Sunbeam 2004 Annual Report Download - page 5

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Second, we believe there is enormous potential to improve the underlying operating performance of AHI’s Coleman and
Sunbeam businesses. Both of these opportunities should drive margin expansion towards our stated goal of bringing
Jarden’s overall EBITDA margin back above 15% within five years, a performance that would yield healthy compound
growth and a doubling of our earnings per share over the same time horizon.
Operating highlights during the year were led by a record number of new product introductions. These included our
World Poker Tour™poker kits, a new line of premium plastic cutlery under the Signature brand, a line of FoodSaver®
accessories including the WineSaver,™a new category of safety matches under the Diamond MatchGuard®brand and a
unique, easy-to-hold Loew-Cornell®paint brush line. New product introductions are the lifeblood of any consumer
products company and we were delighted that 2004 demonstrated that these products can drive organic top-line growth.
Despite the impact of significant raw material cost increases, all of our business segments delivered record levels of
sales during 2004. To accomplish this, while at the same time protecting margins, we had to conduct business smarter
and more cost effectively than ever. We accomplished this by building on synergies arising from the growth of Jarden and
programs within our manufacturing facilities to continue to increase productivity. We run Six Sigma and other programs
to improve operating performance in our manufacturing facilities and have created our own culture of cost consciousness
and efficiency across all of our businesses. Dollars saved on manufacturing or sourcing products can be reinvested in new
product development to help grow the business in the future.
While we have been aggressive in pursuing strategies to grow the company, we have maintained a conservative
balance sheet, financing both acquisitions and organic growth in order to ensure financial flexibility. To this end, we
placed $300 million of preferred equity and $50 million of common equity with Warburg Pincus and
Catterton Partners as part of the AHI acquisition. We are delighted to have Warburg Pincus and
Catterton as shareholders and believe that they will help create value for Jarden in the future
beyond the provision of capital.
The successful operation of our business segments is driven by the collective skills, knowledge
and commitment of our employees worldwide and the pride they take in their work. As we
emphasize every year, our most important assets go home every night. Many of our brands have
been in existence for over 100 years and have become part of the fabric of the communities in
which they operate, as well as the hearts of the consumers who buy our products. We take
our responsibility to the future of these businesses as seriously as we take our
commitment to shareholders to deliver exceptional performance. We have
entered 2005 with enormous enthusiasm as well as a detailed action plan for
the tasks that lie ahead and I look forward to reporting to you on our progress.
Respectfully yours,
Martin E. Franklin
Chairman and Chief Executive Officer
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