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): May 16, 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 May 16, 2005 reporting its operating
results for the quarter ended April 2, 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 May 16, 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: May 16, 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 May 16, 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 thirteen weeks ended April 2, 2005.
Net sales for the thirteen weeks ended April 2, 2005 increased by 8.2% to
$7,138,000 compared to $6,601,000 in 2004. The Company recorded a net loss of
($307,000) for the thirteen week period compared to a net loss of ($462,000) for
the same period in 2004. This resulted in net loss per share of ($.11) compared
to a net loss of ($.17) in 2004.
Net sales for the first quarter increased as a result of the Company continuing
to expand its sales into other fibers and adding new customers. The increase in
new customer sales, however, is partially offset by declines in sales to older
existing customers, who continue to experience extreme competition from imports
that has caused their requirements to decrease. In addition, polyester yarn
prices continue to spiral upward, with an approximate 17% increase in 2004 and
another 9% increase in the first quarter of 2005.
The Company finished the first quarter with no long-term debt or debt under a
credit line.
CONDENSED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
(Unaudited)
Thirteen Weeks Ended
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Restated
April 2 April 3
2005 2004
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Net Sales $7,138,046 $6,600,614
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Costs and Expenses
Cost of Sales 6,887,413 6,401,110
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Gross profit 250,633 199,504
Selling, general and
administrative expenses 618,761 639,291
Gain on disposal of property assets 100,625 -0-
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Operating Loss (267,503) (439,787)
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Other Income
Interest Income 2,411 175
Other, net 177 80
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Total Other Income 2,588 255
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Other Expenses
Interest Expense 244 552
Other, net -0- 12,580
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Total Other Expenses 244 13,132
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Loss Before Income Tax Benefit and
Equity in Net Loss of Affiliate (265,159) (452,664)
Income Tax Benefit -0- (289,000)
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Loss Before Equity in Net Loss
of Affiliate (265,159) (163,664)
Equity in Net Loss of Affiliate (41,500) (298,180)
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Net Loss (306,659) (461,844)
Retained Earnings at Beginning of Period 4,875,696 5,662,839
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Retained Earnings at End of Period $4,569,037 $4,999,995
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Basic Net Loss Per Share $ (0.11) $ (0.17)
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Dividends Per Share of Common Stock None None
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Weighted Average Common Shares Outstanding 2,741,168 2,741,168
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CONDENSED BALANCE SHEETS
April 2
2005 January 1
(Unaudited) 2005
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ASSETS
Current Assets
Cash and cash equivalents $ 578,971 $ 316,745
Accounts receivable 3,560,790 3,064,365
Inventories 2,013,594 1,640,983
Prepaid expenses and other current assets 224,229 112,580
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Total Current Assets 6,377,584 5,134,673
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Equity Investment in Affiliate 154,800 196,300
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Property, plant & equipment - at cost 29,677,205 29,848,475
Less: accumulated depreciation 23,832,293 23,724,193
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Property, Plant and Equipment- Net 5,844,912 6,124,282
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Other Assets 16,575 16,575
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Total Assets $12,393,871 $11,471,830
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 2,533,027 $ 1,465,630
Accrued salaries and wages 164,118 89,847
Other liabilities and accrued expenses 207,169 120,137
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Total Current Liabilities 2,904,314 1,675,614
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Total Liabilities $ 2,904,314 $ 1,675,614
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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 4,569,037 4,875,696
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Total Shareholders' Equity 9,489,557 9,796,216
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$12,393,871 $11,471,830
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