Aug. 17, 2010 (Business Wire) — Tootie Pie Company, Inc. (OTCBB:TOOT) announced that sales jumped 29% to $334,075 for the quarter ended June 30, 2010 versus $258,336 for the same period in 2009.
“I am very pleased that sales have been up for ten consecutive months and how our Tootie Pie Gourmet Cafés have contributed to our sales growth,” said Don L. Merrill, Jr. President & CEO. “We expect the upcoming holiday season to be stronger than last year and are making plans, accordingly.”
Gross profit increased to $189,392 for the period, versus $150,284 for the same period in 2009. Gross margin after depreciation remained solid at 57% of net sales for the period, as compared to 58% for the same period in 2009.
“Our Cafés have always been a part of our growth plans and are quickly proving to be a significant factor. They enable us to grow higher margin retail sales over traditional wholesale. Wholesale established distribution for us and helped prove that a market for high-end pies exists. Our plans are to continue to place emphasis on expanding our Café and online business, thus improving our retail versus wholesale product mix,” added Merrill.
Operating expenses increased to $417,617 for the current period, up from $289,984 for the same period in 2009. The increase in operating expenses is a result of the overall increase in production for anticipated sales increases, as well as expenses related to our two Tootie Pie Gourmet Cafés, which we did not own during the same period in 2009. Net loss, which includes noncash items, depreciation and amortization, was $228,382 for the three months ending June 30, 2010, versus $140,150 for the three months ending June 30, 2009.
“As a seasonal manufacturer, we build inventory in advance of anticipated sales increases for the upcoming holiday season,” reported Merrill. He attributed the cash flow loss of only $59,310 to “our continual efforts to keep expenses low, while at the same time, working to increase sales during these inventory building months.”
About Tootie Pie Co.
Tootie Pie Company bakes and sells high-quality, handmade pies through three basic sales channels: retail, corporate and wholesale. The retail segment serves individual customers through sales in its Tootie Pie Gourmet Cafés, 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 www.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).
Tootie Pie Company
Carla Carter, 210-737-6600
Source: Business Wire (August 17, 2010 – 9:00 AM EDT)