I.B.C. suffers $11.3 million loss in period

by Eric Schroeder
Share This:

KANSAS CITY — Interstate Bakeries Corp. sustained a loss of $11,288,282 in the four weeks ended Dec. 13, which compared with a loss of $20,937,450 in the four weeks ended Nov. 15, according to an 8-K filed Jan. 28 with the Securities and Exchange Commission.

Sales in the four weeks ended Dec. 13 were $201,802,115, down 5% from $211,621,699 in the four-week period ended Nov. 15. The decline marked the ninth consecutive month of lower sales.

Operating expenses finished at $102,980,955, up 12% from $91,913,276 in the previous period. Ingredients, packaging and outside purchasing costs, meanwhile, were $55,321,821, down 9% from $61,094,423, while direct and indirect labor costs fell to $32,753,372 from $33,757,863 in the previous period.

I.B.C. recorded restructuring and reorganization charges of $3,319,572, including $3,379,179 in professional fees and $91,834 in "other" charges. The charges were only partially offset by $102,660 in adjustments to lease rejection expense, $38,306 on the gain on the sale of assets and $10,475 in interest expense.

As of Dec. 13, I.B.C. had borrowed $110.9 million under its $309 million debtor-in-possession credit facility. The company said it has $149.1 million of letters of credit outstanding. The amount of the credit facility available for borrowing was $49 million as of Dec. 13.

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.



The views expressed in the comments section of Baking Business News do not reflect those of Baking Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.