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: April 6, 2004
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 April 6,
2004 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: April 6, 2004 -----------------------
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.
FRANK GADDY YARN DIVISION
POST OFFICE BOX 190, VALDESE, NORTH CAROLINA 28690
Telephone (828) 876-6341 Fax (828) 879-7184
________________________________________________________________________________
(Exhibit 99)
FOR IMMEDIATE RELEASE
Page 1 of 3
PRESS RELEASE
Burke Mills, Inc. (OTC Bulletin Board) of Valdese, North Carolina, reports
operating results for the year ended January 3, 2004.
During fiscal year 2003 sales for Burke Mills, Inc. were $24.8 million compared
to $30 million in 2002. Burke recorded a net loss of ($2.5 million) or ($.91)
per share compared to a net loss of ($.3 million) or ($.12) per share in 2002.
Although Burke did not lose any major customers, sales declined by 21%. The
sales decline can be attributed to a weak textile economy, imports of finished
products that compete with the Company's customers' products, and over capacity
in the industry that has driven down sales prices.
During the fourth quarter the Company wrote off non-performing machinery of
$268,000 and established a valuation allowance of $920,000 for its deferred tax
asset, for a total extraordinary loss of $1,188,000 before tax.
The remainder of Burke's long-term debt was paid in the fourth quarter and at
year end the balance sheet remained strong with a quick ratio of 2:12.
BALANCE SHEET
January 3 December 28
2004 2002
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ASSETS
Current Assets
Cash and cash equivalents $ 147,062 $4,191,173
Accounts receivable 2,365,284 2,269,089
Inventories 1,880,477 2,095,863
Prepaid expenses, taxes, and other
current assets 52,633 114,000
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Total Current Assets 4,445,456 8,670,125
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Equity Investment in Affiliate 553,180 612,275
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Property, plant & equipment - at cost 30,513,251 31,161,672
Less: accumulated depreciation 22,450,432 20,939,167
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Property, Plant and Equipment- Net 8,062,819 10,222,505
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Other Assets
Deferred income taxes 60,000 703,200
Deferred charges and other 16,575 16,575
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Total Other Assets 76,575 719,775
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$ 13,138,030 $20,224,680
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current maturities of long-term debt $ 141,514 $1,178,571
Accounts payable 871,695 1,097,131
Accrued salaries and wages 54,050 100,848
Other liabilities and accrued expenses 113,412 105,595
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Total Current Liabilities 1,180,671 2,482,145
Long-Term Debt -0- 2,919,643
Deferred Income Taxes 1,374,000 1,735,400
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Total Liabilities 2,554,671 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 5,662,839 8,166,972
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Total Shareholders' Equity 10,583,359 13,087,492
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$13,138,030 $20,224,680
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Burke Mills, Inc.
Comparative Sales and Earnings
For the twelve months ended January 3, 2004
(Amounts in thousands except per share data)
Thirteen Weeks
Ended Year-Ended
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Jan. 3 Dec. 28 Jan. 3 Dec. 28
2004 2002 2004 2002
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Net Sales $5,829 $5,825 $24,815 $29,990
Cost and Expenses:
Cost of Sales 6,123 5,728 24,237 27,968
Selling, General & Admin. Expenses 641 574 2,400 2,577
Loss (gain) on disposal of
property assets 269 (13) 277 (5)
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Operating Loss (1,204) (464) (2,099) (550)
Interest Expense 12 38 91 178
Other (Income) Expenses 46 (19) (27) (95)
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Loss Before Provision for Income Taxes (1,262) (483) (2,163) (633)
Provision (Credit) for Income Taxes 626 (230) 282 (322)
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(1,888) (253) (2,445) (311)
Equity in Net Loss of Affiliate (15) -0- (59) (8)
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Net Loss $(1,903) $ (253) $(2,504) $(319)
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Basic and Diluted Loss Per Share $(0.69) $(0.09) $(0.91) $(0.12)
Weighted Avg. Common Shares Outstanding 2,741,168 2,741,168 2,741,168 2,741,268