FORM 10-Q SECURITIES & EXCHANGE COMMISSION Washington, D. C. 20549 (Mark One) (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2003 Or ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ____________ Commission file number 0-9068 WEYCO GROUP, INC. ----------------------------------------------------------------- (Exact name of registrant as specified in its charter) WISCONSIN 39-0702200 - ------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 333 W. Estabrook Boulevard P. O. Box 1188 Milwaukee, Wisconsin 53201 --------------------------------------------- (Address of principal executive offices) (Zip Code) (414) 908-1600 ---------------------------------------------------- (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes (X) No ( ) Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes (X) No ( ) As of November 3, 2003 the following shares were outstanding: Common Stock, $1.00 par value 4,420,803 Shares Class B Common Stock, $1.00 par value 1,310,915 Shares PART I. FINANCIAL INFORMATION Item 1. Financial Statements. The condensed financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company's latest annual report on Form 10-K. WEYCO GROUP, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS September 30 December 31 2003 (Unaudited) 2002 ---------------- ------------ ASSETS CURRENT ASSETS: Cash and cash equivalents $ 9,792,042 $ 7,301,104 Marketable securities 1,700,000 2,099,140 Accounts receivable, net 34,367,184 32,170,795 Accrued income tax receivable 237,241 1,008,079 Inventories - Finished shoes 43,113,316 48,951,574 Shoes in process 7,104 337,221 Raw materials and supplies 195,598 452,138 ------------ ------------ Total inventories 43,316,018 49,740,933 Deferred income tax benefits 2,387,000 2,421,000 Prepaid expenses and other current assets 558,412 803,108 ------------ ------------ Total current assets 92,357,897 95,544,159 MARKETABLE SECURITIES 7,325,979 8,026,127 OTHER ASSETS 9,341,419 9,683,252 PLANT AND EQUIPMENT 39,293,859 31,087,254 Less - Accumulated depreciation 10,394,161 8,927,271 ------------ ------------ Plant and equipment, net 28,899,698 22,159,983 TRADEMARK 10,867,969 10,821,681 ------------ ------------ $148,792,962 $146,235,202 ============ ============ LIABILITIES & SHAREHOLDERS' INVESTMENT CURRENT LIABILITIES: Accounts payable $ 5,753,520 $ 11,268,713 Dividend payable 570,233 490,810 Accrued liabilities 8,964,239 8,473,373 ------------ ------------ Total current liabilities 15,287,992 20,232,896 DEFERRED INCOME TAX LIABILITIES 2,939,000 3,416,000 LONG-TERM DEBT 34,962,273 37,801,992 SHAREHOLDERS' INVESTMENT: Common stock 5,701,937 3,789,064 Other shareholders' investment 89,901,760 80,995,250 ------------ ------------ $148,792,962 $146,235,202 ============ ============ The accompanying notes to consolidated condensed financial statements are an integral part of these financial statements. -1- WEYCO GROUP, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS FOR THE PERIODS ENDED SEPTEMBER 30, 2003 AND 2002 (UNAUDITED) Three Months ended September 30 Nine Months ended September 30 -------------------------------- -------------------------------- 2003 2002 2003 2002 ------------- ------------- ------------- ------------- NET SALES $ 49,817,256 $ 58,762,489 $ 161,197,464 $ 127,017,352 COST OF SALES 32,774,309 39,998,767 106,355,797 88,688,085 ------------- ------------- ------------- ------------- Gross earnings 17,042,947 18,763,722 54,841,667 38,329,267 SELLING AND ADMINISTRATIVE EXPENSES 11,887,045 11,233,478 36,128,815 24,926,799 ------------- ------------- ------------- ------------- Earnings from operations 5,155,902 7,530,244 18,712,852 13,402,468 INTEREST INCOME 131,378 199,864 403,346 683,070 INTEREST EXPENSE (421,998) (545,035) (1,084,350) (811,387) OTHER INCOME AND EXPENSE, net 43,692 (2,630) 241,764 (19,688) ------------- ------------- ------------- ------------- Earnings before provision for income taxes 4,908,974 7,182,443 18,273,612 13,254,463 PROVISION FOR INCOME TAXES 1,400,000 2,650,000 6,500,000 4,800,000 ------------- ------------- ------------- ------------- Net earnings $ 3,508,974 $ 4,532,443 $ 11,773,612 $ 8,454,463 ============= ============= ============= ============= WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (Note 4)* Basic 5,700,959 5,642,352 5,693,346 5,633,315 Diluted 5,903,141 5,791,789 5,881,725 5,747,944 EARNINGS PER SHARE (Note 4)* Basic $ .62 $ .80 $ 2.07 $ 1.50 ============= ============= ============= ============= Diluted $ .59 $ .78 $ 2.00 $ 1.47 ============= ============= ============= ============= CASH DIVIDENDS PER SHARE* $ .10 $ .09 $ .28 $ .25 ============= ============= ============= ============= *All per share figures have been adjusted to reflect the October 1, 2003 50% stock dividend. The accompanying notes to consolidated condensed financial statements are an integral part of these financial statements. -2- WEYCO GROUP, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002 (UNAUDITED) 2003 2002 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 13,930,476 $ 2,146,279 ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of Florsheim business -- (48,408,859) Purchase of marketable securities (3,400,000) (6,004,234) Proceeds from maturities of marketable securities 4,499,248 7,139,405 Purchase of plant and equipment (8,379,073) (6,745,417) Proceeds from sales of plant and equipment 37,623 -- ------------ ------------ Net cash used for investing activities (7,242,202) (54,019,105) ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Cash dividends paid (1,594,878) (1,427,006) Shares purchased and retired (212,102) (195,500) Proceeds from stock options exercised 449,363 462,813 Net borrowings (repayments) under revolving credit agreement (2,839,719) 46,454,096 Debt issuance costs -- (374,057) ------------ ------------ Net cash (used for) provided by financing activities (4,197,336) 44,920,346 ------------ ------------ Net increase (decrease) in cash and cash equivalents 2,490,938 (6,952,480) CASH AND CASH EQUIVALENTS at beginning of period 7,301,104 16,850,998 ------------ ------------ CASH AND CASH EQUIVALENTS at end of period $ 9,792,042 $ 9,898,518 ============ ============ SUPPLEMENTAL CASH FLOW INFORMATION: Income taxes paid $ 5,694,925 $ 4,167,678 ============ ============ Interest paid $ 916,603 $ 601,524 ============ ============ The accompanying notes to consolidated condensed financial statements are an integral part of these financial statements. -3- NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS: (1) In the opinion of management, all adjustments (which include only normal recurring accruals) necessary to present fairly the financial information have been made. The results of operations for the three months or nine months ended September 30, 2003, are not necessarily indicative of results for the full year. (2) On July 28, 2003 the Board of Directors of the Company declared a 50% stock dividend on the Company's Common Stock, $1.00 par value, and on the Company's Class B Common Stock, $1.00 par value, so as to affect a three-for-two stock split without a change in par value. The additional shares were issued on October 1, 2003, to shareholders of record on August 29, 2003. The stock dividend has been reflected in the shareholders equity accounts as of September 30, 2003. All per share information in these financial statements and notes have been restated to reflect this stock dividend. The Board also declared a quarterly dividend of $.10 per share, adjusted for the stock dividend, payable October 1, 2003. This represents a 7% increase in the Company's quarterly dividend. (3) On May 20, 2002, the Company acquired certain assets of Florsheim Group, Inc.'s domestic wholesale and retail operations. On July 1 and July 27, 2002, the Company acquired certain assets and assumed the operating liabilities of Florsheim Europe S.r.l. and Florsheim France SARL, respectively. The total purchase price was $48.7 million, and the Company entered into a two-year $60 million revolving line of credit to fund the acquisition and related expenses. In accordance with the original agreement, the revolving line of credit was reduced to $50 million on April 30, 2003. On May 5, 2003, the revolving line of credit agreement was extended an additional year, to April 30, 2005. See the Company's December 31, 2002 annual report on Form 10-K for further information regarding the acquisition and borrowings under the line of credit. During the third quarter of 2003, the Company finalized the purchase price allocation which resulted in a $46,000 net increase in the value of the trademark since December 31, 2002. The following table sets forth the unaudited proforma information for the Company as if the acquisition had occurred as of January 1, 2002 (in thousands, except per share data): Nine Months ended September 30 2002 ---------- Net Sales $ 160,216 Net Earnings $ 10,322 Basic Earnings Per Share $ 1.83 Diluted Earnings Per Share $ 1.79 -4- (4) The following table sets forth the computation of basic and diluted net earnings per share: Three Months Ended September 30 Nine Months Ended September 30 -------------------------------- -------------------------------- 2003 2002 2003 2002 ----------- ----------- ----------- ----------- Numerator: Net Earnings ..................... $ 3,508,974 $ 4,532,443 $11,773,612 $ 8,454,463 =========== =========== =========== =========== Denominator: Basic weighted average shares..... 