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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 1, 2005
BURKE MILLS, INC.
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(Exact name of registrant as specified in its charter)
North Carolina
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(State or other jurisdiction of incorporation or organization)
0-5680 56-0506342
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(Commission File No.) I.R.S. Employer Identification No.)
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)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[__] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[__] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[__] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[__] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
SECTION 2 - FINANCIAL INFORMATION
Item 2.02 - Results of Operations and Financial Condition.
The Company issued a press release on April 5, 2005 reporting its operating
results for the fiscal year ended January 1, 2005. The text of the press release
is included in this report as an exhibit.
SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS
Item 9.01 - Financial Statements and Exhibits
(c) Exhibits. See Exhibit No. 99.1, Press Release issued April 5, 2005,
attached hereto.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Date: April 5, 2005 BURKE MILLS, INC.
By: s/Thomas I. Nail
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Thomas I. Nail
President and COO
EXHIBIT INDEX
Exhibit No. Description of Exhibit
99.1 Press Release issued April 5, 2005
EXHIBIT 99.1
BURKE MILLS, INC.
VALDESE, NC
PRESS RELEASE
Burke Mills, Inc. (OTC Bulletin Board) of Valdese, North Carolina, reports
operating results for the year ended January 1, 2005.
Net sales for the fourth quarter ended January 1, 2005, decreased by 2.9% to
$5,661,000 compared to $5,829,000 in the fourth quarter of 2003.
The Company recorded a net loss of ($841,000) or ($0.30) per share compared to a
loss of ($983,000) or ($0.36) per share, as restated in the fourth quarter of
2003.
The full year sales for the Company were $25,134,000 compared to $24,815,000 for
the full year 2003. The Company recorded a loss for the year of ($1,707,000) or
($0.62) per share compared to a loss of ($1,584,000) for ($0.58) per share, as
restated in 2003.
Net sales for the year 2004 increased slightly as a result of the Company
expanding its sales into other fibers and adding customers. New customers
accounted for approximately $1.7 million in sales, with most of these sales
occurring after the first quarter of 2004. The increase in new customer sales
was partially offset by a decline in sales to existing customers, who are
experiencing competition from imports and credit problems.
The Company finished the year with no long-term debt or debt under its credit
line. The Company's quick ratio remained strong at 2.02.
BALANCE SHEET
Restated
January 1 January 3
2005 2004
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ASSETS
Current Assets
Cash and cash equivalents $ 316,745 $ 147,062
Accounts receivable 3,064,365 2,365,284
Inventories 1,640,983 1,880,477
Prepaid expenses and other current assets 112,580 52,633
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Total Current Assets 5,134,673 4,445,456
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Equity Investment in Affiliate 196,300 553,180
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Property, plant & equipment - at cost 29,848,475 30,513,251
Less: accumulated depreciation 23,724,193 22,450,432
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Property, Plant and Equipment- Net 6,124,282 8,062,819
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Other Assets
Other 16,575 16,575
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Total Assets $11,471,830 $13,078,030
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term debt - revolving bank line $ -0- $ 141,514
Accounts payable 1,465,630 871,695
Accrued salaries and wages 89,847 54,050
Other liabilities and accrued expenses 120,137 113,412
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Total Current Liabilities 1,675,614 1,180,671
Net deferred tax liability -0- 394,000
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Total Liabilities $1,675,614 $1,574,671
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Commitments and contingencies
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 4,875,696 6,582,839
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Total Shareholders' Equity 9,796,216 11,503,359
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$11,471,830 $13,078,030
=========== ===========
Comparative Sales & Earnings
For twelve months ended January 1, 2005
(Amounts in thousands except per share data)
Thirteen Weeks
Ended Year-Ended
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Restated Restated
Jan. 1 Jan. 3 Jan. 1 Jan. 3
2005 2004 2005 2004
------ ------ ------ ------
Net Sales $5,661 $5,829 $25,134 $24,815
Cost and Expenses:
Cost of Sales 5,730 6,123 24,546 24,237
------ ------ ------- ------
Gross profit (loss) (69) (294) 588 578
Selling, General & Admin.
Expenses 626 641 2,351 2,400
Loss on disposal of property
assets (158) (269) (154) (277)
------- ------- -------- -------
Operating Loss (853) (1,204) (1,917) (2,099)
Other Income
Interest expense -0- 12 1 91
Other (income) expenses (1) 46 (19) (27)
------ ------ ------- ------
Total (1) 58 (18) 64
Loss before income taxes &
equity in affiliate (852) (1,262) (1,899) (2,163)
Income taxes (11) (294) (399) (638)
------- ------- ------- -------
Loss before equity in affiliate (841) (968) (1,500) (1,525)
Equity in net loss of affiliate -0- (15) (207) (59)
------- ------- -------- --------
Net Loss $ (841) $ (983) $(1,707) $(1,584)
======= ======= ======== ========
Basic
Net Loss per share $(0.30) $(0.36) $ (0.62) $ (0.58)
Weighted Avg. Common
Shares Outstanding 2,741,168 2,741,168 2,741,168 2,741,268