Willamette Valley Vineyards Inc. (WVVI, Financial) filed Quarterly Report for the period ended 2009-03-31.
WILLAMETTE VALL Co. is engaged in the production and sales of premium super premium and ultra premium varietal wines. Willamette Valley Vineyards Inc. has a market cap of $15.1 million; its shares were traded at around $3.1 with a P/E ratio of 22.1 and P/S ratio of 1. Willamette Valley Vineyards Inc. had an annual average earning growth of 34.3% over the past 5 years.
The Company has an asset-based loan agreement with Umpqua Bank that allows it to borrow up to $2,000,000. This loan agreement was recently renewed for 18 months and the new maturity date on this note is June 2010. At March 31, 2009, the Company had a credit line balance of $507,149 and $1,492,851 of available credit. The interest rate charged in the quarter was 4.5%. The interest rate on this note is a variable interest rate and is subject to change from time to time based on changes in an independent index which is the Prime Rate as published in the Wall Street Journal (the “Index”). The index rate at March 31, 2009 is 3.25%. The loan agreement contains, among other things, certain restrictive financial covenants with respect to total equity, debt-to-equity and debt coverage that must be maintained by the Company on a quarterly basis. As of March 31, 2009, the Company was in compliance with all of the financial covenants.
As a result of the factors listed above, net income for the three months ended March 31, 2009 was $165,156 compared to net income of $60,102 in the comparable prior year period. Diluted earnings per share was $0.03 for the quarter ended March 31, 2009, compared to $0.01 per diluted share, in the comparable prior year period.
At March 31, 2009, we had a working capital balance of $9.7 million and a current ratio of 4.86:1. At December 31, 2008, we had a working capital balance of $9.4 million and a current ratio of 4.23:1. We had a cash balance of $0 at March 31, 2009, compared to a cash balance of $350,361 at December 31, 2008. The decrease in cash was primarily due to the payments on grape contracts and trade payables that were previously accrued in the prior year.
Total cash provided by financing activities in the three months ended March 31, 2009 was $537,030 compared to $239,765 provided by financing activities in the prior year period. Cash provided by financing activities primarily consists of revolving credit line advances needed to support working capital requirements and payments on a loan to a grape producer. This is offset somewhat by cash used to repay long-term debt. Bank overdrafts are $81,132 for the quarter ended March 31, 2009. These overdrafts represent outstanding checks that have been recorded on the financials but yet to be presented to the bank. These checks are funded by the revolving credit line as they are presented to the bank.
Total inventory for Bacchus Distribution was $2,098,072 of purchased wines and $226,645 of non-wine merchandise at period end March 31, 2009. This compares to produced wine inventory of $4,210,312 and $4,287,874 of non-wine merchandise and work-in-process for the same period. At March 31, 2008, total inventory for Bacchus Distribution was $1,940,288 of purchased wines and $267,896 of non-wine merchandise. This compares to produced wine inventory of $6,455,241 and $821,933 of non-wine merchandise and work-in-process for the same period.
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WILLAMETTE VALL Co. is engaged in the production and sales of premium super premium and ultra premium varietal wines. Willamette Valley Vineyards Inc. has a market cap of $15.1 million; its shares were traded at around $3.1 with a P/E ratio of 22.1 and P/S ratio of 1. Willamette Valley Vineyards Inc. had an annual average earning growth of 34.3% over the past 5 years.
Highlight of Business Operations:
As a result, the Company generated $0.03 basic earnings per share during the three months ended March 31, 2009, an increase of $0.02 basic earnings per share versus the comparable prior year period.The Company has an asset-based loan agreement with Umpqua Bank that allows it to borrow up to $2,000,000. This loan agreement was recently renewed for 18 months and the new maturity date on this note is June 2010. At March 31, 2009, the Company had a credit line balance of $507,149 and $1,492,851 of available credit. The interest rate charged in the quarter was 4.5%. The interest rate on this note is a variable interest rate and is subject to change from time to time based on changes in an independent index which is the Prime Rate as published in the Wall Street Journal (the “Index”). The index rate at March 31, 2009 is 3.25%. The loan agreement contains, among other things, certain restrictive financial covenants with respect to total equity, debt-to-equity and debt coverage that must be maintained by the Company on a quarterly basis. As of March 31, 2009, the Company was in compliance with all of the financial covenants.
As a result of the factors listed above, net income for the three months ended March 31, 2009 was $165,156 compared to net income of $60,102 in the comparable prior year period. Diluted earnings per share was $0.03 for the quarter ended March 31, 2009, compared to $0.01 per diluted share, in the comparable prior year period.
At March 31, 2009, we had a working capital balance of $9.7 million and a current ratio of 4.86:1. At December 31, 2008, we had a working capital balance of $9.4 million and a current ratio of 4.23:1. We had a cash balance of $0 at March 31, 2009, compared to a cash balance of $350,361 at December 31, 2008. The decrease in cash was primarily due to the payments on grape contracts and trade payables that were previously accrued in the prior year.
Total cash provided by financing activities in the three months ended March 31, 2009 was $537,030 compared to $239,765 provided by financing activities in the prior year period. Cash provided by financing activities primarily consists of revolving credit line advances needed to support working capital requirements and payments on a loan to a grape producer. This is offset somewhat by cash used to repay long-term debt. Bank overdrafts are $81,132 for the quarter ended March 31, 2009. These overdrafts represent outstanding checks that have been recorded on the financials but yet to be presented to the bank. These checks are funded by the revolving credit line as they are presented to the bank.
Total inventory for Bacchus Distribution was $2,098,072 of purchased wines and $226,645 of non-wine merchandise at period end March 31, 2009. This compares to produced wine inventory of $4,210,312 and $4,287,874 of non-wine merchandise and work-in-process for the same period. At March 31, 2008, total inventory for Bacchus Distribution was $1,940,288 of purchased wines and $267,896 of non-wine merchandise. This compares to produced wine inventory of $6,455,241 and $821,933 of non-wine merchandise and work-in-process for the same period.
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