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 10, 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 November 10,
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: November 10, 2004 -----------------------
Thomas I. Nail
President and COO
(Principal Financial Officer)
EXHIBIT INDEX
Exhibit No. Description
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(99) The News Release
Page 2
(EX-99)
FOR IMMEDIATE RELEASE: November 10, 2004
BURKE MILLS ANNOUNCES THIRD QUARTER RESULTS
Burke Mills, Inc. (OTC Bulletin Board) of Valdese, North Carolina, reports
operating results for the thirteen weeks and thirty-nine weeks ended October 2,
2004.
Net sales for the third quarter of 2004 decreased by 5.7% to $6,162,000 compared
to $6,537,000 for the third quarter of 2003. For the third quarter the Company
experienced a net loss of $299,000 compared to a net loss in 2003 of $182,000.
This resulted in a loss per share of ($.11) versus a loss of ($.07) in 2003.
Net sales for the first nine months of 2004 increased by 2.6% to $19,473,000
compared to $18,986,000 for the nine months of 2003. For the nine months, the
Company experienced a loss of $990,000 compared to a loss for nine months of
2003 of $601,000. This resulted in loss per share of ($.36) versus loss of
($.22) in 2003.
CONDENSED STATEMENTS OF OPERATIONS
AND RETAINED EARNINGS(Unaudited)
Thirteen Weeks Ended Thirty-Nine Weeks Ended
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Oct. 2 Sept. 27 Oct. 2 Sept. 27
2004 2003 2004 2003
------- -------- -------- --------
Net Sales $6,162,105 $6,536,838 $19,472,684 $18,986,354
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Costs and Expenses
Cost of Sales 6,118,987 6,195,712 18,815,595 18,114,149
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Gross profit 43,118 341,126 657,089 872,205
Selling, General and
Administrative Expenses 532,202 516,387 1,725,109 1,758,755
Loss on disposal of
property -0- -0- (4,023) (7,906)
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Operating Loss (489,084) (175,261) (1,063,997) (894,456)
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Other Income (Expense)
Interest Expense (303) (17,994) (1,045) (79,670)
Interest Income 339 5,558 806 22,426
Other, net 30 17,155 9,909 50,839
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Total Other Income (Expense) 66 4,719 9,670 (6,405)
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Loss before Benefit of Income
Taxes & Equity in Earnings/
(Loss) of Affiliate (489,018) (170,542) (1,054,327) (900,861)
Income Tax Benefit (99,000) (1,824) (271,000) (343,883)
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Loss before Equity in Net
Earnings/(Loss)of Affiliate (390,018) (168,718) (783,327) (556,978)
Equity in Net Earnings/
(Loss) of Affiliate 91,288 (13,445) (206,892) (43,822)
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Net Loss (298,730) (182,163) (990,219) (600,800)
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Retained Earnings at Beginning
of Period 4,971,350 7,748,335 5,662,839 8,166,972
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Retained Earnings at End
of Period $4,672,620 $7,566,172 $4,672,620 $7,566,172
========== ========== ========== ==========
Basic and Diluted
Loss Per Share $ (0.11) $ (0.07) $ (0.36) $ (0.22)
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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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CONDENSED BALANCE SHEETS
October 2 January 3
2004 2004
(Unaudited) ----------
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ASSETS
Current Assets
Cash and cash equivalents $ 90,641 $ 147,062
Accounts receivable 3,816,583 2,365,284
Inventories 1,949,403 1,880,477
Prepaid expenses and other current assets 109,772 52,633
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Total Current Assets 5,966,399 4,445,456
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Equity Investment in Affiliate 196,300 553,180
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Property, plant & equipment - at cost 30,533,608 30,513,251
Less: accumulated depreciation 23,771,201 22,450,432
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Property, Plant and Equipment- Net 6,762,407 8,062,819
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Other Assets
Deferred income taxes 72,000 60,000
Other 16,575 16,575
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88,575 76,575
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Total Assets $13,013,681 $13,138,030
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term debt revolving bank line $ -0- $ 141,514
Accounts payable 1,970,548 871,695
Accrued salaries and wages 178,854 54,050
Other liabilities and accrued expenses 156,139 113,412
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Total Current Liabilities 2,305,541 1,180,671
Deferred Income Taxes 1,115,000 1,374,000
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Total Liabilities 3,420,541 2,554,671
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Commitments
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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 4,672,620 5,662,839
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Total Shareholders' Equity 9,593,140 10,583,359
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Total Liabilities & Shareholder's Equity $13,013,681 $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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