I.B.C. loss nears $6 million in period

by Eric Schroeder
Share This:

KANSAS CITY — Interstate Bakeries Corp. sustained a loss of $5,968,622 in the four weeks ended June 2, which compared with a loss of $3,751,364 in the four weeks ended May 5, according to an 8-K filed July 18 with the Securities and Exchange Commission.

Sales in the four weeks ended June 2 were $235,419,377, up narrowly from $234,861,168 in the previous four-week period. I.B.C. now has posted five consecutive months of increasing sales, the longest streak since the company filed for Chapter 11 bankruptcy protection in September 2004.

Operating expenses finished at $116,394,797, up 2% from $114,560,430 in the previous period. Ingredients, packaging and outside purchasing costs rose 4% to $60,613,066 from $58,365,570, while direct and indirect labor costs fell 9%, declining to $37,685,891 from $41,557,799 in the previous period.

I.B.C. recorded charges of $2,920,429 during the most recent period from restructuring and reorganization. Charges for professional fees of approximately $1,912,649, asset impairments of $952,986, adjustments to lease rejection expense and "other" charges of $127,281 offset KERP and restructuring bonus plans of $130,524 and interest income of $171,860.

I.B.C. posted earnings before interest, taxes, depreciation and amortization of $9,152,304, up 11% from $8,274,480 in the prior period.

In the S.E.C. filing, I.B.C. said capital expenditures for the four-week period ended June 2 totaled approximately $2.8 million, boosting year-to-date capital spending through June 2 to $30.1 million.

As of June 2, 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 June 2.

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.