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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 4, 2006
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 4, 2006 reporting its operating
results for the year ended December 31, 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
(d) Exhibits. See Exhibit No. 99.1, Press Release issued April 4, 2006
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 4, 2006 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 4, 2006
EXHIBIT 99.1
BURKE MILLS, INC.
VALDESE, NC
PRESS RELEASE
BURKE MILLS YEAR END RESULTS
Burke Mills, Inc. (OTC Bulletin Board) of Valdese, North Carolina, reports
operating results for the year ended December 31, 2005.
Net sales for the fourth quarter ended December 31, 2005, increased by 1.9% to
$5,766,000 compared to $5,661,000 in the fourth quarter of 2004.
The Company recorded a net loss of $355,000 or $0.13 per share compared to a
loss of $840,000 or $0.31 per share in the fourth quarter of 2004.
The full year sales for the Company were $25,253,000 compared to $25,134,000 for
the full year 2004. The Company recorded a loss for the year of $1,922,000 or
$0.70 per share compared to a loss of $1,707,000 for $0.62 per share in 2004.
BALANCE SHEETS
December 31 January 1
2005 2005
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ASSETS
Current Assets
Cash and cash equivalents $ 425,812 $ 316,745
Accounts receivable 2,568,838 3,064,365
Inventories 1,684,132 1,640,983
Prepaid expenses and other current assets 49,413 112,580
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Total Current Assets 4,728,195 5,134,673
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Equity Investment in Affiliate -0- 196,300
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Property, plant & equipment - at cost 28,085,778 29,848,475
Less: accumulated depreciation 23,326,789 23,724,193
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Property, Plant and Equipment- Net 4,758,989 6,124,282
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Other Assets 16,575 16,575
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Total Assets $ 9,503,759 $11,471,830
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Balance Sheets
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 1,434,169 $ 1,465,630
Accrued salaries and wages 69,272 72,447
Other liabilities and accrued expenses 126,303 137,537
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Total Liabilities $ 1,629,744 $ 1,675,614
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Commitments and contingencies
Shareholders' Equity
Common stock, no par value
(stated value, $.66)
Authorized - 5,000,000 shares
Issued and outstanding -
2,741,168 shares 1,809,171 1,809,171
Paid-in capital 3,111,349 3,111,349
Retained earnings 2,953,495 4,875,696
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Total Shareholders' Equity 7,874,015 9,796,216
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$ 9,503,759 $11,471,830
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STATEMENTS OF OPERATIONS
Years Ended
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December 31 January 1 January 3
2005 2005 2004
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Net Sales $25,252,600 $25,133,683 $24,814,941
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Cost of sales 25,143,775 24,546,085 24,237,006
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Gross Profit 108,825 587,598 577,935
Selling, general and
administrative expenses 2,226,739 2,350,520 2,400,335
(Gain) loss on disposal of
property assets (208,989) 154,353 276,468
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Operating Loss (1,908,925) (1,917,275) (2,098,868)
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Other Income
Interest income 6,100 2,788 24,030
Other, net 2,308 33,811 67,720
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Total Other Income 8,408 36,599 91,750
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Other Expenses
Interest expense 370 1,263 91,176
Other, net -0- 17,790 64,944
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Total Other Expenses 370 19,053 156,120
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Loss Before Benefit of
Income Taxes and Equity
in Loss of Affiliate (1,900,887) (1,899,729) (2,163,238)
Income Tax Benefit -0- (399,478) (638,200)
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Statements of Operations
Loss before Equity in Net
Loss of Affiliate (1,900,887) (1,500,251) (1,525,038)
Equity in Net Loss of
Affiliate (21,314) (206,892) (59,095)
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Net Loss $(1,922,201) $(1,707,143) $(1,584,133)
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Basic
Net Loss per share $ (.70) $ (.62) $ (.58)
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Weighted Average Common
Shares Outstanding 2,741,168 2,741,168 2,741,168
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