8-K 1 burke8kaugust14.txt BURKE MILLS 8-K AUGUST 14 2007 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 14, 2007 BURKE MILLS, INC ------------------------------------------------------- (Exact name of registrant as specified in its charter) North Carolina ------------------------------------------------------- (State or other jurisdiction of incorporation or organization) 0-5680 56-0506342 - ------ ------------------------------ (Commission File No.) (I.R.S. Employer Identification No.) 191 Sterling Street, N.W., Valdese, North Carolina 28690 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) 828 874-6341 ----------------------------------------------------- (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 13d-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)) Item 2.02 - results of Operations and Financial Condition. The Company issued a press release on August 14, 2007 reporting its operating results for the quarter ended June 30, 2007. 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 August 14, 2007 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: August 14, 2007 BURKE MILLS, INC By: /s/Thomas I. Nail ---------------------------- Thomas I. Nail President and COO Exhibit Index Exhibit No. Description of Exhibit 99.1 Press Release issued August 14, 2007 EXHIBIT 99.1 [GRAPHIC OMITTED] Burke Mills, Inc. FRANK GADDY YARN DIVISION POST OFFICE BOX 190, VALDESE, NORTH CAROLINA 28690 Telephone (828) 874-6341 Fax (828) 879-7184 -------------------------------------------------------------------------------- CONTACT PERSON AT BURKE MILLS: TOM NAIL #828.874.6341 Page 1 of 2 FOR IMMEDIATE RELEASE: PRESS RELEASE BURKE MILLS SECOND QUARTER 2007 RESULTS Burke Mills, Inc. (OTC Bulletin Board) of Valdese, North Carolina, reports operating results for the thirteen weeks and twenty-six weeks ended June 30, 2007. Net sales for the thirteen weeks ending June 30, 2007 decreased by 17% to $5,139,000 compared to $6,187,000 for the second quarter of 2006. The Company recorded a net loss of ($848,000) for the thirteen week period compared to a net loss of ($387,000) for the same period in 2006. This resulted in a new loss per share of ($0.31) compared to a loss of ($.14) in 2006. Net sales for the twenty-six week period ending June 30, 2007 decreased by 17.1% to $10,403,000 compared to $12,556,000 in 2006. The Company recorded a net loss for the period of ($1,568,000) compared to a net loss of ($862,000) in 2006. This resulted in a net loss per share of ($0.57) versus ($0.31) in 2006. CONDENSED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS(DEFICIT) (Unaudited)
Thirteen Weeks Ended Twenty-six WeeksEnded ----------------------- ----------------------- June 30, July 1, June 30, July 1, 2007 2006 2007 2006 ------- ------- ------- ------- Net Sales $5,138,546 $6,186,983 $10,403,406 $12,555,729 ----------- ----------- ------------ ------------ Cost of Sales 5,335,561 6,040,724 10,796,225 12,361,262 ----------- ----------- ------------ ------------ Gross (loss)/profit (197,015) 146,259 (392,819) 194,467 Selling, general and administrative expenses 633,023 532,509 1,151,059 1,050,692 Loss on disposal of property assets -0- -0- -0- 5,868 ----------- ----------- ------------ ------------ Operating loss (830,038) (386,250) (1,543,878) (862,093) ----------- ----------- ------------ ------------ Other Income Interest Income 2,672 1,632 3,367 3,224 Other, net 894 57 959 602
----------- ----------- ----------- ------------ Total other income 3,566 1,689 4,326 3,826 ----------- ----------- ----------- ------------ Other Expenses Interest Expense 21,081 2,554 28,442 3,696 ----------- ----------- ----------- ------------ Total other expense 21,081 2,554 28,442 3,696 ----------- ----------- ----------- ------------ Net loss (847,553) (387,115) (1,567,994) (861,963) ----------- ----------- ----------- ------------
CONDENSED BALANCE SHEETS
June 30 2007 December 30 (Unaudited) 2006 ----------- ---------- ASSETS Current Assets Cash and cash equivalents $ 297,017 $ 55,816 Accounts receivable 2,568,672 2,727,461 Inventories 1,652,787 1,543,272 Prepaid expenses and other current assets 90,061 30,371 ----------- ----------- Total Current Assets 4,608,537 4,356,920 ----------- ----------- Property, plant & equipment - at cost 28,115,310 28,041,676 Less: accumulated depreciation 25,506,666 24,741,391 ----------- ----------- Property, plant and equipment- net 2,608,644 3,300,285 ----------- ----------- Other Assets 16,575 16,575 ----------- ----------- Total Assets $ 7,233,756 $ 7,673,780 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 1,337,933 $ 1,218,199 Line of Credit 1,187,463 258,274 Accrued salaries and wages 125,233 67,317 Other liabilities and accrued expenses 153,909 132,778 ----------- ----------- Total Liabilities $ 2,804,538 $ 1,676,568 ----------- ----------- 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/(Deficit) (491,302) 1,076,692 ----------- ----------- Total Shareholders' Equity 4,429,218 5,997,212 ----------- ----------- Total Liabilities & Shareholders' Equity $ 7,233,756 $ 7,673,780 =========== ===========