UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 30, 1996
Commission File Number 0-5680
BURKE MILLS, INC.
(Exact name of registrant as specified in its charter)
NORTH CAROLINA 56-0506342
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
191 Sterling Street, N.W.
Valdese, North Carolina 28690
(Address of principal executive offices) (Zip Code)
(704) 874-2261
(Registrant's telephone number, including area code)
No Changes
(Former name, former address and former fiscal year, if
changed since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
Yes X No ____
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date. As of May 10, 1996, there
were outstanding 2,741,168 shares of the issuer's only class of common stock.
<PAGE>
BURKE MILLS, INC.
INDEX
Page Number
Part I - FINANCIAL INFORMATION
Item I - Financial Statements
Condensed Balance Sheets
March 30, 1996 and December 30, 1995 3
Condensed Statements of Operations and Retained Earnings
Thirteen Weeks Ended March 30, 1996 and April 1, 1995 4
Statements of Cash Flows
Thirteen Weeks Ended March 30, 1996 and April 1, 1995 5
Notes to Condensed Financial Statements 6
Item 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations 11
Part II - OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K 15
Item 6(a) - Financial Data Schedule 16
SIGNATURES 17
<PAGE>
PART I - FINANCIAL INFORMATION
BURKE MILLS, INC.
CONDENSED BALANCE SHEETS
MARCH 30, DECEMBER 30,
1996 1995
----------- ------------
(Unaudited) (Note A)
ASSETS
Current Assets
Cash and cash equivalents $ 310,658 $ 834,833
Accounts receivable 3,932,224 2,974,101
Inventories 3,169,984 2,869,939
Prepaid expenses and other current assets 210,142 92,667
Prepaid and refundable income taxes 529,935 289,846
Deferred income taxes 556,900 579,600
----------- ------------
Total Current Assets 8,709,843 7,640,986
Property, Plant and Equipment - at cost 25,884,180 25,186,871
Less: Accumulated depreciation 12,420,066 12,059,241
----------- ------------
Property, Plant and Equipment - Net 13,464,114 13,127,630
----------- ------------
$22,173,957 $20,768,616
=========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current maturities of long-term debt $ - $ 215,990
Accounts payable 2,771,573 1,508,476
Accrued salaries, wages and vacation pay 166,278 123,637
Other liabilities and accrued expenses 266,905 323,052
----------- ------------
Total Current Liabilities 3,204,756 2,171,155
Long-Term Debt 5,184,507 4,963,688
Deferred Income Taxes 1,597,100 1,405,700
----------- ------------
Total Liabilities 9,986,363 8,540,543
----------- ------------
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 7,267,074 7,307,553
----------- ------------
Total Shareholders' Equity 12,187,594 12,228,073
----------- ------------
$22,173,957 $20,768,616
=========== ============
Note A: The December 30, 1995 Condensed Balance Sheet has been derived from
the audited financial statements at that date but does not include
all of the information and footnotes required for generally accepted
accounting principles for complete financial statements.
[FN]
See notes to condensed financial statements.
<PAGE>
BURKE MILLS, INC.
CONDENSED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
(Unaudited)
Thirteen Thirteen
Weeks Ended Weeks Ended
March 30, April 1,
1996 1995
----------- -----------
Net Sales $9,904,583 $9,544,971
----------- -----------
Costs and Expenses
Cost of sales 9,214,708 8,364,231
Selling, general and administrative expenses 590,973 460,256
Factor's charges 45,671 56,093
----------- -----------
Total Costs and Expenses 9,851,352 8,880,580
----------- -----------
Operating Earnings 53,231 664,391
----------- -----------
Other Income
Interest income 2,911 26,028
Other, net 1,055 3,882
----------- -----------
Total 3,966 29,910
----------- -----------
Other Charges
Interest expense 123,665 44,236
----------- -----------
Income (Loss) Before Provision for Income Taxes (66,468) 650,065
Provision for Income Taxes (Credit) (25,989) 254,300
----------- -----------
Net Income (Loss) (40,479) 395,765
Retained Earnings at Beginning of Period 7,307,553 6,363,312
----------- -----------
Retained Earnings at End of Period $7,267,074 $6,759,077
=========== ===========
Earnings Per Share $ (.02) $ .14
=========== ===========
Dividends Per Share of Common Stock None None
==== ====
Weighted Average Common Shares Outstanding 2,741,168 2,741,168
=========== ===========
[FN]
See notes to condensed financial statements.
