Tootie Pie Company, Inc. (OTCBB: TOOT)
I think the recent announcement that Tootie has adopted ThermaFreeze for shipping their pies is a very important step and probably did not receive the attention it deserved, let me explain what this is going to mean for Tootie Pie.
What ThermaFreeze does for Tootie Pie is that it allows them to expand their shipping territory. Now they can increase their 24-hour shipments to 36-48 hours. This means they can ship their pies farther and just in time for the big holiday season.
Tootie now has a significantly increased geographic range for its two-day ground delivery and 2nd-Day air service capabilities!
With their big selling season coming up – the holiday season – I wanted to take a good look at Tootie Pie’s financials and consider what we can expect for this year’s “BIG SEASON” particularly with their increased shipping range.
I think that 2006’s revenues can be discounted and Tootie will experience a super improved first ever new revenue stream – almost entirely and this is why:
1. They have seriously expanded their wholesale sales territory in three ways.
First, they have added U.S. Foods – which is a national food wholesaler. That’s new. Ben E. Keith and Sysco Food Service are regional food wholesalers. This gives them their first shot at a national footprint.
Second, Ben E Keith has added a West Texas distribution center that reaches into New Mexico. This will extend the sales territory of Tootie Pie.
Third, Sysco Foodservice is in a growth mode and is adding new customers every week.
They are selling their pies now through these food service wholesalers, many of whom are new for 2007:
Ben E. Keith Food Services San Antonio
Sysco Food Services of San Antonio
Ben E. Keith Food Services Fort Worth
Sysco Food Services of Austin
Ben E. Keith Food Services Oklahoma
Sysco Food Services of Houston
Ben E. Keith Food Services of Amarillo, Texas
U.S. Food Service – NATIONAL
2. Year over Year Wholesale Sales increased from twenty percent in 2005 to forty-five percent in 2006. I expect this will dramatically increase in 2007, and in particular during the last three months of 2007.
3. They have centralized into one location in Boerne, Texas, which reduces fixed overhead.
Tootie Pie has adopted the low cost – high return method of sales: Food Wholesalers. By using food wholesalers, Tootie Pie can manage their selling, general and administrative expenses.
As their fixed cost of manufacturing are being spread over an increased number of units sold and improvements in manufacturing efficiencies continue to reduce overall unit cost, I think we will see significantly improved margins, particularly in their big sales season coming up.
The bottomline result will be higher gross profits for each unit sold.
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). The common stock shareholder wins when management wins.
In this case: everyone wins!
Not to mention the ultimate consumer – delicious taste AND reducing trans fats is good for health and good for business.
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.