Milling & Baking News - January 16, 2007 - 14

F I N A N C I A L

R E S U L T S

I.B.C. narrows monthly loss on
flat sales and lower costs
KANSAS CITY - Interstate Bakeries
Corp. said it sustained a loss of $7,145,874
in the four weeks ended Nov. 18, which
compared with a loss of $10,101,019 in
the four weeks ended Oct. 21, according
to an 8-K filed Jan. 3 with the Securities
and Exchange Commission.
Sales in the four weeks ended
Nov. 18 were virtually unchanged at
$222,315,731, which compared with
$222,600,638 in the previous fourweek period.
Operating expenses finished at
$106,652,818, down from $112,065,588
in the previous period. Ingredients,
packaging and outside purchasing
costs were basically unchanged at
$58,270,148 from $58,209,839, while
direct and indirect labor costs fell to
$40,650,812 from $41,126,570.
I.B.C. recorded charges of $3,520,903

during the most recent period from
restructuring and reorganization.
Charges for professional fees of ap-

I.B.C. income (loss)
(Four- or five-week period ended)
Nov. 18, 2006 ........................($7,145,874)
Oct. 21, 2006 ...................... ($10,101,019)
Sept. 23, 2006 ......................($7,536, 478)
Aug. 26, 2006 ........................($8,643,113)
July 29, 2006 ...................... ($15,047,743)
July 1, 2006 ...........................($4,140,277)
June 3, 2006 ............................ $5,827,083
April 29, 2006 ........................($7,514,771)
April 1, 2006 ....................... ($15,193,537)
March 4, 2006 .................... ($10,049,307)
Feb. 4, 2006........................ ($20,853,527)
Jan. 7, 2006 ...........................($5,569,011)
Dec. 10, 2005 ........................($9,696,847)
Nov. 12, 2005 ..................... ($32,534,746)

Delayed filing shows $5.8 million loss at
Krispy Kreme in first quarter
WINSTON-SALEM, N.C. - Krispy
Kreme Doughnuts, Inc. on Dec. 22 filed
financials for the first quarter of fiscal
2007, a little more than six months after preliminary results for the quarter
were first announced. The company
has delayed filing financials for several reporting periods as it fights to
recover from accounting problems.
The Winston-Salem-based maker of
donuts sustained a loss of $5,770,000
in the first quarter ended April 30,
2006, which compared with a loss of

$53,356,000 in the same period of fiscal 2006.
System-wide sales for Krispy Kreme
fell about 17% in the first quarter to
$119,365,000, primarily because of a 19%
decrease in the number of factory stores.
The company said
the decrease was attributable to a 10.3% decrease in average weekly sales per store and a 7.3%
decrease in store operating weeks.

Operating income climbs 19% in Penford
North American food ingredients business
CENTENNIAL, COLO. - The Penford Corp. posted operating income
of $2,853,000 in its Food Ingredients
- North America business for the
first quarter ended Nov. 30. In the previous year 's first quarter, operating
income for Food Ingredients - North
America was $2,401,000.
Sales in the quarter were $15,240,000,
up narrowly from $15,090,000 in last
year 's first quarter. The company
said sales of applications in the protein segment, which includes chicken
products, processed meat and cheese,
increased at double-digit rates.
Volumes and average unit selling
prices were comparable to last year,
Penford said.
Gross margin as a per cent of sales
14 / Milling & Baking News, January 16, 2007

increased $500,000 to $4.8 million, reflecting changes in product mix, improved plant productivity and lower
unit energy costs.
In the company's Industrial Ingredients business, operating income was
$3,182,000, up sharply from
$574,000 in the same period a year ago. Sales rose
14% to $43,972,000 from
$38,480,000.
Penford said its plan to invest $42
million at its Cedar Rapids, Iowa, facility to manufacture up to 40 million gallons of ethanol a year is "progressing as
planned." Production is expected to begin
by the end of this year, the company said.
"Fiscal 2007 is off to a strong start,"

proximately $4,737,421, asset impairment expenses of $1,055,072 and other
expenses of 216,124 more than offset
KERP and restructuring bonus plans
of $561,993, adjustments to lease rejection expense of $5,710, a gain on the
sale of assets of $16,432 and a gain of
$528,605 in interest income.
I.B.C. had earnings before interest,
taxes, depreciation and amortization
of $4,785,010, which compared with a
loss of $1,075,390 in the prior period.
In the S.E.C. filing, I.B.C. said capital expenditures for the four-week
period ended Nov. 18 totaled approximately $2.1 million, boosting year-todate capital spending through Nov. 18
to $12.4 million.
As of Nov. 18, I.B.C. still had not borrowed under its $200 million debtor-inpossession credit facility. The company
said it has $104.9 million of letters of
credit outstanding. The amount of the
credit facility available for borrowing
was $77 million as of Nov. 18. MBN

During the first quarter of 2007,
Krispy Kreme closed 16 company and
franchised stores.
Net cash provided by operating
activities was $7.6 million in the first
quarter of fiscal 2007, down from $11.5
million in the same year-ago period.
Net cash used by
financing activities in
the first quarter of fiscal
2007 was $1.4 million,
which compared with
net cash of $13.8 million
in the first quarter of fiscal 2006. Krispy
Kreme said it used cash in the first quarter of fiscal 2007 to repay debt. MBN

said Thomas Malkoski, president and
chief executive officer. "Demand for our
higher value applications is growing,
and process improvements and investments in operations are showing results.
Our industrial business has stepped
up its performance, and the
ethanol expansion project is
advancing as planned. We
continue to develop and commercialize specialized food
products in Australia and
North America that should
expand sales opportunities
and improve returns."
Overall, Penford posted net income
of $2,573,000 for the first quarter, equal
to 28c per share, up from $196,000,
or 2c per share, in the same period a
year ago. Sales for the first quarter of
2007 were $85,500,000, up 10% from
$77,903,000. MBN
bakingbusiness.com / world-grain.com

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

Milling & Baking News - January 16, 2007

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