SALEM, Ore., May 15 /PRNewswire-FirstCall/ -- Willamette Valley Vineyards, Inc. (NASDAQ:WVVI), sales revenue increased 56% and Net Income before taxes increased 303% for the three months ended March 31, 2006, as compared to the prior year period.
Sales to out-of-state distributors continued to be the primary reason for the increases in sales revenue and profitability during the three month period ending March 31, 2006. Sales to out-of-state distributors increased 153% for the three months ended March 31, 2006 as compared to the prior year period. Depletions of the Company's products by its out-of-state distributors to their retail customers increased 68% in the three months ended March 31, 2006 compared to the prior year period.
This continued increase in demand for the Company's products has further constrained the Company's inventory of its core products in national distribution. Management expects to receive less revenue from the sales of Vintage Pinot Noir, the Company's flagship in each of the years 2006 and 2007 than it did in 2005. The case sales of Vintage Pinot Noir in 2005 exceed inventory of this product estimated to be available for sale in each of the years 2006 and 2007. Inventories of Whole Cluster Pinot Noir, Pinot Gris and Riesling available for sale in 2006 are approximately the same as sales of these products in 2005. The Company has placed these varieties on allocation with its distributors, and has made careful, upward price adjustments as new vintages were released in order to address these inventory constraints.
The Company has planted additional acreage and contracted on a long term basis (10 years) for 90 acres of Pinot Gris and Riesling which was planted in 2005 and 100 acres of Pinot Noir and 70 acres of Pinot Gris and Riesling in 2006 bringing the total owned and contracted vineyard to 478 acres which will produce approximately 120,000 cases when fully productive.
The Company has garnered two national wine list placements with a well known restaurant chain and is conducting wine dinners in 2006 in over 50 of the chain's restaurants throughout the country, taking the story of fresh seafood and Northwest cuisine paired with wines produced by Willamette Valley Vineyards to wine consumers. The restaurant organization and the Company are jointly promoting these dinners to local food and wine writers.
In conjunction with these wine dinners and through national promotion, the Company is conducting its second annual, "Why I Love Oregon Pinot Noir" essay contest, where the winner will receive an all expense paid weekend trip to Oregon Wine Country. The contest to date has identified a number of passionate Pinot Noir enthusiasts.
Since the Management's last filing, the Willamette Valley Vineyards Pinot Noir was named among the most popular Pinot Noirs on restaurant wine lists in Wine & Spirits Magazine, Pinot Noir expert Gregory Walters in his "Pinot Report" rated the Hoodview Pinot Noir a "92", national writer Leslie Sbrocco in Epicurious.com featured the '05 Whole Cluster Pinot Noir, award winning author Kevin Zraly in his "American Wine Guide" recommended the Company's Pinot Noir, the '04 Pinot Gris was ranked by the San Francisco Chronicle among its top 100 wines and the newly released '05 Pinot Gris was named a winner of the prestigious Oyster Competition and earned a gold medal at the Riverside International Wine Competition. The '05 Riesling earned the Best of Oregon designation and gold medal from the Northwest Wine Summit.
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. is headquartered in Turner, Oregon. The company is one of Oregon's leading wineries and the state's only publicly held winery. Willamette Valley Vineyards is the owner of Tualatin Estate Vineyards and Griffin Creek wines. Willamette Valley Vineyards common stock is traded on NASDAQ (Symbol: WVVI).
WILLAMETTE VALLEY VINEYARDS, INC. Statement of Operations
(unaudited) Three months ended March 31,
2006 2005
Net Revenues
Case Revenue $ 3,694,176 $ 2,284,638
Facility Lease - Custom Crush 8,793 90,440 Total Revenue 3,702,969 2,375,078 Cost of Sales
Case 1,951,419 1,230,516
Bulk 4,631 55,926 Total Cost of Sales 1,956,050 1,286,442 Gross Margin 1,746,919 1,088,636 Selling, general and
administrative expense 1,129,116 892,422 Net operating income 617,803 196,214 Other income (expense)
Interest income 4,279 165
Interest expense (43,487) (65,783)
Other income 16,895 17,336 Net income before income taxes 595,490 147,932 Income tax (238,196) (59,173) Net income 357,294 88,759 Retained earnings beginning of
period 2,112,872 955,933 Retained earnings end of period $ 2,470,166 $ 1,044,692 Basic income per common share $.08 $.02 Diluted income per common share $.07 $.02 Weighted average number of
basic common shares outstanding 4,674,058 4,486,278 Weighted average number of
diluted common shares outstanding 4,819,920 4,580,883
DATASOURCE: Willamette Valley Vineyards, Inc.
CONTACT: Jim Bernau of Willamette Valley Vineyards, Inc., 1-800-344-9463 Web site: http://www.wvv.com/
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