SAN ANTONIO – Tootie Pie Company, Inc. (OTCBB:TOOT) reported record revenues of $1,061,215 for the period ending December 31, 2010, versus revenues of $910,837 for the same period in 2009, a 17% improvement.
“We will continue to invest in our accelerated growth model, as represented by our Gourmet Cafés,” said Don Merrill, Tootie Pie Company’s President & CEO. “The Cafés represent significant revenue growth, but they also enable us to sell more pie at higher margins. We believe they are the next logical extension of our brand.”
Gross profit jumped to $704,796 for the period, versus $639,536 for the same period in 2009. Gross margin after depreciation remained virtually unchanged at 66% of net sales for the period. Operational cash flow came in at a record $300,088 for the period, versus $154,024 for the same period in 2009, a 95% improvement.
Selling, general, and administrative expenses increased to $742,935 for the quarter ended December 31, 2010 from $609,765 for the quarter ended December 31, 2009. The increase in selling and general and administrative expenses from the prior year periods was principally due to an increase in personnel required to open, manage and operate our three newest Gourmet Café locations.
After investing in the opening of three new Cafés, the Company incurred a small net loss of $38,139 for the period versus a small profit of $29,771 for the same period in 2009.
“We are adding Cafés at an average of about $100,000 per location, which is well below the national average for quick serve restaurants of this size. We think this is an excellent investment that should produce both short term and long term benefits for the Tootie Pie Company,” concluded Merrill.
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.
Forward-Looking Statements
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: Tootie Pie Company
