EX-99.1 2 ex99.htm MONTHLY OPERATING REPORT ex99.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 October 18, 2008
  
REVENUE
                
Gross Income
           $ 215,353,338  
Less Cost of Goods Sold
             108,211,134  
 
Ingredients, Packaging & Outside Purchasing
   $ 61,737,458            
 
Direct & Indirect Labor
     34,552,692            
 
Overhead & Production Administration
     11,920,984            
Gross Profit
               107,142,204  
                     
OPERATING EXPENSES
                  
Owner - Draws/Salaries
     -            
Selling & Delivery Employee Salaries
     48,261,664            
Advertising and Marketing
     1,979,293            
Insurance (Property, Casualty, & Medical)
     11,563,494            
Payroll Taxes
     4,076,015            
Lease and Rent
     2,965,792            
Telephone and Utilities
     1,240,884            
Corporate Expense (Including Salaries)
     6,873,900            
Other Expenses
     30,201,272  
(i)
        
Total Operating Expenses
               107,162,314  
 
EBITDA
               (20,110 )
Restructuring & Reorganization Charges
     5,477,307  
 (ii)
        
Depreciation and Amortization
     4,502,783            
Abandonment
     4,489            
Property & Equipment Impairment
     -            
Other( Income)/Expense
     42,908            
Gain/Loss Sale of Prop
     -            
Interest Expense
     4,910,591            
Operating Income (Loss)
               (14,958,188 )
Income Tax Expense (Benefit)
     (215,743 )          
Net Income (Loss)
             $ (14,742,445 )
                     
                     
CURRENT ASSETS
                  
 
Accounts Receivable at end of period
             $ 135,809,761  
 
Increase (Decrease) in Accounts Receivable for period
               727,216  
 
Inventory at end of period
               63,738,396  
 
Increase (Decrease) in Inventory for period
               (479,432 )
 
Cash at end of period
               24,098,629  
 
Increase (Decrease) in Cash for period
               2,268,782  
 
Restricted Cash
               21,103,656  
 
Increase (Decrease) in Restricted Cash for period
               13,498  
                     
LIABILITIES
                  
 
Increase (Decrease) Liabilities Not Subject to Compromise
         16,050,341  
 
Increase (Decrease) Liabilities  Subject to Compromise
               (256,197 )
 
Taxes payable:
                  
 
     Federal Payroll Taxes
   $ 3,910,791            
 
     State/Local Payroll Taxes
     3,743,422            
 
     State Sales Taxes
     757,903            
 
     Real Estate and
                  
 
         Personal Property Taxes
     8,050,166            
 
    Other (see attached supplemental schedule)
     2,575,978            
 
     Total Taxes Payable
               19,038,260  
                     
See attached supplemental schedule for footnoted information.
                  
 
 
 
 
 
 
 
IBC
        
Other Taxes Payable - Supplemental Schedule
      
for period ended
      
October 18, 2008
      
         
         
         
 
Description
  
Amount
  
         
 
Use Tax
   $ 537,812  
 
Accr. Franchise Tax
     483,760  
 
Other Taxes
     1,554,406  
           
 
Total Other Taxes Payable
   $ 2,575,978  
           
           
           
     
5th period
  
(i)  Other Expenses included the following items:
        
 
Employee benefit costs
     12,551,666  
 
Facility costs (excluding lease expense)
     799,816  
 
Distribution/transportation costs
     13,235,826  
 
Local promotional costs
     1,050,655  
 
Miscellaneous
     2,563,309  
      $ 30,201,272  
           
(ii) Restructuring and reorganization expenses for the period included:
  
 
Restructuring expenses
        
 
     (Gain)/loss on sale of assets
     11,057  
 
     Other
     189,523  
 
Reorganization expenses
        
 
     Professional fees
     5,482,021  
 
     Interest expense
     (13,788 )
 
    Adjustments to lease rejection expense
     (191,506 )
 
     Other
     0  
      $ 5,477,307  
           
 
(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 $1.1 million.
    
 
 
 
 
 
 
EXPLANATORY NOTES TO THE INTERSTATE BAKERIES CORPORATION
CONSOLIDATED MONTHLY OPERATING REPORT
DATED AS OF OCTOBER 18, 2008


 
1.
This consolidated Monthly Operating Report (MOR), reflecting results for the four-week period ended October 18, 2008 and balances of and period changes in certain of the Company’s accounts as of October 18, 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 October 18, 2008, the Company had borrowed $106.9 million under its $309.0 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 October 18, 2008, there were $141.0 million of letters of credit outstanding under the debtor-in-possession credit facility. The amount of the credit facility available for borrowing was $61.1 million as of October 18, 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.)