UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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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) February 16, 2005
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
(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 February16, 2005, Wellco Enterprises, Inc. issued a press release announcing
the financial results for the second quarter ended January 1, 2005. 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: February 16, 2005 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: February 16, 2005
WELLCO ENTERPRISES, INC. ANNOUNCES OPERATING RESULTS
FOR THE FISCAL QUARTER AND SIX MONTHS ENDED JANUARY 1, 2005 AND
CASH DIVIDEND
Waynesville, North Carolina, February 16, 2005--Wellco Enterprises, Inc.
(AMEX-WLC) today reported net income for the six month period ended January 1,
2005 (current six month period) of $918,000, equivalent to basic earnings per
share of $.73 ($.70 diluted), from revenues of $24,595,000. This compares to net
income of $967,000, equivalent to basic earnings per share of $.82 ($.80
diluted), from revenues of $20,006,000 in the prior year six month period ended
January 3, 2004 (prior six month period).
Compared to the prior period, total revenues in the current period increased by
$4,589,000. In the current period the Company shipped 142,000 pairs of the
Infantry Combat Boot (ICB). The prior period did not include any ICB boot sales.
This increase offset an 86,000 pair decrease in shipments of Hot Weather boots.
Shipments of Hot Weather boots in the prior period were under the Defense
Department's surge option, primarily to meet the urgent need in Iraq. The surge
need was substantially met by the end of the first quarter of the current
period.
The majority of the Company's boot manufacturing operations occur at the factory
of a wholly- owned subsidiary located in Puerto Rico. The Company is
participating in a Puerto Rican government program to assist manufacturers in
the training of new or expanded work force under which the Company is reimbursed
for part of the compensation paid to certain employees. Under this program, the
Company received and recognized as a reduction of Cost of Sales and Services in
the current six month period $1,165,000, compared to $320,000 in the prior six
month period. The majority of the amount received in the current period is for
compensation paid in the prior fiscal year. The Company's policy is to record
these reimbursements in the fiscal period in which they are received. The
Company has filed a reimbursement claim for $535,000 for compensation paid
employees and expensed through January 1, 2005.
For the three month period ended January 1, 2005 (current three month period),
the second quarter of the 2005 fiscal year, net income was $521,000, equivalent
to basic earnings per share of $.41 ($.40 diluted), from revenues of
$13,974,000. This compares with net income of $551,000, equivalent to basic and
diluted earnings per share of $.46, from revenues of $11,389,000 in the prior
year quarter ended January 3, 2004 (prior three month period).
Compared to the prior period, total revenues in the current period increased by
$2,585,000. In the current period the Company shipped 102,000 pairs of the
Infantry Combat Boot (ICB). The prior period did not include any ICB boot sales.
This increase offset an 83,000 pair decrease shipments of the Hot Weather boots.
At a February 15, 2005 meeting, the Wellco Board of Directors declared a cash
dividend of $.15 per share payable on March 25, 2005 to shareholders of record
on March 4, 2005.
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING INFORMATION
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
CONSOLIDATED OPERATING RESULTS
(000'S OMITTED EXCEPT FOR PER SHARE AMOUNTS AND NUMBER OF SHARES
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(unaudited) (unaudited)
Fiscal Six Months Ended Fiscal Three Months Ended
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January 1, January 3, January 1, January 3,
2005 2004 2005 2004
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Revenues $24,595 $20,006 $13,974 $11,389
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Operating Income 1,310 1,266 764 753
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Net Interest Expense (137) (61) (89) (36)
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Income Before Income Taxes 1,173 1,205 675 717
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Income Tax Provision 255 238 154 166
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Net Income 918 967 521 551
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Basic Earnings
Per Share $.73 $.82 $.41 $.46
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Diluted Earnings
Per Share $.70 $.80 $.40 $.46
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Weighted Average Number of
Common Shares Outstanding:
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For Basic Earnings
Per Share 1,257,092 1,185,746 1,266,402 1,185,746
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For Diluted Earnings
Per Share 1,312,888 1,202,048 1,303,970 1,208,260
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