DEER PARK, N.Y., Jan. 18, 2011 /PRNewswire/ -- Consumer Product Services (OTC Bulletin Board: CPSV) today announced major 2011 growth to its North American reverse supply chain business with the addition of new business partners and expansion of current partners in its core business segments of appliance remanufacturing, outdoor power equipment and floor care.
Combined, the selection of CPS as the exclusive reverse supply chain management partner constitutes over a 100% in unit and top line growth over 2010. The awards are a reflection on the recently completed CPS network of five (5) US locations and a planned Q2 2011 facility in Canada. Several of these opportunities include both the US and Canada solutions.
"These categories of appliance, outdoor power and floor care are the foundation for CPS strategic growth in North America," said Mike Edwards, Senior Vice President for Supply Chain and Logistics at CPS. "Our goal is to bring more single source solutions, financial models, scalability and flexibility to clients that leverage our unique facility network, IT network, quality engineering, financial strength and remanufacturing expertise as 'best in class.' These are enormous underserved market segments with substantial opportunities for increased recovery dollars, cost reduction as well as improved asset utilization."
Appliances represented 80% or $3.75M in overall revenues against the 2010 business plan. This business segment is contracted to grow by over 100% in 2011 to $7.5-$8.0M. CPS projects that the company's position in this category will level to represent only 40-50% of the overall revenue stream due in large part to the more strategic growth of the other core categories. Outdoor Power Categories explosive growth to $2.5-$2.9M in revenue, generating 20% of the CPS business is fueled by recent contracts developed late in Q4 of FY 2010. The Floor Care Category will expand on the North American Facilities Platform to $2.0-$2.4M and represent between 15-18% of revenue, while Small Appliances and Other Opportunities will expand significantly from $200K to between $2.0-$3.5M and become 20-25% of the gross business mix. The resulting 2011 fiscal year's growth is a significant 300% based on existing contracts and pipeline growth.
Each foundation segment is experiencing dynamic growth in 2011 through the utilization and effectiveness of the multiple location North American Solutions developed strategically through FY 2010. The flexibility in meeting client requirements in new and creative ways as well as companies recognizing this is not a core competency, but indeed, a completely separate supply chain management challenge that is difficult to support with existing resources and enterprise systems will allow CPS to continue to build in these key segments over the course of FY 2011.
The CPS "Single Source Solution" consists of services of Supply Chain Planning, Customer Relationship Management,(CRM) Reverse Logistics Solutions, Return Center Management Engineering/Quality Assurance; Second Channel Sales Management, Asset recovery, Warranty and Remanufacturing services. All products processed by CPS are either re-sold, re-manufactured or recycled with clients having the opportunity to participate in all three revenue streams based on the financial model selected. These models range from outright purchase to gain sharing. Financial models are tailored to the client's unique requirements.
"There is no one size fits all," said Alan Michael Executive Vice President for Business Development and a former merchant for appliances at The Home Depot with 30 years of retail experience. "Due to the unique executive team available within CPS today, we bring business experience from our past careers as manufacturers, retailers and service providers. The CPS team works as a solutions provider with our client's executive sponsors to our mutual benefit. CPS uniquely relates to these customers needs and listens to what our clients express as program requirements, then builds the solution to suit the situation. Competitors are unable to duplicate this model as they have not typically filled these executive positions within retail, manufacturing, and services. This has become pivotal to our success."
Demonstrating value, competitive advantage and flexible financial solutions has allowed CPS to capture Marquee Brands and we have barely scratched the surface," stated Mr. Rick Hamilton, the Company's President, who joined the Company in 2009 after a successful career which spanned 28 years working with major manufacturers selling product into retail channels.
Darren Krantz, the Company's founder and CEO, had this comment regarding the company. "We have built a model that responds to the environmental concerns caused by the improper disposal of millions of items returned to stores annually and to millions of dollars in fines that are being levied for illegal dumping into landfills. Remanufacturing is the ultimate form of recycling.
"The Company's business model is a solution that is a win for all parties; the manufacturer, the retailer and for CPS. "We are the ultimate green recycler. We have built and tested and are executing a new model, one designed to allow manufactures to recapture millions of dollars and ensuring regulatory compliance that are now at risk employing old methodologies for the handling of returned items."
About Consumer Product Services
Consumer Product Services (CPS) is a North American Reverse Logistics Product Management company based in Deer park New York providing a "Single Source Solution" for Supply Chain Planning, Customer Relationship Management,(CRM) Reverse Logistics Solutions, Return Center, Engineering/Quality Assurance; Second Channel Sales Management, Asset recovery, Warranty and Remanufacturing services to Domestic and International manufacturers of electro-mechanical products such as, but not limited to small & major appliances, power tool, floor care and outdoor power equipment products. CPS currently operates a network of five US return center and remanufacturing facilities.
This document may include statements that constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect", "anticipate", or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company's ability to secure capital to fund current operations; future trends in the returns business; financial, environmental or remanufacturing difficulties affecting the Reverse Logistics and Remanufacturing programs; uncertainties surrounding estimates of product returns; and other risks associated with the Company's business. By making these forward-looking statements, CPS undertakes no obligation to update these statements for revisions or changes in the future.
SOURCE Consumer Product Services