EX-99.1 2 ex99.htm EXHIBIT 99.1 ex99.htm
 
   Exhibit 99.1

Case Name: Interstate Bakeries
      
Case No: 04-45814-jwv-11
Corporation & All  Subsidiaries
            
 
Consolidated Monthly Operating Report Summary
For the Four Weeks Ended and as of November 17, 2007
         
REVENUE
        
Gross Income
       $ 207,187,594    
Less Cost of Goods Sold
         101,425,485    
                             Ingredients, Packaging & Outside Purchasing
   $ 54,706,753              
                             Direct & Indirect Labor
     36,106,432              
                             Overhead & Production Administration
     10,612,300              
Gross Profit
               105,762,109    
                     
OPERATING EXPENSES
                    
Owner - Draws/Salaries
     -              
Selling & Delivery Employee Salaries
     49,526,210              
Advertising and Marketing
     1,510,062              
Insurance (Property, Casualty, & Medical)
     8,644,982              
Payroll Taxes
     4,282,371              
Lease and Rent
     2,882,765              
Telephone and Utilities
     974,498              
Corporate Expense (Including Salaries)
     8,079,316              
Other Expenses
     28,229,018
(i)
 
          
Total Operating Expenses
               104,129,222    
EBITDA
               1,632,887    
Restructuring & Reorganization Charges
     6,500,180
 (ii)
 
          
Depreciation and Amortization
     4,972,109              
Abandonment
     251,496              
Property & Equipment Impairment
     (350,680 )            
Other( Income)/Expense
     61,397              
Gain/Loss Sale of Prop
     -              
Interest Expense
     3,812,375              
Operating Income (Loss)
               (13,613,990 )  
Income Tax Expense (Benefit)
     (212,379 )            
Net Income (Loss)
             $ (13,401,611 )  
                     
                     
CURRENT ASSETS
                    
Accounts Receivable at end of period
             $ 134,880,471    
Increase (Decrease) in Accounts Receivable for period
               (3,355,359 )  
Inventory at end of period
               53,812,714    
Increase (Decrease) in Inventory for period
               (2,910,199 )  
Cash at end of period
               58,439,272    
Increase (Decrease) in Cash for period
               (16,755,920 )  
Restricted Cash
               19,156,243  
(iii)
Increase (Decrease) in Restricted Cash for period
               906,860    
                     
LIABILITIES
                    
Increase (Decrease) Liabilities Not Subject to Compromise
               (8,395,165 )  
Increase (Decrease) Liabilities  Subject to Compromise
               3,444,045    
Taxes payable:
                    
     Federal Payroll Taxes
   $ 4,845,171              
     State/Local Payroll Taxes
     3,942,073              
     State Sales Taxes
     625,264              
 Real Estate and
                    
         Personal Property Taxes
     7,768,000              
    Other (see attached supplemental schedule)
     3,549,307              
     Total Taxes Payable
               20,729,815    
                     
See attached supplemental schedule for footnoted information.
          




 





IBC
      
Other Taxes Payable - Supplemental Schedule
for period ended
November 17, 2007
    
       
       
 
Description
  
Amount
       
 
Use Tax
$
543,493
 
Accr. Franchise Tax
  
1,489,884
 
Other Taxes
  
1,515,930
       
 
Total Other Taxes Payable
$
3,549,307
       
       
     
6th period
(i)  Other Expenses included the following items:
    
 
Employee benefit costs
  
11,816,668
 
Facility costs (excluding lease expense)
  
1,406,957
 
Distribution/transportation costs
  
11,898,570
 
Local promotional costs
  
820,531
 
Miscellaneous
  
2,286,292
   
$
28,229,018
       
(ii)  Restructuring and reorganization expenses for the period included:
    
 
Restructuring expenses
    
 
     (Gain)/loss on sale of assets
  
(37,500)
 
     Employee Costs
  
(190,979)
 
     Other
  
298,040
 
Reorganization expenses
    
 
    Professional fees
  
6,852,635
 
    Interest income
  
(241,119)
 
    Adjustments to lease rejection expense
  
(7,260)
 
   KERP & restructuring bonus plans
  
0
 
    (Gain)/loss on sale of assets
  
(173,637)
   
$
6,500,180
       
(iii)  Restricted cash represents cash held as collateral pursuant to IBC's debtor-in-possession credit facility.
       
Note:  Capital expenditures for the period totaled approximately $1.5 million.






EXPLANATORY NOTES TO THE INTERSTATE BAKERIES CORPORATION
CONSOLIDATED MONTHLY OPERATING REPORT
DATED AS OF NOVEMBER 17, 2007


1.  
This consolidated Monthly Operating Report (MOR), reflecting results for the four-week period ended November 17, 2007 and balances of and period changes in certain of the Company’s accounts as of November 17, 2007, is unaudited. This MOR should be read together and concurrently with the Company’s second quarter 2008 Form 10-Q that was filed with the SEC on December 20, 2007 and the Company’s Annual Report on Form 10-K for fiscal 2007 filed with the SEC on August 16, 2007 for a comprehensive description of our current financial condition and operating results. This MOR is being provided to the Bankruptcy Court and the U.S. Trustee pursuant to requirements under Local Rule 2015-2 C.

2.  
This MOR is not audited and will not be subject to audit or review by our external auditors on a stand-alone basis at any time in the future.  This MOR includes certain quarterly and year-to-date adjustments reflected upon review of major asset and liability accounts prior to the Company’s filing of its quarterly and annual financial statements with the SEC.

Due to the timing impact of the foregoing, results for this period as presented in the MOR are not necessarily indicative of the actual results for the period if all such matters were allocated to all periods in the quarter or year.  Accordingly, each period reported in the MORs should not be viewed on a stand-alone basis, but rather in the context of previously reported financial results, including the Company’s SEC filings.

 
3.
This MOR is presented in a format providing information required under local rule and incorporating measurements used for internal operating purposes, rather than in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. This MOR does not include certain financial statements and explanatory footnotes, including disclosures required under GAAP.

 
4.
As of November 17, 2007 the Company had not borrowed under its $200 million debtor-in-possession credit facility, which is subject to a borrowing base formula based on its level of eligible accounts receivable, inventory, certain real property and reserves. The credit facility was utilized to support the issuance of letters of credit primarily in support of the Company’s insurance programs.  As of November 17, 2007 there were $122.1 million of letters of credit outstanding under the debtor-in-possession credit facility. The amount of the credit facility available for borrowing was $51.8 million as of November 17, 2007.  In addition to the borrowing base formula, each borrowing under the debtor-in-possession credit facility is subject to its terms and conditions, including the absence of an event of default thereunder.  (See Note 8 and 20 to the Company’s financial statements included in its Form 10-Q for the second fiscal quarter of 2008 ended November 17, 2007 for additional information, including a discussion of an amendment to our borrowing availability under our debtor-in-possession credit facility.)