SALEM, Ore., Nov. 12, 2024 /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 $0.17 for each of the three months ended September 30, 2024 and 2023 respectively.
Sales revenue for the three months ended September 30, 2024 and 2023 were $9,370,713 and $9,348,066, respectively, an increase of $22,647, or 0.2%, in the current year period over the prior year period. This increase was caused by an increase in direct sales of $245,797 partly offset by a decrease in sales through distributors of $223,150 in the current year three-month period over the prior year period. The increase in direct sales to consumers in the third quarter of 2024 compared to the same quarter of 2023 was primarily the result of revenues from opening a new tasting room in late 2023. The decrease in revenue from sales through distributors was primarily related to lower case sales in this market.
Gross profit as a percentage of net sales for the three months ended September 30, 2024 and 2023 was 62.0% and 60.8%, respectively, an increase of 1.2 percentage points in the current year period over the prior year period, mostly as a result of a higher percentage of total sales coming from direct sales, which have higher margins than sales through distributors.
Selling, general and administrative expenses for the three months ended September 30, 2024 and 2023 were $5,944,620 and $5,967,346 respectively, a decrease of $22,726, or 0.4%, in the current quarter over the same quarter in the prior year. This decrease was primarily the result of a decrease in selling and marketing expenses of $25,028, or 0.6% being partially offset by an increase in general and administrative expenses of $2,302, or 0.1% in the current quarter compared to the same quarter last year.
Net loss for the three months ended September 30, 2024 and 2023 was $282,945 and $326,982, respectively, a decrease of $44,037, or 13.5%, in the third quarter of 2024 over the same quarter in the prior year.
Jim Bernau, Founder and CEO said, "The Company is continuing to respond to the rapidly changing market. We are seeing wholesalers and retailers reduce their wine inventories and allocate their shelf space for alternative alcoholic beverages and contract house brands, which we believe is being driven by interest costs, inflation and consumer trends that is putting pressure on retail margins.
We believe our efforts of increasing our direct contact with wine consumers and our many wine enthusiast shareholders, offering wine, culinary and hospitality experiences through our ten locations combined with an aggressive outreach to our wholesalers and their retail and restaurant accounts will lead to positive results."
For a complete discussion of the Company's financial condition and operating results for the third quarter, see our Form 10-Q for the three months ended September 30, 2024, 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 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 three months and nine months ended September, 30, 2024 compared to the three and nine months ended September 30, 2023:
| Three months ended | Nine months ended | ||||||||||
September 30, | September 30, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
SALES, NET | $ 9,370,713 | $ 9,348,066 | $ 28,506,151 | $ 28,383,249 | |||||||
COST OF SALES | 3,562,599 | 3,663,488 | 10,953,625 | 11,969,630 | |||||||
GROSS PROFIT | 5,808,114 | 5,684,578 | 17,552,526 | 16,413,619 | |||||||
OPERATING EXPENSES | |||||||||||
Sales and marketing | 4,326,851 | 4,351,879 | 12,692,804 | 12,685,502 | |||||||
General and administrative | 1,617,769 | 1,615,467 | 5,061,899 | 4,676,996 | |||||||
Total operating expenses | 5,944,620 | 5,967,346 | 17,754,703 | 17,362,498 | |||||||
LOSS FROM OPERATIONS | (136,506) | (282,768) | (202,177) | (948,879) | |||||||
OTHER INCOME (EXPENSE) | |||||||||||
Interest expense, net | (257,192) | (171,272) | (750,573) | (460,309) | |||||||
Other income, net | (4,424) | 3,714 | 96,169 | 82,440 | |||||||
LOSS BEFORE INCOME TAXES | (398,122) | (450,326) | (856,581) | (1,326,748) | |||||||
INCOME TAX BENEFIT | 115,177 | 123,344 | 247,809 | 363,396 | |||||||
NET LOSS | (282,945) | (326,982) | (608,772) | (963,352) | |||||||
Accrued preferred stock dividends | (563,250) | (511,719) | (1,689,676) | (1,535,158) | |||||||
NET LOSS APPLICABLE TO COMMON SHAREHOLDERS | $ (846,195) | $ (838,701) | $ (2,298,448) | $ (2,498,510) | |||||||
Loss per common share after preferred dividends, | |||||||||||
basic and diluted | $ (0.17) | $ (0.17) | $ (0.46) | $ (0.50) | |||||||
Weighted-average number of | |||||||||||
common shares outstanding, basic and diluted | 4,964,529 | 4,964,529 | 4,964,529 | 4,964,529 | |||||||
SOURCE Willamette Valley Vineyards
