I.B.C. posts loss in four-week period as sales slide

by Eric Schroeder
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KANSAS CITY — Lower sales contributed to a loss at Interstate Bakeries Corp. in the most recent four-week reporting period. I.B.C. said it sustained a loss of $12,194,904 in the four weeks ended Jan. 13, which compared with a loss of $12,881,837 in the four weeks ended Dec. 16, 2006, according to an 8-K filed Feb. 27 with the Securities and Exchange Commission.

Sales in the four weeks ended Jan. 13 were $204,135,145, down 4% from $213,093,400 in the previous four-week period.

Operating expenses finished at $104,744,087, down from $108,949,130 in the previous period. Ingredients, packaging and outside purchasing costs fell 32% to $37,260,760, while direct and indirect labor costs fell 70% to $11,797,094.

I.B.C. recorded charges of $2,299,795 during the most recent period from restructuring and reorganization. Charges for professional fees of approximately $2,364,018, KERP and restructuring bonus plans of $78,905 and "other" expenses of $122,738, more than offset a gain of $241,549 in interest income and the gain on the sale of assets of $24,317.

I.B.C. sustained a loss before interest, taxes, depreciation and amortization of $1,143,998, which compared with a loss of $732,600 in the prior period.

In the S.E.C. filing, I.B.C. said capital expenditures for the four-week period ended Jan. 13 totaled approximately $2.1 million, boosting year-to-date capital spending through Jan. 13 to $16.8 million.

As of Jan. 13, I.B.C. still had not borrowed under its $200 million debtor-in-possession credit facility. The company said it has $109.1 million of letters of credit outstanding. The amount of the credit facility available for borrowing was $69.3 million as of Jan. 13.

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