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): August 17, 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 November 14, 2005 reporting its operating
results for the quarter ended October 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 November 14,
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: November 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 November 14, 2005
EXHIBIT 99.1
BURKE MILLS, INC.
VALDESE, NC
PRESS RELEASE
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 1,
2005.
Net sales for the third quarter decreased by 6.4% to $5,769,000 compared to
$6,162,000 for the third quarter of 2004. Pounds shipped decreased by 12.8%.
Although pounds shipped declined by 12.8%, sales dollars were supported by price
increases and a decline in commission sales (the dyeing of yarn owned by the
customer).
The company recorded a net loss of $601,000 for the thirteen week period
compared to a net loss of $322,000 for the same period of 2004. This resulted in
a net loss per share of $0.22 compared to a net loss per share of $0.12 in 2004.
Net sales for the nine months were basically equal. Pounds shipped decreased by
2.6%. Although sales were about equal for the nine months, only the first
quarter was a strong sales quarter. The second and third quarter sales were less
than 2004. The Company's customers continue to experience strong competition in
upholstery from imports.
The company recorded a net loss for the three quarters of $1,567,000 compared to
a net loss of $867,000 in 2004. This resulted in a net loss per share of $0.57
compared to a net loss per share of $0.32 in 2004.
CONDENSED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
(Unaudited)
Thirteen Weeks Ended Thirty-Nine Weeks Ended
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Restated Restated
Oct. 1 Oct. 2 Oct. 1 Oct. 2
2005 2004 2005 2004
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Net Sales $5,769,161 $6,162,105 $19,486,380 $19,472,684
Costs and Expenses
Cost of Sales 5,810,051 6,118,987 19,397,540 18,815,596
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Gross Profit (Loss) $ (40,890) 43,118 88,840 657,088
Selling, General and
Administrative Expenses 565,039 532,202 1,743,551 1,731,390
Gain on disposal
of property 3,124 -0- 103,748 4,023
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Operating Loss (602,805) (489,084) (1,550,963) (1,070,279)
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Other Income
Interest Income 1,461 339 4,881 806
Other, net 305 30 791 28,772
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Total Other Income 1,766 369 5,672 29,578
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Other Expenses
Interest Expense -0- 303 244 1,046
Other Net -0- -0- -0- 12,580
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Total Other Expenses -0- 303 244 13,626
Loss before Benefit of Income
Taxes & Equity in Net
Loss of Affiliate (601,039) (489,018) (1,545,535) (1,054,327)
Income Tax Benefit -0- (76,000) -0- (394,000)
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Loss before Equity in Net
Loss of Affiliate (601,039) (413,018) (1,545,535) (660,327)
Equity in Net Earnings/
(Loss) of Affiliate -0- 91,288 (21,314) (206,892)
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Net Loss (601,039) (321,730) (1,566,849) (867,219)
Retained Earnings at Beginning
of Period 3,909,886 6,037,350 4,875,696 6,582,839
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Retained Earnings at End
of Period $3,308,847 $5,715,620 $ 3,308,847 $5,715,620
========== ========== =========== ==========
Basic and Diluted
Loss Per Share $ (0.22) $ (0.12) $ (0.57) $ (0.32)
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Dividends Per Share of
Common Stock None None None None
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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 1 January 1
(Unaudited) 2005
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ASSETS
Current Assets
Cash and cash equivalents $ 297,284 $ 316,745
Accounts receivable 3,225,598 3,064,365
Inventories 1,785,388 1,640,983
Prepaid expenses and other current assets 103,490 112,580
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Total Current Assets 5,411,760 5,134,673
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Equity Investment in Affiliate -0- 196,300
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Property, plant & equipment - at cost 29,778,232 29,848,475
Less: accumulated depreciation 24,598,213 23,724,193
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Property, Plant and Equipment- Net 5,180,019 6,124,282
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Other Assets 16,575 16,575
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Total Assets $10,608,354 $11,471,830
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 2,051,650 $ 1,465,630
Accrued salaries and wages 172,370 89,847
Other liabilities and accrued expenses 154,967 120,137
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Total Current Liabilities 2,378,987 1,675,614
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Total Liabilities $ 2,378,987 $ 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 3,308,847 4,875,696
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Total Shareholders' Equity 8,229,367 9,796,216
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Total Liabilities and Shareholders' Equity $10,608,354 $11,471,830
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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 159 people.