Overview

Tootie Pie Company, Inc.

General Information

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 orders on their website. Their corporate segment serves businesses that purchase their pies as a way to promote their company through customer and employee appreciation programs. Their pies are shipped to the retail and corporate customers via third party carriers (Fed Ex, UPS) all over the United States. The wholesale segment is made up of regional and national broad-line foodservice distributors who purchase Tootie Pies and then resell them to the distributors. Tootie Pie Co's primary distributors are Ben E. Keith Foodservices, Sysco Foodservices, and US Foodservices. These distributors have primarily sold to the central and south Texas markets, although sales are beginning to occur in other markets in Texas and the surrounding states.

Ruby Lorraine "Tootie" Feagan Creator of Tootie Pie

Tootie Pie has been featured in numerous publications all over America. Writer John T. Edge, who journeyed across the country researching his book Apple Pie: An American Story, highlighted the Tootie Pie. He recognized it not only for its big Texas-size, but even more importantly for the pastry-like crust found only in Tootie’s pies. Tootie has also been featured on Texas Country Reporter, and in newspapers and magazine articles, such as Texas Monthly and The New York Times, for the past decade.

Ruby Lorraine “Tootie” Feagan was born in September of 1930 and grew up in Medina, Texas a small hill country town located about 50 miles Northwest of San Antonio on the banks of the Medina River. The history of Tootie Pies is a classic story of humble beginnings which through hard work, determination, and a loving hand has reached far beyond the kitchen and festivals where it was first introduced.

Like many of her generation, Tootie married young, and started raising a family. It was in those early years that she created these recipes for her family and friends. After the loss of her husband Bob in 1982, Tootie dreamed of having her own bakery to help support her family. Of course, a dream starts with a single step, so she baked and sold her pies from home.

In 1985, Tootie was offered a job for a large Louisiana company to cook at their corporate hunting lodge outside of Medina, TX. , Tootie used this opportunity to tweak and perfect her pie recipes for all of the visitors at the lodge. As word about her pies spread, she started baking pies for the local market in Medina alongside her job at the lodge.

Tootie would wake up at 3 A.M. to prepare pies for the market before going to her day job at the lodge in the winter months. People would drive from all over to Medina, asking locals where they could find one of “Tootie’s pies”. Thus the name “Tootie Pie” was born. Tootie remarried in 1988 to Jerry Feagan, an Air Force retiree, talented cook, and avid supporter of Tootie.

Over time, Tootie attracted loyal fans from all across the country. From New York to California, Tootie’s pies have become a favorite centerpiece for dinner tables, picnics, and even gift-giving. In fact, some people have been known to drive from out of state just to pick up and enjoy her

Disclosure: Pentony Enterprises LLC has been compensated $69,000 and 52,000 restricted shares directly from the company for profile coverage. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.

Sales Points

Sales Points

Strong, experience and focused management- CEO has extensive financial and early stage business development background; has assembled a strong management team, and leads the Company with a clear vision for growing the business in ways that enhance shareholder value.

Excellent, high quality product- Pies are carried by over 300 restaurants already since March, 2006; distributed through SYSCO Foods (a Fortune 500 Food Distributor) and Ben E. Keith Foods from family style restaurants and coffee shops to white table cloth high end establishments.

Strong Brand- Even though the Company is young, it has already exhibited “brand building” techniques critical to adding to Company value with close to 70% of end users identifying the products by name as “Tootie Pies”. Company CEO recognized this quality initially when envisioning the creation and development of the Company and all sales & marketing materials, both internal and external, utilizing sophisticated early stage “brand building” strategies.

Opening Distribution Channels- The “buzz word” in retail sales and distribution. To “open channels” through which other products in the pipeline can be sold. Very difficult today to have products that “open” new retailer restaurant locations and cause high levels of loyal customer retention.

Several Sales & Product Categories- Company is already achieving success in several sales categories; including wholesale (restaurant), retail (website, walk in) and corporate (gift giving, employee recognition, customer appreciation) and has follow up products already in development.

Organic & External Growth Plans- Company has proven, strong organic growth; growing revenues by 396% after only its first year of business! But also has external growth strategies to acquire existing bakery or coffee shop locations, in “roll up” fashion, that can be re-branded “Tootie Pie Company” company owned operations.

Franchise/Distribution Models- Company has plans to take the initial acquired “Company Op’s” and develop into models for further expansion and/or franchising. Multiple points of distribution in key demographic locations can result in sensible distribution points that lower shipping costs to end user customers.

Key “Up Stream” Qualities- Management recognizes the key elements and is executing on strategies that position the Company to be an attractive vehicle for shareholder appreciation and possible future acquisition by “up stream” food industry related companies.

Strong Balance Sheet & Finances- On a “fully diluted” basis, Company would carry approximately $0.40 per share in CASH ON HAND, making it an exceptionally well capitalized small cap company. Cash valuations, from an acquisition standpoint, can produce multiples of 3X to as high as 7X, in terms of CASH VALUE ALONE.

Impressive Gross Profit Margins- Company has already recognized manufacturing techniques that have improved gross margin from 23% to 64% during its first 12 months and will continue to implement manufacturing efficiencies that will improve product profit margins going forward.

Small Float, Clean Corporate Structure- Company incorporated in Nevada and was capitalized with $1 million in private equity (friends & angel investors), filed and obtained an “effective” SB-2 with US Securities & Exchange Commission (as of 1-08-07), with no reverse mergers, no convertible debts or debts of any kind. Only one class of common stock held by all shareholders, including management. Warrants held by initial investors convertible into already registered common stock through Company controlled call features for up to $4.5 million in additional equity.

