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 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
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:
Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
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, 2005, Wellco Enterprises, Inc. issued a press release announcing
the financial results for the first quarter ended October 1, 2005, cash dividend
and action taken at annual meetings. 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, 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: November 16, 2005
Exhibit 99(a)
WELLCO ENTERPRISES, INC. ANNOUNCES OPERATING RESULTS
FOR THE QUARTER ENDED OCTOBER 1, 2005, CASH DIVIDEND AND ACTION TAKEN
AT ANNUAL MEETINGS
Waynesville, North Carolina, November 16, 2005--Wellco Enterprises, Inc.
(AMEX-WLC) today reported a net loss for the first quarter of fiscal year 2006
(current quarter), which ended October 1, 2005 of $646,000 equivalent to basic
and diluted loss per share of $0.51 from revenues of $8,318,000. This compares
to net income of $397,000 equivalent to basic earnings per share of $0.32 ($0.31
diluted), from revenues of $11,401,000 in the prior year three-month period
ended October 2, 2004 (prior quarter).
Compared to the prior quarter, total revenues in the current quarter decreased
by $3,083,000. In the current quarter, pairs of boots shipped under U. S.
Department of Defense (DOD) contracts decreased by 38% and production of boots
decreased by 63%. In early August 2005, the only U.S. supplier of a DOD required
component had a quality problem that impaired our production volume. Although
this problem has been substantially resolved, the Company is continuing to
perform additional, time consuming, quality procedures. While the rate of
production in the second quarter is improving, the necessary additional quality
procedures, and repairs resulting from those procedures, continue to restrict
production.
The prior quarter included in revenues $780,000 of reimbursement for certain
labor costs from the government of Puerto Rico. The current quarter does not
include any reimbursement. The majority of the Company's boot manufacturing
operations occurs 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. The Company's policy is to recognize the reimbursement in the period
that it is received. Subsequent to October 1, 2005, the company received
$234,000 from this program. Excluding this payment, the total reimbursement
filed for but not received is $762,000.
The Company announced the following, related to its November 15, 2005 Annual
Stockholders meeting:
Incumbent directors Claude S. Abernathy, Jr., William M. Cousins, Jr.,
Katherine J. Emerson, Rolf Kaufman, John D. Lovelace, Sara E. Lovelace,
David Lutz and Fred K. Webb, Jr. were elected for a one-year term expiring
in 2006. Director Nominee George Henson was also elected for a one-year
term expiring in 2006.
At the subsequent 2005 Annual Meeting of the Board of Directors, the following
action was taken:
1. All present officers of the Company were reelected.
2. The Board declared a quarterly cash dividend of $.15 (fifteen cents)
per share to all shareholders of record on December 9, 2005, payable
on January 6, 2006.
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 2, 2005. 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
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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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October 1, 2005 October 2, 2004
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Revenues $8,318 $11,401
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Operating Income (Loss) (631) 546
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Income (Loss) Before Income Taxes (674) 498
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Provision (Benefit) for Income Taxes (28) 101
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Net Income (Loss) $(646) $397
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Earnings (Loss) Per Share:
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Basic $(0.51) $0.32
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Diluted $(0.51) $0.31
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Weighted Average Number of Common Shares Outstanding:
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For Basic Earnings (Loss) Per Share 1,270,746 1,247,650
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For Diluted Earnings (Loss) Per Share 1,270,746 1,299,415
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