Willamette Valley Vineyards Posts a Profit for 2017

SALEM, Ore., March 22, 2018 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon producer of Pinot Noir, generated income applicable to common shareholders of $2,289,730, or $0.46 cents per share, for 2017, up from $2,166,446, or $0.43 cents per share, for the prior year, representing a $123,284, or 5.7%, increase in income applicable to common shareholders when compared to 2016. 

Income from operations was $3,636,044 for 2017, down from $4,167,401 for the prior year, representing a decrease of $531,357, or 12.8%, when compared to 2016.  The decrease in income from operations was primarily the result in selling and administrative expense growth exceeding growth in gross profit.

The Company produced revenue of $20,853,527 and $19,425,412 in the years of 2017 and 2016, respectively, an increase of $1,428,115, or 7.4%, in the current year compared to the prior year.  The reasons for this increase include increased sales in all categories.

Gross profit was $12,881,851 and $12,220,528 for 2017 and 2016, respectively, an increase of $661,323.

Selling, general and administrative expenses were $9,245,807 and $8,053,127 for 2017 and 2016, respectively, an increase of $1,192,680 or 14.8%.  Increased selling and administrative expenses were primarily the result of efforts to increase sales and accommodate and develop retail growth and new operations.

Income tax provision was $452,726 for 2017, down from $1,478,310 for the prior year, representing a decrease of $1,025,584 or 69.4% when compared to 2016.  The decrease in income taxes was primarily the result of taxable income and the cumulative effect of the "Tax Cuts and Jobs Act" enacted by the US government in 2017.

Jim Bernau, Founder and President of the winery, said, "With our expanded wine enthusiast stockholder base, additional capital from the preferred stock sale and retained earnings, we are making new investments and incurring additional operating expense to develop new wines and direct-to-consumer venues.  The wine market is changing, and we are moving quickly."

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