EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm
 
Exhibit 99.1
 
 
Corporation & All Subsidiaries
    
  Case No:04-45814-jwv-11
 
Consolidated Monthly Operating Report Summary
      
For The Four Weeks Ended and as of August 23, 2008
      
REVENUE
          
Gross Income
       $ 217,643,454  
Less Cost of Goods Sold
         110,872,450  
Ingredients, Packaging & Outside Purchasing
    $ 63,048,255            
Direct & Indirect Labor
     35,605,903            
Overhead & Production Administration
     12,218,292            
Gross Profit
               106,771,004  
                   
OPERATING EXPENSES
                  
Owner - Draws/Salaries
     -            
Selling & Delivery Employee Salaries
     48,649,519            
Advertising and Marketing
     2,229,566            
Insurance (Property, Casualty, & Medical)
     10,911,364            
Payroll Taxes
     4,197,707            
Lease and Rent
     2,931,542            
Telephone and Utilities
     1,121,688            
Corporate Expense (Including Salaries)
     6,530,129            
Other Expenses
     31,545,778  (i)          
Total Operating Expenses
               108,117,293  
EBITDA
               (1,346,289 )
Restructuring & Reorganization Charges
     3,312,770 
 (ii) 
        
Depreciation and Amortization
     4,381,405            
Abandonment
     114,762            
Property & Equipment Impairment
     -            
Other( Income)/Expense
     (48,961 )          
Gain/Loss Sale of Prop
     -            
Interest Expense
     4,557,242            
Operating Income (Loss)
               (13,663,507 )
Income Tax Expense (Benefit)
     (378,455 )          
Net Income (Loss)
             $ (13,285,052 )
                   
                   
CURRENT ASSETS
                  
Accounts Receivable at end of period
             $ 133,539,795  
Increase (Decrease) in Accounts Receivable for period
               (427,388 )
Inventory at end of period
               62,660,203  
Increase (Decrease) in Inventory for period
               1,521,336  
Cash at end of period
               22,654,610  
Increase (Decrease) in Cash for period
               1,671,193  
Restricted Cash
              
21,077,933
  (iii)
Increase (Decrease) in Restricted Cash for period
               13,060  
                   
LIABILITIES
                  
Increase (Decrease) Liabilities Not Subject to Compromise
               7,739,981  
Increase (Decrease) Liabilities Subject to Compromise
               1,183,374  
Taxes payable:
                  
                 Federal Payroll Taxes
    $ 4,188,871            
                 State/Local Payroll Taxes
     2,611,220            
                 State Sales Taxes
     831,688            
                 Real Estate and Personal Property Taxes
     7,777,571            
     Other (see attached supplemental schedule)
     2,921,679            
     Total Taxes Payable
               18,331,029  
                   
See attached supplemental schedule for footnoted information.
                  
 
 
 
IBC
Other Taxes Payable - Supplemental Schedule
for period ended
August 23, 2008
  
     
     
     
Description
  
Amount
     
Use Tax
 $ 
563,315
Accr. Franchise Tax
  
512,906
Other Taxes
  
1,845,458
     
Total Other Taxes Payable
 $ 
2,921,679
     
     
     
   
3rd period
(i)  Other Expenses included the following items:
    
Employee benefit costs
  
13,466,655
Facility costs (excluding lease expense)
  
834,098
Distribution/transportation costs
  
13,869,087
Local promotional costs
  
884,684
Miscellaneous
  
2,491,254
  $ 
$31,545,778
     
(ii)  Restructuring and reorganization expenses for the period included:
  
 
Restructuring expenses
    
   (Gain)/loss on sale of assets
  
0
   Other
  
173,461
Reorganization expenses
    
   Professional fees
  
3,307,212
   Interest expense
  
(13,305)
   KERP
  
(152,932)
               Other
  
(1,666)
  $
3,312,770
     
(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 $0.8 million.
 
 
 
 
 
 
 
EXPLANATORY NOTES TO THE INTERSTATE BAKERIES CORPORATION
CONSOLIDATED MONTHLY OPERATING REPORT
DATED AS OF AUGUST 23, 2008


1.  
This consolidated Monthly Operating Report (MOR), reflecting results for the four-week period ended August 23, 2008 and balances of and period changes in certain of the Company’s accounts as of August 23, 2008, is preliminary and unaudited. This MOR should be read together and concurrently with the Company’s first quarter 2009 Form 10-Q that was filed with the Securities and Exchange Commission (SEC) on October 7, 2008 and the Company’s Annual Report on Form 10-K for fiscal 2008 filed with the SEC on September 15, 2008 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 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 August 23, 2008, the Company had borrowed $88.9 million under its $238.0 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 August 23, 2008, there were $136.6 million of letters of credit outstanding under the debtor-in-possession credit facility. The amount of the credit facility available for borrowing was $12.5 million as of August 23, 2008.  (On September 12, 2008, the credit facility was amended to increase availability thereunder and extend the maturity date.  See Note 8.Debt to the Company’s financial statements included in its Form 10-Q for the first fiscal quarter of 2009 ended August 23, 2008 for additional information.)