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 19, 2004
Commission File Number 0-5680
BURKE MILLS, INC.
---------------------------------------------------------
(Exact name of registrant as specified in its charter)
IRS EMPLOYER IDENTIFICATION (56-0506342)
NORTH CAROLINA
---------------------------------------------------------
(State or other jurisdiction of incorporation or organization)
191 Sterling Street, N.W.
Valdese, North Carolina 28690
---------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(828) 874-6341
---------------------------------------------------------
(Registrant's telephone number, including area code)
No Changes
---------------------------------------------------------
(Former name, former address and former fiscal year, if
changed since last report)
Item 5. Other Events
- ---------------------
The information set forth in the Registrant's news release dated May 19, 2004 is
incorporated herein by reference.
Item 7. Financial Statements and Exhibits
- ------------------------------------------
(c) Exhibits
(99) The News Release
SIGNATURES
-----------
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: May 19, 2004 -----------------------
Thomas I. Nail
President and COO
(Principal Financial Officer)
EXHIBIT INDEX
Exhibit No. Description
- ----------- ------------
(99) The News Release
BURKE MILLS, INC.
FRANK GADDY YARN DIVISION
POST OFFICE BOX 190
VALDESE, NORTH CAROLINA 28690
Telephone (828) 874-6341 Fax (828) 879-7184
(EX-99)
FOR IMMEDIATE RELEASE
Page 1 of 3
BURKE MILLS ANNOUNCES FIRST QUARTER RESULTS
Burke Mills, Inc. (OTC Bulletin Board) of Valdese, North Carolina, reports
operating results for the thirteen weeks ended April 3, 2004.
Net sales for the thirteen weeks ended April 3, 2004 are $6,601,000 compared to
$6,620,000 in 2003. The Company recorded a net loss of ($663,000) for the
thirteen week period compared to a net loss of ($119,000) for the same period in
2003. This resulted in net loss per share of ($.24) compared to a net loss of
($.04) in 2003.
The Company and its joint venture partner, Teijin/Akra, voted to close their
joint venture Fytek. The joint venture will operate on a scaled down basis
through June 2004. The Company's loss for the quarter includes a $298,000 write
down of its investment in Fytek. The write down of the investment is based on an
estimated liquidated value for Fytek. The actual liquidation value can vary from
the estimate.
CONDENSED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
(Unaudited)
Thirteen Weeks Ended
--------------------
April 3, March 29,
2004 2003
---- ----
Net Sales $6,600,614 $6,619,994
---------- ----------
Costs and Expenses
Cost of Sales 6,401,110 6,119,934
---------- ----------
Gross Profit 199,504 500,060
Selling, General and
Administrative Expenses 633,010 639,043
---------- ----------
Operating Loss (433,506) (162,974)
---------- ----------
Other Income
Interest Income 175 7,167
Other, net 80 16,802
---------- ----------
Total Other Income 255 23,969
---------- ----------
Other Expenses
Interest Expense 552 32,566
Other, net 12,580 -0-
---------- ----------
Total Other Expenses 13,132 32,566
---------- ----------
Loss Before Income Tax Benefit and
Equity in Net Loss of Affiliate (446,383) (171,571)
Income Tax Benefit (81,719) (53,038)
---------- ----------
Loss Before Equity in Net Loss
of Affiliate (364,664) (118,533)
Equity in Net Loss of Affiliate (298,180) -0-
---------- ---------
Net Loss (662,844) (118,533)
Retained Earnings at Beginning of Period 5,662,839 8,166,972
---------- ----------
Retained Earnings at End of Period $4,999,995 $8,048,438
========== ==========
Basic and Diluted Net Loss Per Share $ (0.24) $ (0.04)
========== ==========
Dividends Per Share of Common Stock None None
=========== ==========
Weighted Average Common Shares Outstanding 2,741,168 2,741,168
=========== ==========
CONDENSED BALANCE SHEETS
April 3 January 3
2004 2004
(Unaudited) (Audited)
-------- --------
ASSETS
Current Assets
Cash and cash equivalents $ -0- $ 147,062
Accounts receivable 3,474,955 2,365,284
Inventories 2,072,242 1,880,477
Prepaid expenses and other current assets 135,434 52,633
---------- ---------
Total Current Assets 5,682,631 4,445,456
========== =========
Equity Investment in Affiliate 255,000 553,180
--------- ----------
Property, plant & equipment - at cost 30,527,300 30,513,251
Less: accumulated depreciation 22,908,069 22,450,432
---------- ----------
Property, Plant and Equipment- Net 7,619,231 8,062,819
---------- ----------
Other Assets
Deferred income taxes 62,000 60,000
Other 16,575 16,575
---------- ----------
78,575 76,575
---------- ----------
Total Assets $13,635,437 $13,138,030
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Bank overdraft $ 50,885 $ -0-
Short-term debt - revolving bank line -0- 141,514
Accounts payable 1,991,165 871,695
Accrued salaries and wages 183,591 54,050
Other liabilities and accrued expenses 201,281 113,412
---------- ----------
Total Current Liabilities 2,426,922 1,180,671
Deferred Income Taxes 1,288,000 1,374,000
---------- ----------
Total Liabilities 3,714,922 2,554,671
---------- ----------
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 4,999,995 5,662,839
---------- ----------
Total Shareholders' Equity 9,920,515 10,583,359
---------- ----------
Total Liabilities & Shareholder's Equity $13,635,437 $13,138,030
=========== ===========
Burke Mills, Inc., is a processor of dyed, twisted, and textured yarns for the
automotive, home and contract upholstery markets. The Company employs
approximately 166 people