Invacare 2006 Annual Report Download - page 7

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PART I
Item 1. Business.
GENERAL
Invacare Corporation is the world’s leading manufacturer and distributor in the $8.0 billion worldwide market
for medical equipment used in the home based upon our distribution channels, breadth of product line and net sales.
The company designs, manufactures and distributes an extensive line of health care products for the non-acute care
environment, including the home health care, retail and extended care markets. The company continuously revises
and expands its product lines to meet changing market demands and currently offers numerous product lines. The
company sells its products principally to over 25,000 home health care and medical equipment providers,
distributors and government locations in the United States, Australia, Canada, Europe, New Zealand and Asia.
Invacare’s products are sold through its worldwide distribution network by its sales force, telesales associates and
various organizations of independent manufacturers’ representatives and distributors. The company also distributes
medical equipment and disposable medical supplies manufactured by others.
Invacare is committed to design, manufacture and deliver the best value in medical products, which promote
recovery and active lifestyles for people requiring home and other non-acute health care. Invacare pursues this
vision by:
• designing and developing innovative and technologically superior products;
• ensuring continued focus on our primary market — the non-acute health care market;
• marketing our broad range of products;
• providing the industry’s most professional and cost-effective sales, customer service and distribution
organization;
• supplying superior and innovative provider support and aggressive product line extensions;
• building a strong referral base among health care professionals;
• building brand preference with consumers;
• continuously advancing and recruiting top management candidates;
• empowering all employees;
• providing a performance-based reward environment; and
• continually striving for total quality throughout the organization.
When the company was acquired in December 1979 by a group of investors, including some of our current
officers and Directors, it had $19.5 million in net sales and a limited product line of standard wheelchairs and patient
aids. In 2006, Invacare reached approximately $1.5 billion in net sales, representing a 17% compound average sales
growth rate since 1979, and currently is the leading company in each of the following major, non-acute, medical
equipment categories: power and manual wheelchairs, home care bed systems and home oxygen systems.
The company’s executive offices are located at One Invacare Way, Elyria, Ohio, 44036 and its telephone
number is (440) 329-6000. In this report, “Invacare” and the “company” refer to Invacare Corporation and, unless
the context otherwise indicates, its consolidated subsidiaries.
THE HOME MEDICAL EQUIPMENT INDUSTRY
North America Market
The home medical equipment market includes home health care products, physical rehabilitation products and
other non-disposable products used for the recovery and long-term care of patients. The company believes that
I-3