UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: May 15, 2003
Commission File Number 0-5680
BURKE MILLS, INC.
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(Exact name of registrant as specified in its charter)
IRS EMPLOYER IDENTIFICATION (56-0506342)
NORTH CAROLINA
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(State or other jurisdiction of incorporation or organization)
191 Sterling Street, N.W.
Valdese, North Carolina 28690
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(Address of principal executive offices) (Zip Code)
(828) 874-6341
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(Registrant's telephone number, including area code)
No Changes
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(Former name, former address and former fiscal year, if
changed since last report)
Item 5. Other Events
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The information set forth in the Registrant's news release dated May 15, 2003 is
incorporated herein by reference.
Item 7. Financial Statements and Exhibits
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(c) Exhibits
(99) The News Release
SIGNATURES
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Pursuant to the requirements of Section 13 or 15(d) 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.
BURKE MILLS, INC.
By: /s/
Date: May 15, 2003 -----------------------
Thomas I. Nail
President and COO
(Principal Financial Officer)
EXHIBIT INDEX
Exhibit No. Description
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(99) The News Release
BURKE MILLS, INC.
Telephone (828) 874-6341
Fax (828) 879-7184
FRANK GADDY YARN DIVISION
POST OFFICE BOX 190, VALDESE, NORTH CAROLINA 28690
FOR IMMEDIATE RELEASE
BURKE MILLS ANNOUNCES FIRST QUARTER RESULTS
Burke Mills, Inc. (OTC Bulletin Board) of Valdese, North Carolina, reports
operating results for the thirteen weeks ended March 29, 2003.
Net sales for the thirteen weeks ended March 29, 2003 are $6,619,000 compared to
$8,976,000 in 2002. The Company recorded a net loss of ($118,533) for the
thirteen week period compared to a net income of $288,373 for the same period in
2002. This resulted in net loss per share of ($.04) compared to a net income of
$.11 in 2002.
The Company's net sales have decreased in the first quarter in 2003. Although
the Company has not lost any major customers, the Company's customers have
experienced a decrease in their sales due to a weak textile economy and
competition with imports. The Company does not believe that economic conditions
will improve in the second quarter, and the Company believes sales will follow
the same trend as the previous quarters of 2002.
CONDENSED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
(Unaudited)
Thirteen Weeks Ended
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March 29, March 30,
2003 2002
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Net Sales $6,619,994 $8,976,145
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Costs and Expenses
Cost of Sales 6,119,934 7,919,250
Selling, General and
Administrative Expenses 639,043 698,736
Factor Charges 23,991 35,482
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Total Costs and Expenses $6,782,968 8,653,468
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Operating Earnings (Loss) (162,974) 322,677
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Other Income
Interest Income 7,167 9,441
Gain on Disposal of Property Assets -0- 325
Other, net 16,802 397
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Total 23,969 10,163
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BURKE MILLS, INC.
Other Expenses
Interest Expense 32,566 51,775
Other, net -0- (7,308)
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Total Other Expenses 32,566 44,467
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Income (Loss) before Income Taxes and Equity
in Net Earnings of Affiliate (171,571) 288,373
Provision (Credit) for Income Taxes 53,038 -0-
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Income (Loss) before Equity in Net Earnings
of Affiliate (118,533) 288,373
Equity in Net Earnings of Affiliate -0- -0-
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Net Income (Loss) (118,533) 288,373
Retained Earnings at Beginning of Period 8,166,972 8,485,753
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Retained Earnings at End of Period $8,048,438 $8,774,126
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Earnings (Loss) Per Share $ (0.04) $ 0.11
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Dividends Per Share of Common Stock None None
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Weighted Average Common Shares Outstanding 2,741,168 2,741,168
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CONDENSED BALANCE SHEETS
March 29, December 28,
2003 2002
(Unaudited) (Note A)
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ASSETS
Current Assets
Cash and cash equivalents $3,780,006 $4,191,173
Accounts receivable 2,737,609 2,269,089
Inventories 2,806,445 2,095,863
Prepaid expenses, taxes and other
current assets 240,576 114,000
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Total Current Assets 9,564,636 8,670,125
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Equity Investment in Affiliate 612,275 612,275
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Property, Plant and Equipment at cost 31,222,608 31,161,672
Less: Accumulated depreciation 21,451,096 20,939,167
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Property, Plant and Equipment Net 9,771,512 10,222,505
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Other Assets
Deferred income taxes 703,200 703,200
Deferred charges and other 58,744 16,575
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Total Other Assets 761,944 719,775
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Total Assets $20,710,367 $20,224,680
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BURKE MILLS, INC.
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current maturities of long-term debt $ 1,178,571 $ 1,178,571
Accounts payable 1,823,478 1,097,131
Accrued salaries, wages and vacation pay 174,491 100,848
Other liabilities and accrued expenses 204,469 105,595
Income taxes payable -0- -0-
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Total Current Liabilities 3,381,009 2,482,145
Long-term Debt 2,625,000 2,919,643
Deferred Income Taxes 1,735,400 1,735,400
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Total Liabilities 7,741,409 7,137,188
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Shareholders' Equity
Common stock, no par value(stated value, $.66)
Authorized - 5,000,000 shares
Issued and outstanding - 2,741,168 shares 1,809,171 1,809,171
Paid-in capital 3,111,349 3,111,349
Retained earnings 8,048,438 8,166,972
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Total Shareholders' Equity 12,968,958 13,087,492
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Total Liabilities & Shareholders' Equity $20,710,367 $20,224,680
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Note A: The December 28, 2002, Condensed Balance Sheet has been derived from the
audited financial statements at that date but does not include all of the
information and footnotes required for generally accepted accounting principles
for complete financial statements.
Burke Mills, Inc., is a processor of dyed, twisted, and textured yarns for the
automotive, home and contract upholstery markets. The Company employs
approximately 170 people.