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: November 12, 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 November 12,
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: November 12, 2003 -----------------------
Thomas I. Nail
President and COO
(Principal Financial Officer)
EXHIBIT INDEX
Exhibit No. Description
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(99) The News Release
(99)
FOR IMMEDIATE RELEASE - November 12, 2003
PRESS RELEASE
Burke Mills, Inc. (OTC Bulletin Board) of Valdese, North Carolina, reports
operating results for the thirteen weeks and thirty-nine weeks ended September
27, 2003.
Net sales for the thirteen weeks ending September 27, 2003 decreased by 6.6% to
$6,537,000 compared to $6,997,000 for the third quarter of 2002.
The Company recorded a net loss of ($182,000) for the thirteen week period
compared to a net loss of ($138,000) for the same period in 2002. This resulted
in net loss per share of ($.07) compared to a net loss of ($.05) in 2002.
Net sales for the nine months ended September 27, 2003 are $18,986,000 compared
to $24,165,000 in 2002. The Company recorded a net loss for the period of
($600,800) compared to a net loss of ($66,000) in 2002. This resulted in loss
per share of ($.22) versus loss of ($.02) in 2002.
The Company's net sales have decreased for the three quarters in 2003 versus
2002. 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 fourth quarter.
CONDENSED STATEMENTS OF OPERATIONS AND
RETAINED EARNINGS(Unaudited)
Thirteen Weeks Ended Thirty-Nine Weeks Ended
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Sept. 27 Sept. 28 Sept. 27 Sept. 28
2003 2002 2003 2002
-------- -------- -------- --------
Net Sales $6,536,838 $6,997,121 $18,986,354 $24,164,701
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Costs and Expenses
Cost of Sales 6,195,712 6,709,894 18,114,149 22,239,375
Selling, General and
Administrative Expenses 482,721 588,282 1,669,900 1,905,453
Factor's Charges 33,664 28,818 88,855 98,043
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Total Costs and Expenses 6,712,099 7,326,994 19,872,904 24,242,871
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Operating Earnings/(Loss) (175,261) (329,873) (886,550) (78,170)
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Other Income
Interest Income 5,558 13,148 22,426 36,698
Gain (loss) on disposal of
property -0- (4,502) (7,906) (4,393)
Other, net 355 22,710 439 35,849
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Total 5,913 31,356 14,959 68,154
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Other Expenses
Interest Expense 17,994 43,844 79,670 139,547
Other, net (16,800) -0- (50,400) -0-
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Total Other Expenses 1,194 43,844 29,270 139,547
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Income/(loss) before Provision
for Income Taxes & Equity in
Earnings of Affiliate (170,542) (342,361) (900,861) (149,563)
Provision/(credit) for Income
Taxes (1,824) (213,005) (343,883) (91,406)
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Net Income/(Loss) before Equity
in Net Earnings of Affiliate (168,718) (129,356) (556,978) (58,157)
Equity in Net Earnings (Losses)
of Affiliate (13,446) (8,317) (43,823) (8,317)
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Net Income (Loss) (182,164) (137,673) (600,801) (66,474)
Retained Earnings at Beginning
of Period 7,748,335 8,556,950 8,166,972 8,485,753
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Retained Earnings at End
of Period $7,566,172 $8,419,278 $7,566,172 $8,419,278
========== ========== ========== ==========
Earnings (Loss) Per Share $ (0.07) $ (.05) $ (0.22) $ (.02)
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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
September 27, December 28,
2003 2002
(Unaudited) (Note A)
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ASSETS
Current Assets
Cash and cash equivalents $2,186,068 $4,191,173
Accounts receivable 2,713,455 2,269,089
Inventories 2,266,598 2,095,863
Prepaid expenses and other
current assets 139,534 114,000
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Total Current Assets 7,305,655 8,670,125
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Equity Investment in Affiliate 568,452 612,275
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Property, Plant and Equipment - at cost 31,030,007 31,161,672
Less: Accumulated depreciation 22,227,420 20,939,167
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Property, Plant and Equipment - Net 8,802,587 10,222,505
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Other Assets
Deferred income taxes 703,200 703,200
Deferred charges and other 16,575 16,575
Estimated Tax Recovery 358,375 -0-
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Total Other Assets 1,078,150 719,775
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Total Assets $17,754,844 $20,224,680
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current maturities of long-term debt $1,200,000 $ 1,178,571
Accounts payable 1,470,840 1,097,131
Accrued salaries, wages and vacation pay 161,280 100,848
Other liabilities and accrued expenses 225,632 105,595
Income taxes payable -0- -0-
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Total Current Liabilities 3,057,752 2,482,145
Long-term Debt 475,000 2,919,643
Deferred Income Taxes 1,735,400 1,735,400
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Total Liabilities 5,268,152 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 7,566,172 8,166,972
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Total Shareholders' Equity 12,486,692 13,087,492
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Total Liabilities & Shareholders' Equity $17,754,844 $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.