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: August 18, 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
- ---------------------
The information set forth in the Registrant's news release dated August 18, 2004
is incorporated herein by reference.
Item 7. Financial Statements and Exhibits
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(c) Exhibits
(99) The News Release
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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 18, 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 - AUGUST 18, 2004
BURKE MILLS ANNOUNCES FIRST QUARTER RESULTS
Burke Mills, Inc. (OTC Bulletin Board) of Valdese, North Carolina, reports
operating results for the thirteen weeks and twenty-six weeks ended July 3,
2004.
Net sales for the thirteen weeks ending July 3, 2004 increased by 15.1% to
$6,710,000 compared to $5,830,000 for the second quarter of 2003.
The Company recorded a net loss of ($29,000) for the thirteen week period
compared to a net loss of ($300,000) for the same period in 2003. This resulted
in a net loss per share of ($.01) compared to net loss of ($.11) in 2003.
Net sales for the twenty-six week period ending July 3, 2004 increased by 6.9%
to $13,311,000 compared to $12,450,000 in 2003. The Company recorded a net loss
for the period of ($691,000) compared to a net loss of ($419,000) in 2003. This
resulted in a net loss per share of ($0.25) versus ($0.15) in 2003.
CONDENSED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
(Unaudited)
Thirteen Weeks Ended Twenty-six Weeks Ended
----------------------- -----------------------
July 3, June 28, July 3, June 28,
2004 2003 2004 2003
------ ------ ------ ------
Net Sales $6,709,965 $5,829,522 $13,310,580 $12,449,516
----------- ----------- ----------- -----------
Cost and Expenses
Cost of Sales 6,295,499 5,798,502 12,696,609 11,918,436
----------- ----------- ----------- -----------
Gross Profit 414,466 31,020 613,971 531,080
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BURKE MILLS, INC.
CONDENSED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
(Unaudited) (continued)
Thirteen Weeks Ended Twenty-six Weeks Ended
----------------------- -----------------------
July 3, June 28, July 3, June 28,
2004 2003 2004 2003
------ ------ ------ ------
Selling, General and
Administrative Expenses 559,897 579,335 1,192,907 1,242,369
Gain (loss) on disposal
of property assets (4,023) 7,906 (4,023) 7,906
----------- ---------- ----------- -----------
Operating Loss (141,408) (556,221) (574,913) (719,195)
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Other Income
Interest Income 292 9,701 467 16,868
Miscellaneous 28,662 16,882 16,161 33,684
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Total 28,954 26,583 16,628 50,552
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Other Expenses
Interest Expense 191 29,110 743 61,676
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Loss before Provision for
Income Taxes and Equity in
Net Earnings of Affiliate (112,645) (558,748) (559,028) (730,319)
Provision (Credit) for
Income Taxes (84,000) 289,021 (165,719) (342,059)
---------- ---------- ------------ ---------
Loss before Equity in Net
Net Earnings of Affiliate (28,645) (269,727) (393,309) (388,260)
Equity in Net Loss
of Affiliate -0- (30,377) (298,180) (30,377)
----------- --------- ----------- ----------
Net Loss (28,645) (300,104) (691,489) (418,637)
Retained Earnings at
Beginning of Period 4,999,995 8,048,438 5,662,839 8,166,972
---------- --------- ----------- -----------
Retained Earnings at End
of Period $4,971,350 $7,748,335 $4,971,350 $7,748,335
========== ========== ========== ==========
Loss Per Share $ (0.01) $ (0.11) $ (0.25) $ (0.15)
========== =========== ========== ==========
Dividends Per Share of
Common Stock None None None None
========== ========== ========== ==========
Weighted Average Common
Shares Outstanding 2,741,168 2,741,168 2,741,168 2,741,168
========= ========= ========= =========
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BURKE MILLS, INC.
CONDENSED BALANCE SHEETS
July 3 January 3
2004 2004
(Unaudited) ----------
--------
ASSETS
Current Assets
Cash and cash equivalents $ -0- $ 147,062
Accounts receivable 3,966,484 2,365,284
Inventories 1,973,126 1,880,477
Prepaid expenses and other current assets 122,091 52,633
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Total Current Assets 6,061,701 4,445,456
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Equity Investment in Affiliate 255,000 553,180
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Property, plant & equipment - at cost 30,543,721 30,513,251
Less: accumulated depreciation 23,362,814 22,450,432
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Property, Plant and Equipment- Net 7,180,907 8,062,819
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Other Assets
Deferred income taxes 62,000 60,000
Other 16,575 16,575
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78,575 76,575
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Total Assets $13,576,183 $13,138,030
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Bank overdraft $ 54,802 $ -0-
Short-term debt - revolving bank line -0- 141,514
Accounts payable 2,099,395 871,695
Accrued salaries and wages 164,213 54,050
Other liabilities and accrued expenses 161,903 113,412
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Total Current Liabilities 2,480,313 1,180,671
Deferred Income Taxes 1,204,000 1,374,000
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Total Liabilities 3,684,313 2,554,671
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Commitments
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 4,971,350 5,662,839
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Total Shareholders' Equity 9,891,870 10,583,359
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Total Liabilities & Shareholder's Equity $13,576,183 $13,138,030
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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.
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