EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm
       
 EXHIBIT 99.1
 
           
Case Name: Interstate Bakeries
         
Corporation & All  Subsidiaries
    Case No:  04-45814-jwv-11
 
             
   
Consolidated Monthly Operating Report Summary
 
   
For The Four Weeks Ended and as of  May 3, 2008
 
 
REVENUE
                 
Gross Income
          $ 224,110,192    
Less Cost of Goods Sold
            116,878,445    
 
Ingredients, Packaging & Outside Purchasing
  $ 68,663,351              
 
Direct & Indirect Labor
    36,379,015              
 
Overhead & Production Administration
    11,836,079              
Gross Profit
              107,231,747    
                       
OPERATING EXPENSES
                   
Owner - Draws/Salaries
    -              
Selling & Delivery Employee Salaries
    50,187,491              
Advertising and Marketing
    2,086,781              
Insurance (Property, Casualty, & Medical)
    11,605,107              
Payroll Taxes
    4,168,768              
Lease and Rent
    2,951,851              
Telephone and Utilities
    1,152,853              
Corporate Expense (Including Salaries)
    6,460,600              
Other Expenses
    30,663,559  
(i)
         
Total Operating Expenses
              109,277,010    
 
EBITDA
              (2,045,263 )  
Restructuring & Reorganization Charges
    3,214,339  
(ii)
         
Depreciation and Amortization
    5,140,742              
Abandonment
    133,420              
Property & Equipment Impairment
    -              
Other( Income)/Expense
    (1,037 )            
Gain/Loss Sale of Prop
    -              
Interest Expense
    2,737,936              
Operating Income (Loss)
              (13,270,663 )  
Income Tax Expense (Benefit)
    (3,861,132 )            
Net Income (Loss)
            $ (9,409,531 )  
                       
                       
CURRENT ASSETS
                   
 
Accounts Receivable at end of period
            $ 139,478,032    
 
Increase (Decrease) in Accounts Receivable for period
              9,258,800    
 
Inventory at end of period
              61,656,180    
 
Increase (Decrease) in Inventory for period
              906,923    
 
Cash at end of period
              20,396,685    
 
Increase (Decrease) in Cash for period
              (1,587,634 )  
 
Restricted Cash
              21,017,667  
(iii)
 
Increase (Decrease) in Restricted Cash for period
              (1,092,278 )  
                       
LIABILITIES
                   
 
Increase (Decrease) Liabilities Not Subject to Compromise
        10,413,161    
 
Increase (Decrease) Liabilities  Subject to Compromise
              36,364    
 
Taxes payable:
                   
 
     Federal Payroll Taxes
  $ 2,650,633              
 
     State/Local Payroll Taxes
    1,293,514              
 
     State Sales Taxes
    820,091              
 
     Real Estate and
                   
 
         Personal Property Taxes
    6,862,576              
 
    Other (see attached supplemental schedule)
    4,216,147              
 
     Total Taxes Payable
              15,842,961    
                       
See attached supplemental schedule for footnoted information.
                   
 
 
 

 
 
IBC
           
Other Taxes Payable - Supplemental Schedule
         
for period ended
         
May 3, 2008
         
             
             
             
 
Description
 
Amount
     
             
 
Use Tax
  $ 532,043      
 
Accr. Franchise Tax
    1,998,698      
 
Other Taxes
    1,685,406                  
               
 
Total Other Taxes Payable
  $ 4,216,147      
               
               
               
     
12th period
     
(i)  Other Expenses included the following items:
           
 
Employee benefit costs
    12,667,270      
 
Facility costs (excluding lease expense)
    774,816      
 
Distribution/transportation costs
    13,615,632      
 
Local promotional costs
    1,238,079      
 
Miscellaneous
    2,367,762      
      $ 30,663,559      
               
(ii) Restructuring and reorganization expenses for the period included:
     
 
Restructuring expenses
           
 
     (Gain)/loss on sale of assets
    (238,290 )    
 
     Employee costs adjustment
    (19,944 )    
 
     Other
    164,306      
 
Reorganization expenses
           
 
     Professional fees
    3,308,277      
 
     Interest income
    (10 )    
      $ 3,214,339      
               
(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 May 3, 2008


 
1.
This consolidated Monthly Operating Report (MOR), reflecting results for the four-week period ended May 3, 2008 and balances of and period changes in certain of the Company’s accounts as of May 3, 2008, is unaudited. This MOR should be read together and concurrently with the Company’s third quarter 2008 Form 10-Q that was filed with the Securities and Exchange Commission on April 17, 2008 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 does not include 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 May 3, 2008 the Company had borrowed $53.6 million 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 also utilized to support the issuance of letters of credit primarily in support of the Company’s insurance programs.  As of May 3, 2008 there were $129.1 million of letters of credit outstanding under the debtor-in-possession credit facility. The amount of the credit facility available for borrowing was $17.2 million as of May 3, 2008.  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 to the Company’s financial statements included in its Form 10-Q for the third fiscal quarter of 2008 ended March 8, 2008 for additional information.)

 
5.
On May 9, 2008 the Company announced that it had closed on an amended and restated Debtor-in-Possession (DIP) revolving credit agreement to replace the Company’s former DIP credit agreement which was set to expire on June 2, 2008.  Under the terms of the amended and restated DIP credit agreement, the maturity date has been extended to September 30, 2008 and the amount available for borrowing under the agreement has been increased from $200 million to $249.7 million subject to the terms of the agreement.  Please refer to the Company’s Form 8-K filed with the SEC on May 12, 2008 for additional information.