SOURCE: Tootie Pie Company, Inc.

August 14, 2008 17:21 ET

Tootie Pie Company First Quarter Revenues Jump 46%

Gross Profit Improves 87%

BOERNE, TX--(Marketwire - August 14, 2008) - Tootie Pie Company, Inc. (OTCBB: TOOT), a premium baker and seller of high-quality, handmade pies, announced the results of their operations for the three months ended June 30, 2008.

Keeping with "affordable luxury" trends, as reported recently in an Associated Press story, Tootie Pie Company revenues increased 46% to $298,223 as compared to $204,128 for the quarter June 30, 2007. The result is a near 50% increase in revenues between the two reporting periods. The increase from the prior year period was primarily attributable to the increase in revenues generated from pie sales to existing distributor customers.

Don Merrill, Tootie Pie Company's President & CEO, commented, "I continue to be very pleased with our revenue growth during these 'non-seasonal' quarters. Sales during these quarters come almost entirely from our existing wholesale customers and as such, act as a 'same store sales' measurement tool. Our experience suggests that revenue growth during these 'non-seasonal' quarters builds a solid foundation for further dramatic revenue growth when our 'peak season' gets underway."

Gross profit increased to $164,480, as compared to $87,807 for the quarter ended June 30, 2007; an 87% improvement. As a result, our gross margin after depreciation improved to 55% of net sales for the quarter ended June 30, 2008 compared to 43% for the quarter ended June 30, 2007.

"Despite inflationary pressures, and building inventory for the upcoming holiday season, we continue to achieve solid improvements in our margins, all the while maintaining our strict quality standards. I am proud of our successes in these areas and anticipate that further improvements in equipment and commercial baking applications will continue to allow us to enjoy our successful marriage of high quality with solid margins," said Merrill.

Adjusted for non-cash items, net loss for the quarter ended June 30, 2008 was $230,944 compared to a net loss before non-cash items of $212,541 for the quarter ended June 30, 2008. Adjusted for non-cash items, net loss for the quarter ended June 30, 2007 was $195,774 compared to a net loss before non-cash items of $141,105 for the quarter ended June 30, 2007. Non-cash items include depreciation, amortization, and non-cash stock compensation expense.

Net income before non-cash items is not a term defined by generally accepted accounting principles, or GAAP, and may not be comparable to other similarly titled measurements used by other companies. Such non-GAAP measures should be considered in addition to, and not as a substitute for, performance measures calculated in accordance with GAAP.

General and administrative expenses increased a modest 4.7%, from $162,286 for the same quarter in 2007 to $169,942 for the quarter just ended. Sales related expenses increased from $124,051 for the quarter ended June 30, 2007 to $230,051 for the quarter ended June 30, 2008. The sales related increase from the prior year quarter was principally due to our efforts to increase sales in existing territories, as well as to grow sales in four new territories. These expenses include additional personnel necessary to service and open new territories; additional food show fees and expenses related to opening new market territories; increases in customer support capabilities necessary to keep pace with overall sales growth; increases in packaging expenses, as well as costs associated with the transfer and storage of our finished inventory buildup, to provide adequate finished product in anticipation of the upcoming peak holiday season.

"We kept our general & administrative costs down, while supplying the necessary resources, in the form of sales related expenses, to continue to increase sales in existing markets and take advantage of additional opportunities in new markets. Once our peak season gets underway, our investment in new sales territories and a beefed up inventory will turn into ever growing revenue, which sets the stage for yet another banner holiday season for the Tootie Pie Company," said Merrill.

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 regional and national broad-line foodservice distributors who purchase pies and then resell them to their customers. The Tootie Pie Company, Inc. is a public company whose stock is traded on the NASDAQ OTC markets under the symbol: "TOOT." For additional information, or to receive emails from us, please visit

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).

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