Tootie Pie: posts drop in second-quarter revenues

Boerne / TX. (tpc) The Tootie Pie Company Inc., a premium baker and seller of high-quality, handmade pies, reported revenues of 239’691 USD for the current quarter. Operating results for the quarter improved 41 percent to a net loss of 139’165 USD, as compared to a 236’545 USD loss for the quarter ended September 30, 2008.

Don Merrill, Tootie Pie Company´s President and CEO: «I continue to be pleased by how well we have responded to the US economic downturn. Off season sales have held up well and our cost saving measures continue to produce better bottom line results; bringing us closer to achieving our operational goals for these months».

US economic conditions contributed to an eight percent drop in revenues for the current quarter, which compared to 262’225 USD for the quarter September 30, 2008. Selling, general and administrative expenses dropped 28 percent, to 288’053 USD for the current quarter, down from 401’369 USD for the same quarter in 2008. The drop in SGA expenses is a direct result of cost cutting measures enacted by the Company beginning in early 2009. «October sales were up 15 percent. As we head into our busiest selling season, indications are that this could very well be the best holiday season ever for the Tootie Pie Company», added Merrill.

Gross profit was down eight percent to 149’338 USD for the current quarter, versus 161’994 USD for the quarter ended September 30, 2008. Gross margin after depreciation remained steady at 62 percent of net sales for the quarter ended September 30, 2009 compared to 62 percent for the quarter ended September 30, 2008. The company also recently announced it had finalized the strategic acquisition of its first two Tootie Pie Shops in San Antonio (Benny´s Bagels).

«We plan for these locations to serve as models for more shops and possible franchises in the very near future», said Merrill, «and we continue to expand our base of customers through multiple outlets, such as HEB, as well as our online business. We remain excited about the future of the Tootie Pie Company».