KANSAS CITY — Interstate Bakeries Corp. sustained a loss of $36,866,000 in the first quarter ended Aug. 23, which compared with a loss of $15,993,000 in the same period a year earlier. The company said items contributing to the loss included $13,700,000 related to depreciation and amortization and $4,700,000 write-off of deferred debt fees.
Net sales in the first quarter of fiscal 2009 were $658,709,000, down 5% from $689,816,000 in the first quarter of fiscal 2008.
The company sustained an operating loss of $17,781,000 in the period, which compared with a loss of $264,000 in the first quarter a year ago.
During the first quarter, I.B.C. said it incurred net reorganization charges of $6,026,000. The company said it incurred a net restructuring credit during the first quarter of approximately $4,400,000 as it realized net gains of nearly $4,800,000 related to the sale of assets that were part of the Southern California restructuring plan.
The quarterly report was filed Oct. 8 by I.B.C. with the Securities and Exchange Commission, and comes less than a week after U.S. Bankruptcy Judge Jerry Venters granted the wholesale baker’s financing motion.
In reporting its most recent results, I.B.C. said its route sales, formerly known as wholesale operations, were $569,950,000 in the first quarter, down 5% from $599,280,000 in the same period a year ago. The decline reflected I.B.C.’s exit from the bread market in Southern California during the second quarter of fiscal 2008. The decline also reflects reduced demand for products as the result of price increases, changes in the depth of frequency of promotional activities and market actions by competitors, I.B.C. said.
In outlet sales, formerly known as retail operations, sales for the first quarter fell a shade more than 2% to $72,292,000, reflecting the closing of retail outlets in conjunction with restructuring efforts.
I.B.C. said cash used in operating activities during the first quarter of fiscal 2009 totaled $33 million, which compared with cash provided by operating activities of $5,100,000 in the same period a year ago.
In a separate S.E.C. filing, I.B.C. said its monthly loss rose to $13,285,052 in the four weeks ended Aug. 23 from $11,324,722 in the four weeks ended July 26.
Sales in the four weeks ended Aug. 23 were $217,643,454, down from $218,883,863 in the four-week period ended July 26.
Operating expenses finished at $108,117,293, up narrowly from $107,921,318 in the previous period. Ingredients, packaging and outside purchasing costs were $63,048,255, down 6% from $67,173,632, while direct and indirect labor costs fell to $35,605,903 from $35,966,455 in the previous period.
I.B.C. recorded "other" restructuring charges of $173,461 and professional fees of $3,307,212, which more than offset KERP of $152,932, interest expense of $13,305 and "other" restructuring expenses of $1,666.
As of Aug. 23, I.B.C. had borrowed $88.9 million under its $238 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 $12.5 million as of Aug. 23.