Willamette Valley Vineyards Reports Third Quarter 2022 Results

SALEM, Oré., November 14, 2022 /PRNewswire/ — Willamette Valley Vineyards, Inc. (NASDAQ: WVVI) (the “Company”), a leading Oregon producer of pinot noir, generated a loss per common share after preferred dividends of $0.29 and earnings per common share after preferred dividends of $0.02 for the three months ended September 30, 2022 and 2021, respectively, a decrease of $0.31 per share, for the three months ended September 30, 2022 over the same quarter in 2021.

Turnover for the three months closed September 30, 2022 and 2021 have been $7,602,878 and $7,641,228respectively, a decrease of $38,350, or 0.5%, in the current year period relative to the prior year period. This decrease was caused by lower sales through distributors of $133,386 partially offset by an increase in direct sales of $95,036 in the three-month period of the current year compared to the period of the previous year. The decline in revenue from sales through distributors is mainly attributable to the late availability of new vintage wines compared to the previous year. The increase in direct-to-consumer sales was primarily driven by increased retail sales following the opening of new tasting rooms in 2022.

Gross profit for the three months ended September 30, 2022 and 2021 was $3,894,183 and $4,461,638respectively, a decrease of $567,455or 12.7%, during the three-month period of the current year compared to the same period of the previous year.

Selling, general and administrative expenses for the three months ended September 30, 2022 and 2021 was $5,120,218 and $3,768,765 respectively an increase of $1,351,453or 35.9%, in the current quarter compared to the same quarter of the previous year.

Net profit (loss) for the three months ended September 30, 2022 and 2021 was ($949,821) and $456,191respectively, a decrease of $1,406,012or 308.2%, in the third quarter of 2022 compared to the same quarter of the previous year.

Jim BernauFounder and CEO of the winery said “Inventory delays at the beginning of the year negatively impacted our sales through distributors in the first nine months of the year. We also incurred additional expenses in the first nine months of the year in connection with the opening of four new tasting rooms and restaurants in 2022, as we significantly increased our footprint in the direct-to-consumer segment. costs and a reduction in near-term margins and profits as we bring these new locations online.” For a full discussion of the company’s third quarter financial condition and results of operations, see our Form 10 -Q for the nine months ended September 30, 2022as filed with the United States Securities and Exchange Commission on EDGAR.

Willamette Valley Vineyards, Inc. is headquartered at its winery near Salem, Oregon. The Company’s common stock is listed on NASDAQ (WVVI).

The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that are based on current expectations, estimates and projections regarding the business of the Company, and the beliefs and assumptions made by management. Words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “predicts”, “potential”, “should” or “will fly” or the negative of these and variations of these similar words and phrases are intended to identify such forward-looking statements. Accordingly, actual results may differ materially from what is expressed or anticipated in such forward-looking statements due to numerous factors, including, but not limited to: availability of financing for growth, availability of supply adequate in high quality grapes, successful performance of internal operations, impact of competition, changes in relationships or performance of wine brokers or distributors, impact of possible adverse weather conditions, impact reduced quality or supply of grapes due to disease or smoke from forest fires, changing consumer spending, reduced consumer demand for premium wines, impact of supply chain and transportation disruptions, and the impact of the COVID-19 pandemic and the policies of United States federal, state and local governments in response to such a pandemic. In addition, such statements could be affected by general industry and market conditions and growth rates, as well as general national economic conditions. Many of these risks, as well as other risks that could materially adversely affect our operations and business, are identified in Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the financial year ended December 31, 2021and in other Securities and Exchange Commission filings and reports.

The following is the company’s income statement for the three months and nine months ended September 30, 2022 compared to the three and nine month periods ended September 30, 2021:






Three months completed


End of nine months






September 30,


September 30,






2022


2021


2022


2021













NET SALES


$7,602,878


$7,641,228


$22,546,057


$22,356,517

COST OF SALES


3,708,695


3,179,590


10,104,588


9,261,589













GROSS PROFIT


3,894,183


4,461,638


12,441,469


13,094,928













EXPLOITATION CHARGES









Sales and Marketing

3,774,495


2,335,623


9,271,835


6,687,412


general and administrative

1,345,723


1,433,142


4,087,458


4,001,040



Total operating expenses

5,120,218


3,768,765


13,359,293


10,688,452













OPERATING INCOME (LOSS)

(1,226,035)


692 873


(917,824)


2,406,476













OTHER INCOME (EXPENSES)









interest income

1,286


2,797


4,579


9,275


Interest expense

(87,220)


(96,473)


(269,037)


(293,548)


Other income, net

3,734


29,250


92,403


159,063













INCOME (LOSS) BEFORE INCOME TAX

(1,308,235)


628 447


(1,089,879)


2,281,266













INCOME TAX BENEFIT (EXPENDITURE)

358 414


(172,256)


298,517


(624,839)













NET INCOME (LOSS)

(949,821)


456 191


(791,362)


1,656,427













Dividends accrued on preferred shares

(466,612)


(361,071)


(1,399,837)


(1,083,213)













NET INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS

$(1,416,433)


$95,120


($2,191,199)


$573,214













Earnings (loss) per common share after preferred dividends,









basic and dilute

$(0.29)


$0.02


$(0.44)


$0.12













Weighted average number of









outstanding common shares, basic and diluted

4,964,529


4,964,529


4,964,529


4,964,529













SOURCE Willamette Valley Vineyards

Elisha A. Tilghman