<PAGE>
<TABLE>
BURKE MILLS, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Thirteen Thirteen
Weeks Ended Weeks Ended
March 30, April 1,
1996 1995
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income (Loss) $ (40,479) $ 395,765
----------- -----------
Adjustments to reconcile net income (loss) to net cash
provided (used) by operating activities:
Depreciation 362,293 283,873
Provision for deferred income taxes 214,100 -
-Changes in assets and liabilities:
(Increase) in accounts receivable (958,123) (526,375)
(Increase) decrease in inventories (300,045) 243,877
(Increase) in prepaid expenses, and
other current assets (117,475) (27,986)
(Increase) in prepaid and refundable income taxes (240,089) -
Increase in accounts payable 1,263,097 940,152
(Decrease) in income taxes payable - (351,868)
Increase in accrued salaries, wages and vacation pay 42,641 96,459
(Decrease) in other liabilities and
accrued expenses (56,147) (64,885)
----------- -----------
Total Adjustments 210,252 593,247
----------- -----------
Net cash provided by operating activities 169,773 989,012
----------- -----------
Cash flows from investing activities:
Acquisition of property, plant and equipment (698,777) (2,094,652)
Cash flows from financing activities:
Increase in long-term bank note 220,819 1,451,918
Principal payments of long-term debt (215,990) (196,940)
Net cash provided by financing activities 4,829 1,254,978
Net increase (decrease) in cash and cash equivalents (524,175) 149,338
Cash and cash equivalents at beginning of year 834,833 1,833,989
CASH AND CASH EQUIVALENTS AT END OF
FIRST QUARTER $ 310,658 $1,983,327
=========== ==========
<FN>
See notes to condensed financial statements.
</TABLE>
<PAGE>
BURKE MILLS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - UNAUDITED FINANCIAL INFORMATION
a. The accompanying unaudited condensed balance sheet as of March 30,
1996 , and the related condensed statements of operations and retained
earnings, and cash flows for the thirteen week periods ended March 30,
1996 and April 1, 1995, are unaudited; in the opinion of management,
all adjustments necessary for a fair presentation of these financial
statements have been included. Such adjustments consisted only of
normal recurring items. Operating results for the thirteen weeks ended
March 30, 1996 are not necessarily indicative of results that may be
expected for the year ended December 28, 1996.
The unaudited condensed financial statements and notes are presented as
permitted by the instructions to Form 10-Q and Article 10 of Regulation
SX and do not contain certain information included in the Company's
annual financial statements and notes thereto. The accounting policies
followed by the Company are set forth in Note 1 to the Company's
financial statements in the 1995 Burke Mills, Inc. Annual Report which
is incorporated by reference on Form 10-K.
b. Statements of cash flows - For the purposes of the statements of cash
flows, the Company considers cash on hand, deposits in banks, interest
bearing demand matured funds on deposit with factor and all highly
liquid debt instruments with a maturity of three months or less when
purchased, as cash and cash equivalents. Matured funds on deposit with
the factor earn interest at the prime rate less 1.5%.
NOTE 2 - STATEMENTS OF CASH FLOWS
FASB No. 95 requires that the following supplemental disclosures to
the statements of cash flows be provided in related disclosures. Cash
paid for interest for the thirteen weeks ended March 30, 1996 and April
1, 1995, was $ 125,988 and $ 42,519 respectively. Income taxes paid
for the thirteen weeks ended April 1, 1995 aggregated $606,125. No
income taxes were paid during the thirteen weeks ended March 30, 1996.
NOTE 3 - OPERATIONS OF THE COMPANY
The Company is engaged in twisting, texturing, winding, dyeing,
processing and selling of filament, novelty and spun yarns and in the
dyeing and processing of these yarns for others on a commission basis.
