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: June 28, 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 August 14, 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/Thomas I. Nail
Date: August 14, 2003 -----------------------
Thomas I. Nail
President and COO
(Principal Financial Officer)
EXHIBIT INDEX
Exhibit No. Description
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(99) The News Release
PRESS RELEASE (99)
FOR IMMEDIATE RELEASE - August 14, 2003
Page 1 of 3
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Burke Mills, Inc. (OTC Bulletin Board) of Valdese, North Carolina, reports
operating results for the thirteen weeks and twenty-six weeks ended June 28,
2003.
Net sales for the thirteen weeks ending June 28, 2003 decreased by 28.8% to
$5,830,000 compared to $8,191,000 for the second quarter of 2002.
The Company recorded a net loss of ($300,000) for the thirteen week period
compared to a net loss of ($217,000) for the same period in 2002. This resulted
in a net loss per share of ($.11) compared to net loss of ($.08) in 2002.
Net sales for the twenty-six week period ending June 28, 2003 are $12,450,000
compared to $17,168,000 in 2002. The Company recorded a net loss for the period
of ($418,600) compared to a net income of $71,000 in 2002. This resulted in a
net loss per share of ($.15) versus net earnings of $.03 per share in 2002 .
CONDENSED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
(Unaudited)
Thirteen Weeks Ended Twenty-six Weeks Ended
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June 28, June 29, June 28, June 29,
2003 2002 2003 2002
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Net Sales $5,829,522 $8,191,434 $12,449,516 $17,167,579
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Cost and Expenses
Cost of Sales 5,798,502 7,610,232 11,918,436 15,529,482
Selling, General and
Administrative Expenses 544,533 618,435 1,183,576 1,317,171
Factor's Charges 34,802 33,742 58,793 69,224
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Total Costs and Expenses 6,377,837 8,262,409 13,160,805 16,915,877
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Operating Earnings/(Loss) (548,315) (70,975) (711,289) 251,702
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Other Income
Interest Income 9,701 14,109 16,868 23,550
Gain/(Loss) on Disposal
of Property (7,906) (2,216) (7,906) (1,891)
Other, net 82 125 84 522
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Total 1,877 12,018 9,046 22,181
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BURKE MILLS INC.
PRESS RELEASE -AUGUST 14, 2003
PAGE 2 OF 3
Other Expenses
Interest Expense 29,110 43,928 61,676 95,703
Other, net (16,800) (7,309) (33,600) (14,617)
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Total 12,310 36,619 28,076 81,086
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Income/(Loss) before Provision
for Income Taxes and Equity in
Net Earnings of Affiliate (558,748) (95,576) (730,319) 192,797
Provision (credit) for
Income Taxes (289,021) 121,600 (342,059) 121,600
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Net Income/(Loss) before Equity
in Net Earnings
of Affiliate (269,727) (217,176) (388,260) 71,197
Equity in Net Earnings (Loss)
of Affiliate (30,377) -0- (30,377) -0-
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Net Income/(Loss) (300,104) (217,176) (418,637) 71,197
Retained Earnings at Beginning
of Period 8,048,438 8,774,126 8,166,972 8,485,753
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Retained Earnings at End
of Period $7,748,335 $8,556,950 $7,748,335 $8,556,950
========== ========== ========== ==========
Earnings (Loss) Per Share $ (0.11) $ (.08) $ (0.15) $ .03
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Dividends Per Share of
Common Stock None None None None
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Weighted Average Common
Shares Outstanding 2,741,168 2,741,168 2,741,168 2,741,168
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CONDENSED BALANCE SHEETS
June 28, December 28,
2003 2002
(Unaudited) (Note A)
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ASSETS
Current Assets
Cash and cash equivalents $ 3,093,334 $ 4,191,173
Accounts receivable 2,514,771 2,269,089
Inventories 2,637,660 2,095,863
Prepaid expenses, taxes and other
current assets 513,784 114,000
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Total Current Assets 8,759,549 8,670,125
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Equity Investment in Affiliate 581,898 612,275
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Property, Plant and Equipment - at cost 31,030,173 31,161,672
Less: Accumulated depreciation 21,757,144 20,939,167
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Property, Plant and Equipment - Net 9,273,028 10,222,505
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BURKE MILLS INC.
PRESS RELEASE - AUGUST 14, 2003
PAGE 3 OF 3
Other Assets
Deferred income taxes 703,200 703,200
Deferred charges and other 16,575 16,575
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Total Other Assets 719,775 719,775
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Total Assets $19,334,250 $20,224,680
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current maturities of long-term debt $ 1,178,571 $ 1,178,571
Accounts payable 1,275,451 1,097,131
Accrued salaries, wages and vacation pay 181,350 100,848
Other liabilities and accrued expenses 199,980 105,595
Income taxes payable -0- -0-
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Total Current Liabilities 2,835,352 2,482,145
Long-term Debt 2,094,643 2,919,643
Deferred Income Taxes 1,735,400 1,735,400
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Total Liabilities 6,665,395 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 7,748,335 8,166,972
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Total Shareholders' Equity 12,668,855 13,087,492
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Total Liabilities & Shareholders' Equity $19,334,250 $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 165 people.