Willamette Valley Vineyards Posts Results for 2022

SALEM, Ore., March 28, 2023 /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 $0.51 and an earnings per common share of $0.20 for the years ended December 31, 2022 and 2021 respectively, a decrease of $0.71, for the year ended December 31, 2022 over the prior year period.

The Company had net sales revenues of $33,934,081 and $31,786,864 for the years December 31, 2022 and 2021, respectively, an increase of $2,147,217, or 6.8%, for the year ended December 31, 2022 over the prior year period primarily as a result of an increase in revenue from direct sales of $2,459,483, or 18.5% in 2022 compared to 2021, which more than offset a decrease in revenue from sales to distributors of $312,266 or 1.7% in 2022 compared to 2021.

Gross profit was $18,814,096 and $18,665,673 for the years ended December 31, 2022 and 2021, respectively, an increase of $148,423, or 0.8%, for the year ended December 31, 2022 over the prior year period. This increase was generally driven by an increase in sales revenues partially offset by a higher cost of sales.

Selling, general and administrative expenses were $19,360,514 and $14,975,654 for the years ended December 31, 2022 and 2021, respectively, an increase of $4,384,860, or 29.3%, for the year ended December 31, 2022 over the prior year period. This increase was primarily as a result of more sales coming from tasting rooms which have higher selling costs and from costs related to the opening and development of four new tasting room and restaurant locations.

Net income(loss) was $(646,492) and $2,445,463, for the years ended December 31, 2022 and 2021, respectively, a decrease of $3,091,955, or 126.4%, for the year ended December 31, 2022 over the prior year period.

Jim Bernau, Founder and CEO of the Company said, "In 2022, we incurred additional product costs and inventory delays at the start of the year that negatively impacted our sales through distributors in the year. We have also incurred additional expenses in the year in connection with the opening of four new tasting room and restaurant locations in 2022 as we significantly grew our footprint in the direct to consumer segment. We expect higher costs and reduced margins and earnings in the near term as we bring these new locations fully online in 2023."

For a complete discussion of the Company's financial condition and operating results, see our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the United States Securities and Exchange Commission on EDGAR.

Willamette Valley Vineyards, Inc. is headquartered at its Estate Vineyard near Salem, Oregon. The Company's common stock is traded on NASDAQ (WVVI).

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, referred to as the "Securities Act", and Section 21E of the Securities Exchange Act of 1934, as amended, referred to as the "Exchange Act". These forward-looking statements involve risks and uncertainties that are based on current expectations, estimates and projections about the Company's business, and beliefs and assumptions made by management. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates", "predicts," "potential," "should," or "will" or the negative thereof and variations of such words and similar expressions are intended to identify such forward-looking statements. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including, but 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 or smoke from forest fires, changes in consumer spending, the reduction in consumer demand for premium wines, and the revenues or costs for any of our four new tasting rooms and restaurants exceeding our expectations. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic economic conditions.

Many of these risks as well as other risks that may have a material adverse impact on our operations and business, are identified in Item 1A "Risk Factors" in our Annual Report on Form 10-K.

The following is the Company's Statement of Operations for the year ended December 31, 2022 compared to the year ended December 31, 2021:

				Year ended
			December 31,
			2022		2021

SALES, NET			$ 33,934,081		$ 31,786,864
COST OF SALES			15,119,985		13,121,191

GROSS PROFIT			18,814,096		18,665,673

OPERATING EXPENSES:
	Sales and marketing		13,640,290		9,603,723
	General and administrative		5,720,224		5,371,931
		Total operating expenses	19,360,514		14,975,654

INCOME (LOSS) FROM OPERATIONS			(546,418)		3,690,019

OTHER INCOME (EXPENSE)
	Interest income		5,496		12,412
	Interest expense		(367,745)		(391,272)
	Other income, net		142,529		155,183

INCOME (LOSS) BEFORE INCOME TAXES			(766,138)		3,466,342

INCOME TAX (EXPENSE) BENEFIT			119,646		(1,020,879)

NET INCOME (LOSS)			(646,492)		2,445,463

Preferred stock dividends			(1,866,451)		(1,444,283)

INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS			$ (2,512,943)		$ 1,001,180

Earnings (loss) per common share after preferred dividends,
	basic and diluted		$ (0.51)		$ 0.20

Weighted-average number of
	common shares outstanding, basic and diluted		4,964,529		4,964,529