The Company's fiscal year is the 52 or 53 week period ending on the
Saturday nearest to December 31. Its fiscal quarters also end on the
Saturday nearest to the end of the calendar quarter.
<PAGE>
BURKE MILLS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(Continued)
NOTE 4 - CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise the following:
March 30, December 30,
1996 1995
------------ ------------
Cash......................................... $ 464 $ 49,259
Commercial money market investment in bank... - 785,574
Matured funds on deposit with factor......... 310,194 -
------------ ------------
$ 310,658 $ 834,833
============ ============
NOTE 5 - ACCOUNTS RECEIVABLE
Accounts receivable are comprised of the following:
March 30, December 30,
1996 1995
------------ ------------
Account current - factor:
Due from factor on regular factoring account. $3,571,592 $2,808,790
Non-factored accounts receivable................. 360,632 165,311
------------ ------------
$3,932,224 $2,974,101
============ ============
NOTE 6 - INVENTORIES
Inventories are summarized as follows:
March 30, December 30,
1996 1995
------------ ------------
Finished and in process.......................... $1,921,141 $1,918,400
Raw materials.................................... 746,079 447,691
Dyes and chemicals............................... 376,497 378,528
Other............................................ 126,267 125,320
------------ ------------
$3,169,984 $2,869,939
============ ============
<PAGE>
BURKE MILLS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(Continued)
NOTE 7- LONG-TERM DEBT
In September 1994, and during 1995 and early 1996, the Company
received loan commitments from its bank to consolidate two existing loans
and new borrowings into one new note obligation of up to $ 6,000,000 to
finance the acquistion by the Company of new machinery and equipment and to
fund Letters of Credit issued in connection with such acquistion. Among
other things, covenants include a debt service coverage ratio, a limit on
annual property asset acquistions exclusive of property to be acquired with
the loan proceeds under this new loan agreement, the retirement or
acqusition of the Company's capital stock in excess of a stated amount, the
maintenance of a minimum tangible net worth which shall increase by a stated
amount annually, a minimum quick ratio, and a maximum debt to tangible net
worth ratio.
Additionally, this new loan will term out and refinance the two existing
term loans , and accordingly, all term obligations are to be consolidated
into this one $ 6,000,000 obligation. This new loan is to be secured by (1)
a first Deed of Trust on the property and buildings located at the Company's
manufacturing sites in North Carolina, (2) a first lien position on the new
equipment and machinery installed at these manufacturing sites and (3) a
first lien position on the existing machinery and equipment located at the
Company's manufacturing sites.
Under the new loan agreement, interest only will be payable monthly until
February 1998. Thereafter, principal maturities will be payable in the
amount of $ 62,500 per month for ninety-six consecutive months plus interest
at the fixed rate of 8.06%. in order to effect this fixed interest rate,
the bank will convert its interest rate cap into a fixed rate loan by
entering into a fixed rate hedge contract with the Company. Under this
fixed rate hedge contract, the Company will pay the bank 8.06% for the term
of the contract. In return, the bank will pay the Company LIBOR plus 2.0%.
The floating rate (LIBOR plus 1.9%) that the Company will pay the bank will
be equal to the floating rate that the bank's capital markets will pay to
the Company. Whether LIBOR RATES rise or fall over the life of the loan
agreement, the Company will continue to pay the bank a fixed rate of 8.06%
for the life of the contract, thereby creating a fixed rate loan.
<PAGE>
BURKE MILLS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(Continued)
The annual principal maturities of the long-term debt at March 30, 1996
are as follows:
Current portion $ -
1997/1998 $ 125,000
1998/1999 750,000
1999/2000 750,000
2000/2001 750,000
Thereafter 2,809,507 5,184,507
---------- ----------
$5,184,507
==========
NOTE 8- INCOME TAXES
Effective January 3, 1993, the Company changed its method of accounting
for income taxes from the deferred method to the liability method required
by FASB Statement No. 109, "Accounting for Income Taxes". Under this
method, deferred tax assets and liabilities are determined based on
differences between financial reporting and tax bases of assets and
liabilities and are measured using the enacted tax rates and laws that will
be in effect when the differences are expected to reverse. Prior to the
adoption of Statement 109, income tax expense was determined using the
deferred method. Deferred tax expense was based on items of income and
expense that were reported in different years in the financial statements
and tax returns and were measured at the tax rate in effect in the year the
differences originated.
