I.B.C. suffers $9.4 million loss in period

by Eric Schroeder
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KANSAS CITY — Interstate Bakeries Corp. narrowed its loss in the four-week period ended May 3 to $9,409,531 from $15,398,111 in the four-week period ended April 5, according to an 8-K filed June 18 with the Securities and Exchange Commission.

Sales in the four weeks ended May 3 were $224,110,192, up 7% from $210,181,623 in the previous four-week period. The total marked the highest revenue figure since the four-week period ended Aug. 25, 2007.

Operating expenses finished at $109,277,010, up from $107,367,922 in the previous period. Ingredients, packaging and outside purchasing costs were $68,663,351, up from $60,543,078, while direct and indirect labor costs rose to $36,379,015 from $34,441,412 in the previous period.

I.B.C. recorded charges of $3,214,339 from restructuring and reorganization for the four-week period ended May 3. Charges included professional fees of $3,308,277 and "other" restructuring expenses of $164,306. The charges more than offset a gain on the sale of assets of $238,290, employee costs adjustment of $19,944 and interest income of $10.

I.B.C. sustained a loss before interest, taxes, depreciation and amortization of $2,045,263, which compared with a loss of $3,425,666 in the previous period.

As of May 3, I.B.C. had borrowed $53.6 million under its $200 million debtor-in-possession credit facility. The company said it has $129.1 million of letters of credit outstanding. The amount of the credit facility available for borrowing was $17.2 million as of May 3.

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