I.B.C. narrows loss as sales continue upward climb

by Eric Schroeder
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KANSAS CITY — Interstate Bakeries Corp. sustained a loss of $3,751,364 in the four weeks ended May 5, which compared with a loss of $8,231,097 in the four weeks ended April 7, according to an 8-K filed June 19 with the Securities and Exchange Commission.

Sales in the four weeks ended May 5 were $234,861,168, up 2% from $229,189,101 in the previous four-week period. I.B.C. now has posted four consecutive months of increasing sales, the longest streak since the company filed for Chapter 11 bankruptcy protection in September 2004. Sales have risen 15% since the company’s January report, when the company recorded $204,135,145 in revenue.

Operating expenses finished at $114,560,430, virtually unchanged from $114,695,829 in the previous period. Ingredients, packaging and outside purchasing costs rose slightly to $58,365,570 from $56,889,304, while direct and indirect labor costs eased narrowly, falling to $41,557,799 from $41,935,970 in the previous period.

I.B.C. recorded charges of $771,229 during the most recent period from restructuring and reorganization. Charges for professional fees of approximately $2,413,355, KERP and restructuring bonus plans of $35,694 and "other" charges of $13,201, offset a gain on the sale of assets of $1,314,757, interest income of $340,264, and adjustments to lease rejection expense of $36,000.

I.B.C. posted earnings before interest, taxes, depreciation and amortization of $8,274,480, up sharply from $2,846,190 in the prior period.

In the S.E.C. filing, I.B.C. said capital expenditures for the four-week period ended May 5 totaled approximately $2.3 million, boosting year-to-date capital spending through May 5 to $27.3 million.

As of May 5, I.B.C. still had not borrowed under its $200 million debtor-in-possession credit facility. The company said it has $109.7 million of letters of credit outstanding. The amount of the credit facility available for borrowing was $90.3 million as of May 5.

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