The items which comprise deferred tax assets and liabilities are as
follows:
Deferred Tax Deferred Tax
Assets Liabilities
------------ ------------
Accelerated depreciation $1,597,100
Alternative minimum taxes paid $ 554,200
Inventory capitalization for tax purposes 2,700
------------ ------------
$ 556,900 $1,597,100
Thirteen Weeks Ended
--------------------
March 30, April 1,
1996 1995
------------ ------------
Income taxes (credit) consist of:
State $ (5,151) $ 50,400
Federal ( 20,838) 203,900
------------ ------------
$ ( 25,989) $ 254,300
=========== ============
<PAGE>
BURKE MILLS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(Continued)
NOTE 9 - EMPLOYEE BENEFIT PLAN
Effective January 1, 1985, the Company elected to become a participating
employer in the Burke Mills, Inc. Savings and Retirement Plan and Trust which
has been qualified under Section 401(k) of the Internal Revenue Code. This
plan allows eligible employees to contribute a salary reduction amount of
not less than 1% nor greater than 25% of the employee's salary. The salary
reduction percentage must equal an increment of 1%. The employer may make a
matching contribution for each employee out of current net profits or
accumulated net profits (as defined), in an amount the employer may from
time to time deem advisable. The Company made provision in the accompanying
financial statements for matching contributions of $49,641 for the fiscal
quarter ended April 1, 1995. There was no provision made for matching
contributions in the period ended March 30, 1996.
NOTE 10 - CONCENTRATIONS OF CREDIT RISK
Financial instruments which potentially subject the Company to
concentration of credit risk consist principally of occasional temporary
cash investments, matured funds on deposit with the Company's factor and
amounts due from the factor on receivables sold to the factor on a
non-recourse basis. The receivables sold to the factor during a month
generally have a maturity date on the 25th to the 30th of the following
month, at which time the amount due to the Company by the factor is
transferred to matured funds on deposit with factor. From time to time, the
Company places its temporary cash investments with its bank in short-term
certificates . In addition to its matured funds of $ 310,194 as of March 30,
1996, the Company had $ 3,571,592 due from its factor which matured in
April 1996 and was transferred to matured funds status. The company utilizes
its matured funds on a continuous basis to replenish its cash in bank for
the payment of materials, labor, and overhead.
NOTE 11 - EARNINGS PER SHARE
Earnings per share are based on the net income divided by the weighted
average number of common shares outstanding during the thirteen week periods
ended March 30, 1996 and April 1, 1995.
<PAGE>
BURKE MILLS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
- - ---------------------
1996 Compared to 1995
- - ---------------------
The following discussion should be read in conjunction with the
information set forth under the Financial Statements and Notes thereto
included elsewhere in the 10-Q.
RESULTS OF OPERATIONS
The following table sets forth operating data of the Company as a
percentage of net sales for the periods indicated below:
Thirteen Weeks Ended
--------------------
March 30, April 1,
1996 1995
------------ ------------
Net sales 100.0% 100.0%
Cost of sales 93.0 87.6
------------ ------------
Gross profit 7.0 12.4
Selling, general, administrative
and factoring charges 6.4 5.4
------------ ------------
Operating earnings 0.6 7.0
Interest expense 1.3 0.5
Other (income) - net 0 (0.3)
------------ ------------
Income before income taxes (loss) (0.7) 6.8
Income taxes (credit) (0.3) 2.7
------------ ------------
Net income (loss) (0.4%) 4.1%
============ ============
THIRTEEN WEEKS ENDED MARCH 30, 1996
COMPARED TO THIRTEEN WEEKS ENDED APRIL 1, 1995
Net Sales
- - ---------
Net sales for the thirteen weeks ended March 30, 1996 totaled $9,904,582
representing a 3.8% increase over the first quarter of 1995. The increase in
revenues was due mainly to an increase in pounds of 3.2% compared to first
quarter of 1995, increased yarn costs, and continued increase in full yarn
sales verses commission dyeing.
