Invacare 2015 Annual Report Download - page 5

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quarter and positive free cash flow for both the fourth quarter and year. These were signs that our new focus was beginning to
work, compelling us to pivot and increase investments to fund the transformation.
In the first quarter 2016, we raised $150 million of gross proceeds from a convertible debt offering to fund the acceleration
of our transformation, grow related working capital, invest in ongoing quality initiatives, manage through our historic seasonality
and offset continued foreign currency pressure. More specifically, we are applying the quality improvements we are making at
our headquarters and manufacturing facility in Elyria, Ohio broadly across our global network. These investments will give us a
competitive advantage. To accelerate our priority of profitable growth, we will increase the size of our global sales force and
support our team to be more focused on clinically complex products. To increase awareness and provide more access to our devices,
we will invest in more training, an expanded clinical staff and further commercial and marketing activities. We will explore ways
to make our operations more efficient and to better align our infrastructure for profitable growth. We also will build on our strong
legacy of innovation with investments in engineering and technology, potentially including acquisitions.
Building a strong team
A turnaround plan is only as good as the team executing it. To strengthen our team of associates, we will continue to add
talent, improve performance management and change alignment where it makes sense. In 2015, we added two new global
engineering leaders and shifted both engineering and global product development to report directly to me. This and other changes
will advance the company’s understanding of consumers’ needs and improve our ability to design new clinical solutions. We added
a new corporate leader of quality assurance and regulatory affairs in January 2016 to lead the next phase of the company’s enterprise-
wide quality improvements, supported by other changes we made in 2015. In addition, we hired and promoted strong commercial
leaders who will lead customer engagement within our new strategy.
In parallel, our board of directors has been undergoing its own transformation. Since 2014, six directors have retired from
the board, including A. Malachi Mixon, III, Invacare’s founder, who led the company through much of its history and who retired
in 2015. These retiring board members had an average of 20 years’ tenure. As a result of these changes, the board has added four
new business executives who bring broad perspectives on the shifts taking place in the medical device environment and who have
backgrounds in operational excellence. We are fortunate to have a board that is active and involved. I communicate often with our
directors. They provide comprehensive regulatory oversight, solid financial acumen and audit review, and give helpful
compensation and management development counsel. As chairman, I also benefit from having a board structure with a strong
independent lead director who creates an environment of good corporate governance and who sets the tone for the board’s open
and constructive engagement, guidance and oversight. Our shareholders are well served by the leadership, expertise and commitment
of our directors.
Our team has a clear vision of the future. We have an abundance of opportunities to improve the lives of the people who
need our products and to improve our financial results. The path ahead will include some turbulence with changes in reimbursement,
expanding regulations and competitive challenges. With our clear priorities, strong management team, dedicated associates and
renewed focus on putting the patient at the center of everything we do, we are creating a company that will produce excellent
results and sustainable market leadership over time.
I am excited to be at Invacare and to be part of what is ahead. Our associates, shareholders and customers should be excited,
too. Invacare is a company with a great legacy in healthcare and a bright future.
Sincerely,
Matthew E. Monaghan
Chairman, President and Chief Executive Officer
This letter contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. Please see our statement regarding “Forward Looking Information” on Page I-15 of the 2015
annual report accompanying this letter.