I.B.C. loss tops $11.3 million in period
September 10, 2008
by Eric Schroeder
KANSAS CITY — Interstate Bakeries Corp. reduced its monthly loss to $11,324,722 in the four weeks ended July 26, which compared with a loss of $12,256,022 in the four weeks ended June 28, according to an 8-K filed Sept. 10 with the Securities and Exchange Commission.
Sales in the four weeks ended July 26 were $218,883,863, down 1.5% from $222,181,206 in the four-week period ended June 28.
Operating expenses finished at $107,921,318, down 1% from $109,020,411 in the previous period. Ingredients, packaging and outside purchasing costs were $67,173,632, down from $68,726,191, while direct and indirect labor costs fell to $35,966,455 from $36,104,507 in the previous period.
I.B.C. recorded restructuring charges of $87,956 and professional fees of $1,529,042, but they were more than offset by a restructuring gain on the sale of assets of $3,350,487, a reorganization gain on the sale of assets of $74,200 and interest expense of $12,892.
As of July 26, I.B.C. had borrowed $80.2 million under its $239.3 million debtor-in-possession credit facility. The company said it has $136.6 million of letters of credit outstanding. The amount of the credit facility available for borrowing was $22.5 million as of July 26.