COST OF SALES AND GROSS MARGIN
- - ------------------------------
Cost of sales for the thirteen weeks ended March 30, 1996 increased by
10.2% with a corresponding sales increase of only 3.8%. The resulting
impact on gross margins was to decline to 7.0% compared to 12.4% for the
first quarter of 1995. Key factors contributing to the lower margins are
changes in the product mix, increased operating costs, and above normal
rework costs.
<PAGE>
BURKE MILLS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(CONTINUED)
Cost of Sales And Gross Margin (Continued)
- - ------------------------------
The company has experienced over the past several quarters an increased
demand for dyed set polyester and a decreased demand for dyed spun products.
This shift toward increased set polyester is primarily due to the continuing
cost pressures in the automotive and home upholstery sectors of the weaving
industry. Set polyester is a commodity type product and therefore dictates
lower selling prices and lower margins.
Operating costs associated with the recent dyeing expansion increased
expenses approximately $150,000 during the first quarter. This cost was not
fully absorbed due to the expansion not operating at full capacity.
As the company moved into 1996, we felt the majority of the problems
with the new dyeing equipment were behind us and fully expected improved
shipments and profits early in the first quarter. Unfortunately, several
key technical issues were not resolved resulting in excessive redyes and
delayed shipments out of the new dyeing equipment. During the first quarter
we were successful in correcting some of the problems in our dyeing
operation. However, some issues remain unresolved and will have a negative
impact on profitability for the second quarter.
Selling, General and Administrative Expenses
- - --------------------------------------------
Selling, general, administrative, and facoring expenses for the first
quarter of 1996 increased by $ 120,295, or 23.3 %. The majority of this
increase was due to expenses incurred for new information technology. These
expenses will no longer be incurred after April of 1996. Selling, general and
administrative expenses for the 1996 quarter represented 6.0% of net sales
compared to 5.4% in 1995.
Factor Charges
- - --------------
Factor's charges for the first quarter of 1996 decreased by $ 10,421,
as compared to the first quarter of 1995. The decrease in factor's charges
was caused by the effective rate charged by the factor decreasing from 1995
to 1996. The ratio of factored accounts versus nonfactored accounts for the
first quarter of 1996, as compared to the similar quarter of 1995, remained
approximately the same.
Interest Expense
- - ----------------
Interest expense for the first quarter of 1996 increased by $ 79,429,
as compared to 1995. Interest expense for 1996 and 1995 resulted from
interest on the Company's long-term debt. The increased long-term debt was
a result of the 1995 dyeing expansion.
Interest Income
- - ---------------
Interest income for the 1996 quarter decreased by $ 23,117 , as
compared to the first quarter of 1995. The decrease was due to a decrease
in funds available at the factor for investments.
<PAGE>
BURKE MILLS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(CONTINUED)
Income Before Provision for Income Taxes
- - ----------------------------------------
For the thirteen week period ended March 30, 1996, income before
provision for income taxes decreased by $ 716,533 as compared to the similar
period of 1995.
The decrease was primarily due to an 3.8 % increase in sales volume,
offset, however, by a decreased gross profit percentage to 7.0 % in the 1996
period compared to 12.4% in the like period of 1995, as a result of changes
in product mix, and to increases in net operating expenses in the 1996 fiscal
quarter, resulting from non recurring expenses associated with the current
expansion.
Provision for Income Taxes
- - --------------------------
For the thirteen week periods ended March 30, 1996 and April 1, 1995,
the Company made provision for income taxes of $ (25,989) and $254,300,
respectively, based on the pre-tax income for the 1996 and 1995 periods of
$ (66,468) and $650,065, respectively. Income taxes as a percentage of
pre-tax income aggregated 39.1% for both the 1996 and 1995 periods.
Subsequent matters
- - ------------------
Currently, the outlook for the remainder of 1996 is driven by a number
of uncertainties, that could possibly have an impact on future operating
results. The continuing pressures in the market for lower prices impacts
the company's efforts to increase market share and generate target profit
levels. The current economic forecast indicates moderate growth in durable
goods for the remainder of 1996. This definitely impacts the company's
efforts in both the automotive and home furnishings industries.
