tax Cuts and Jobs Act” enacted by the US government in 2017.

Income from operations was $4,182,715 for 2018, up from $3,636,044 for the prior year, representing an increase of $546,671, or 15.0%, when compared to 2017.  The increase in income from operations was primarily the result of higher gross profit partially offset by higher selling and administrative costs.

The Company produced revenue of $23,079,739 and $20,853,527 in the years of 2018 and 2017, respectively, an increase of $2,226,212, or 10.7%, in the current year compared to the prior year.  The reasons for this increase include increased sales in all categories.

Gross profit was $14,781,499 and $12,881,851 for 2018 and 2017, respectively, an increase of $1,899,648.

Operating expenses were $10,598,784 and $9,245,807 for 2018 and 2017, respectively, an increase of $1,352,977 or 14.6%.  Increased operating expenses were primarily the result of efforts to increase sales and accommodate and develop new direct to consumer opportunities.

Jim Bernau, Founder and President of the winery, said “We are pleased Income from Operations was up 15% for the year.  Earnings are affected by the dividend cost as we raised the money needed for the planned winery near Dundee prior to construction.  As we are able to deploy these development funds, we expect the projected earnings to more than offset the higher dividend costs.”

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.  

Twelve months ended
December 31,
20182017
SALES, NET$   23,079,739$   20,853,527
COST OF SALES8,298,2407,971,676
GROSS PROFIT14,781,49912,881,851
OPERATING EXPENSES:
Sales and marketing6,701,8375,912,977
General and administrative3,896,9473,332,830
Total operating expenses10,598,7849,245,807
INCOME FROM OPERATIONS4,182,7153,636,044
OTHER INCOME (EXPENSE)
Interest income26,59125,257
Interest expense(457,689)(473,608)
Other income, net187,969258,812
INCOME BEFORE INCOME TAXES3,939,5863,446,505
INCOME TAX PROVISION (1,081,006)(452,726)
NET INCOME2,858,5802,993,779
Preferred stock dividends(1,018,915)(704,049)
INCOME APPLICABLE TO COMMON SHAREHOLDERS$      1,839,665$      2,289,730
Basic income per common share after preferred dividends$               0.37$               0.46
Weighted average number of basic common shares outstanding4,964,5294,985,219

SOURCE Willamette Valley Vineyards

Check Also

Image of the US Economy

The Conference Board Leading Economic Index® (LEI) for the U.S. Increased; Economy to Continue Expanding in Near-Term

The ten components of The Conference Board Leading Economic Index® for the U.S. include:Average weekly hours, manufacturingAverage weekly initial claims for unemployment insuranceManufacturers' new orders, consumer goods and materialsISM® Index of New OrdersManufacturers' new orders, nondefense capital goods excluding aircraft ordersBuilding permits, new private housing unitsStock prices, 500 common stocksLeading Credit Index™Interest rate spread, 10-year Treasury bonds less federal fundsAverage consumer expectations for business conditionsFor full press release and technical notes:http://www.conference-board.org/data/bcicountry.cfm?cid=1

Investing pennies

SEC Proposes Offering Reforms for Business Development Companies and Registered Closed-End Funds

The proposed amendments would modify the registration, communications, and offering processes available to BDCs and registered closed-end funds, building on offering practices that operating companies currently use.

Investment

Data Experts Outline Success Factors for Registered/Private Funds

The different types of data in the fund industry (e.g., external sources and internal sources created by the fund)Defining classification vs. segmentationSegmentation best practices"The asset management industry needs powerful information to navigate the challenges of volatile investment markets, unprecedented regulatory changes and transformational shifts in investors' product preferences," said Mr. Kosanovic. "Technology can help fund managers visualize their data in ways to help them optimally spend their time and resources with greater efficiency to grow their funds."

Alert image

Investor Alerts and Bulletins: The Escheatment Process

Keep your contact information updated. Financial institutions must attempt to notify you before escheating your account. Make sure financial institutions at which you have accounts have your accurate contact information (telephone, e-mail and physical address) to help ensure you receive any notices related to your accounts. If your financial institution sends you mail that is returned as undeliverable, or it cannot reach you through your other contact information, your account may be declared abandoned and end up in escheatment.

Investor Image

SEC Announces March 28 Meeting of Investor Advisory Committee

Members of the committee represent a wide variety of investor interests, including those of individual and institutional investors, senior citizens, and state securities commissions. For a full list of committee members, see the committee’s webpage.

Market Research

China Payments Landscape 2018-2022: Card-based, E-commerce, Mobile Proximity, P2P, Bill, Alternative Payments, Payment Innovations, Infrastructure & Regulation

In an attempt to reduce fraud and promote the healthy and sustainable development of mobile payment services, China's central bank the People's Bank of China (PBOC) issued the Bar Code Payment Service Specification to regulate QR and barcode payments in December 2017. The regulation caps payments made by traditional QR codes to CNY500 ($76.86) per day; this can be extended up to CNY5,000 ($768.55) if the payment transaction is verified by two or more authenticating parties such as digital certificates and digital signatures. If a third-party payment institution provides payment services with this technology, it must obtain a network payment service license.

Pepsico Image

The PepsiCo Foundation Partners with CARE to Tackle Gender Inequality in Agriculture with an $18.2 Million Investment in She Feeds the World Grant will provide resources and training to 5 million women farmers and their families worldwide to help them increase crop yields and income

News Provided By PepsiCo FoundationMar 04, 2019, 16:05 ET PURCHASE, N.Y., March 4, 2019 /PRNewswire/ …

%d bloggers like this: