SAN ANTONIO, TX — (Marketwire) — 02/16/10 — Tootie Pie Company, Inc. (OTCBB: TOOT), a premium baker and seller of high-quality, handmade pies, reported a net profit of $29,771 on revenues of $910,837 for the period ending December 31, 2009 versus a net loss of $30,618 on revenues of $909,741 for the same period in 2008; a $60,389 or 6.6% improvement to the bottom line.
Gross profit held steady at $639,536 for the period, versus $625,257 for the same period in 2008. Gross margin after depreciation remained solid at 70% of net sales for the period, as compared to 69% for the same period in 2008.
“We improved our bottom line results, swinging from a loss to a profit; which coupled with an increase in unit sales, produced the best overall quarter in the Company’s history,” said Don Merrill, Tootie Pie Company’s President & CEO. “We made a strategic acquisition in October, with pie sales accounting for 25% of the revenues in these new shops during the period. We think that is significant.”
“We have kept the Company positioned for continued sales growth if the economy picks up; while greatly enhancing our margins through retail sales growth from existing and planned acquisitions. Overall, I believe 2009 will prove to be a turning point year for the Tootie Pie Company,” Merrill added.
A shift to more wholesale business, coupled with a slowdown in corporate sales as a result of US economic conditions, contributed to revenues remaining fairly flat for the period, as compared to the same period in 2008. Selling, general and administrative expenses dropped 6%, to $609,756 for the current period, down from $645,680 for the same period in 2008. The drop in SGA expenses is a direct result of cost cutting measures enacted by the Company beginning in early 2009.
Tootie Pie Company bakes and sells high-quality, handmade pies through three basic sales channels: retail, corporate and wholesale. The retail segment serves individual consumers through in-store sales, orders via telephone and internet on the Company’s website. The corporate segment serves businesses that purchase pies as a way to promote their company through client and employee appreciation programs. The wholesale segment is made up of national and regional broad line grocery and foodservice distributors who purchase pies and then resell them through their respective sales distribution channels. Tootie Pie Company is a public company traded on the NASDAQ OTC market under the symbol “TOOT.” For additional information or to receive correspondence from Tootie Pie Company, please visit: tootiepieco.com
This press release may contain forward-looking statements. The words “believe,” “expect,” “should,” “intend,” “estimate,” and “projects,” variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based upon the Company’s current expectations and are subject to a number of risks, uncertainties and assumptions. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements are risks that are detailed in the Company’s filings, which are on file with the U.S. Securities and Exchange Commission (SEC).
Source: Marketwire (February 16, 2010 – 5:06 PM EST)