I.B.C. loss widens to $13.4 million in period

by Eric Schroeder
Share This:

KANSAS CITY — Interstate Bakeries Corp. posted a loss of $13,388,355 in the four weeks ended Aug. 25, which compared with a loss of $3,655,393 in the four weeks ended July 28, according to an 8-K filed Oct. 9 with the Securities and Exchange Commission.

Sales in the four weeks ended Aug. 25 were $227,974,432, up 1% from $224,767,832 in the previous four-week period.

Operating expenses finished at $112,521,989, up 2% from $110,153,080 in the previous period. Ingredients, packaging and outside purchasing costs fell narrowly to $55,592,731 from $55,944,248, while direct and indirect labor costs rose narrowly to $40,904,702 from $39,751,914 in the previous period.

I.B.C. recorded charges of $2,937,572 during the most recent period from restructuring and reorganization. Charges for professional fees of approximately $3,290,312, adjustments to lease rejection expense of $43,905 and "other" charges of $1,693 offset interest income of $173,929 and KERP and restructuring bonus plans of $224,409.

I.B.C. posted earnings before interest, taxes, depreciation and amortization of $6,404,393, down 12% from $7,293,066 in the prior period.

In the S.E.C. filing, I.B.C. said capital expenditures for the four-week period ended Aug. 25 totaled approximately $1.8 million, boosting year-to-date capital spending through Aug. 25 to $35.5 million.

As of Aug. 25, I.B.C. still had not borrowed under its $200 million debtor-in-possession credit facility. The company said it has $114.1 million of letters of credit outstanding. The amount of the credit facility available for borrowing was $85.9 million as of Aug. 25.

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.



The views expressed in the comments section of Food Business News do not reflect those of Food Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.