WOODLAND HILLS, Calif., Nov. 26 -- Just days after announcing completion of its restructuring plan, Woodland Hills, CA-based gift and licensing company APPLAUSE LLC today announced that it will post profits for the fourth quarter of 2001. This marks the first time the company -- which is privately held -- has shown a quarterly profit in more than four years.
In addition, Applause LLC is projecting significant profits for 2002.
These profits are the direct result of an overall business plan implemented by chairman and CEO Bob Solomon after he acquired the assets of Applause, Inc. and formed Applause LLC in March of this year.
"When I formed Applause LLC, I examined the current business model and determined how to make it responsive, more efficient and more successful," said Solomon. "Through higher margins, reduced inventory, lower fixed costs, company restructuring and an improved sales mix, we've begun to turn the company around."
"Applause, like other companies, needs to solidify and stabilize for 2002," he added. "With a cautious economy, it's important we pay attention to our core competences and price points -- both are key to the consumer."
Applause plans on expanding within the industry in 2002 by creating a much more balanced portfolio, including:
- An equal combination of premium items, licensed products and retail accounts (classic, entertainment and trend);
- The addition of more figurines, drinkware, stationary, novelty and lower price point items to the company's plush-based inventory;
- A stronger mix of customers buying in better breadth and depth, such as PEZ, Blockbuster and Universal Theme Parks.
Solomon also announced the addition of two respected industry veterans, and Applause alumni, to the team -- Gary Trumbo and Jack Morrow.
Trumbo has more than 30 years experience in the gift and toy market -- including 25 years at Applause. During his career, Trumbo has worked in the marketing, product development, sales and licensing sectors.
After leaving Applause in 1994, he went on to be executive vice president at Equity Marketing.
As a consultant and interim president at Applause, Trumbo will be responsible for the continued improvement of the company model and business practices.
In his 20 years at Applause, Jack Morrow held nearly every sales and marketing position at the company. In 1995, he formed licensing company Rainmaker with Bob Solomon, before leaving to become an independent consultant.
At Applause LLC, Morrow will oversee worldwide licensing, and be responsible for developing trends and exclusive properties.
"I've worked closely with Gary and Jack for several years and consider them both to be valued friends and associates," noted Solomon. "With their support and expertise, I feel we are poised to elevate the Applause name and penetrate the worldwide marketplace in 2002 and beyond."
"There's a new resurgence of sentiment in the world today," he added, "and there's no better or more important time to be in the love business than right now."
Applause LLC is a leading plush, gift and licensing company, and a preferred partner amongst major entertainment companies such as Disney, DreamWorks, New Line Cinema and PEZ, among others. Through high-quality, character-correct product, in-store merchandising and market penetration, Applause is committed to bringing licensed products and everyday Dakin plush to life.
