SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported) November 10, 2003
COMMISSION FILE NUMBER: 1-5555
WELLCO ENTERPRISES, INC.
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(Exact name of registrant as specified in charter)
NORTH CAROLINA 56-0769274
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(State of Incorporation) ( I.R.S. Employer Identification No.)
150 Westwood Circle, P.O. Box 188, Waynesville, NC 28786
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(Address of Principal Executive Office)
Registrant's telephone number, including area code 828-456-3545
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ITEM 12. Results of Operations and Financial Condition
The following information is furnished pursuant to Item 12, "Results of
Operations and Financial Condition."
On November 10, 2003, Wellco Enterprises, Inc. issued a press release regarding
its operating results for the three months ended September 27, 2003, the first
quarter of fiscal year 2004. A copy of this press release is attached hereto as
Exhibit 99(a).
Exhibit Index
99(a) Press release, dated: November 10, 2003, issued by Wellco Enterprises,
Inc.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
WELLCO ENTERPRISES, INC.
/s/ David Lutz
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David Lutz
President - Chief Executive Officer
Dated: November 10, 2003
Exhibit 99(a)
WELLCO ENTERPRISES, INC. ANNOUNCES OPERATING RESULTS
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FOR THE FISCAL QUARTER ENDED SEPTEMBER 27, 2003
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Waynesville, North Carolina, November 10, 2003--Wellco Enterprises, Inc. (AMEX-
WLC) today reported net income of $416,000 for the three months ended September
27, 2003 (current period), the first quarter of fiscal year 2004, equivalent to
basic and diluted earnings per share of $.35 from revenues of $8,617,000. This
compares with restated net income of $166,000, equivalent to basic earnings per
share of $.14 (diluted $.13), from revenues of $5,258,000 in the three month
period ended September 28, 2002 (prior period).
Prior period net income of $394,000 as previously reported has been reduced by a
$228,000 write-off of goodwill, originally recorded in the fourth quarter of
fiscal year 2003. Under the applicable accounting standard, this write-off was
recorded in the fourth quarter of fiscal year 2003, and interim periods for
fiscal year 2003 are restated to reflect the write-off in the first quarter of
that year.
The revenue increase was primarily caused by an increase in boots shipped under
contract to the U. S. Department of Defense (DOD). Since April 2003, the Company
has substantially increased its rate of boot production under a surge option
clause in one of the Company's DOD contracts. In order to do this, the Company
has hired new employees and taken other action that has resulted in significant
excess costs. The Company has identified $143,000 of these excess costs in the
current period ($422,000 cumulative since the start of surge). The Company
believes these excess costs are reimbursable by DOD but, because DOD has a
different interpretation of the relevant contract clause, they are not
recognized by the Company as an account receivable at this time.
Simultaneously with the surge option being invoked, the Company was awarded a
contract to supply the U. S. Army's new Infantry Combat Boot (ICB). During the
current period, the Company incurred significant costs to integrate this new
boot into the Company's factories. During the current period, sales of the ICB
boot were insignificant.
Except for historical information, this Release includes forward-looking
statements that involve risks and uncertainties, including, but not limited to,
the receipt of contracts from the U. S. government and others, and the
performance thereunder, the ability to control costs under fixed price
contracts, the cancellation of contracts, and other risks detailed from time to
time in the Company's Securities and Exchange Commission filings, including Form
10-K for the year ended June 28, 2003. Those statements include, but may not be
limited to, all statements regarding intent, beliefs, expectations, projections,
forecasts, and plans of the Company and its management. Actual results may
differ materially from management expectations. The Company assumes no
obligations to update any forward-looking statements.
Contact:
Wellco Enterprises, Inc.
Waynesville, North Carolina
David Lutz, President and Chief Executive Officer
Phone: 828-456-3545, extension 102
WELLCO ENTERPRISES, INC.
CONSOLIDATED OPERATING RESULTS
(UNAUDITED)
(000's omitted except for per share amounts and number of shares)
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Fiscal Three Months Ended
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September 27, September 28,
2003 2002
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Revenues $8,617 $5,258
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Operating Income 513 472
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Income Before Income Taxes 488 470
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Provision for Income Taxes 72 76
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Income Before Cumulative Effect of Change in
Accounting Principle 416 394
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Cumulative Effect of Change in Accounting
Principle (228)
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Net Income $416 $166
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Earnings Per Share:
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Basic, Before Cumulative Effect $.35 $.33
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Cumulative Effect (.19)
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Basic, After Cumulative Effect $.35 $.14
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Diluted, Before Cumulative Effect $.35 $.32
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Cumulative Effect (.19)
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Diluted, After Cumulative Effect $.35 $.13
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Weighted Average Number of Common Shares Outstanding:
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For Basic Earnings Per Share 1,185,746 1,182,746
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For Diluted Earnings Per Share 1,199,611 1,228,744
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