5,700,959 5,642,352 5,693,346 5,633,315 Effect of dilutive securities: Employee stock options ......... 202,182 149,437 188,379 114,629 ----------- ----------- ----------- ----------- Diluted weighted average shares .. 5,903,141 5,791,789 5,881,725 5,747,944 =========== =========== =========== =========== Basic earnings per share ........... $ .62 $ .80 $ 2.07 $ 1.50 =========== =========== =========== =========== Diluted earnings per share ......... $ .59 $ .78 $ 2.00 $ 1.47 =========== =========== =========== =========== Diluted weighted average shares outstanding for 2003 exclude outstanding options to purchase 155,625 shares of common stock at a weighted-average price of $33.70 because they are antidilutive. Diluted weighted average shares outstanding for 2002 include all outstanding options, as none were antidilutive. (5) The Company continues to operate in two business segments: wholesale distribution and retail sales of men's footwear. Summarized segment data for September 30, 2003 and 2002 is: Wholesale Distribution Retail Total ------------ ------------ ------------ THREE MONTHS ENDED SEPTEMBER 30 2003 Net Sales....................... $ 43,943,000 $ 5,874,000 $ 49,817,000 Earnings from operations........ 4,338,000 818,000 5,156,000 2002 Net Sales....................... $ 53,490,000 $ 5,272,000 $ 58,762,000 Earnings from operations........ 7,037,000 493,000 7,530,000 NINE MONTHS ENDED SEPTEMBER 30 2003 Net Sales....................... $143,494,000 $ 17,703,000 $161,197,000 Earnings from operations........ 16,277,000 2,436,000 18,713,000 2002 Net Sales....................... $117,726,000 $ 9,291,000 $127,017,000 Earnings from operations........ 12,597,000 805,000 13,402,000 -5- (6) The Company has stock option plans under which options to purchase Common Stock are granted to officers and key employees at prices not less than the fair market value of the Common Stock on the date of the grant. The Company accounts for such stock option grants under the provisions of APB Opinion #25, "Accounting for Stock Issued to Employees." No stock-based employee compensation expense has been reflected in net income, as all options granted under those plans had an exercise price equal to or greater than the market value of the underlying common stock on the date of grant. The following table illustrates the effect on net earnings per share as if the Company had applied the fair value recognition provisions of FASB Statement No. 123, "Accounting for Stock-Based Compensation", as amended by SFAS No.148, to stock-based employee compensation. Three Months ended September 30 Nine Months ended September 30 2003 2002 2003 2002 -------------- -------------- -------------- -------------- Net earnings, as reported $ 3,508,974 $ 4,532,443 $ 11,773,612 $ 8,454,463 Deduct: Total stock-based employee compensation expense determined under the fair value based method for all awards, net of related tax effects ........ 558,563 253,004 906,892 395,657 -------------- -------------- -------------- -------------- Pro forma net income .............................. $ 2,950,411 $ 4,279,439 $ 10,866,720 $ 8,058,806 ============== ============== ============== ============== Earnings per share Basic - as reported ............................. $ .62 $ .80 $ 2.07 $ 1.50 ============== ============== ============== ============== Basic - pro forma ............................... $ .52 $ .76 $ 1.91 $ 1.43 ============== ============== ============== ============== Diluted - as reported ........................... $ .59 $ .78 $ 2.00 $ 1.47 ============== ============== ============== ============== Diluted - pro forma ............................. $ .50 $ .74 $ 1.85 $ 1.40 ============== ============== ============== ============== (7) Comprehensive income for the periods ended September 30, 2003 and 2002 is as follows (in thousands): Three Months ended September 30 Nine Months ended September 30 2003 2002 2003 2002 -------------- -------------- -------------- -------------- Net earnings $ 3,509 $ 4,532 $ 11,774 $ 8,454 Foreign currency translation adjustments (35) -- 403 -- -------------- -------------- -------------- -------------- Total comprehensive income $ 3,474 $ 4,532 $ 12,177 $ 8,454 The components of Accumulated Other Comprehensive Loss as recorded on the accompanying balance sheets are as follows (in thousands): September 30, 2003 December 31, 2002 ------------------ ----------------- Foreign currency translation adjustments $ 171 $ (232) Additional minimum pension liability, net of tax of $553 (864) (864) ------ -------- Accumulated other comprehensive loss $ (693) $ (1,096) -6- (8) In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities" (SFAS 146). SFAS 146 nullifies Emerging Issues Task Force Issue No. 94-3, "Liability Recognition for Certain Employee Termination Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred in a Restructuring)" and requires that a liability for a cost associated with an exit or disposal activity be recognized when the liability is incurred. SFAS 146 is effective for exit or disposal activities that are initiated after December 31, 2002. The adoption of this statement in 2003 did not have a material impact on the Company's financial statements. In November 2002, the FASB issued Interpretation No. 45, "Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others" ("FIN 45"). FIN 45 requires that the guarantor recognize, at the inception of certain guarantees, a liability for the fair value of the obligation undertaken in issuing such guarantee. FIN 45 also requires additional disclosure requirements about the guarantor's obligations under certain guarantees that it has issued. The initial recognition and measurement provisions of this interpretation are applicable on a prospective basis to guarantees issued or modified after December 31, 2002. The disclosure requirements of this interpretation are effective for financial statement periods ending after December 15, 2002. The adoption of FIN 45 did not have a material impact on the Company's consolidated financial position, results of operations or cash flows. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. ACQUISITION On May 20, 2002, the Company acquired certain assets of Florsheim Group, Inc.'s domestic wholesale and retail operations. On July 1 and July 27, 2002, the Company acquired certain assets and assumed the operating liabilities of Florsheim Europe S.r.l. and Florsheim France SARL, respectively. The total purchase price was $48.5 million, and the Company entered into a two-year $60 million revolving line of credit to fund the acquisition and related expenses. See the Company's December 31, 2002 annual report on Form 10-K and Note 3 to these financial statements for further information regarding the acquisition and borrowings under the line of credit. LIQUIDITY & CAPITAL RESOURCES The Company's primary source of liquidity is its cash and short-term marketable securities, which aggregated approximately $11,492,000 at September 30, 2003 as compared with $9,400,000 at December 31, 2002. To date in 2003, the primary source of cash is operations. The primary uses of cash are purchases of plant and equipment, repayments of long-term debt, and payment of cash dividends. -7- Cash flows from operations for the nine months ended September 30, 2003 were generated principally by net earnings of $11.8 million plus $1.8 million of depreciation and amortization. Cash flows for operations for the nine months ended September 30, 2002 were generated by net earnings of $8.5 million plus $1.5 million of depreciation and amortization. This was offset by an $8.4 million increase in accounts receivable, due primarily to the buildup of Florsheim accounts receivable after the May 20, 2002 acquisition. During the third quarter the Company completed the construction project to expand and reconfigure the distribution center to more efficiently handle the increased volumes resulting from the acquisition. The total cost was approximately $8.5 million. As of September 30, 2003, approximately $8.2 million has been paid. The Company expects capital expenditures to return to a more normalized level over the next twelve months. The Company estimates normal capital expenditures to be $1 to $2 million. At September 30, 2003, $35 million was outstanding under the line of credit facility. The Company was in compliance with all debt covenants as of September 30, 2003. In October 2003, the Company purchased 86,200 shares of its Common Stock for $2.6 million in a single transaction. The Company believes that available cash and marketable securities, cash provided by operations, and available borrowing facilities will provide adequate support for the cash needs of the business. RESULTS OF OPERATIONS Overall net sales for the third quarter ended September 30, 2003 of $49.8 million have decreased 15.2% compared with $58.8 million for the third quarter of 2002, primarily