Rayovac 2002 Annual Report Download - page 27

Forward Looking Statements
Certain of the information contained in this Annual Report is not historical and may include “forward looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements may be identified by such forward looking language as “expects,” “anticipates,” “intends,”
“believes,” “will,” “estimate,” “should,” “may” or other similar terms. In reviewing such information, you should note that such statements are based upon
current expectations of future events and projections; our actual results may differ materially from those set forth in such forward looking statements.
Important factors that could cause our actual results to differ materially from those contained in this Annual Report include, without limitation,
(1) competitive promotional activity or spending by competitors or price reductions by competitors, (2) the introduction of new product features or
technological developments by competitors and/or the development of new competitors or competitive brands, (3) the loss of, or a significant reduction
in, sales to a significant retail customer, (4) difficulties or delays in the integration of VARTA’s operations, (5) our ability to develop and successfully
introduce new products and protect our intellectual property, (6) our ability to successfully implement, achieve and sustain manufacturing and distribu-
tion cost efficiencies and improvements, and fully realize anticipated cost savings, (7) the impact of unusual items resulting from the implementation of
new business strategies, acquisitions and divestitures or current and proposed restructuring activities, (8) the cost and effect of unanticipated legal, tax or
regulatory proceedings or new laws or regulations (including environmental regulations), (9) changes in accounting policies applicable to our business,
(10) interest rate, exchange rate and raw material price fluctuations, (11) the effects of general economic conditions, including inflation, labor costs and
stock market volatility, or changes in trade, monetary or fiscal policies in the countries where we do business, and (12) the effects of political or eco-
nomic conditions or unrest in Latin America and other international markets.
Some of the above-mentioned factors are described in further detail in the section entitled “Risk Factors” beginning on page S-10 of our Prospectus
Supplement (to Prospectus dated June 20, 2001) filed pursuant to Rule 424(b)(5) with the Securities and Exchange Commission on June 21, 2001.
Other factors and assumptions not identified above were also involved in the derivation of the forward looking statements contained in this Annual
Report. If such other factors impact our results or if such assumptions are not correct or do not come to fruition, our actual results may differ materially
from those projected. We assume no obligation to update these forward looking statements to reflect actual results or changes in factors or assumptions
affecting such forward looking statements.
The following is management’s discussion of the financial results, liquidity, and other key items related to the Company’s performance. This section
should be read in conjunction with the “Summary of Financial Performance”, “Financial and Operating Highlights”, and our Consolidated Financial
Statements and related notes in the “Financial Statements” section of this report. Certain prior year amounts have been reclassified to conform to cur-
rent year presentation. All references to 2000, 2001, 2002, and 2003 refer to fiscal year periods ended September 30, 2000, 2001, 2002, and 2003,
respectively.
INTRODUCTION
Rayovac Corporation is one of the oldest battery companies in the United States, founded in 1906 as the French Battery Company. Rayovac’s product
portfolio includes alkaline, rechargeable, and heavy duty batteries, hearing aid batteries, lighting products, and other specialty batteries.
Our financial performance is influenced by a number of factors including: general economic conditions and trends in consumer markets; our overall
product line mix, including sales prices and gross margins which vary by product line; and our general competitive position, especially as impacted by
our competitors’ promotional activities and pricing strategies. These influencing factors played significant roles in our financial results during 2000,
2001 and 2002.
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Rayovac Corporation and Subsidiaries