SALEM, Ore., Nov. 14 /PRNewswire-FirstCall/ -- Willamette Valley Vineyards (NASDAQ:WVVI) reported the highest earnings for the first nine months in the winery's history, $0.11 for the third quarter and $0.21 basic earnings per share for the nine months ended September 2007. Founder and CEO Jim Bernau noted all departments of the Company generated more case sales and higher margins on wines produced by the winery. "Although continuing record demand has constrained sales, our winemaking staff has done an excellent job by providing both quality and quantity to help meet most of the demand," commented Bernau, "The national sales team has increased placements of Dijon Clone Chardonnay and Riesling to increase sales growth while facing Pinot Noir inventory constraints." The sixty acre Elton Vineyard, in the first year of the long term lease, produced 164 tons for the winery's production with other volumes required to be sold to other winemakers under pre-existing contracts that are due to expire this year. Elton Vineyards was named one of the top ten Oregon vineyards by Andy Perdue, editor of Wine Press Northwest on September 25, 2007.
Capital expenditures in prior quarters for additional winemaking improvements allowed de-juicing to concentrate Pinot Noir flavors, additional sort equipment to remove all but the best clusters for the winery's Pinot Noir bottlings, gentle winegrape handling using gravity to enhance wine qualities from the sorting table into the de-stemmer, small fermenters, and then into the press.
At the November Board meeting, after due deliberation on value and related issues, the Board approved of the Company purchasing a centrally located downtown Carlton winery building lot from its CEO for a future expansion site. The Board had previously authorized the CEO to use his own funds to pursue this opportunity and to purchase the property in January 2007. This authorization was provided primarily because the Board did not have sufficient time to conduct appropriate due diligence on the property before its sale. Since that time, successful environmental and geological studies have been completed. The CEO sold the property to the Company at a price equal to his cost of acquisition, independent studies and interest payments.
The Company's wines continue to receive high marks from national reviewers. The 2006 Whole Cluster Pinot Noir was recommended as a "favorite American Pinot Noir" in the Wall Street Journal on September 7, 2007 and received an 89 point rating from the Wine Advocate in November. The 2005 Estate, 2006 Pinot Noir and 2006 Whole Cluster were recommended by national reviewer and author, David Rosengarten in his online newsletter on October 12, 2007 saying "They caught Pinot's mystery." The 2006 Pinot Gris received 93 points from Wine & Spirits magazine in their August issue and was named by them among the best Pinot Gris in America.
The national media continues to take notice of the Company's stance on environmental stewardship. Most recently, the company was featured in an international Associated Press story on August 28, 2007 for being the first winery in the world to use certified sustainable natural cork. This certification was granted by the Rain Forest Alliance according to Forest Stewardship Council standards. Additionally, the company was recommended in the October issue of Martha Stewart's Body & Soul magazine because of its sustainable farming certifications (LIVE/Salmon Safe) and biodiesel use and on Wine Spectator Online on September 9, 2007 for the Company's pledge to become carbon neutral by 2010.
The winery earned organic certification from Oregon Tilth for its Pinot Noir blocks on the Estate Vineyard on October 3, 2007.
Willamette Valley Vineyards, Inc. is headquartered in Turner, Oregon. The Company is Oregon's leading producer of Pinot Noir and the state's only publicly held winery. The Company's common stock is traded on NASDAQ (Symbol WVVI).
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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.
WILLAMETTE VALLEY VINEYARDS, INC. Statement of Operations
(unaudited) Three months ended Sept. 30, Nine months ended Sept. 30,
2007 2006 2007 2006
__________ __________ __________ __________
Net revenues
Case revenue $ 4,247,388 $ 3,293,144 $11,551,376 $10,414,158
Facility Lease 2,981 14,899 20,567 32,485
__________ __________ __________ __________
Total net revenues 4,250,369 3,308,043 11,571,943 10,446,643 Cost of sales
Case 2,124,364 1,745,683 6,020,537 5,476,376
Bulk - - 986 4,631
__________ __________ __________ __________
Total cost of sales 2,124,364 1,745,683 6,021,523 5,481,007 Gross profit 2,126,005 1,562,360 5,550,420 4,965,636 Selling, general and
administrative
expenses 1,346,636 1,160,318 3,923,654 3,490,063
__________ __________ __________ __________
Net operating
income 779,369 402,042 1,626,766 1,475,573 Other income (expense)
Interest income 18,193 19,729 46,304 42,885
Interest expense (26,583) (41,667) (82,343) (127,750)
Other income - - 12,667 16,895
__________ __________ __________ __________
Net income before
income taxes 770,979 380,104 1,603,394 1,407,603 Income tax 248,241 152,041 581,217 563,040
__________ __________ __________ __________
Net income 522,738 228,063 1,022,177 844,563 Retained earnings
beginning of
period 3,904,086 2,729,372 3,404,646 2,112,872
__________ __________ __________ __________
Retained earnings
end of period $4,426,824 $ 2,957,435 $ 4,426,823 $ 2,957,435
========== ========== ========== ==========
Basic earnings per
common share $ .11 $ .05 $ .21 $ .18 Diluted earnings per
common share $ .10 $ .05 $ .20 $ .17 Weighted average number of
basic common shares
outstanding 4,806,112 4,781,055 4,804,324 4,722,636 Weighted average number of
diluted common shares
outstanding 5,003,549 4,978,955 5,007,660 4,604,499
DATASOURCE: Willamette Valley Vineyards CONTACT: Jim Bernau of Willamette Valley Vineyards, 1-800-344-9463 Web site: http://www.wvv.com/
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