due to a decrease in wholesale net sales. Wholesale net sales for the current quarter were $43.9 million, as compared with $53.5 million for the same period in 2002. Wholesale sales for the quarter were down principally because the Company's Florsheim and Stacy Adams divisions' sales were down 29% and 21%, respectively. The Company's Nunn Bush division sales were down 6% for the quarter. Florsheim sales were down because in the third quarter of 2002, the Company sold a significant amount of obsolete inventory that was acquired in the Florsheim acquisition. Those sales did not recur in 2003. Additionally, after the acquisition of Florsheim on May 20, 2002, the Florsheim warehouse in Jefferson City, Missouri was closed as inventory was moved from Jefferson City to the Company's consolidated distribution center in Glendale, Wisconsin. Sales of Florsheim product resumed in the middle of June 2002. When the Company started shipping Florsheim product again, the Company received some unusually large orders to build up retail inventories which were depleted as a result of the shutdown. The majority of those orders were shipped in the third quarter of 2002. The Company's Stacy Adams division's sales were down principally as the result of the Company's SAO sub-brand, as the entire streetwear casual market remains challenging. -8- Retail net sales for the quarter ended September 30, 2003 were $5.9 million as compared with $5.3 million in 2002, up 11%. Same store sales were up 6% for the third quarter. For the nine months ended September 30, 2003, net sales were $161.2 million, as compared with $127.0 million for the same period in 2002. The 26.9% increase was due to increases in both the wholesale and retail divisions. Wholesale net sales through September 30, 2003 were $143.5 million as compared to $117.7 million for the same period of 2002. Wholesale net sales at the Company's Florsheim and Nunn Bush divisions were up 131%, and 3%, respectively, and the Stacy Adams division was down 3%. Sales for the Florsheim division were up as a result of the acquisition in May 2002. Retail net sales were $17.7 million to date in 2003 as compared with $9.3 million in 2002. The increase is primarily the result of the Florsheim acquisition. Same store sales were flat for the nine months ended September 30, 2003. Gross earnings as a percent of net sales for the third quarter increased from 31.9% in 2002 to 34.2% in 2003. Gross earnings as a percent of net sales for the nine months ended September 30 increased from 30.2% in 2002 to 34.0% in 2003. The increases in gross earnings as a percent of net sales for the quarter and nine months ended September 2003 result primarily from the increases in both wholesale and retail gross margins as a percent of net sales, but are also due to the increase in retail net sales relative to overall net sales. Retail sales, which carry a higher margin, comprise 11% of overall net sales to date in 2003 versus 7% last year. This change in mix resulted in an increase of approximately 1% in gross earnings as a percent of net sales for both the three and nine months ended September 30. Wholesale gross earnings as a percent of net sales increased from 29.0% for the third quarter of 2002 to 30.5% for the third quarter of 2003, and from 27.8% for the nine months ended September 30, 2002 to 30.5% for the same period of 2003. Wholesale gross margins have increased due principally to increases in gross margins at the Florsheim division as sales in 2003 include less obsolete and off price products. Retail gross earnings as a percent of net sales increased from 61.8% for the third quarter of 2002 to 63.6% for the third quarter of 2003, and from 60.2% for the nine months ended September 30, 2002 to 63.2% for the same period of 2003. The increase in retail gross earnings as a percent of net sales from 2002 to 2003 is primarily attributable to product mix. Selling and administrative expenses as a percent of net sales for the third quarter increased from 19.1% in 2002 to 23.9% in 2003. For the nine months ended September 30, selling and administrative expenses as a percent of net sales increased from 19.6% in 2002 to 22.4% in 2003. Wholesale selling and administrative expenses as a percent of net sales increased from 15.8% for the quarter ended September 30, 2002 to 20.4% for the quarter ended September 30, 2003, and increased from 17.1% for the nine months ended September 30, 2002 to 19.1% for the same period in 2003. Retail selling and administrative expenses as a percent of net sales decreased from 52.5% for the quarter ended September 30, 