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.) |