Precious Moments, Inc.

Infobox Company
company_
company_name = Precious Moments, Inc.
company_type = Corporation
foundation = 1991
location = Carthage, MO
key_people = Jon Butcher (Chairman), Byron Norfleet (President/CEO), Scott Bryson (VP Sales), Frank Muci (VP Product Development), Jeff Biggos (VP Finance), Bret Moore (VP Marketing)
industry = Giftware
products = Gift and collectibles
revenue =
operating_income =
net_income =
num_employees =
parent =
subsid =
homepage = www.preciousmoments.com
footnotes =

Precious Moments, Inc. (a/k/a PMI) is an American company that distributes giftware such as porcelain figurines and plastic goods. The company was formed in 1989 by Samuel J. Butcher as a licensing company. It was registered again in 1991 as a design company. It did not start distribution of products until 2005. The company is currently owned by two of Butcher's sons Don and Jon. [cite-web|title=Corporate charters and annual reports|accessdate=2006-03-20|url=https://www.sos.mo.gov|author=Missouri Secretary of State]

Company

From the inception of products in 1977, a company by the name of Jonathan & David (a/k/a J&D), co-owned by Butcher and Bill Biel, was the sole distributor of goods. With the growing demand, J&D licensed the business to Enesco, Corp. in 1986. Within a few years J&D was dissolved and PMI was formed to expedite licensing agreements with Enesco.

During its contract with Enesco, PMI collected 15 million US dollars per year as minimum licensing fees, which amounted to 80% of PMI's gross revenues.

In 1998, PMI delegated its copyright licensing function to United Media (a/k/a UM), a wholly owned subsidiary of E. W. Scripps. Because of this, between 1998 and 2005, PMI held little rights to license its own intellectual property. With UM as its licensing agent, PMI licensed its property out to more than 150 manufacturers and vendors.

In 2003, Trivest Partners, LP, an American investment firm based in Florida, tried to buyout PMI, but instead the parties negotiated for a management contract for the licensing and theme park business. This brought in many new executives to the company, such as Dan Huwel. [cite-web|author=CIO Insight|title=Building a Company, and its IT, in 90 days|date=Oct. 5, 2005|url=http://www.cioinsight.com/print_article2/0,1217,a=161677,00.asp|accessdate=2008-08-15] Trivest's goal was to increase equity by corporate acquisitions and recapitalizations. [cite-web|url=http://www.trivest.com/index.asp|title=Trivest Overview|author=Trivest Partners, L.P.|accessdate=2008-09-05] . For PMI, this meant recapturing the Precious Moments brand name from Enesco, reacquiring all design assets such as illustrators and sculptors, and taking over all the fragmented manufacturing and distribution supply chains from the subcontractors. [cite-web|url=http://www.trivest.com/criteria_activities.asp|title=Investment Criteria|author=Trivest Partners, L.P.|accessdate=2008-09-05]

In 2004, PMI decided to cut itself off from Enesco two years before its licensing contract was up. The early move was due to falling sales by Enesco and its inability to generate the US$15 million minimum licensing fee. As the Precious Moments brand was still accountable for most of its revenues, Enesco tried to renegotiate with PMI - but with Trivest at its helm, the plan was to take the brand away from Enesco.

In July 2005, PMI became the distributor for the Precious Moments porcelain products in place of Enesco. In addition to its original licensing duties, the company's functions became product design, marketing, warehousing, and distribution. Now PMI and Trivest would target the supply chain. (PDF)

In January 2006, Jon Butcher stepped down as president and CEO and PMI welcomed Byron Norfleet (previously president of the Naturalizer division of Brown Shoe) as its new CEO and president. In August of the same year, PMI successfully circumvented Pearl and directly entered into a contract with the manufacturers that Fujioka had built. (PDF)

In 2007, in its third and final phase, began acquisition of design and manufacturing personnel from existing contractors. One by one, employees from the vendors and contractors left their employer to form new companies in preparation to take all business over.

In 2008, with the passing of Enesco's Eugene Freedman and Pearl's Yasuhei Fujioka, PMI had no more inhibitions to keep its intentions secret. PMI publicized the acquisition of sculptors from Fujioka's studio [cite-web|url=http://www.register123.com/event/profile/web/index.cfm?PKwebID=0x1137163964&varPage=location|title=Art & Collectibles|author=Walt Disney, Co.|accessdate=2008-03-01] , and openly started business with previously disqualified manufacturers.

Chapel

Also in 1989, Sam Butcher used his profits to build his longtime dream - a chapel in Carthage, Missouri. Honored as the father of Precious Moments, he appears at some events in Carthage and occasionally at large scale collector club events, like those which took place in May 2005 in Hawaii for the club's 25th anniversary. Sam Butcher currently resides in Aklan, Philippines and spends little time in the US.

The Precious Moments Chapel in Carthage was a theme park run by PMI. The "Chapel" itself was a structure within the park and was completed in 1989 [cite web|title=Samuel J. Butcher Story|last=Precious Moments, Inc.|url=http://www.preciousmoments.com/content.cfm/butcher_story|accessdate=2007-01-18] . The land it stood on was owned by the Sam Butcher Foundation - therefore personally owned by Sam Butcher.

The main attraction of the park was the "Fountain of Angels", incepted by Sam Butcher himself. The indoor attraction propelled water up to 80 feet high in sync to music, lights, and visual effects. Two separate performances were held every day from March through December.

In January 2007, PMI announced the discontinuation of its attractions including the "Fountain of Angels" due to "financial difficulties arising from diminished numbers in paid visitors due to higher gas prices and general decline of the brand". Other closures include the "Wedding Island", "The "RV Park", "The Gallery", and "Souper Sam’s". In Spring 2007, "The Gallery" was remodeled, renamed "The Samuel J. Butcher Museum" and reopened. [cite web|title=Precious Moments Park Changes|last=Precious Moments, inc.|url=http://www.preciousmoments.com/content.cfm/news_story?storyID=1331|accessdate=2007-06-29]

Products

Precious Moments is also known as a series of collectible porcelain bisque figurines. The original artwork was created by Sam Butcher in the 1970s. His artwork depict young children with distinctive teardrop-shaped eyes, and are often accompanied by inspirational messages which are also found on the products. Christian themes appear throughout his work, as Butcher is a born-again Christian.

The product most closely associated with the brand are the porcelain figurines that has been in the market since 1977. Under Enesco's distribution, at its peak sales, the product line saw forty times the sales of the next-best selling Precious Moments product line ("Enesco").

History

Sam Butcher originally started scribbling the now famous children with tear-drop shaped eyes on cards and letters to friends and families. Butcher and his friend Bill Biel started a small company under the name of Jonathan & David (J&D) to produce and sell his art on a line of cards and posters. J&D sold some greeting cards at flea markets but sales were meager and localized at first. The big break came at the Christian Booksellers Association Convention in Anaheim, California. Butcher remembers being so busy that they had to have neighboring vendors come over to help him and Biel fill orders.

Butcher's work was noticed by Enesco in 1975. Enesco searched for more than a year looking for a designer to satisfy Sam's vision. In 1976, they were finally able to find one. In 1977, the porcelain figurines were introduced to US retailers, and officially started its retail career in 1978.

At first, the porcelain figurines were sold under the J&D name, but during the mid 1980s (J&D under stamps can be found up until 1986), due to differences in business policies with Biel, J&D was dissolved. Enesco took over the distributorship from then on. Also around the same time, Butcher set up the "Sam Butcher Foundation" and "Precious Moments, Inc." By 1988, Enesco artists were drawing the production designs instead of Sam Butcher himself. This practice continued on after PMI's reign. [{cite-web|url=http://www.preciousmoments.com/content.cfm/how_pm_made|title=How Precious Moments Figurines Are Made|author=Precious Moments, Inc.|accessdate=2008=08-31}]

Years passed, and according to the trade magazine "Gift Beat", Precious Moments became one of the top porcelain collectible brand in the United States during the mid 1980s to 1990s. But in 1997, sales peaked and by the turn of the millennium, Enesco could not generate enough revenue to pay PMI it's minimum licensing fees of US$15 million. Enesco attempted to renegotiate with PMI but was unsuccessful, and in 2005, the two companies went their separate ways.

Collectors and clubs

During the Enesco years, the "Precious Moments Community" was approved as the only official online chapter for the Collectors' Club. [cite-web|title=Precious Moments Community|author=Precious Moments Community|url=http://www.preciousmomentscommunity.com|accessdate=2008-08-28]

As Enesco lost its license with PMI in 2005, PMI decided to re-evaluate its club strategies. All local chapters and international clubs were disavowed although still kept active by its members. In February 2006 PMI began accepting registration of local club chapters again in an open letter in their quarterly newsletter, "Moments".

ee also

* [http://www.preciousmoments.com/content.cfm/precious_moments_history_timeline Precious Moments History/Timeline]

ources

*Best Wishes of Boca. About Sam Butcher. http://www.bestwishes.net/bestwishes/absambutarof.html
*CIO Insight. "Building a Company, and its IT, in 90 days". Oct. 5, 2005. http://www.cioinsight.com/print_article2/0,1217,a=161677,00.asp
*Enesco, Corp. et.al. Precious Moments Catalog.
*Enesco, Corp. Official Website. http://www.enesco.com/
*"First shipment marks a new era for Precious Moments". [http://www.carthagepress.com Carthage Press] . Jul. 6, 2005.
*Martin, Laura C.; Jones, Carolyn (Photographer). Precious Moments Last Forever. Abbeville Press. Jan. 1, 1977 [ISBN 0-89660-083-1]
*Precious Moments Community. http://www.preciousmomentscommunity.com/
*Precious Moments Official Site. http://www.preciousmoments.com/
**Precious Moments, Inc. "Precious Moments History/Timeline". Retrieved Dec. 12, 2006. http://www.preciousmoments.com/content.cfm/precious_moments_history_timeline

Footnotes

External links

* [http://www.preciousmoments.com/ Precious Moments Official Site]
* [http://www.pmcdolls.com/ Precious Moments Company Dolls Official Site]
* [http://www.enesco.com/ Enesco Corporation Official Site]
* [http://www.roadsideamerica.com/attract/MOCARprecious.html Precious Moments Chapel at Roadside America]