Strong Upside Potential- The Tootie Pie Company Common Stock is clearly poised to provide shareholder with strong upside investment potential, combining traditional food related investor defensive economic protection with strong, steady, growing revenues; while also affording its shareholders significant upside potential provided through many avenues as discussed above. 

Disclosure: Pentony Enterprises LLC has been compensated $69,000 and 52,000 restricted shares directly from the company for profile coverage. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.

Management

Don Merrill

President & CEO

Mr. Merrill (47) has over twenty years experience in the capital markets, with an emphasis on early stage companies and venture capital. He began his career at Merrill Lynch, a respected financial services company, where he had over $200 million under management. Mr. Merrill has established a successful track record of recognizing and assisting early stage companies whose business opportunities represented significant potential for growth.

Mr. Merrill has provided his expertise to companies in many business sectors; including specialty retail, retail distribution, telecommunications, and high tech communications. Mr. Merrill has evaluated many young companies and assisted in raising tens of millions of dollars in both public and private equity.

Mr. Merrill has been married for over twenty years to his wife, Cathy. They have three children; Matt, (18) and Emily and Liz (15). They live in Boerne, a small community just outside San Antonio, Texas.

David Patterson

Treasurer & CFO

As a Certified Public Accountant, Mr. Patterson has twenty plus years experience in a variety of industries including public accounting, oil & gas, commercial banking (including extensive loan workouts and asset management), not-for-profit, foodservice brokerage, and other related experience including consulting in industries ranging from insurance to oil & gas.  He has succeeded in all sizes and types of organizations and positions from being an auditor for Touche Ross, an international CPA firm, to serving as an accounting supervisor for Tesoro Petroleum; from serving as a senior loan and asset manager for Gill Savings in San Antonio to being a senior loan workout officer and head of the commercial real estate department for Fleet Bank-New Hampshire; from being an owner and operator of a start-up foodservice brokerage company to having his own Consulting/CPA practice providing services on merger and acquisitions and contract CFO/Controller to serving as  a team leader for a Sarbanes Oxley compliance project for Baker Hughes, a large international oil & gas services company based in Houston, TX. 

Mr. Patterson has been married for thirty two years to his wife, Denine.  They have two boys Aaron (26) and Ragan (23).  They reside in San Antonio, Texas.  His hobbies include golf, singing and home renovation.

Jeff Bailey

Vice President of Corporate Development

Jeff joined JPMorgan Chase Bank following his graduation from Texas A&M University in May of 2001.  Upon joining the bank, Jeff participated in the Middle Market Analyst Training Program in New York City.  The training program included the study of market dynamics, financial accounting, corporate finance and credit underwriting. 

Upon completion of his training, Jeff joined the San Antonio Middle Market banking group in January of 2002.  As an Analyst and then an Associate, Jeff was involved in underwriting and extending credit to companies in numerous industries ranging from $10 million to $1 billion in revenues.  His roles involved research, financial analysis and presentation skills coupled with client support and marketing efforts.  With these responsibilities, Jeff assisted companies in securing financing for capital improvements, acquisitions and working capital needs. 

Bobbie Keese

Vice President of Baking Operations

Bobbie is the daughter of Tootie Feagan and has been involved in baking pies with her mom, off and on, for many years.  She worked and held numerous responsibilities for the Medina ISD from 1974 to 1982.   Following her work in the school district, she pursued the personal travel industry, joining with Chaparral Travel in 1982.  In 1987, she and three partners started a new travel agency in Kerrville, Texas named Adventure Travel, which is consistently voted the best travel agency in the hill country each year.  Bobbie worked full-time at the agency through 1998 and maintains her partner status to date. 

In 2001, Bobbie went back to Medina to take over the full operation of the Tootie Pie Company while her mother, Tootie, underwent hip surgery and recovery.  She handled all facets of the business on a daily basis for one year until Tootie’s return.  In addition to the above she has held positions at Billing Concepts as an account manager, and as an insurance agent for USAA in San Antonio.  In September of 2005, Bobbie joined Tootie Pie Co. to oversee all baking operations and quality control.

Kimberly Lee

Sales Director

Kimberly Lee (48) has over twenty years experience in sales and management with a very diverse background.  Entering the field of Interior Design and then as a business owner in the late 80’s, she worked with many prestigious builders in the San Antonio and South Texas area. 

She then spent a few years at home raising 4 boys: Kody (24), Travis (22), Austin (17), and Carson (15). While at home, she ran a child care facility where she kept infant to toddler aged children. This lead to home schooling her children over the next 8 years. 

Kimberly then had a very successful home-based business with Pampered Chef where she earned top sales and recruiting achievement in the company for 7 consecutive years.  She shared this business opportunity with others and built a team of over 100 consultants, while helping them to develop their own businesses through training and programs.

Kimberly has been married to Michael Lee for over 26 years. They have lived in Boerne, Texas for 10 years.

Disclosure: Pentony Enterprises LLC has been compensated $69,000 and 52,000 restricted shares directly from the company for profile coverage. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.

Quotes & News

Disclosure: Pentony Enterprises LLC has been compensated $69,000 and 52,000 restricted shares directly from the company for profile coverage. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.

Contact Info

Contact Info

Tootie Pie Company, Inc.

129 Industrial Drive
Boerne, TX 78006

Phone:

(210) 737-6600

Fax:

(210) 237-4750

Website:

www.tootiepieco.com

Disclosure: Pentony Enterprises LLC has been compensated $69,000 and 52,000 restricted shares directly from the company for profile coverage. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.