I.B.C. posts widest loss in two years

by Eric Schroeder
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KANSAS CITY — Interstate Bakeries Corp. sustained a loss of $20,115,829 in the four-week period ended Jan. 12, which compared with a loss of $18,937,878 in the four-week period ended Dec. 15, 2007, according to an 8-K filed Feb. 27 with the Securities and Exchange Commission. The loss was the company’s widest decline in two years.

Sales in the four weeks ended Jan. 12 were $187,443,095, down 5% from $197,537,517 in the previous four-week period.

Operating expenses finished at $102,847,010, down from $105,275,000 in the previous period. Ingredients, packaging and outside purchasing costs were $51,133,855, down from $53,069,341, while direct and indirect labor costs fell to $33,321,291 from $34,155,326 in the previous period.

I.B.C. recorded charges of $1,158,106 from restructuring and reorganization for the four-week period ended Jan. 12. Charges included professional fees of $2,429,221, employee costs of $185,380, adjustments to lease rejection of $53,856, and "other" charges of $83,211. The charges more than offset interest income of $154,013 and a gain on the sale of assets of $1,439,549.

I.B.C. posted a loss before interest, taxes, depreciation and amortization of $10,366,564, which compared with a loss of $5,696,247 in the previous period.

As of Jan. 12, I.B.C. had not borrowed under its $200 million debtor-in-possession credit facility. The company said it has $129.1 million of letters of credit outstanding. The amount of the credit facility available for borrowing was $39.9 million as of Jan. 12.

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