EX-99.1 2 ibc_ex99-1.htm EXHIBIT 99.1 -- PRESS RELEASE ibc_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 September 20, 2008
    
REVENUE
                  
Gross Income
           $ 216,956,324    
Less Cost of Goods Sold
             107,439,003    
 
Ingredients, Packaging & Outside Purchasing
   $ 61,701,635              
 
Direct & Indirect Labor
     35,259,199              
 
Overhead & Production Administration
     10,478,169              
Gross Profit
               109,517,321    
                       
OPERATING EXPENSES
                    
Owner - Draws/Salaries
     -              
Selling & Delivery Employee Salaries
     48,594,872              
Advertising and Marketing
     1,679,412              
Insurance (Property, Casualty, & Medical)
     11,517,286              
Payroll Taxes
     4,100,826              
Lease and Rent
     2,882,039              
Telephone and Utilities
     1,066,298              
Corporate Expense (Including Salaries)
     6,873,900              
Other Expenses
     29,861,210  
(i)
          
Total Operating Expenses
               106,575,843    
 
EBITDA
               2,941,478    
Restructuring & Reorganization Charges
     (305,315 )
(ii)
          
Depreciation and Amortization
     4,502,810              
Abandonment
     44,744              
Property & Equipment Impairment
     -              
Other( Income)/Expense
     (37,148 )            
Gain/Loss Sale of Prop
     -              
Interest Expense
     4,554,886              
Operating Income (Loss)
               (5,818,499 )  
Income Tax Expense (Benefit)
     (77,704 )            
Net Income (Loss)
             $ (5,740,795 )  
                       
                       
CURRENT ASSETS
                    
 
Accounts Receivable at end of period
             $ 135,082,545    
 
Increase (Decrease) in Accounts Receivable for period
               1,542,750    
 
Inventory at end of period
               64,217,828    
 
Increase (Decrease) in Inventory for period
               1,557,624    
 
Cash at end of period
               21,829,847  
 (iii)
 
Increase (Decrease) in Cash for period
               (824,763 )  
 
Restricted Cash
               21,090,158  
 (iv)
 
Increase (Decrease) in Restricted Cash for period
               12,225    
                       
LIABILITIES
                    
 
Increase (Decrease) Liabilities Not Subject to Compromise
         7,193,969    
 
Increase (Decrease) Liabilities  Subject to Compromise
               (3,856 )  
 
Taxes payable:
                    
 
     Federal Payroll Taxes
   $ 4,063,342              
 
     State/Local Payroll Taxes
     3,051,533              
 
     State Sales Taxes
     796,340              
 
     Real Estate and
                    
 
         Personal Property Taxes
     7,549,142              
 
    Other (see attached supplemental schedule)
     2,482,837              
 
     Total Taxes Payable
               17,943,194    
                       
See attached supplemental schedule for footnoted information.
                    
                       
 
 
 
IBC
        
Other Taxes Payable - Supplemental Schedule
      
for period ended
      
September 20, 2008
      
         
         
         
 
Description
  
Amount
  
         
 
Use Tax
   $ 516,789  
 
Accr. Franchise Tax
     486,199  
 
Other Taxes
     1,479,849  
           
 
Total Other Taxes Payable
   $ 2,482,837  
           
           
           
     
4th period
  
(i)  Other Expenses included the following items:
        
 
Employee benefit costs
     12,984,575  
 
Facility costs (excluding lease expense)
     924,126  
 
Distribution/transportation costs
     13,013,609  
 
Local promotional costs
     837,071  
 
Miscellaneous
     2,101,829  
      $ 29,861,210  
           
(ii) Restructuring and reorganization expenses for the period included:
  
 
Restructuring expenses
        
 
     (Gain)/loss on sale of assets
     (2,162,776 )
 
     Other
     111,911  
 
Reorganization expenses
        
 
     Professional fees
     1,776,752  
 
     Interest income
     (12,346 )
 
     KERP
     (15,000 )
 
     Other
     (3,856 )
      $ (305,315 )
           
           
 
  
 
(iii)  Included in the cash balance is $4 million which represents cash received on the sale of assets.  Due to timing,
        the $4 million in proceeds will reduce IBC's debt in the following period - 5th period FY2009.
           
(iv)  Restricted cash represents cash held as collateral pursuant to IBC's debtor-in-possession credit facility.
 
Note: Capital expenditures for the period totaled approximately $1.1 million.
 

 
 
 
EXPLANATORY NOTES TO THE INTERSTATE BAKERIES CORPORATION
CONSOLIDATED MONTHLY OPERATING REPORT
DATED AS OF SEPTEMBER 20, 2008


 
1.
This consolidated Monthly Operating Report (MOR), reflecting results for the four-week period ended September 20, 2008 and balances of and period changes in certain of the Company’s accounts as of September 20, 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 does not include 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 September 20, 2008, the Company had borrowed $100.9 million under its $313.0 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 September 20, 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 $75.5 million as of September 20, 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.)