2002 to 49.7% for the quarter ended September 30, 2003, and from 51.5% for the nine months ended September 30, 2002 to 49.4% for the nine months ended September 30, 2003. -9- In general, increases in wholesale selling and administrative expenses as a percent of net sales this year were due to increased advertising of the Florsheim brand, offset by operating efficiencies achieved by the Company since the acquisition. Retail selling and administrative expenses as a percent of net sales have decreased since last year, as the Company has been able to reduce the operating costs of the stores since last year. Overall selling and administrative expenses as a percent of net sales are affected by these factors, as well as the previously discussed change in the mix of retail to wholesale net sales. The retail segment has significantly higher selling and administrative expenses as a percent of net sales than the wholesale segment. Interest expense for the quarter ended September 30, 2003 was $422,000 as compared to $545,000 for the same period in 2002. This decrease is due to the decrease in the average balance of debt outstanding, which was $34 million for the third quarter 2003 as compared to $52 million for the third quarter of 2002. For the nine months ended September 30, 2003, interest expense was $1,084,000 as compared to $811,000 for the nine months ended September 30, 2002. This increase is due to a higher level of average debt outstanding for the nine months ended September 30, 2003, as compared to 2002, which had significantly lower debt balances prior to the May 20, 2002 acquisition. The effective tax rate was 28.5% for the quarter ended September 30, 2003, as compared with 36.9% for the same period of 2002 and 35.6% for the nine months ended September 30, 2003 as compared with 36.2% for the same period of 2002. The decrease in the tax rate for the quarter and to date in 2003 is due to the impact of a favorable settlement of a tax issue which occurred in the third quarter of 2003. Item 3. Quantitative and Qualitative Disclosures About Market Risk There have been no material changes since the March 24, 2003 filing of the Company's Annual Report on Form 10-K. Item 4. Controls and Procedures The Company maintains disclosure controls and procedures designed to ensure that the information the Company must disclose in its filings with the Securities and Exchange Commission is recorded, processed, summarized and reported on a timely basis. The Company's principal executive officer and principal financial officer have reviewed and evaluated the Company's disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") as of the end of the period covered by this report (the "Evaluation Date"). Based on such evaluation, such officers have concluded that, as of the Evaluation Date, the Company's disclosure controls and procedures are effective in bringing to their attention on a timely basis material information relating to the Company required to be included in the Company's periodic filings under the Exchange Act. -10- There have not been any changes in the Company's internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the Company's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting. PART II. OTHER INFORMATION Item 1. Legal Proceedings None Item 6. Exhibits and Reports on Form 8-K See the Exhibit Index included herewith for a listing of Exhibits. There was one 8-K filing during the quarter. On July 22, 2003 the Company filed a press release announcing its results for the quarter ended June 30, 2003. SIGNATURES 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 thereunto duly authorized. WEYCO GROUP, INC. November 10, 2003 /s/ John Wittkowske - ----------------- -------------------------------------- Date John Wittkowske Senior Vice President & Chief Financial Officer -11- WEYCO GROUP, INC. (THE "REGISTRANT") (COMMISSION FILE NO. 0-9068) EXHIBIT INDEX TO CURRENT REPORT ON FORM 10-Q DATE OF SEPTEMBER 30, 2003 INCORPORATED EXHIBIT HEREIN BY FILED NUMBER DESCRIPTION REFERENCE TO HEREWITH - ------ -------------------------------------- ------------ -------- 31.1 Certification pursuant to Rule 13a-14 X (a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, Thomas W. Florsheim, Jr. 31.2 Certification pursuant to Rule 13a-14 X (a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, John F. Wittkowske 32.1 Certification pursuant to 18 U.S.C. X Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, Thomas W. Florsheim, Jr. 32.2 Certification pursuant to 18 U.S.C. X Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, John F. Wittkowske