Willamette Valley Vineyards Inc. (WVVI, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $17.66 million; its shares were traded at around $3.63 with a P/E ratio of 20.17 and P/S ratio of 1.1. Willamette Valley Vineyards Inc. had an annual average earning growth of 34.3% over the past 5 years.
As a result, the Company generated $0.05 and $0.14 basic earnings per share during the three and nine months ended September 30, 2009, a change of $0.00 and $0.04 basic earnings per share versus the comparable prior year periods.
The Company has an asset-based loan agreement with Umpqua Bank that allows it to borrow up to $2,000,000. This maturity date on this loan agreement is June 2010. At September 30, 2009, the Company had a credit line balance of $1,753,251 and $246,749 of available credit. The interest rate charged in the quarter was 3.25%. 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 September 30, 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 September 30, 2009, the Company was in compliance with all of the financial covenants.
Income tax expense was $170,599 and $457,987 for the three and nine months ended September 30, 2009, compared to $183,170 and $328,255 for the prior year periods. Our estimated tax rate for the three and nine months ended September 30, 2009 was 40.8% and 40.7%, respectively.
As a result of the factors listed above, net income for the three and nine months ended September 30, 2009 was $248,021 and $666,961, compared to net income of $243,629 and $461,254, respectively, in the comparable prior year periods. This is an increase of 1.8% and 44.6%, versus 2008 for the three and nine months ended September 30, 2009, respectively. Diluted earnings per share was $0.05 for the quarter ended September 30, 2009, compared to $0.05 per diluted share in the comparable prior year period. Diluted earnings per share for the nine months ended September 30, 2009 was $0.14 compared to $0.09 for the nine months ended September 30, 2008, an increase of 55.6%.
At September 30, 2009, we had a working capital balance of $9.9 million and a current working capital ratio of 3.92:1. At December 31, 2008, we had a working capital balance of $9.4 million and a current working capital ratio of 4.23:1. We had a cash balance of $7,515 at September 30, 2009, compared to a cash balance of $350,361 at December 31, 2008. The decrease in cash in this year is primarily due to the build-up of inventory, payments on grape contracts related to the 2008 harvest and capital project expenditures.
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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 $17.66 million; its shares were traded at around $3.63 with a P/E ratio of 20.17 and P/S ratio of 1.1. Willamette Valley Vineyards Inc. had an annual average earning growth of 34.3% over the past 5 years.
Highlight of Business Operations:
The Company s principal sources of revenue are derived from sales and distribution of wine. Net earnings for the third quarter ended September 30, 2009 were $248,021 compared to net earnings of $243,629 for the third quarter ended September 30, 2008, a 1.8% increase over the comparable prior year period. Net earnings for the nine months were $666,961 versus $461,254 for the comparable prior year period which represents an increase of 44.6% over the prior year s nine-month period.As a result, the Company generated $0.05 and $0.14 basic earnings per share during the three and nine months ended September 30, 2009, a change of $0.00 and $0.04 basic earnings per share versus the comparable prior year periods.
The Company has an asset-based loan agreement with Umpqua Bank that allows it to borrow up to $2,000,000. This maturity date on this loan agreement is June 2010. At September 30, 2009, the Company had a credit line balance of $1,753,251 and $246,749 of available credit. The interest rate charged in the quarter was 3.25%. 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 September 30, 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 September 30, 2009, the Company was in compliance with all of the financial covenants.
Income tax expense was $170,599 and $457,987 for the three and nine months ended September 30, 2009, compared to $183,170 and $328,255 for the prior year periods. Our estimated tax rate for the three and nine months ended September 30, 2009 was 40.8% and 40.7%, respectively.
As a result of the factors listed above, net income for the three and nine months ended September 30, 2009 was $248,021 and $666,961, compared to net income of $243,629 and $461,254, respectively, in the comparable prior year periods. This is an increase of 1.8% and 44.6%, versus 2008 for the three and nine months ended September 30, 2009, respectively. Diluted earnings per share was $0.05 for the quarter ended September 30, 2009, compared to $0.05 per diluted share in the comparable prior year period. Diluted earnings per share for the nine months ended September 30, 2009 was $0.14 compared to $0.09 for the nine months ended September 30, 2008, an increase of 55.6%.
At September 30, 2009, we had a working capital balance of $9.9 million and a current working capital ratio of 3.92:1. At December 31, 2008, we had a working capital balance of $9.4 million and a current working capital ratio of 4.23:1. We had a cash balance of $7,515 at September 30, 2009, compared to a cash balance of $350,361 at December 31, 2008. The decrease in cash in this year is primarily due to the build-up of inventory, payments on grape contracts related to the 2008 harvest and capital project expenditures.
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