I.B.C. sustains $18.9 million loss in period

by FoodBusinessNews.net Staff
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KANSAS CITY – Interstate Bakeries Corp. sustained a loss of $18,937,878 in the four-week period ended Dec. 15, 2007, which compare with a loss of $13,401,611 in the four weeks ended Nov. 17, 2007, according to an 8-K filed Jan. 29 with the Securities and Exchange Commission.

Sales in the four weeks ended Dec. 15 were $197,537,517, down from $207,187,594 in the previous four-week period.

Operating expenses finished at $105,275,000, up from $104,129,222 in the previous period. Ingredients, packaging and outside purchasing costs were $53,069,341, down from $54,706,753, while direct and indirect labor costs fell to $34,155,326 from $36,106,432 in the previous period.

I.B.C. recorded charges of $3,322,306 from restructuring and reorganization for the four-week period ended Dec. 15. Charges included professional fees of $2,888,966 and "other" charges of $272,044. The charges more than offset interest income of $175,836 and adjustments to lease rejection expense of $278,132.

I.B.C. posted a loss before interest, taxes, depreciation and amortization of $5,696,247, which compared to earnings of $1,632,887 in the previous period.

As of Dec. 15, I.B.C. had not borrowed under its $200 million debtor-in-possession credit facility. The company said it has $122.1 million of letters of credit outstanding. The amount of the credit facility available for borrowing was $52.8 million as of Dec. 15.

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