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StockGuru Blog: Tootie Pie – Solid Capitalization and Attractive Multiples

Tootie Pie Company, Inc. (OTCBB: TOOT)

Solid Capitalization and Attractive Multiples

Tootie Pie Company was capitalized with approximately $1.3 million in private equity and brought public via the filing of an SB-2 registration with the US Securities Exchange Commission, without relying on reverse mergers – the Company has only one class of common stock held by all shareholders (including management). With a current float of approximately four million shares and utilizing a cash valuation calculation, TOOT could be very attractive, from an acquisition standpoint. The current price target of $3.37 reflects their expanding sales.

Cash Flow Maximization Built Into Business Model

In terms of cash flow, the Tootie Pie Company is able to make and sell their pies before obligations are due for ingredients, which maximizes cash flow. Sales to their wholesale distributors provides a positive cash flow cycle for payment and Tootie Pie invoices their wholesale distributors when they pick up the pies at Tootie Pie’s docks; with typical terms being the net amount due in fourteen days.

Excellent Wholesale Distributor Relationships

The primary distributors are Ben E. Keith Foodservices and Sysco Foodservices. For the nine month period ending December 31, 2006, Ben E. Keith Food Services of San Antonio and Dallas/Fort Worth and Sysco Foodservices of San Antonio and Austin, combined for 33% of their overall sales, 18% and 15% respectively. The Company recently added U.S. Foodservice in Austin, Texas, as a new distributor as well. This is a nationwide company.

Tootie Pie’s relationships with its wholesale food distributors has expanded from Ben E. Keith in San Antonio and the Dallas Fort Worth Area into three additional Ben E. Keith Warehouses including: Amarillo, Texas, Oklahoma City, Oklahoma, and Albuquerque, New Mexico. This places Tootie Pie Company in five of six Ben E Keith warehouses with plans to move into the Little Rock, Arkansas, warehouse in the future. Tootie Pie Company also expanded to the Sysco Houston market in the spring of 2007, opening up their third Sysco market with high growth potential in a large restaurant market.

View the StockGuru Profile for Tootie Pie

Tootie Pie Company, Inc.
129 Industrial Drive
Boerne, TX 78006
Phone: (210) 737-6600
Fax: (210) 237-4750

Website: www.tootiepieco.com

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Forward Looking Statement: This release contains “forward-looking statements” based on current expectations but involving known and unknown risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, whether as a result of new information, future events or otherwise. The Company’s plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, its ability to consummate, and the timing of, acquisitions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company’s control. Therefore, there can be no assurance that any forward-looking statement will prove to be accurate. The Company makes no undertaking to update such forward-looking statements. Except for the historical information contained herein, the matters discussed in this release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See filings with the Securities and Exchange Commission, including, without limitation, recently filed Form 10-KSB and 10-QSB.

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