I.B.C. monthly loss soars to $14.7 million

by FoodBusinessNews.net Staff
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KANSAS CITY — Interstate Bakeries Corp. suffered its largest monthly loss in more than six months, losing $14,742,445 in the four weeks ended Oct. 18, which compared with a loss of $5,740,795 in the four weeks ended Sept. 20, according to an 8-K filed Dec. 3 with the Securities and Exchange Commission.

Sales in the four weeks ended Oct. 18 were $215,353,338, down from $216,956,324 in the four-week period ended Sept. 20. The decline marked the sixth consecutive month of lower sales.

Operating expenses finished at $107,162,314, up 1% from $106,575,843 in the previous period. Ingredients, packaging and outside purchasing costs were $61,737,458, virtually unchanged from $61,701,635, while direct and indirect labor costs fell to $34,552,692 from $35,259,199 in the previous period.

I.B.C. recorded restructuring and reorganization charges of $5,477,307, including $5,482,021 in professional fees, $189,523 in "other" charges, and $11,057 on the loss of the sale of assets. The charges were only partially offset by $191,506 in adjustments to lease rejection expense and $13,788 in interest expense.

As of Oct. 18, I.B.C. had borrowed $106.9 million under its $309 million debtor-in-possession credit facility. The company said it has $141 million of letters of credit outstanding. The amount of the credit facility available for borrowing was $61.1 million as of Oct. 18.

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