However, the company remains optimistic that the majority of the
technical issues relative to the new dyeing installation will be solved
during the second quarter of 1996. This should enable the company to
establish an increased market presence in the future.
Liquidity and Capital Resources
- - -------------------------------
The Company sells a substantial portion of its accounts receivable to a
commercial factor so that the factor assumes the credit risk for these
accounts and effects the collection of the receivables. The Company has the
right to borrow from the factor up to 90% of the face amount of each account
sold to the factor. As of March 30, 1996, the Company had $ 3,881,786 due
from its factor, of which amount $ 310,194 was in matured funds held by the
factor, and a net amount of $ 3,571,592 consisted of amounts due from the
factor on the regular factoring account, with maturity dates in April 1996.
<PAGE>
BURKE MILLS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(CONTINUED)
Liquidity and Capital Resources (Continued)
- - -------------------------------
The company entered into a new loan agreement effective March 29, 1996
providing for a term loan of $6,000,00 and a working capital facility of
$2,000,00. Under the provision on the loan agreement , the company may
borrow up to $2,000,000 for seasonal working capital requirements using
receivables due from factors as security.
The Company's working capital at March 30, 1996 aggregated $ 5,505,087,
representing a working capital ratio of 2.7 to 1 compared with a
working capital of $ 5,469,831 at December 30, 1995 and a working capital
ratio of 3.5 to 1.
As a measure of current liquidity, the Company's quick position (cash,
cash equivalents and receivables over current liabilities) discloses the
following at March 30 , 1996:
Cash, cash equivalents and receivables...............$ 4,242,882
Current liabilities.................................. 3,204,756
-------------
Excess of quick assets over current liabilities......$ 1,038,126
The Company believes that its cash, cash equivalents and receivables, and
it's factoring and credit arrangements will be sufficient to finance its
operations for the next 12 months.
The results of operations of the Company for the periods discussed have
not been significantly affected by inflation.
During the first quarter of 1996, the Company acquired and made deposits
on new machinery and equipment of approximately $ 698,777 as set forth in
the accompanying statement of cash flows. For the balance of 1996, the
Company anticipates the acquisition of machinery and equipment of
approximately $ 750,000, which together with the acquisitions and deposits
on acquisitions incurred to March 30, 1996 will aggregate an anticipated
acquisition of new machinery of $ 1,500,000 in 1996.
<PAGE>
PART II - OTHER INFORMATION
BURKE MILLS, INC.
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits - Financial Data Schedule
(b) Reports on Form 8-K - No report on Form 8-K has been filed
during the thirteen weeks ended March 30, 1996.
<PAGE>
BURKE MILLS, INC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BURKE MILLS, INC.
-----------------
(Registrant)
Date: May 13,1996 /S Richard F. Whisenant
Richard F. Whisenant
(President)
Date: May 13,1996 /S S. Scott Womack
S. Scott Womack
Vice-President-Finance and
Treasurer
(Principal Accounting Officer)
(Principal Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-30-1995
<PERIOD-END> MAR-30-1996
<CASH> 310658
<SECURITIES> 0
<RECEIVABLES> 3932224
<ALLOWANCES> 0
<INVENTORY> 3169984
<CURRENT-ASSETS> 8709843
<PP&E> 25884180
<DEPRECIATION> 12420066
<TOTAL-ASSETS> 22173957
<CURRENT-LIABILITIES> 3204756
<BONDS> 5184507
<COMMON> 1809171
0
0
<OTHER-SE> 10378423
<TOTAL-LIABILITY-AND-EQUITY> 22173957
<SALES> 9904583
<TOTAL-REVENUES> 9904583
<CGS> 9214708
<TOTAL-COSTS> 9214708
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 123665
<INCOME-PRETAX> (66468)
<INCOME-TAX> (25989)
<INCOME-CONTINUING> (40479)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (40479)
<EPS-PRIMARY> (.02)
<EPS-DILUTED> (.02)
</TABLE>
