Wellco Enterprises, Inc. Announces Operating Results for the Fiscal Quarter and Six Months Ended January 3, 2004, and Cash Dividend, and Contract Update.Business Editors WAYNESVILLE There are at least five towns in the U.S. named Waynesville:
Wellco Enterprises, Inc. (AMEX AMEX See: American Stock Exchange : WLC WLC Wisconsin Lutheran College WLC West London College (UK) WLC Weighted Least-Connection WLC Workload License Charges WLC Warrior Leader Course WLC Whole Life Costs WLC Worm-Like Chain WLC Wafer Level Camera ) today reported net income for the six month period ended January January: see month. 3, 2004 (current six month period) of $967,000, equivalent to basic earnings per share of $.82 ($.80 diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), from revenues of $20,006,000. This compares to net income after cumulative effect of change in accounting principle of $230,000, equivalent to basic earnings per share of $.20 ($.19 diluted), from revenues of $10,506,000 in the prior year six month period ended December December: see month. 28, 2002 (prior six month period). Compared to the prior six month period, total revenues in the current six month period increased by $9,500,000. In late March 2003, the Defense Supply Center Philadelphia Philadelphia, ancient cities Philadelphia, name of several ancient cities. One was in Lydia, W Asia Minor (now W Turkey). At the foot of Mt. Tmolus and near the location of modern Alaşehir, it was founded in the 2d cent. B.C. (DSCP DSCP Defense Supply Center Philadelphia (US DoD) DSCP Differentiated Services Code Point DSCP Diffserv Code Points DSCP Defense Satellite Communications Program DSCP Decision Support and Custormer Platform (Sprint) , the Department of Defense agency with which the Company contracts for the manufacture of combat boots) invoked its surge option under a contract. Invoked in response to the need for desert boots used by U. S. Armed Forces personnel in Iraq Iraq or Irak (both: ēräk`, ĭrăk`), officially Republic of Iraq, republic (2005 est. pop. 26,075,000), 167,924 sq mi (434,924 sq km), SW Asia. , the surge option requires Wellco to significantly increase its rate of boot production. In the current period the Company shipped 126,000 more pairs of combat boots than in the prior period. In addition, current six month period revenues increased by $511,000 over the prior six month period for sales under a small contract with DSCP to supply the Extreme Cold Weather (Mukluk muk·luk n. 1. A soft boot made of reindeer skin or sealskin and worn by Eskimos. 2. A slipper with a soft sole resembling this boot. [Yupik maklak, bearded seal. ) boots. During the current six month period, revenues from the new Infantry infantry, body of soldiers who fight in an army on foot and are equipped with hand-carried weapons, in contradistinction originally to cavalry and other branches of an army. Combat Boot (ICB ICB Integrated Conference Bridge (Nortel) ICB International Competitive Bidding (international procurement) ICB Individual Case Basis ICB Istituto di Chimica Biomolecolare (Italian) ) were $95,000. Revenues from technical assistance fees and equipment rentals from licensees, which vary with licensee licensee n. a person given a license by government or under private agreement. (See: license, licensor) LICENSEE. One to whom a license has been given. 1 M. Q. & S. 699 n. sales, were greater in the current six month period because of increased sales of certain licensees. Prior six month period net income has been reduced by a $228,000 write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. 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. For the three month period ended January 3, 2004 (current three month period), the second quarter of the 2004 fiscal year, net income was $551,000, equivalent to basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $.46, from revenues of $11,389,000. This compares with net income of $64,000, equivalent to basic and diluted earnings per share of $.05, from revenues of $5,248,000 in the prior year quarter ended December 28, 2002 (prior three month period). Compared to the prior three month period, total revenues in the current period increased by $6,141,000 (117%). In the current three month period the Company shipped 82,000 more pairs of combat boots than in the prior period. In addition, current three month period revenues increased by $108,000 over the prior three month period for sales under a small contract with DSCP to supply the Extreme Cold Weather (Mukluk) boots. During the current three month period, revenues from the Infantry Combat Boot (ICB) were $95,000. At a February February: see month. 17, 2004 meeting, the Wellco Board of Directors declared a cash dividend of $.10 per share payable on April 2, 2004 to shareholders of record on March 8, 2004. The ICB boot, manufactured under one of the Company's three contracts with DSCP, must pass extensive testing before being sold to DSCP. Of the ICB boots presented to date for testing, several have not passed one of the tests. DSCP has issued a Cure Notice stating that the ICB contract may be cancelled if the Company does not supply boots that pass all the tests. The Company cannot predict the probability of cancellation. Cancellation of this contract would have an adverse effect on future operating results. Except for historical information, this Release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended June June: see month. 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.
WELLCO ENTERPRISES, INC.
CONSOLIDATED OPERATING RESULTS
(UNAUDITED)
(000's omitted except for per share amounts and number of shares)
----------------------------------------------------------------------
Fiscal Three Months Fiscal Six Months
Ended Ended
----------------------------------------------------------------------
Jan. 3, Dec. 28, Jan. 3, Dec. 28,
2004 2002 2004 2002
----------------------------------------------------------------------
Revenues $11,389 $5,248 $20,006 $10,506
----------------------------------------------------------------------
Operating Income 753 84 1,266 556
----------------------------------------------------------------------
Net Interest Income (Expense) (36) (9) (61) (11)
----------------------------------------------------------------------
Income Before Income Taxes 717 75 1,205 545
----------------------------------------------------------------------
Provision for Income Tax 166 11 238 87
----------------------------------------------------------------------
Income before Cumulative
Effect of Change in
Accounting Principle 551 64 967 458
----------------------------------------------------------------------
Cumulative Effect of Change in
Accounting Principle - - - (228)
----------------------------------------------------------------------
Net Income 551 64 967 230
----------------------------------------------------------------------
Basic, Before Cumulative
Effect $0.46 $0.05 $0.82 $0.39
----------------------------------------------------------------------
Cumulative Effect - - - ($0.19)
----------------------------------------------------------------------
Basic, After Cumulative Effect $0.46 $0.05 $0.82 $0.20
----------------------------------------------------------------------
Diluted, Before Cumulative
Effect $0.46 $0.05 $0.80 $0.38
----------------------------------------------------------------------
Cumulative Effect - - - ($0.19)
----------------------------------------------------------------------
Diluted, After Cumulative
Effect $0.46 $0.05 $0.80 $0.19
----------------------------------------------------------------------
Weighted Average Number of Common Shares Outstanding:
----------------------------------------------------------------------
For Basic Earnings
Per Share 1,185,746 1,184,931 1,185,746 1,183,857
----------------------------------------------------------------------
For Diluted Earnings
Per Share 1,208,260 1,212,891 1,202,048 1,216,723
======================================================================
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion