UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
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 22, 2004
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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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[GRAPHIC OMITTED]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[GRAPHIC OMITTED]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[GRAPHIC OMITTED]
Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[GRAPHIC OMITTED]
Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
SECTION 2 Financial Information
ITEM 2.02 Results of Operations and Financial Condition.
On November 16, 2004, Wellco Enterprises, Inc. issued a press release announcing
the financial results for the first quarter ended October 2, 2004. A copy of
Wellco Enterprises, Inc. press release is attached as Exhibit 99(a) to this
report and incorporated by reference.
The information furnished pursuant to this Item 2.02 and the exhibit hereto
shall not be deemed "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and shall not be deemed
to be incorporated by reference in any filing under the Securities Act of 1933,
as amended, or the Exchange Act except as shall be expressly set forth by
specific reference in such filing.
Exhibit Index
99(a) Press release, dated: November 16, 2004, 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
David Lutz
President - Chief Executive Officer
Dated: November 22, 2004
Exhibit 99(a)
WELLCO ENTERPRISES, INC. ANNOUNCES OPERATING RESULTS
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FOR THE FISCAL QUARTER ENDED OCTOBER 2, 2004
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Waynesville, North Carolina, November 16, 2004--Wellco Enterprises, Inc.
(AMEX-WLC) today reported net income of $397,000 for the three months ended
October 2, 2004 (current period), the first quarter of fiscal year 2005,
equivalent to basic earnings per share of $.32 (diluted $.31) from revenues of
$10,621,000. This compares with net income of $416,000, equivalent to basic
earnings per share of $.35 (diluted $.35), from revenues of $8,617,000 in the
three month period ended September 27, 2003 (prior period).
The revenue increase resulted primarily from shipments under a contract for
which there were no shipments in the prior period. The first shipments under
this contract occurred in the third quarter of the 2004 fiscal year. The current
period also reflects, as a reduction in cost of sales, a $780,000 reimbursement
from the government of Puerto Rico for part of the compensation paid in fiscal
year 2004 to certain new employees. The Company's policy is to record these
reimbursements in the fiscal period in which they are received. The Company has
filed for reimbursement of $560,000 related to compensation paid in the current
period. This amount, which is subject to audit by the government of Puerto Rico,
will be recognized as a reduction in cost of sales in the period received.
Because of competitive conditions, the Company's current Department of Defense
contracts have lower profit margins than those historically earned under prior
contracts. In response to the need for boots in Iraq and to new contracts it has
received, the Company, in fiscal year 2004, more than doubled its rate of boot
production. Excess manufacturing costs resulting from this increase have reduced
margins. In addition, the prior period includes $20,000 of grant income from the
government of Puerto Rico, whose recognition was completed in the fourth quarter
of fiscal year 2004.
Statements throughout this report that are not historical facts are
forward-looking statements. These statements are based on current expectations
and beliefs, and involve numerous risks and uncertainties. Many factors could
affect the Company's actual results, causing results to differ materially from
those expressed in any such forward-looking information.
These factors include, but are not limited to, the receipt of contracts from the
U. S. government 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 July 3, 2004. 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 obligation 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,
October 2, 2004 2003
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Revenues $10,621 $8,617
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Operating Income 546 513
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Income Before Income Taxes 498 488
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Provision for Income Taxes 101 72
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Net Income $397 $416
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Earnings Per Share:
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Basic $.32 $.35
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Diluted $.31 $.35
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Weighted Average Number of Common Shares
Outstanding:
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For Basic Earnings Per Share 1,247,650 1,185,746
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For Diluted Earnings Per Share 1,299,415 1,199,611
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