I.B.C. suffers $12.2 million loss in period
August 14, 2008
by Eric Schroeder
KANSAS CITY — A month after posting a profit of $4,753,907, Interstate Bakeries Corp. again returned to the red, sustaining a loss of $12,256,022 in the four weeks ended June 28, according to an 8-K filed Aug. 13 with the Securities and Exchange Commission.
Sales in the four weeks ended June 28 were $222,181,206, down from $222,831,209 in the four-week period ended May 31.
Operating expenses finished at $109,020,411, up 11% from $97,799,039 in the previous period. Ingredients, packaging and outside purchasing costs were $68,726,191, down from $70,531,136, while direct and indirect labor costs fell to $36,104,507, up 7% from $33,637,436 in the previous period.
I.B.C. recorded charges of $132,439 from restructuring and reorganization for the four-week period ended June 28. Charges included professional fees of $1,565,747, interest expense of $2,927, "other" restructuring expenses of $113,077 and "other" reorganization expenses of $5,000. Helping offset the loss was a gain on the sale of assets of $1,554,312.
As of June 28, I.B.C. had borrowed $71.4 million under its $243.5 million debtor-in-possession credit facility. The company said it has $131.1 million of letters of credit outstanding. The amount of the credit facility available for borrowing was $41 million as of June 28.