Milling & Baking News - December 6, 2005 - 15

F I N A N C I A L

R E S U L T S

I.B.C. loss in four-week period
nears $19 million
KANSAS CITY - Interstate Bakeries
Corp. sustained a loss of $18,962,788 in
the four-week period ended Oct. 15, versus a loss of $7,962,855 in the four-week
period ended Sept. 17, according to an
8-K filed Nov. 29 with the Securities and
Exchange Commission.
The Kansas City-based wholesale
baker's financial update comes a little
more than a month after the company
said it could miss filing audited financial
statements for fiscal 2005 with its lenders before Dec. 31, which would result
in a default unless I.B.C.'s lenders waive
the requirement or amend the debtor-inpossession credit facility to extend the
required filing date.
Sales in the four weeks ended Oct. 15

fell to a new low of $231,839,064,
down 3% from $239,314,984
in the previous four-week period. Operating expenses finished at $125,377,362, up from
$122,714,863 in the previous
four-week period. Restructuring
and reorganization expenses
during the most-recent period
were $16,402,180, consisting of
$2,822,000 in professional fees,
employee retention plan and
restructuring bonus accruals of
approximately $536,000, North
West Profit Center severance and
related costs of $1,197,000 and
North West P.C. asset impairment charges of $10,591,000. MBN

Pasta business spurs quarterly growth
at Monterey Gourmet Foods
SALINAS, CALIF. - Net income rose
76% to $132,000 at Monterey Gourmet
Foods, Inc. in the third quarter ended
Sept. 30 behind strong sales in the company's core Monterey Pasta business.
Revenue in the quarter grew 42%
to $22,772,000 from $16,032,000 a
year ago. Operating income grew to
$306,000, up from $129,000 in the third
quarter of 2004.
"We are pleased to report continuing
positive progress," said Jim Williams,
president and chief executive officer of
Monterey Gourmet Foods. "Our improvements for the third quarter were
the result of both stronger sales from

our core Monterey Pasta business, which
improved 10% over 2004, as well as ongoing positive contribution
from our acquisitions. Our
core business growth was
achieved through a 4%
growth in our base pasta/
sauce line and strong acceptance of our new products, OneStep
Gourmet frozen entrees (our first entry
into the frozen category), refrigerated
entrees and our Grilled Wraps line.
"Also contributing to our positive results was an improvement in gross margin
of 29% vs. 27% in third quarter of 2004."
Commenting on profits, Mr. Wil-

liams said, "Profits were impacted
by significant introductory costs in
launching new products, especially
OneStep Gourmet. But, we believe
these
higher-than-normal
selling
costs will be rewarded with stronger
sales and profits in the
coming quarters.
"We believe our greater
product line diversity
achieved through new
product
innovations,
successful assimilation of our recent
acquisitions, and continuing growth
in the retail supermarket channel, will
position the company very well to continue positive momentum in coming
quarters, bringing Monterey Gourmet
Foods closer to the profitability levels
our shareholders expect." MBN

Comparable sales up 3.4% at McDonald's
OAK BROOK, ILL. - October comparable sales for McDonald's restaurants worldwide increased 3.4%. Global
system-wide sales for McDonald's restaurants rose 3.9%,
or 4.4% in constant currencies. This continues to be in line with the company's stated
long-term, top-line growth expectations
of 3% to 5%.
U.S. comparable sales rose 3% in October.
The ongoing popularity of McDonald's
Best Chance Monopoly game contributed to the U.S. performance for the third
consecutive year.
"I am pleased that our system has delivered global comparable sales increases
throughout 2005, including comparable sales increases
across all geographic segments this month," said James
Skinner, chief executive officer of McDonald's. "We con-

16 / Milling & Baking News, December 6, 2005

tinue to connect with our customers through our Plan
to Win, which is focused on our customers and backed
by actions that are delivering sales momentum and traction. However, I know there is still more to
do. We will continue to focus on improving
service, enhancing menu variety and building brand relevance to drive sales and profits at our existing restaurants."
In Europe, October comparable sales
grew 3.3%. The bump was driven largely by
France and Germany, where premium menu
selections featured alongside everyday value offerings continue to generate increased
customer visits.
Comparable sales for Asia/Pacific, Middle East and
Africa were up 4.3% in October driven by positive results in Australia and Japan. MBN

bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - December 6, 2005

Table of Contents for the Digital Edition of Milling & Baking News - December 6, 2005