I.B.C. loss widens in period

by Eric Schroeder
Share This:

KANSAS CITY — Interstate Bakeries sustained a loss of $8,231,097 in the four weeks ended April 7, which compared with a loss of $4,323,928 in the four weeks ended March 10, according to an 8-K filed May 22 with the Securities and Exchange Commission.

Sales in the four weeks ended April 7 were $229,189,101, up 2% from $223,812,931 in the previous four-week period.

Operating expenses finished at $114,695,829, up from $109,307,692 in the previous period. Ingredients, packaging and outside purchasing costs rose slightly to $56,889,304 from $55,359,663, while direct and indirect labor costs also increased, rising 5% to $41,935,970 from $39,941,748 in the previous period.

I.B.C. recorded charges of $2,082,978 during the most recent period from restructuring and reorganization. Charges for professional fees of approximately $2,023,496, KERP and restructuring bonus plans of $41,335 and "other" charges of $106,810, offset a gain on the sale of assets of $49,039, interest income of $1,746, and adjustments to lease rejection expense of $37,878.

I.B.C. posted earnings before interest, taxes, depreciation and amortization of $2,846,190, down sharply from $6,562,289 in the prior period.

In the S.E.C. filing, I.B.C. said capital expenditures for the four-week period ended April 7 totaled approximately $2.2 million, boosting year-to-date capital spending through April 7 to $25 million.

As of April 7, 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 $90.9 million as of April 7.

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.