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VALDESE, N.C., Nov. 16 /PRNewswire-FirstCall/ -- Burke Mills, Inc.
(OTC Bulletin Board: BMLS) 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 Companys 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
---------------------- -----------------------
Restated Restated
Oct. 1 Oct. 2 Oct. 1 Oct. 2
2005 2004 2005 2004
----------- ---------- ----------- -----------
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
----------- ---------- ----------- -----------
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
----------- ---------- ----------- -----------
Operating Loss (602,805) (489,084) (1,550,963) (1,070,279)
----------- ---------- ----------- -----------
Other Income
Interest Income 1,461 339 4,881 806
Other, net 305 30 791 28,772
----------- ---------- ----------- -----------
Total Other Income 1,766 369 5,672 29,578
----------- ---------- ----------- -----------
Other Expenses
Interest Expense 0 303 244 1,046
Other Net 0 0 0 12,580
----------- ---------- ----------- -----------
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)
----------- ---------- ----------- -----------
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)
----------- ---------- ----------- -----------
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
----------- ---------- ----------- -----------
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)
=========== ========== =========== ===========
Dividends Per Share of
Common Stock None None None None
=========== ========== =========== ===========
Weighted Average Common
Shares Outstanding 2,741,168 2,741,168 2,741,168 2,741,168
=========== ========== =========== ===========
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
----------- -----------
Total Shareholders Equity 8,229,367 9,796,216
----------- -----------
$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.
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